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PIA Privatization Auction Draws Strong Investor Interest
Pakistan

PIA Privatization Auction Draws Strong Investor Interest

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PIA privatization auction activity intensified as the Arif Habib–led consortium emerged as the highest bidder in the latest and most closely watched phase of Pakistan International Airlines’ (PIA) privatization process. The live auction, broadcast nationwide from Islamabad, marked a significant milestone in the government’s ongoing efforts to reform and revive state-owned enterprises through private-sector participation. The consortium submitted a Rs115 billion bid, outperforming other major contenders and reinforcing market confidence in the national flag carrier’s long-term potential under private management. PIA Privatization Auction Results Highlight Competitive Bidding The competitive nature of the PIA privatization auction was evident as several prominent business groups participated in the televised bidding process. Following the Arif Habib–led consortium, the Lucky Group placed a strong bid of Rs101.5 billion, while Air Blue submitted an offer of Rs26.5 billion. The wide range of bids underscored differing valuations and strategic approaches toward PIA’s future, while also reflecting strong interest from Pakistan’s corporate sector in aviation, logistics, and infrastructure-related investments. Live Televised PIA Privatization Auction Boosts Transparency One of the standout features of this phase of the PIA privatization auction was the decision to conduct the process live on television. The broadcast allowed investors, analysts, and the general public to witness real-time bidding, reinforcing transparency and accountability—key concerns in previous privatization efforts. Government officials emphasized that the live format was designed to build public trust and demonstrate fairness in the bidding process, a move that was widely welcomed by market observers and economic commentators. Why the PIA Privatization Auction Matters for Pakistan’s Economy The PIA privatization auction is being viewed as a litmus test for Pakistan’s broader privatization agenda. PIA, long burdened by financial losses, operational inefficiencies, and mounting debt, has been a major drain on public finances. A successful privatization could: • Reduce fiscal pressure on the government• Improve service quality and operational efficiency• Attract foreign and local investment into Pakistan’s aviation sector• Strengthen investor confidence in future privatization initiatives The Rs115 billion offer from the Arif Habib–led consortium signals optimism that PIA’s challenges can be addressed through professional management, financial restructuring, and strategic expansion. Arif Habib Consortium’s Bid Signals Confidence in PIA’s Revival Analysts believe the substantial bid submitted during the PIA privatization auction reflects a calculated bet on the airline’s turnaround potential. With Pakistan’s air travel demand steadily increasing and regional connectivity improving, PIA could regain profitability if operational reforms are effectively implemented. Private ownership may also enable faster decision-making, fleet modernization, route optimization, and better customer service areas where PIA has historically struggled. What Comes Next After the PIA Privatization Auction While the bidding phase of the PIA privatization auction has concluded, the process is not yet final. Regulatory approvals, due diligence, and compliance requirements will determine the final outcome. Market participants will be closely watching how negotiations progress and whether the highest bid translates into a completed transaction. If successfully concluded, this privatization could set a precedent for future divestments of state-owned enterprises in Pakistan. The PIA privatization auction marks a critical turning point for Pakistan International Airlines and the country’s economic reform agenda. The Arif Habib–led consortium’s Rs115 billion bid not only topped the auction but also sent a strong signal of renewed confidence in Pakistan’s aviation sector. As the process moves toward completion, stakeholders remain hopeful that privatization will usher in a new era of efficiency, competitiveness, and growth for PIA.

Pakistan Government Debt Rises Sharply Despite Fiscal Year Net Retirement
Pakistan

