Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 87

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 87
---
 be resilient despite other pressures including inflation and higher interest
                                            rates. (Associated Press August 29, 2024)

·The
                                            Federal Reserve cut interest rates by 50 basis points in September 2024 and by 25 basis points
                                            in December 2024.

·The
                                            Russell Microcap index has returned an average of 13.7% during 2024. (Royce Investment Partners) 

Page 37

Negative
trends:

·The
                                            conflict in Gaza has disrupted the entire Middle East region since October 7, 2023. The conflict
                                            has expanded to neighboring nations such as Syria, Lebanon and Iran. The unrest and turmoil
                                            in the region is viewed unfavorably by the regional business community.

·General
                                            economic conditions in our geographic markets; inflation, geopolitical tensions, including
                                            trade wars, tariffs and/or sanctions in geographic areas; and global conflicts or disasters
                                            that impact the global economy or one or more sectors of the global economy.

·The
                                            imposition of tariffs on China and threatened tariffs on other US trading partners may affect
                                            the price of consumer goods including vehicles amongst others, negatively affecting the profitability
                                            of many of our customers.

·Political,
                                            monetary, and economic challenges and a higher inflation rate than other regional countries
                                            impacting Pakistan exports.

·Inflation
                                            and higher interest rates globally have greatly increased the cost of doing business, including
                                            salaries and benefits worldwide, affecting profitability.

·War
                                            and hostility between Russia and Ukraine continue to foster global economic uncertainty.

·The
                                            geo-political environment in South Asia will continue to influence Pakistan’s economic
                                            prospects. Pakistan’s political uncertainty has caused higher inflation with constant
                                            pressure on its currency being devalued against the US Dollar. According to a report issued
                                            by the World Bank, while marginal economic growth is expected in Pakistan, implementing an
                                            ambitious and credibly communicated economic reform plan is critical for a robust economic
                                            recovery. There is no guarantee that such reforms will be implemented. See Press Release,
                                            dated April 2, 2024, World Bank.

·The
                                            US and EU have placed tariffs on a range of high-tech products from China including the US
                                            placing 100% tariffs on EV vehicles and 25% tariffs on EV batteries imported from China.
                                            (Center for Strategic and International Studies June 28, 2024). The US imposed additional
                                            tariffs on China in February