Contact Us

Author name: Web Desk

Sui Gas Built Pakistan’s Energy Base but Left Dera Bugti Among Poorest Districts
Pakistan

Sui Gas Built Pakistan’s Energy Base but Left Dera Bugti Among Poorest Districts

/

Balochistan has played a central role in building Pakistan’s natural gas economy, but the communities living around the province’s major gas fields have seen limited improvements in development and living standards. For decades, fields in Dera Bugti, including Sui, Loti, Pirkoh, Uch and Zin, supplied a major share of Pakistan’s gas requirements. At its peak, Balochistan provided 82% of the country’s natural gas demand in 1982. Although its contribution has declined over time, the province still accounts for around one-fifth of national gas supplies. Balochistan’s Role in Pakistan’s Gas Supply Has Declined Balochistan’s contribution to Pakistan’s gas requirements stood at 55% in 1995 before falling to around 25% a decade later. The decline has continued as older gas fields have moved into advanced stages of depletion and new discoveries have failed to replace the production being lost. Pakistan’s overall gas production reached approximately 4,300 million standard cubic feet per day (mmscfd) in 2012. It has since declined to around 3,100 mmscfd. Oil production has followed a similar pattern. Output peaked at approximately 95,000 barrels per day in 2015 but has now fallen to around 72,000 barrels per day. Vast Exploration Potential Remains Untapped Despite Balochistan’s importance to Pakistan’s energy sector, exploration activity in the province remains limited. Only about 6% of the roughly 1,250 exploratory wells drilled across Pakistan have been located in Balochistan. Nearly 90% of the province remains unexplored. Security concerns have become a major obstacle to expanding exploration, particularly over the past two decades. A more stable operating environment could allow exploration companies to search for new reserves and potentially slow the decline in indigenous oil and gas production. Dera Bugti Remains Poor Despite Its Energy Wealth The contrast between Dera Bugti’s contribution to Pakistan’s energy supply and its development indicators remains striking. The discovery of the Sui No. 1 field in 1952, with an estimated 12 trillion cubic feet of gas, generated significant expectations among local communities. However, decades of gas production have not translated into comparable improvements in education, healthcare, employment and other basic services. Dera Bugti has a Human Development Index of just 0.236, placing it among Pakistan’s 10 least developed districts. The other districts in the bottom 10 are also located in Balochistan. Khuzdar, another important mining district, has an even lower HDI of 0.105. Royalties Have Not Delivered Enough Local Development Oil and gas-producing areas generate substantial revenue through royalties and production bonuses paid by exploration and production companies. However, the continued underdevelopment of many producing districts suggests that these financial resources have not produced sufficient improvements in local living standards. The gap between resource extraction and community development can contribute to frustration among residents. Limited access to employment, education and healthcare can deepen perceptions that local communities have not received a fair share of the benefits generated by their natural resources. Community Engagement Could Support Security The challenges facing exploration companies cannot be separated from the socioeconomic conditions of producing regions. When the state fails to provide adequate public services or economic opportunities, local grievances can intensify and create an increasingly difficult environment for businesses operating in the area. A more effective approach would treat communities as genuine stakeholders rather than relying primarily on a small group of intermediaries. Exploration and production companies could strengthen local relationships through fair employment opportunities, greater local procurement and carefully designed community development programmes. Respect for local traditions and engagement with community elders would also be important in building lasting trust. Royalties Could Fund Skills and New Industries As mature gas fields gradually decline, producing regions need alternative economic opportunities. Royalties and production bonuses could potentially be directed towards technical and vocational education, scholarships for high-performing students and community-based industrial initiatives. Such investments could help communities develop skills and businesses that remain viable even after oil and gas production declines. For areas such as Sui, preparing for the eventual transition away from resource-dependent economic activity could be as important as discovering new reserves. Development and Energy Security Are Closely Linked Pakistan faces a dual challenge in Balochistan: unlocking its remaining energy potential while addressing the longstanding development gap in resource-producing communities. A comprehensive assessment of human development in oil and gas districts could help determine whether existing policies are delivering meaningful results. International examples could also provide useful models for designing stronger community engagement and resource-sharing mechanisms. Improving education, healthcare, employment and local economic opportunities would not only benefit residents but could also strengthen public confidence and create a more stable environment for future investment. Pakistan Needs a New Model for Resource-Producing Areas Balochistan’s experience demonstrates that natural resource wealth alone does not guarantee local prosperity. The province helped build Pakistan’s energy base for decades, yet districts such as Dera Bugti continue to face severe development challenges. Addressing this imbalance will require more than additional exploration. A stronger model would connect resource revenues with measurable improvements in human development, give communities a meaningful stake in economic activity and prepare resource-dependent areas for life after their major fields mature. If Pakistan can combine responsible resource development with genuine local investment, Balochistan’s remaining energy potential could contribute not only to national energy security but also to lasting economic opportunities for the communities that have hosted these resources for generations.