Pakistan Government Debt Rises Sharply Despite Fiscal Year Net Retirement

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Pakistan government debt recorded a sharp weekly increase as the federal and provincial governments collectively acquired Rs466.7 billion in additional debt during the week ended December 12, 2025, according to the latest State Bank of Pakistan (SBP) weekly estimates. Despite this rise, the overall picture for the ongoing fiscal year 2026 (FY26) still reflects a net retirement of Rs149.06 billion, highlighting the government’s complex borrowing and repayment dynamics. The SBP data offers critical insight into how Pakistan is financing its fiscal needs amid economic stabilization efforts, monetary tightening, and rising development expenditures. Pakistan Government Debt Split Across Key Borrowing Categories Pakistan government debt is officially categorized into three broad borrowing purposes: During the reported week, borrowing activity was heavily skewed toward budgetary support, underscoring continued pressure on public finances. Weekly Breakdown of Pakistan Government Debt • Budgetary Support: Net borrowing of Rs467.63 billion• Commodity Operations: Net retirement of Rs926 million• Others: Net retirement of Rs3 million This breakdown clearly shows that while short-term liabilities declined in commodity-related operations, the government relied extensively on borrowing to meet budgetary requirements. Cumulative Pakistan Government Debt Position in FY2026 On a cumulative basis for FY2026, Pakistan government debt trends reveal a mixed fiscal outcome: • Budgetary Support: Net retirement of Rs166.91 billion• Commodity Operations: Net borrowing of Rs19.21 billion• Others: Net retirement of Rs1.36 billion These figures suggest that while the government has managed to reduce some debt obligations over the fiscal year, recurring weekly borrowings continue to offset broader repayment gains. State Bank of Pakistan’s Role in Pakistan Government Debt The State Bank of Pakistan (SBP) remains one of the largest sources of budgetary financing. Since the start of FY2026: • The government has retired a net Rs755.19 billion to the SBP• Federal Government: Retired Rs994.63 billion• Provincial Governments: Borrowed Rs276.23 billion• AJK Government: Retired Rs19.06 billion• Gilgit-Baltistan Government: Retired Rs17.72 billion This indicates a strong effort by the federal government to reduce reliance on central bank financing, aligning with monetary discipline goals. Scheduled Banks and Pakistan Government Debt Exposure In contrast to SBP repayments, Pakistan government debt exposure to scheduled banks increased significantly: • Net borrowing from scheduled banks: Rs588.28 billion• Federal Government: Borrowed Rs671.69 billion• Provincial Governments: Retired Rs83.41 billion This shift highlights a strategic transition from central bank borrowing to commercial banking channels, which can influence liquidity conditions, interest rates, and private sector credit availability. What Rising Pakistan Government Debt Means for the Economy While net retirement for FY2026 reflects fiscal restraint, the large weekly spikes in Pakistan government debt raise important concerns: • Increased reliance on banks may crowd out private sector lending• Higher borrowing costs could pressure future budgets• Fiscal sustainability remains sensitive to revenue performance and external financing Market analysts and policymakers will closely monitor upcoming SBP data to assess whether weekly borrowing trends stabilize in the second half of the fiscal year. Pakistan government debt continues to follow a volatile but strategically managed path in FY2026. While the government has achieved net debt retirement over the fiscal year, short-term borrowing pressures particularly for budgetary support remain significant. The evolving balance between SBP repayments and scheduled bank borrowings will be a key indicator of Pakistan’s fiscal and monetary stability moving forward.

FBR Reports 54.7% Surge in Withholding Tax from Salaried Individuals for Jan-Jun 2024-25
Pakistan

FBR Reports 54.7% Surge in Withholding Tax from Salaried Individuals for Jan-Jun 2024-25

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Islamabad, December 23, 2025 – The Federal Board of Revenue (FBR) has released its long-delayed Biannual Review for the second half of fiscal year 2024-25, revealing a significant 54.7% year-on-year increase in withholding tax (WHT) collection from salaried individuals during January-June 2024-25.Record Rs214.2 Billion Collected Under Section 149 Read More: https://theboardroompk.com/pakistans-wealth-gap-widens-top-10-hold-59-of-total-wealth-report-reveals/ Withholding tax deducted from salaries under Section 149 of the Income Tax Ordinance 2001 soared to Rs214.2 billion in the January-June period of FY2024-25, marking a substantial rise compared to the corresponding period in FY2023-24. This growth highlights the salaried class’s growing contribution to direct tax revenues, amid ongoing economic pressures and persistent high inflation.Broader Withholding Tax Trends Show Robust GrowthThe report also indicates strong performance across other withholding tax categories. Collections from contracts (Section 153) rose 39%, imports (Section 148) increased by 10.9%, telephone users (Section 235) grew 24.1%, and exports (Section 236) climbed 23.5%. These figures underscore the heavy reliance on withholding mechanisms for revenue mobilization, as WHT continues to form a major portion of FBR’s income tax receipts.The delayed release of the biannual data—six months after the period ended—comes as the government pushes for fiscal consolidation under international commitments. While the surge reflects effective deduction at source, it also intensifies the tax burden on formal sector employees, who remain one of the most compliant taxpayer segments in Pakistan.

