Usman Khan, Author at The Boardroom

Auto Sector Profit Expected Jump 35% in Q2-FY26

Usman Khan / January 23, 2026

Pakistan’s automobile sector is experiencing a strong revival in fiscal year 2026 (FY26), with leading brokerage firm Topline Securities projecting robust profitability gains for major listed players in the second quarter (Q2 FY26, October–December 2025). According to Topline’s latest preview released on January 23, 2026, the “Topline auto universe”—primarily encompassing key assemblers like Indus Motor Company (INDU) (Toyota), Honda Atlas Cars (HCAR), and others—is expected to deliver 35% year-on-year (YoY) and 19% quarter-on-quarter (QoQ) growth in profitability. This surge is primarily fueled by a sharp 45% YoY increase in sales volumes, reaching approximately 27,821 units during the quarter, alongside a 36% QoQ rise.The momentum builds on a broader sector recovery. In the first half of FY26 (July–December 2025), total sales of cars, light commercial vehicles (LCVs), pickups, and vans climbed 46% YoY to 88,322 units, up from 60,676 units in the same period last year. This rebound follows several years of contraction triggered by high interest rates, currency volatility, and import restrictions.December 2025 showed solid demand despite a typical year-end slowdown, with passenger car sales rising 35% YoY to around 13,300 units, though down 14% month-on-month due to registration delays and buyers deferring purchases into the new calendar year. Two-wheeler sales remained particularly strong, supported by dominant players like Atlas Honda.Key performers in Q2 FY26 are anticipated to include:Indus Motor Company (INDU), assembler of Toyota vehicles, which is projected to post around 32% YoY earnings growth. Strong recovery in models like Corolla, Yaris, and Cross—along with SUVs like Fortuner and Revo—has driven volumes higher, benefiting from improved gross margins and new model introductions. Honda Atlas Cars (HCAR), showing even sharper momentum with expected 34% YoY (or higher in some estimates) earnings per share improvement. Honda’s sedans (Civic and City) and SUVs (BR-V, HR-V) have seen significant uptake, reinforcing its position in the premium segment. The sector’s turnaround is underpinned by several favorable macro factors: easing interest rates, which have revived auto financing; relative PKR stability; declining inflation; and improved consumer confidence. New model launches, including hybrids and more affordable variants, have also played a role in stimulating demand.However, challenges persist. December’s MoM dip highlights seasonal patterns, while rising SUV imports—particularly from Chinese brands like Changan, Haval, and emerging players—signal growing competition and potential risks from import dependency in 2026. Analysts note that while Japanese brands (Toyota, Honda, Suzuki) still dominate, Chinese assemblers are gaining share through competitive pricing, better features, and localization efforts.Topline’s outlook aligns with industry-wide optimism, as the sector contributes meaningfully to large-scale manufacturing (LSM) growth and reflects broader economic stabilization. With policy continuity and sustained low borrowing costs, the auto industry could extend its recovery trajectory, though vigilance on external account pressures and import dynamics remains essential.

Politics

Fawad Rana Wins Case to Reclaim Lahore Qalandars Control or Rs 2.3B Pay out Ordered