Essential Food Prices Stay Firm as Consumers Face Continued Pressure
Editor pick

Essential Food Prices Stay Firm as Consumers Face Continued Pressure

/

Prices of essential food commodities remained largely unchanged in the retail market, keeping household budgets under pressure as consumers continued to deal with elevated prices of everyday necessities. A recent market survey reported that several commonly used food items showed little movement in prices, indicating that there was no significant relief for consumers during the period under review. Food Prices Remain Stable but Expensive Although prices may have remained steady, stability does not necessarily mean affordability has improved. For households already struggling with high living costs, even unchanged prices of flour, sugar, cooking oil, meat and vegetables can continue to place pressure on monthly budgets. The persistence of elevated food prices also highlights the importance of keeping supplies uninterrupted and monitoring retail markets to prevent unnecessary increases. Essential Kitchen Items Under Close Watch Food products that form a regular part of household consumption remain particularly important for consumers. Changes in the prices of flour, sugar, cooking oil, pulses, vegetables and meat can quickly affect overall household expenditure. Previous market reports have also shown that food prices can move sharply when fuel costs, transportation expenses or supply disruptions increase. Supply Conditions Remain Important Maintaining adequate supplies will be crucial for preventing another increase in food prices. Seasonal factors, transportation costs and disruptions in agricultural supply chains can all influence retail rates. Vegetable prices, in particular, have recently faced pressure from higher fuel costs and monsoon-related supply disruptions, demonstrating how quickly external factors can affect food markets. Consumers Continue to Feel the Impact For consumers, stable prices offer limited relief when essential goods are already expensive. Any additional increase in food costs could further reduce disposable income, particularly for lower- and middle-income households. Authorities therefore face the challenge of ensuring that stable wholesale supplies translate into reasonable retail prices. Effective monitoring of markets and action against unjustified price increases can help protect consumers. Food Inflation Remains a Key Economic Concern Food prices remain an important indicator of household economic conditions. Even when the overall market appears stable, persistent high prices can affect purchasing power and influence consumer spending on other goods and services. The government and provincial administrations will need to maintain close oversight of food supply chains, particularly during periods of higher transportation costs or adverse weather. Outlook for Essential Food Prices The immediate picture suggests that prices of several essential food items are holding steady rather than falling significantly. While this provides some short-term stability, consumers will continue to watch the market for any fresh increases. A sustained improvement in food affordability will ultimately depend on stronger supplies, lower distribution costs and effective market monitoring.

Goods Transporters Suspend Nationwide Strike for 40 Days After Government Assurances
Breaking News, Uncategorized

Goods Transporters Suspend Nationwide Strike for 40 Days After Government Assurances

/

Pakistan’s goods transportation network is set to return to normal after transporters agreed to put their nationwide wheel-jam strike on hold for 40 days following negotiations with federal and provincial authorities. The decision came after nine days of disruption that affected the movement of imports, exports and essential supplies. Transporters had been pressing the government to address several issues, including axle-load regulations, fuel pricing, taxes and other operational concerns. Transporters Resume Operations After Government Talks The agreement was reached during a meeting at the Governor House in Karachi chaired by Sindh Governor Syed Mohammad Nihal Hashmi. Federal Communications Minister Abdul Aleem Khan, Sindh Labour Minister Saeed Ghani, Punjab Transport Minister Bilal Akbar, Karachi Mayor Murtaza Wahab and senior officials attended the negotiations. The transporters’ delegation was led by All Pakistan Goods Transport Ittehad President Malik Shahzad Awan. Following the discussions, the transporters agreed to suspend the strike and allow freight operations to resume. 40-Day Suspension Gives Government Time to Act The agreement does not represent a permanent settlement of all disputes. Transporters have given the government a 40-day window to make progress on their outstanding demands. Some matters have reportedly been addressed immediately, while issues requiring cabinet-level approval are expected to be considered within 15 to 20 days. Transporters have also indicated that they could reconsider the strike if the commitments made during negotiations are not implemented. Fuel Pricing Remains a Major Concern One of the industry’s central demands involves the government’s mechanism for determining petrol and diesel prices. Transporters have objected to frequent fuel price adjustments and have sought a more predictable system. The government has requested additional time to examine the issue, with discussions expected to continue between the relevant committees and industry representatives. For freight operators, fuel costs have a direct impact on transportation charges and ultimately influence the cost of moving goods across the country. Axle-Load Rules Also Under Discussion The axle-load regime remains another important issue for the transport industry. Transporters have sought clarity and implementation of weight limits in a way that does not undermine the economics of freight operations. Government representatives have given assurances regarding the enforcement of permissible weight limits, including concerns involving 10-wheel vehicles. The issue is particularly significant because changes in permissible cargo loads can affect the number of trips required to move goods and increase transportation costs. Toll Taxes and Parking Issues To Be Reviewed The negotiations also covered toll charges and parking facilities for heavy vehicles. A committee is expected to examine the transporters’ concerns regarding toll taxes, while the Sindh government has committed to addressing parking-related problems. The discussions are particularly relevant for Karachi, a major centre for Pakistan’s port, industrial and commercial activity. Better parking and freight-handling arrangements could also help reduce congestion and improve the efficiency of cargo movement. Nine-Day Strike Disrupted Supply Chains The suspension comes after a prolonged strike that disrupted Pakistan’s freight network for nine days. According to the transporters, the stoppage caused economic losses exceeding Rs50 billion while affecting the movement of imports, exports and essential commodities. Their demands included changes to the axle-load regime, customs rules, withholding tax arrangements and fuel pricing. The resumption of transportation should allow businesses to begin clearing accumulated cargo and restore disrupted supply chains. Government Faces Test of Delivering on Commitments The 40-day deferment provides temporary relief to businesses and consumers, but the underlying disagreements have not completely disappeared. The government’s ability to deliver on its assurances will determine whether the latest agreement develops into a lasting settlement. Failure to make meaningful progress could revive the threat of another nationwide transport disruption. For Pakistan’s economy, maintaining an uninterrupted freight network is particularly important because road transport connects ports, factories, markets and distribution centres across the country. Transport Sector Seeks Long-Term Solution The latest agreement offers both sides an opportunity to move beyond repeated cycles of strikes and negotiations. A durable solution would require clear rules on vehicle weights, predictable fuel costs, reasonable taxation and improved infrastructure. For transporters, these measures could provide greater certainty over operating expenses, while businesses could benefit from a more reliable logistics network. The 40-day period will therefore be closely watched to see whether the government’s assurances translate into concrete policy measures or merely provide a temporary pause in the dispute.