Pakistan Set for 5G Boost as ECC Approves Largest-Ever Spectrum Release
Uncategorized

Pakistan Set for 5G Boost as ECC Approves Largest-Ever Spectrum Release

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Islamabad, December 23, 2025 – The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, has approved recommendations for Pakistan’s largest-ever spectrum auction, offering nearly 600 MHz of additional spectrum to revolutionize mobile broadband and enable the country’s first commercial 5G rollout. Massive Spectrum Release to Address Congestion and Enable Currently, Pakistan’s 240 million population relies on just 274 MHz of spectrum, far below regional standards, leading to network congestion and subpar internet speeds. The auction will introduce new bands for the first time, excluding 1800 MHz and 2300 MHz, significantly enhancing 3G/4G quality while paving the way for 5G services. Winning bidders will face rollout obligations, requiring network deployment within four to six months. The government has abolished Right of Way charges to boost fibre infrastructure, as less than 5% of the country is currently fibreised. Read More: https://theboardroompk.com/pakistans-5g-push-hits-pricing-roadblock-govt-caught-in-revenue-vs-rollout-dilemma/ Timeline and Stakeholder Consultations Ahead The recommendations, developed by the Spectrum Advisory Committee after extensive stakeholder consultations and international benchmarks, will now go to the federal cabinet for final approval. The Pakistan Telecommunication Authority (PTA) will then issue an Information Memorandum, followed by negotiations with telecom operators. Officials aim to complete the auction by late January or early February 2026, with 5G services potentially launching six months later.Finance Minister Aurangzeb emphasized a “Pakistan-first” approach, balancing fiscal needs with sector investment capacity. IT Minister Shaza Fatima Khawaja highlighted alignment with the Digital Nation Pakistan Act and “Connect 2030” plan, targeting 100 Mbps average speeds in five years. This move supports broader digital transformation, reducing congestion and improving connectivity rankings.