Usman Khan / January 23, 2026

In a major development shaking the Pakistan Super League (PSL), an arbitration tribunal has ruled in favor of Fawad Ahmed Rana, the founder and former owner of the Lahore Qalandars franchise, in a bitter family dispute over ownership control. Read More: https://theboardroompk.com/afghanistan-limits-players-to-three-foreign-t20-leagues-annually-mandates-apl-participation/ The ruling, issued on January 21, 2026, by retired Justice Maqbool Baqer, declares the transfer of majority shares in Kausar Rana Resources (Pvt) Limited (KRR)—the parent company holding the Lahore Qalandars franchise—to Fawad’s younger brothers, Atif Rana and Sameen Rana, as legally void and unauthorized. The dispute dates back to around 2020, when Fawad Rana, Managing Director of Qatar Lubricants Company (QALCO), allegedly transferred shares to make Atif the majority holder. This move was purportedly motivated by geopolitical tensions, as the UAE had severed ties with Qatar, complicating QALCO’s involvement in UAE-based activities related to the PSL. However, Fawad and QALCO claimed the transfers were fraudulent, fabricated, and lacked proper authorization. Evidence presented included Fawad’s travel history and passport records proving he was not in Pakistan when the disputed share transfer deeds were supposedly signed. The arbitration process followed prolonged litigation through the Lahore High Court and Supreme Court of Pakistan, which emphasized pro-arbitration policies and alternative dispute resolution to ease court burdens. The tribunal found critical flaws in the respondents’ case, invalidating the share transfers and siding with Fawad Rana’s position. Under the award, Atif and Sameen Rana have been ordered to either return the 51% majority shareholding in KRR to QALCO (effectively restoring control to Fawad Rana) or pay QALCO Rs 2.296 billion (approximately $8.2 million), plus markup dating back to June 2020. With accumulated interest, the total liability could exceed Rs 3 billion. The payment or share return must occur within 45 days of the ruling. This decision comes at a critical juncture for the Lahore Qalandars, just ahead of preparations for PSL Season 11 in 2026, including player auctions and team planning. The franchise, one of the PSL’s most popular teams, has faced uncertainty amid the ongoing family feud. Fawad Rana, widely credited with building the Qalandars’ brand and early success, has been absent from management in recent years while his brothers handled operations. Reactions from the cricket community have been swift, with many fans expressing excitement over the prospect of Fawad’s return, often referring to him as the “king” who elevated the team’s profile. The current management has indicated plans to appeal the arbitration award, signaling the dispute may not end here. The ruling underscores the complexities of family-run businesses in high-stakes sports franchises and could lead to significant changes in the Lahore Qalandars’ direction. Stakeholders await whether the Rana brothers will comply, pay the substantial sum, or pursue further legal avenues, all while the PSL season looms.

Pakistan

Pakistan Commits Rs. 100.36 Billion to Electrify Transport by 2030 Under NEVP

Usman Khan / January 21, 2026

The Government of Pakistan has committed a substantial Rs. 100.36 billion in total subsidies through 2030 to accelerate the country’s shift toward cleaner transport under the New Energy Vehicles Policy (NEVP) 2025–2030.This ambitious initiative covers electric bikes, rickshaws, loaders, cars, buses, and trucks, aiming to reduce dependence on imported fossil fuels, curb carbon emissions, and foster domestic EV manufacturing. Read More: https://theboardroompk.com/how-this-pakistani-man-levelled-up-post-layoff-with-library-study-and-networking-in-canada/ The policy marks a pivotal step in addressing Pakistan’s energy and environmental challenges. The transport sector consumes around 79% of the nation’s oil demand, contributing heavily to foreign exchange outflows and air pollution in urban centres like Karachi and Lahore, according to Asim Ayaz, General Manager of Policy at the Engineering Development Board. By promoting electric vehicles (EVs), particularly two- and three-wheelers that dominate local mobility, the NEVP targets 30% of new vehicle sales to be electric by 2030. This is expected to save billions in fuel imports—potentially up to $1 billion annually—while cutting greenhouse gas emissions by millions of tons and creating green jobs in manufacturing and infrastructure. The flagship Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, implemented by the Engineering Development Board (EDB) under the Ministry of Industries and Production, is now operational. Phase-I, launched following e-balloting in late 2025, provides subsidies for 41,000 vehicles: 40,000 electric bikes and 1,000 electric rickshaws/loaders. Successful applicants under the Self Finance Scheme receive up to Rs. 80,000 directly reimbursed by the State Bank of Pakistan after vehicle purchase and registration. The Bank Lease Scheme offers subsidized installments for easier access. As of January 21, 2026, subsidy transfers have commenced for the first verified beneficiaries, signaling the scheme’s move from planning to real-world impact. Coordination among EDB, State Bank, PITB, NADRA, banks, and approved manufacturers ensures transparent, digital verification. Only registered EVs qualify, preventing misuse. Phase-II will expand to an additional 78,170 vehicles with Rs. 8.95 billion in subsidies during 2025–26, building momentum toward broader categories like cars, buses, and trucks. The NEVP also envisions infrastructure growth, including 3,000 charging stations nationwide by 2030, battery swapping, and vehicle-to-grid integration to utilize surplus electricity. Beneficiaries have welcomed the move, citing affordable cleaner mobility amid rising fuel costs. For many in low- and middle-income groups, especially rickshaw drivers and delivery riders, subsidies make EVs viable alternatives to petrol vehicles. Experts view this as a strategic response to global trends and local needs—lowering healthcare costs from pollution, boosting local industry (with dozens of licensed EV manufacturers), and aligning with renewable energy growth. Challenges remain, including charging infrastructure rollout and battery supply chains, but the subsidy commitment underscores sustained government resolve. This policy positions Pakistan to join regional EV leaders, transforming transport into a sustainable, efficient sector for future generations.