Trump Says Strait Of Hormuz Could Become US Territory After Iran Defeat
World

Trump Says Strait Of Hormuz Could Become US Territory After Iran Defeat

/

The Strait of Hormuz as US territory emerged as a major point of international concern on Friday after US President Donald Trump said he would “soon” declare the strategic waterway a US territory once Iran was defeated. Trump made the remarks during an appearance at a police academy in New York state, as the crisis surrounding the vital maritime corridor intensified following fresh attacks on commercial vessels linked to the United Arab Emirates. The US president said Washington was maintaining a blockade and claimed that ships could not pass through the waterway unless the United States allowed them to do so. “After we finish defeating Iran,” Trump said, the United States would soon declare the Strait of Hormuz a US territory. He did not provide details about how such a move could be implemented or explain its legal implications. The statement came amid growing international concerns over the disruption of maritime traffic through the strait, which is one of the world’s most important routes for oil and gas shipments. Strait Of Hormuz Crisis Disrupts Oil Shipments The latest escalation followed attacks on two commercial vessels affiliated with the Abu Dhabi National Oil Company (ADNOC), according to the United Arab Emirates. The UAE Foreign Ministry condemned what it described as a hostile Iranian attack on the two state-owned commercial vessels. Abu Dhabi said there were no injuries and that the incidents had been brought under control. ADNOC also confirmed that its vessels had been attacked on Thursday evening. The United Kingdom Maritime Trade Operations later reported two similar drone strikes against tankers in the Strait of Hormuz. The attacks caused minor damage to the vessels but raised fresh concerns about the safety of commercial shipping. The incidents came only days after ADNOC reported attacks involving three of its other tankers in the same strategic waterway. The latest attacks appeared to have an immediate impact on maritime traffic. Vessel-tracking data indicated that shipping activity through the strait had slowed sharply, with very limited vessel movement reported. The disruption has increased concerns over global energy supplies because the Strait of Hormuz normally carries a significant share of the world’s oil shipments. Trump Urges Americans To Accept Higher Fuel Prices Trump also urged Americans to accept somewhat higher gasoline prices as part of the cost of preventing Iran from obtaining a nuclear weapon. The president defended the US military campaign against Iran, saying Washington was providing a service to the wider world by preventing Tehran from developing a nuclear weapon. He also said he would not apologise for the attacks on Iran. The comments came as the US administration increasingly focused on the economic consequences of the conflict, particularly the potential impact of the Strait of Hormuz disruption on oil and gasoline prices. US Vice President JD Vance acknowledged that keeping oil and gas prices affordable for American consumers had become an immediate priority for Washington. He said maintaining lower energy prices was a key objective, while preventing Iran from obtaining a nuclear weapon remained another major goal. US Maintains Pressure On Iran The United States has also indicated that its naval blockade of Iranian ports could continue indefinitely. US Defence Secretary Pete Hegseth said the US Navy could maintain the blockade by rotating ships in and out of the region. Washington has simultaneously threatened additional economic measures against Tehran. US Treasury Secretary Scott Bessent said the United States planned to impose further financial pressure on Iran, warning that Washington would pursue economic isolation on an unprecedented scale. The US strategy reflects a broader shift in the conflict, which initially focused heavily on Iran’s nuclear programme but has increasingly centred on control of the Strait of Hormuz and the protection of global energy supplies. Iran Uses Strait As Strategic Leverage Iran has sought to use the Strait of Hormuz as a major bargaining tool in the conflict. By restricting commercial shipping and threatening energy supplies, Tehran has gained significant leverage over international markets and countries that depend on oil shipments passing through the waterway. Analysts have described Iran’s ability to restrict shipping as one of its strongest sources of leverage in negotiations. The situation has also increased pressure on the United States to find a way to restore normal maritime traffic without allowing Iran to gain greater control over the strategic corridor. Trump had previously suggested that an agreement to reopen the waterway could be reached soon. However, the latest developments indicate that tensions remain high, with diplomatic efforts apparently stalled. Saudi Arabia And Qatar Condemn Attacks Regional countries have condemned the latest attacks on commercial vessels. Saudi Arabia denounced the targeting of two UAE-linked oil tankers and called the attacks an unacceptable continuation of incidents involving commercial shipping. Riyadh said Iran should be held responsible for the consequences of continued attacks and called for an immediate end to such actions. Qatar also condemned the attacks, describing them as a violation of international law and freedom of maritime navigation. Doha rejected the use of the Strait of Hormuz as political leverage and called for the waterway to be reopened unconditionally. The statements reflected growing concern among Gulf countries over the economic and security consequences of prolonged disruption in the strategic corridor. Regional Conflict Expands The wider conflict also continued to affect other parts of the Middle East. In Yemen, the internationally recognised government said Houthi forces fired ballistic missiles at the Red Sea port of Mocha, killing eight people and damaging civilian infrastructure. The Houthis disputed the account and said their attacks targeted military positions, weapons depots and warships belonging to Saudi-backed forces. The group also claimed to have launched a separate drone attack against an Aramco facility in Saudi Arabia, although it did not provide details confirming whether the facility was hit. As tensions continue to spread across the region, the Strait of Hormuz remains at the centre of the international energy and security crisis. Any prolonged disruption to the waterway could affect global oil supplies, fuel prices, shipping costs and international

Pakistan Civil Awards: Mohsin Naqvi, Ishaq Dar, FBR Chairman, IB DG and AGP Among 355 Honoured
Pakistan

Pakistan Civil Awards: Mohsin Naqvi, Ishaq Dar, FBR Chairman, IB DG and AGP Among 355 Honoured