Unity Foods CEO Appointment Signals Strategic Leadership Transition
Pakistan

Unity Foods CEO Appointment Signals Strategic Leadership Transition

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Unity Foods CEO appointment has marked a significant leadership milestone as Unity Foods Limited (PSX: UNITY) announced a planned and well-structured transition at the top, effective December 23, 2025. The company has appointed Mr. Amir Shehzad, previously serving as Chairman of the Board, as its new Chief Executive Officer, reinforcing continuity and long-term strategic focus. The leadership transition reflects Unity Foods’ commitment to stability, governance excellence, and sustained growth within Pakistan’s evolving food and agribusiness sector. Unity Foods CEO Appointment Reflects Board’s Strategic Confidence The Unity Foods CEO appointment follows the decision of Mr. Farrukh Amin to step down from the CEO role and transition into the position of Non-Executive Director. This move allows the company to retain Mr. Amin’s strategic insights while introducing executive leadership continuity under Mr. Shehzad. According to the official press release, the Board emphasized that the transition was carefully planned to ensure operational stability, uninterrupted strategic momentum, and continued collaboration with key stakeholders. Role of Farrukh Amin in Strengthening Unity Foods During his tenure as CEO, Mr. Farrukh Amin played a critical role in reinforcing Unity Foods’ operational foundations. His leadership helped drive strategic initiatives, enhance internal efficiencies, and strengthen stakeholder confidence during a period of expansion and transformation. Recognition from Wilmar International Wilmar International, a strategic partner of Unity Foods, formally acknowledged Mr. Amin’s contributions, highlighting his leadership role in advancing the company’s operational and strategic objectives. His continued presence on the Board ensures that Unity Foods benefits from institutional knowledge and leadership continuity. Why the Unity Foods CEO Appointment Matters The Unity Foods CEO appointment of Mr. Amir Shehzad underscores the Board’s confidence in leadership rooted in deep institutional knowledge and governance experience. Having served as Chairman, Mr. Shehzad brings clarity of vision, strategic alignment, and an in-depth understanding of Unity Foods’ long-term growth roadmap. Strategic Continuity and Growth Focus This leadership shift is designed to:• Maintain strategic consistency• Strengthen corporate governance• Ensure smooth execution of long-term business objectives• Enhance collaboration with Wilmar International The Board believes that Mr. Shehzad’s leadership will support Unity Foods’ ambitions across value-added food segments and agribusiness innovation. Board’s Outlook on Unity Foods’ Future In its statement, the Board of Directors expressed deep appreciation for Mr. Farrukh Amin’s service and leadership as CEO, while reaffirming confidence in Mr. Amir Shehzad’s ability to steer the company forward. Under the new leadership structure, Unity Foods is expected to advance with: • Operational stability• Strategic clarity• Long-term value creation for shareholders• Stronger stakeholder alignment Conclusion: Unity Foods CEO Appointment Sets Stage for Long-Term Value The Unity Foods CEO appointment represents more than a leadership change—it reflects a disciplined succession strategy focused on sustainable growth and governance excellence. With Mr. Amir Shehzad at the helm and Mr. Farrukh Amin continuing as Non-Executive Director, Unity Foods is well-positioned to strengthen its market presence and deliver long-term value in Pakistan’s competitive food industry.

Pakistan Shifts from Cash-Based to Accrual-Based Accounting for Enhanced Transparency
Pakistan

Pakistan Shifts from Cash-Based to Accrual-Based Accounting for Enhanced Transparency

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Islamabad, December 22, 2025 – The Auditor General of Pakistan (AGP) has officially initiated the transition from the current cash-based government accounting system to an accrual-based framework, marking a landmark reform in public financial management. Currently, Pakistan’s government accounts, prepared on a cash basis since 2000, record transactions only when cash is received or paid. In contrast, accrual-based accounting recognizes revenues when they are earned and expenses when they are incurred, regardless of when actual cash changes hands. For instance, if a government department provides services in one fiscal year but receives payment in the next, accrual accounting records the revenue in the year the service was delivered. This method provides a more comprehensive view of financial position, including assets, liabilities, receivables, and payables, leading to greater accuracy in assessing fiscal health. Read More: https://theboardroompk.com/pakistans-circular-debt-crisis-is-stalling-1-billion-gas-field-investment/ Understanding Accrual-Based Accounting Accrual accounting, aligned with International Public Sector Accounting Standards (IPSAS), offers a fuller picture of government finances compared to cash-based systems, which can distort long-term obligations like pensions or debts. It enhances transparency by revealing true economic impacts of policies and improves decision-making through reliable data on commitments and resources. The AGP, exercising authority under Article 170 of the Constitution, is leading the review with technical assistance from the World Bank. The new standards will apply uniformly to federal, provincial, and local governments upon presidential approval. This move underscores the government’s commitment to fiscal discipline, accountability, and better governance. Officials stated that the shift will significantly elevate the quality of financial reporting, aligning Pakistan with global best practices for the first time.