Business

Pakistan Crosses $400M Monthly IT Exports Barrier in Dec 2025 – Up 26% YoY

Usman Khan / January 19, 2026

Pakistan’s IT sector has achieved a remarkable milestone by recording its highest-ever monthly exports of US$437 million in December 2025, according to the latest data released by the State Bank of Pakistan and analyzed by Topline Securities. This figure represents an impressive 26% year-on-year increase and a strong 23% month-on-month surge compared to November, marking the first time monthly IT exports have crossed the $400 million threshold and significantly surpassing the previous 12-month average of $341 million. The robust performance in December has helped push first-half FY26 IT exports to approximately US$2.2 billion, reflecting around 20% growth over the same period last year. Several factors have contributed to this acceleration, including the continued expansion of the client base particularly in the GCC region, the State Bank’s relaxation of foreign currency retention limits to 50%, the introduction of the Equity Investment Abroad facility allowing exporters to invest up to 50% of proceeds overseas, and the relative stability of the Pakistani rupee which has encouraged more timely and higher repatriation of profits. Net IT exports (after adjusting for imports) also showed exceptional strength, reaching US$377 million in December — a remarkable 70% year-on-year and 22% month-on-month increase — well above the recent 12-month average. Analysts at Topline Securities remain optimistic about the sector’s trajectory, projecting 18–20% growth for the full FY26, which could bring total IT exports close to the government’s ambitious US$5 billion target. Looking further ahead, the ‘Uraan Pakistan’ economic vision has set an even more aspirational goal of US$10 billion in IT exports by FY29. Within the listed IT space, Systems Limited (SYS) continues to stand out as a preferred investment pick, currently trading at attractive forward valuations of approximately 20.9x for 2025E and 13.7x for 2026E, making it one of the more compelling opportunities in Pakistan’s fast-growing technology sector.

Business

Pakistan Records $135m Foreign Investment Outflow in Dec’25 Amid 43% Half-Year Decline

Usman Khan / January 19, 2026

Pakistan’s foreign direct investment (FDI) landscape showed mixed signals in the second half of 2025, with a notable net outflow recorded in December, according to data highlighted by leading brokerage firm Arif Habib Limited.In December 2025, the country experienced a net FDI outflow of USD 135 million, reversing the inflow trend seen in previous periods. This development comes amid ongoing economic stabilization efforts and global investor caution.Despite the monthly dip, certain countries remained key contributors to positive FDI flows. China, Hong Kong, and the UAE collectively accounted for 86% of the net inflows during the month, underscoring their continued strategic interest in Pakistan’s market despite broader challenges. For the first half of fiscal year 2026 (July–December 2025), net FDI inflows declined sharply by 43% year-on-year, dropping to USD 808 million from USD 1,425 million in the corresponding period of FY25. The contraction reflects a combination of factors, including domestic policy uncertainties, global economic headwinds, and delays in major project executions.Analysts view the December outflow as a temporary setback rather than a structural shift, given Pakistan’s improving macroeconomic indicators. The Pakistan Stock Exchange (PSX) has demonstrated resilience, with the benchmark KSE-100 Index hovering around 187,000 points as of mid-January 2026, supported by strong institutional buying, expectations of monetary easing, and progress in fiscal reforms. The market’s robust performance in early 2026—marked by multi-thousand-point rallies—signals investor optimism in long-term recovery. Experts emphasize the need to accelerate reforms in ease of doing business, energy sector stability, and privatization initiatives to reverse the FDI downturn. Sustained inflows from friendly nations like China (via CPEC projects) and Gulf partners could provide a buffer, while addressing structural bottlenecks remains crucial for attracting diversified foreign capital. The State Bank of Pakistan and economic policymakers are closely monitoring these trends, with hopes that improved external accounts and policy predictability will restore positive momentum in coming quarters.

Author name: Usman Khan

Auto Sector Profit Expected Jump 35% in Q2-FY26

Pakistan Commits Rs. 100.36 Billion to Electrify Transport by 2030 Under NEVP

Pakistan Crosses $400M Monthly IT Exports Barrier in Dec 2025 – Up 26% YoY

Pakistan Records $135m Foreign Investment Outflow in Dec’25 Amid 43% Half-Year Decline

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