/

Pakistan has announced one of its largest civil honours lists, with President Asif Ali Zardari approving 355 Pakistan Civil Awards for Pakistani citizens and foreign nationals in recognition of their contributions to public service, administration, diplomacy, literature, medicine, business and other fields. The awards, approved on the occasion of Pakistan’s 78th Independence Day, are scheduled to be formally presented on Pakistan Day, March 23. The sheer size of the list has already placed the Pakistan Civil Awards under public scrutiny. While recognising national service is an important state responsibility, such a long list also raises a broader question: how effectively does the civil awards system distinguish extraordinary national contributions from routine official responsibilities? Pakistan Civil Awards Include Ishaq Dar and Mohsin Naqvi Among the most prominent recipients of the Nishan-i-Imtiaz are Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, Federal Finance Minister Muhammad Aurangzeb, Interior Minister Mohsin Naqvi, Federal Minister Ahad Khan Cheema, Prime Minister’s Coordinator Bilal Azhar Kayani, and renowned poet and writer Asad Muhammad Khan. The inclusion of senior serving ministers makes the announcement particularly significant. Government officials already operate in positions carrying substantial authority and public responsibility. The award system therefore faces the challenge of demonstrating that recipients are being recognised for exceptional achievements rather than simply holding influential offices. That distinction matters because civil awards derive their credibility from public confidence in the selection process. FBR Chairman, IB Director General and AGP Receive Hilal-i-Imtiaz The Hilal-i-Imtiaz list includes several senior officials who occupy critical positions in Pakistan’s state machinery. Among them are Rashid Mahmood Lagrial, Chairman of the Federal Board of Revenue, Fuad Asadullah, Director General of the Intelligence Bureau, Mansoor Usman Awan, Attorney General for Pakistan, Imdadullah Bosal, Federal Finance Secretary, and Barrister Nabeel A. Awan, Establishment Secretary. The recognition of officials from taxation, intelligence, law and financial administration gives the awards a strong public-sector focus. However, it also highlights the need for greater transparency around the criteria used to evaluate senior bureaucrats and public office holders. The awards will carry greater legitimacy if citizens can clearly understand what specific achievements led to each honour. Business, Medicine, Literature and Overseas Pakistanis Also Honoured The list extends beyond government circles. Dr. Shahid Mahmud, CEO of Interactive Group, Lt. Gen. retired Moazzam Ejaz, Rector of NUTECH, transplant surgeon Dr. Faisal Saud Dar, media pioneer Sultana Siddiqi, and poets Ejaz Rahim and Khurshid Ul Hasan Rizvi are among those receiving recognition. Overseas Pakistanis are also represented, including Dr. Ghulam Murtaza from the United Kingdom, Professor Ahmed Ali, late, from China, and Sardar Muhammad Ilyas Khan from Saudi Arabia. Foreign nationals have also been included in the honours. Sheikha Fatima bint Mubarak of the UAE has been awarded the Nishan-i-Pakistan, while senior figures from Saudi Arabia, Russia, Türkiye and Spain have received various state honors. Why Pakistan Civil Awards Need Greater Transparency The Pakistan Civil Awards are intended to celebrate exceptional service, but the credibility of any national honours system depends on how convincingly it separates extraordinary achievements from institutional responsibilities. The government could strengthen public confidence by publishing clearer explanations for major awards, including the specific contribution, measurable impact and public benefit associated with each recipient. Without such transparency, even deserving recipients can face unnecessary controversy because the public is left to speculate about why particular names were selected. The March 23 ceremony will therefore be more than a formal presentation. It will also test whether Pakistan’s civil honours system can balance recognition, merit and public accountability while celebrating those who have genuinely contributed to the country’s progress.

Punjab, Sindh Refuse Costly Imported Wheat As Centre Pushes Ahead With 1 Million-Tonne Plan
Editor pick

Punjab, Sindh Refuse Costly Imported Wheat As Centre Pushes Ahead With 1 Million-Tonne Plan

/

Punjab and Sindh have declined to procure imported wheat despite the federal government’s decision to bring in one million metric tonnes to address rising prices and strengthen strategic reserves. The two provinces are instead seeking additional supplies from federal stocks after falling significantly short of their local wheat procurement targets. Punjab Reverses Its Wheat Import Commitment Punjab had initially committed to purchasing one million tonnes of imported wheat but later reduced its requirement to 800,000 tonnes. During a meeting chaired by National Food Security Minister Rana Tanveer Hussain, the Punjab representative stated that the province no longer required imported wheat. The minister directed that the position be formally recorded so the province could not later hold the federal government responsible for any shortage or price increase. Punjab has already received 800,000 tonnes from federal PASSCO stocks, but 533,000 tonnes of that allocation are still awaiting collection. The province also procured only 500,000 tonnes directly from farmers against a target of three million tonnes. Sindh Also Shows Reluctance To Accept Imports Sindh had previously requested 720,000 tonnes of wheat, including 500,000 tonnes from imports. However, during a steering committee meeting chaired by Deputy Prime Minister Ishaq Dar, the province also expressed reluctance to take the imported grain. Khyber Pakhtunkhwa, meanwhile, maintained its demand for 200,000 tonnes of imported wheat along with another 200,000 tonnes from local stocks. A KP representative criticised Punjab’s change in position, arguing that the province had earlier reported a shortage that contributed to higher prices and affected the availability of wheat in other provinces. Federal Government Maintains 1 Million-Tonne Import Plan Despite the provincial reservations, the federal steering committee reaffirmed its decision to import one million tonnes of wheat. The government says the imports are necessary to meet domestic requirements, ease price pressures and maintain adequate strategic reserves. Officials noted that existing federal stocks are insufficient to satisfy the demands of all provinces. Consequently, even if some provinces prefer locally procured wheat, the federal government intends to proceed with imports to safeguard national reserves. Flour Prices Rise Sharply The wheat supply dispute comes as consumers face a substantial increase in flour prices. According to the Pakistan Bureau of Statistics, the price of wheat flour has risen 77.5 percent year-on-year to Rs132.50 per kilogram from Rs75. The sharp increase has intensified pressure on the government to ensure adequate wheat availability and prevent further escalation in food prices. Government Finalises Wheat Supply Mechanism Under the proposed arrangement, the federal government has allocated one million tonnes of PASSCO wheat stocks among the provinces on a proportional basis. Punjab is set to receive the largest allocation, followed by Sindh, Khyber Pakhtunkhwa and Balochistan. A draft tripartite agreement identifies the Ministry of National Food Security as the coordinating authority without financial liability. The Trading Corporation of Pakistan will handle the import process without assuming financial liability, while the provinces will be responsible for providing payment security and firm commitments. Imported wheat will be supplied at Rs4,150 per 40 kilograms, which is Rs650 higher than the farmer support price. Any decision regarding duty exemptions will be taken by Prime Minister Shehbaz Sharif. Procurement Shortfalls Fuel Wheat Crisis Provincial procurement performance has emerged as a major concern behind the current wheat situation. Punjab’s purchase of only 500,000 tonnes against a target of three million tonnes has left the province heavily dependent on federal reserves. The reluctance of Punjab and Sindh to accept imported wheat further complicates the federal government’s effort to manage supplies and stabilise prices. Officials have stressed that the provinces must provide written positions specifying whether they accept or reject imported wheat before the government proceeds with the next stage of the arrangement. Wheat Import Decision Faces Provincial Resistance The federal government now faces the challenge of balancing provincial preferences with the need to maintain national wheat reserves. While Punjab and Sindh are reluctant to procure costly imported wheat, the Centre maintains that imports are necessary because domestic procurement has fallen short of targets and federal reserves alone cannot meet future requirements. The outcome will depend on how quickly provinces finalise their wheat requirements and whether the federal import programme can ease supply pressures without placing additional financial strain on provincial governments.