SBP Announces Public Holiday on December 25, 2025 for Quaid-e-Azam Day and Christmas
Uncategorized

SBP Announces Public Holiday on December 25, 2025 for Quaid-e-Azam Day and Christmas

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State Bank of Pakistan Public Holiday December 25, 2025 has been officially announced, confirming that the central bank will remain closed across the country on Thursday, December 25, 2025, in observance of Quaid-e-Azam Day and Christmas. The closure follows a public holiday notification issued by the Government of Pakistan. The announcement is particularly significant for banks, financial institutions, businesses, importers, exporters, and corporate entities, as all banking and regulatory operations under the State Bank of Pakistan (SBP) will remain suspended for the day. Why December 25 Is a State Bank of Pakistan Public Holiday December 25 holds national and religious importance in Pakistan. The date marks:• Quaid-e-Azam Muhammad Ali Jinnah’s birth anniversary, the founder of Pakistan• Christmas Day, celebrated by the Christian community nationwide In recognition of these occasions, the State Bank of Pakistan Public Holiday December 25, 2025 aligns with the federal government’s annual holiday calendar. Impact of State Bank of Pakistan Public Holiday on Banking Operations Due to the State Bank of Pakistan Public Holiday December 25, 2025, the following services will be affected:• SBP offices across Pakistan will remain closed• Interbank settlements will be suspended• Regulatory approvals and SBP counter services will not be available• Clearing and settlement systems may experience limited or no processing Commercial banks typically observe SBP-declared holidays, meaning most banking branches are also expected to remain closed, except for essential digital services. What Businesses Should Do Before December 25, 2025 To minimize operational disruptions during the State Bank of Pakistan Public Holiday December 25, 2025, businesses and financial professionals are advised to:• Complete urgent banking transactions in advance• Schedule payments, remittances, and settlements accordingly• Inform clients and vendors of potential delays• Rely on digital banking channels where available Advance planning is especially critical for corporate payments, trade finance activities, payroll processing, and tax-related banking tasks. Digital Banking During State Bank of Pakistan Public Holiday While physical branches and SBP offices will be closed, online and mobile banking services are expected to remain operational, subject to individual bank policies. Customers may still be able to:• Transfer funds digitally• Access account information• Pay utility bills online• Use ATMs for cash withdrawals However, transactions requiring manual processing or central bank clearance may be completed on the next working day. Next Working Day After State Bank of Pakistan Public Holiday All SBP offices and normal banking operations are expected to resume on Friday, December 26, 2025, unless otherwise notified by the authorities. Businesses are encouraged to monitor official announcements from the State Bank of Pakistan and their respective banks for any updates. The State Bank of Pakistan Public Holiday December 25, 2025 serves as an important reminder for businesses, financial institutions, and individuals to plan ahead. Observed nationwide for Quaid-e-Azam Day and Christmas, the holiday reflects Pakistan’s national heritage and religious harmony while temporarily pausing central banking operations. Staying informed about SBP holidays helps ensure smooth financial planning, uninterrupted business workflows, and compliance with regulatory timelines.

Breakthrough in US-China Tech Trade: Nvidia's Powerful H200 Chips Head to Chinese Buyers
World

Breakthrough in US-China Tech Trade: Nvidia’s Powerful H200 Chips Head to Chinese Buyers

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Beijing/San Francisco, December 22, 2025 – Nvidia is set to begin shipping its powerful H200 artificial intelligence chips to China by mid-February 2026, marking a significant easing of US export controls on advanced semiconductors. Sources familiar with the matter told Reuters that the company has notified Chinese clients of plans to deliver 5,000 to 10,000 chip modules—equivalent to 40,000 to 80,000 individual H200 chips—from existing stock ahead of the Lunar New Year. The H200, part of Nvidia’s previous-generation Hopper lineup, is approximately six times more capable than the downgraded H20 chip previously available to Chinese buyers. Major firms like Alibaba Group and ByteDance have shown strong interest, driven by demand for advanced AI training and inference capabilities. Read More: https://theboardroompk.com/reforms-unlock-chinas-dominance-in-energy-storage-battery-export-surge-75-to-65bn/ However, shipments remain contingent on approval from Chinese authorities, who have yet to greenlight purchases. Beijing is weighing options, including requiring bundling with domestic chips to bolster local manufacturers like Huawei. US-China Tech Tensions: A Primer for New Audiences The US and China have been locked in a technology rivalry since 2022, when the Biden administration imposed strict export controls on advanced AI chips and semiconductor equipment. Washington cited national security concerns, aiming to prevent China from using cutting-edge technology for military advancements or supercomputing. These restrictions forced Nvidia to develop compliant, less powerful versions like the H20 for the Chinese market. China responded by accelerating domestic chip development and occasionally restricting purchases of US products over security fears. Policy Shift Under Trump Administration The latest development reflects a reversal under President Donald Trump, who recently approved H200 sales with a 25% fee. This move prioritizes trade and US corporate interests while addressing concerns that strict bans were boosting Chinese competitors. Nvidia plans to ramp up production in 2026, potentially opening new orders in the second quarter.