Riyadh Air Begins Pakistan Operations With Inaugural Flight To Islamabad
World

Riyadh Air Begins Pakistan Operations With Inaugural Flight To Islamabad

/

Riyadh Air, Saudi Arabia’s new national carrier, has officially started operations in Pakistan with the arrival of its inaugural flight RX-660 from Riyadh at Islamabad International Airport on Friday evening. According to a statement issued by the Pakistan Airports Authority (PAA), the Riyadh Air flight landed at Islamabad International Airport carrying 69 passengers, marking the airline’s first-ever arrival in Pakistan. The aircraft received a ceremonial water salute after arriving at the airport, followed by an inauguration ceremony organised by the PAA to officially mark the launch of Riyadh Air’s operations in Pakistan. The entry of Riyadh Air into the Pakistani market is expected to strengthen direct air connectivity between Pakistan and Saudi Arabia while providing passengers with an additional travel option between the two countries. Riyadh Air To Operate Seven Weekly Flights Riyadh Air is expected to operate seven flights per week between Riyadh and Islamabad, providing a daily direct air connection between the Saudi capital and Pakistan’s capital. The new service is expected to facilitate passenger movement between the two countries, particularly as Pakistan and Saudi Arabia maintain strong economic, social and cultural ties. The launch also expands the presence of Saudi Arabia’s new airline in the South Asian aviation market. The inaugural ceremony at Islamabad International Airport was attended by Saudi Ambassador to Pakistan Nawaf Bin Said Al-Malki, who served as the chief guest. Pakistan Airports Authority Director General Air Vice Marshal Zeeshan Saeed, senior government officials and senior representatives of Riyadh Air also attended the event. Saudi Ambassador Highlights Stronger Air Connectivity Speaking at the ceremony, Saudi Ambassador Nawaf Bin Said Al-Malki highlighted the importance of Riyadh Air’s inaugural service for strengthening the longstanding relationship between Pakistan and Saudi Arabia. He said the new airline service would contribute to closer people-to-people connectivity and further strengthen aviation links between the two countries. Pakistan and Saudi Arabia have maintained extensive bilateral relations, with thousands of Pakistanis travelling to Saudi Arabia for employment, business, religious purposes and family visits every year. The additional direct service is therefore expected to support growing passenger demand between the two destinations. PAA Welcomes Riyadh Air Launch DG PAA Air Vice Marshal Zeeshan Saeed welcomed the commencement of Riyadh Air’s operations in Pakistan and described the new route as an important development for the aviation sector. He highlighted the potential of the new air link to improve connectivity, facilitate passenger movement and encourage greater cooperation between Pakistan and Saudi Arabia in aviation. The inauguration ceremony featured a ribbon-cutting and cake-cutting ceremony to formally mark the airline’s entry into the Pakistani market. Senior Riyadh Air management also attended the event and briefed participants about the airline’s future expansion plans and its potential for further growth in Pakistan. Inaugural Flight Departs Islamabad With 272 Passengers Following the inauguration ceremony, Riyadh Air’s inaugural flight departed from Islamabad International Airport at 9:56 p.m., carrying 272 passengers. The difference between the number of passengers arriving on the inaugural flight and those departing from Islamabad reflects the passenger load for the return service. The launch represents an important milestone for Riyadh Air in Pakistan, as the Saudi carrier begins regular operations between Riyadh and Islamabad. The new service could also contribute to greater competition in the Pakistan-Saudi Arabia aviation market, giving travellers another direct option for journeys between the two countries. For Pakistan’s aviation sector, the arrival of a new international carrier is also significant at a time when authorities are seeking to improve connectivity and attract additional international airlines. New Route Strengthens Pakistan-Saudi Aviation Links The launch of Riyadh Air’s Islamabad service comes against the backdrop of close Pakistan-Saudi Arabia relations. Saudi Arabia remains one of Pakistan’s most important destinations for overseas workers and religious travellers. Strong passenger demand between the two countries has created a substantial market for airlines operating direct routes. With seven weekly flights, Riyadh Air’s new service is expected to provide additional capacity on the Riyadh-Islamabad route.

Pakistan Fiscal Deficit Falls To 2.6% As Petroleum Levy Hits Record Rs1.567tr
Business

Pakistan Fiscal Deficit Falls To 2.6% As Petroleum Levy Hits Record Rs1.567tr

/

Pakistan’s fiscal deficit fell to 2.6% of GDP in fiscal year 2025-26 (FY26), marking the lowest level since FY2003, as record provincial cash surpluses, higher petroleum levy collections and a sharp decline in interest payments helped improve the government’s fiscal position. According to the Ministry of Finance’s annual report on fiscal operations for FY26, the primary surplus also reached a historic 2.9% of GDP. The improvement came despite a 16% increase in the cost of running the civil government, which crossed the Rs1 trillion mark for the first time. The government’s petroleum levy collection emerged as one of the major sources of additional revenue during the year, reaching a record Rs1.567 trillion, up 29% from Rs1.22 trillion in FY25. The collection exceeded the original budget target of Rs1.468 trillion and was also higher than the revised target of Rs1.498 trillion. Petroleum Levy Collection Reaches Record Rs1.567tr The sharp increase in petroleum levy revenue came amid record consumer-end fuel prices following heightened geopolitical tensions and disruptions in international oil markets. The Rs1.567 trillion petroleum levy collection did not include an undisclosed amount collected through customs duty. The government also collected Rs26 billion through the carbon levy. For FY27, the government has set an even higher petroleum levy collection target of Rs1.676 trillion, along with a target of Rs50 billion from the climate levy on petroleum products. The increased dependence on petroleum-related revenue highlights the importance of fuel taxation in Pakistan’s fiscal framework. However, higher levies can also increase the cost of petroleum products for consumers, particularly when international oil prices are already elevated. Interest Payments Fall Sharply One of the biggest factors behind the improvement in the fiscal position was a substantial decline in interest payments. According to the Finance Ministry, interest payments fell to Rs6.947 trillion, equivalent to 5.5% of GDP, in FY26 from Rs8.887 trillion, or 7.7% of GDP, in FY25. This represented a reduction of Rs1.939 trillion in a single year. The decline was largely linked to the easing of the policy rate from 22% to 10%, which reduced the government’s debt-servicing burden. As a result, total government expenditure declined to Rs23.09 trillion in FY26 from Rs24.16 trillion in the previous fiscal year. Total expenditure also fell to 18.2% of GDP from 21.1%, while current expenditure declined to 16.3% of GDP, or Rs20.69 trillion, from 18.8%, or Rs21.5 trillion, in FY25. Provincial Surpluses Support Fiscal Position Record cash surpluses generated by the provinces also played a major role in containing the fiscal deficit. The four provinces collectively transferred a cash surplus of Rs1.45 trillion to the Centre in FY26, up 57% from Rs921 billion in FY25. The increase amounted to Rs529 billion in one year. The provincial surplus was also higher than the Rs1.38 trillion commitment under the national fiscal pact. Punjab contributed the largest amount, posting a surplus of Rs915 billion. This was 163% higher than its Rs348 billion contribution in FY25. Sindh’s surplus increased 24% to Rs350 billion from Rs283 billion. Khyber Pakhtunkhwa recorded a surplus of Rs165 billion, down from Rs176 billion a year earlier, while Balochistan posted a surplus of Rs20.74 billion. The large provincial cash balances provided significant support to the federal government’s overall fiscal consolidation efforts. Civil Government Expenses Cross Rs1tr Despite austerity and restructuring measures, expenditure on running the civil government increased substantially. Civil government expenditure rose 16% to Rs1.033 trillion in FY26 from Rs892 billion in FY25. It also exceeded the budget estimate of Rs971 billion. Defence expenditure increased by 18% to Rs2.588 trillion from Rs2.194 trillion. However, the spending was only Rs38 billion above the Rs2.55 trillion budget allocation. Meanwhile, subsidies were contained at Rs1.01 trillion, nearly 22% lower than the Rs1.3 trillion recorded in FY25. Development expenditure also declined to Rs727 billion from Rs786 billion. FBR Revenue Falls Short Of Target The government’s total revenue collection declined marginally as a share of the economy, falling to 15.6% of GDP in FY26 from 15.7% a year earlier. Federal Board of Revenue (FBR) collection reached Rs13.01 trillion, showing an increase of nearly 11% from Rs11.74 trillion in FY25. However, the collection remained around 10% below the government’s target. Despite the shortfall, higher petroleum levy receipts and provincial surpluses, combined with lower debt-servicing costs, helped the government achieve a significant improvement in its fiscal position. Primary Surplus Reaches Historic 2.9% Pakistan’s primary surplus, which measures government revenue against expenditure excluding interest payments, reached 2.9% of GDP in FY26. This was the highest level since the government began reporting the indicator in FY20. The primary account remained in deficit until FY24, when it moved into a surplus of 0.9% of GDP. It then improved to 2.4% in FY25 before reaching 2.9% in FY26. The overall fiscal deficit has also declined significantly from its peak of 8.9% of GDP in FY19. It stood at 8.1% and 7.1% in the following two years, before rising again to 7.9% in FY22. The deficit has subsequently declined amid fiscal consolidation measures implemented under successive IMF-supported programmes. Statistical Discrepancy Reaches Rs853bn Despite the improvement in headline fiscal indicators, the Finance Ministry reported a record Rs853 billion statistical discrepancy in FY26. The discrepancy was substantially higher than the Rs329 billion recorded in FY25 and had previously raised concerns from the IMF. The ministry attributed Rs448 billion of the discrepancy to the federal level and Rs405 billion to the provinces. According to the ministry, the federal discrepancy resulted from differences caused by reporting time lags and book adjustments involving the State Bank of Pakistan, FBR and Economic Affairs Division data. At the provincial level, Rs266 billion was attributed to increases in commercial bank deposits. Khyber Pakhtunkhwa and Balochistan accounted for Rs95 billion and Rs72 billion, respectively, largely due to movements in bank deposits.