Gold Price in Pakistan All-Time High as Bullish Trend Dominates Markets
Pakistan

Gold Price in Pakistan All-Time High as Bullish Trend Dominates Markets

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Gold Price in Pakistan All-Time High has become the defining headline for bullion markets as both local and international gold prices surge to historic levels. Driven by strong global demand, currency dynamics, and year-end market positioning, gold continues to attract investors seeking safety amid economic uncertainty. As of Monday, December 22, 2025, gold is trading close to its global all-time high near $4,420, while domestic prices in Pakistan have also reached record-breaking levels, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Gold Price in Pakistan All-Time High: Latest Local & International Rates The latest interbank-based gold and silver prices reflect strong bullish momentum across commodities. Pakistan Gold Rates (Interbank – APSGJA)• Gold Tola (24K): Rs. 462,362 (+Rs. 6,200)• Gold 10 Grams (24K): Rs. 396,400 (+Rs. 5,315)• Gold 10 Grams (22K): Rs. 363,379 (+Rs. 4,872) International Bullion Prices• Gold (USD): $4,400 (+ $62)• Silver (USD): $69.30 (+ $2.18) Silver Prices in Pakistan• Silver Tola (24K): Rs. 7,205 (+Rs. 218)• Silver 10 Grams: Rs. 6,177 (+Rs. 187) These prices are based on interbank exchange rates with 999 purity (24K) gold, confirming the strength of the ongoing uptrend. Why Gold Price in Pakistan Is at an All-Time High Several factors are contributing to the unprecedented rise in gold prices:• Strong global bullish trend in precious metals• Year-end 2025 closing activity by institutional investors• Currency volatility and USD dynamics• Safe-haven demand amid global economic uncertainty• Limited liquidity due to Christmas and banking holidays With large investors temporarily stepping back during December, even moderate buying pressure can result in sharp upward price movements. Gold Price in Pakistan All-Time High: Technical Outlook & Buy Zone Despite the strong bullish structure, analysts advise caution due to holiday-season volatility. Current Market Snapshot• Current International Price: ~$4,410• Trend: Strong Bullish• Market Context: Year-end closing & Christmas holidays Best Buy Zone (H1 Support)• $4,345 – $4,340 A deep pullback toward this support range could offer a safer buying opportunity for traders looking to enter with controlled risk. Risk Management During Year-End Gold Rally With December trading conditions in play, disciplined risk management is critical.• Small Lot Size: Reduced liquidity increases sudden price swings• Strict Stop Loss: Never trade without protection• Patience: Markets may move sideways or behave unpredictably In the final days of December, USD banks remain closed more frequently, increasing the risk of short-term manipulation. Protecting capital is the real success in volatile markets. Outlook: Gold Price in Pakistan All-Time High May Extend Further The broader trend suggests gold could remain strong into early 2026, especially if global uncertainty persists. However, short-term corrections should not be ruled out as liquidity normalizes after the holidays. For investors and businesses, gold’s record highs underscore its continued relevance as a store of value and a strategic hedge against inflation and currency risks.

The Boardroom PK delivers trusted business news, analysis, and insights from Pakistan and beyond, keeping readers informed, inspired, and ahead in the evolving world of business and leadership.

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