# Pakistan Seeks 50% Cut In Iran Gas Price To Revive IP Pipeline Pakistan has asked Iran to reduce the price of gas supplied through the long-delayed Iran-Pakistan (IP) pipeline by as much as 50 percent, as Islamabad seeks to make the project commercially viable. The government is also seeking lower contracted gas volumes, citing limited demand from power producers, fertiliser manufacturers and other industries for expensive imported gas. ## Pakistan Proposes Lower Gas Pricing Formula Pakistan currently estimates the price of gas under the existing IP pipeline formula at around $10.6 per mmBtu, based on an oil price of $80 per barrel. An additional $1.25 per mmBtu would be required for transportation from Hub to Nawabshah. The government believes power producers cannot economically absorb imported gas priced above Rs2,000 per mmBtu, making this level the proposed commercial benchmark for the project. Islamabad has therefore proposed a new pricing structure calculated at 6.11 percent of Brent crude plus $1. Under the proposed formula, IP gas would cost approximately $4.67 per mmBtu at a Brent price of $60, $5.28 at $70 and $5.89 at $80. ## Proposed IP Gas Could Undercut LNG The proposed pricing would make Iranian gas significantly cheaper than LNG available under Pakistan's existing long-term arrangements. At the same Brent price scenarios, LNG under Pakistan State Oil's second long-term agreement would cost around $7.14, $8.16 and $9.18 per mmBtu respectively. This pricing gap is central to Pakistan's argument that the IP pipeline could become commercially attractive if Iran agrees to a substantial reduction. Domestic gas is currently supplied to fertiliser plants at around Rs1,500 per mmBtu and to domestic consumers at approximately Rs1,000 per mmBtu. These price differences make expensive imported gas difficult for several sectors to absorb. ## Pakistan Also Wants Lower Gas Volumes Alongside the price reduction, Islamabad wants to revise the contracted volume of gas under the project. The IP pipeline was originally designed to transport around 750 million cubic feet per day. Pakistan now believes this volume is too high given existing demand conditions and its limited capacity to absorb additional imported gas. The country must also honour existing LNG commitments, including long-term supplies from Qatar. Increasing gas imports without sufficient domestic demand could therefore create additional financial pressure. ## US Sanctions Waiver Remains Critical A major obstacle remains the sanctions regime affecting Iran. Pakistan has indicated that it is prepared to move forward with the project only if the United States provides a sanctions waiver allowing the pipeline project to proceed. Pakistan and Iran originally signed the framework for the pipeline in 2009. However, US sanctions against Iran prevented construction from progressing on the Pakistani side and eventually contributed to arbitration proceedings. Islamabad is now hoping that any broader understanding between Washington and Tehran could create room for the project to move ahead. ## $2.5 Billion Project Faces Commercial Test The IP pipeline is estimated to require around $2.5 billion in investment and has faced delays for years. The latest pricing proposal reflects Pakistan's attempt to address the project's fundamental commercial challenge: whether local industries will actually purchase the imported gas. Officials maintain that without a substantial reduction in both price and contracted volume, power producers, fertiliser manufacturers and other potential consumers are unlikely to take the gas. ## Pakistan Seeks Cheaper Alternative To LNG The proposal comes as Pakistan continues to manage the financial and operational challenges associated with imported LNG. Domestic exploration companies have already faced gas curtailments as authorities seek to accommodate costly LNG supplies. Bringing additional imported gas into the system at an uncompetitive price could further complicate the situation. A substantially cheaper Iranian gas supply could therefore provide Pakistan with another source of energy while potentially reducing reliance on expensive LNG. However, the project's revival will depend on more than pricing. A US sanctions waiver, agreement with Iran on the proposed formula, revised volumes and sufficient domestic demand will all be critical to determining whether the IP pipeline can finally become operational. ### SEO Optimized Keywords Iran-Pakistan gas pipeline, IP pipeline price cut, Pakistan Iran energy deal, Iran gas price Pakistan, IP pipeline Pakistan, Iranian gas imports, Pakistan LNG prices, Pakistan energy crisis, Iran Pakistan pipeline 2026, US sanctions waiver Iran Pakistan pipeline #### Focus Key Phrase Iran-Pakistan Gas Pipeline #### Meta Description Pakistan seeks up to a 50% cut in Iran gas prices and lower IP pipeline volumes, proposing cheaper gas than LNG while awaiting a US sanctions waiver.
Breaking News

Pakistan Seeks 50% Cut In Iran Gas Price To Revive IP Pipeline

/

Pakistan has asked Iran to reduce the price of gas supplied through the long-delayed Iran-Pakistan (IP) pipeline by as much as 50 percent, as Islamabad seeks to make the project commercially viable. The government is also seeking lower contracted gas volumes, citing limited demand from power producers, fertiliser manufacturers and other industries for expensive imported gas. Pakistan Proposes Lower Gas Pricing Formula Pakistan currently estimates the price of gas under the existing IP pipeline formula at around $10.6 per mmBtu, based on an oil price of $80 per barrel. An additional $1.25 per mmBtu would be required for transportation from Hub to Nawabshah. The government believes power producers cannot economically absorb imported gas priced above Rs2,000 per mmBtu, making this level the proposed commercial benchmark for the project. Islamabad has therefore proposed a new pricing structure calculated at 6.11 percent of Brent crude plus $1. Under the proposed formula, IP gas would cost approximately $4.67 per mmBtu at a Brent price of $60, $5.28 at $70 and $5.89 at $80. Proposed IP Gas Could Undercut LNG The proposed pricing would make Iranian gas significantly cheaper than LNG available under Pakistan’s existing long-term arrangements. At the same Brent price scenarios, LNG under Pakistan State Oil’s second long-term agreement would cost around $7.14, $8.16 and $9.18 per mmBtu respectively. This pricing gap is central to Pakistan’s argument that the IP pipeline could become commercially attractive if Iran agrees to a substantial reduction. Domestic gas is currently supplied to fertiliser plants at around Rs1,500 per mmBtu and to domestic consumers at approximately Rs1,000 per mmBtu. These price differences make expensive imported gas difficult for several sectors to absorb. Pakistan Also Wants Lower Gas Volumes Alongside the price reduction, Islamabad wants to revise the contracted volume of gas under the project. The IP pipeline was originally designed to transport around 750 million cubic feet per day. Pakistan now believes this volume is too high given existing demand conditions and its limited capacity to absorb additional imported gas. The country must also honour existing LNG commitments, including long-term supplies from Qatar. Increasing gas imports without sufficient domestic demand could therefore create additional financial pressure. US Sanctions Waiver Remains Critical A major obstacle remains the sanctions regime affecting Iran. Pakistan has indicated that it is prepared to move forward with the project only if the United States provides a sanctions waiver allowing the pipeline project to proceed. Pakistan and Iran originally signed the framework for the pipeline in 2009. However, US sanctions against Iran prevented construction from progressing on the Pakistani side and eventually contributed to arbitration proceedings. Islamabad is now hoping that any broader understanding between Washington and Tehran could create room for the project to move ahead. $2.5 Billion Project Faces Commercial Test The IP pipeline is estimated to require around $2.5 billion in investment and has faced delays for years. The latest pricing proposal reflects Pakistan’s attempt to address the project’s fundamental commercial challenge: whether local industries will actually purchase the imported gas. Officials maintain that without a substantial reduction in both price and contracted volume, power producers, fertiliser manufacturers and other potential consumers are unlikely to take the gas. Pakistan Seeks Cheaper Alternative To LNG The proposal comes as Pakistan continues to manage the financial and operational challenges associated with imported LNG. Domestic exploration companies have already faced gas curtailments as authorities seek to accommodate costly LNG supplies. Bringing additional imported gas into the system at an uncompetitive price could further complicate the situation. A substantially cheaper Iranian gas supply could therefore provide Pakistan with another source of energy while potentially reducing reliance on expensive LNG. However, the project’s revival will depend on more than pricing. A US sanctions waiver, agreement with Iran on the proposed formula, revised volumes and sufficient domestic demand will all be critical to determining whether the IP pipeline can finally become operational.

Pakistan Debt Growth Drops to 7.7 Percent, Two Decade Low in FY26
Breaking News

Pakistan Debt Growth Drops to 7.7 Percent, Two Decade Low in FY26

/

Pakistan debt growth has slowed to its lowest level in nearly two decades, according to financial analyst Khurram Schehzad, who highlighted a series of debt and fiscal indicators pointing toward an improving debt profile. According to the figures shared by Schehzad, Pakistan debt growth stood at 7.7 percent during FY26, significantly below the approximately 16 percent average recorded over the previous 20 years. The slowdown is important because rapid debt accumulation has remained one of Pakistan’s most persistent economic weaknesses, particularly when borrowing has increased faster than the country’s ability to generate revenues and foreign exchange. The debt to GDP ratio has also improved, falling to 68.3 percent in FY26 from 75 percent in FY23. It had reached exceptionally high levels of around 86 percent to 88 percent during FY19 to FY21. However, the improvement should not be interpreted as a complete victory over Pakistan’s debt problem. A lower debt ratio can reflect stronger nominal economic growth as well as slower borrowing, meaning the government still needs sustained fiscal discipline to prevent the trend from reversing. Pakistan External Debt Exposure Reaches Nine Year Low One of the more significant developments is the decline in external debt exposure. External debt as a percentage of GDP fell to 21.5 percent in FY26, its lowest level in nine years, compared with around 31 percent during FY19 to FY21. The shift reduces Pakistan’s vulnerability to sudden exchange rate movements because foreign currency debt becomes more expensive in rupee terms whenever the Pakistani currency depreciates. Foreign exchange reserves have also strengthened considerably. State Bank of Pakistan reserves reportedly increased more than six times from 2.9 billion dollars in mid FY23 to 18.4 billion dollars in FY26. Import coverage consequently improved from roughly 2.4 weeks to nearly three months. That improvement provides Pakistan with a stronger external buffer, although reserve adequacy remains critical because the country continues to face substantial external financing and import requirements. Pakistan Debt Growth Shifts Toward Domestic Borrowing The composition of public debt has changed as well. Foreign debt accounted for approximately 31 percent of total public debt in FY26, compared with 37 percent to 38 percent during FY19 to FY23. Pakistan’s domestic and foreign debt mix now stands at roughly 69 to 31, indicating a greater reliance on domestic financing and comparatively lower exposure to foreign currency risk. The government also reportedly retired Rs4.72 trillion in debt before maturity. At the same time, the average maturity of domestic debt increased from approximately 2.8 years to more than 3.8 years. Longer maturities can reduce refinancing pressure because the government does not need to roll over large amounts of debt as frequently. This is particularly important for Pakistan, where refinancing requirements have historically placed enormous pressure on public finances. Debt Servicing Costs Show Major Improvement Perhaps the most striking development is the reported reduction in interest expenses. Pakistan’s interest expense declined from approximately Rs8.9 trillion to Rs6.9 trillion, representing a reduction of nearly Rs2 trillion in one year. Interest payments as a share of combined federal and provincial revenues also fell sharply from 61 percent in FY24 to 35 percent in FY26. This improvement could provide the government with greater fiscal space for development spending and essential public services. However, the sustainability of this trend will depend heavily on interest rates, borrowing requirements and the government’s ability to maintain primary fiscal surpluses. Pakistan has reportedly recorded three consecutive primary surpluses, while tax revenues grew by 11 percent in FY26 compared with Pakistan debt growth of 7.7 percent. Market Access Returns but Risks Remain Pakistan has also returned to international capital markets after a four year gap through Eurobond and Panda Bond issuances. The Panda Bond reportedly attracted demand equal to around five times the amount offered, highlighting renewed investor interest in Pakistan’s credit story. S&P also upgraded Pakistan’s sovereign rating to B with a Stable outlook, described by Schehzad as the country’s strongest S&P sovereign rating in around nine years. These developments suggest that Pakistan’s financial position has improved from the severe stress witnessed during the country’s recent balance of payments crisis. Yet the biggest test is whether these gains can survive without repeated external assistance. Slower Pakistan debt growth, stronger reserves and lower debt servicing costs are encouraging, but they do not eliminate structural weaknesses such as a narrow tax base, high government borrowing needs and vulnerability to external shocks. The latest figures therefore represent an important improvement, but not the end of Pakistan’s debt crisis. The real measure of success will be whether the government can convert temporary stabilization into long term fiscal discipline, stronger exports and sustainable economic growth.

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.

Facebook Instagram X-twitter Linkedin Youtube
News
Categories
Company
  • Privacy Policy
  • Terms of Services
  • Sitemap
  • Contact Us

© 2025 theboardroom. All rights reserved.

Scroll to Top