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Govt Push to Revive Pakistan Steel Mills Gains Momentum
Pakistan

Govt Push to Revive Pakistan Steel Mills Gains Momentum

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The government has decided to move towards the Pakistan Steel Mills revival, effectively reversing its earlier decision to liquidate the state-owned steel producer after international investors showed interest in restoring and modernising the dormant industrial giant. Well-informed sources said the government has initiated consultations with Russian company Industrial Engineering LLC for the revival, modernisation and restructuring of Pakistan Steel Mills (PSM). The development marks a significant shift in the government’s approach towards the loss-making state-owned enterprise. The Special Investment Facilitation Council (SIFC) had decided in May 2024 to scrap PSM, while the Cabinet Committee on Rightsizing subsequently approved the liquidation of the existing mill in August 2024. However, the government has now begun exploring a revival plan, with international cooperation emerging as a potential route for restoring the mill to operational status. Pakistan, Russia Sign Protocols For PSM Revival According to sources, two protocols have already been signed between Industrial Engineering LLC of Russia and Pakistan Steel Mills under the Ministry of Industries and Production. The first protocol was signed in Moscow on July 10, 2025. It covers cooperation between the two sides for the revival, modernisation and restructuring of PSM. The second protocol was signed during the 10th session of the Pakistan-Russia Intergovernmental Commission on November 26, 2025. The second agreement focuses on determining the operational and capital expenditure requirements needed for manufacturing activities at the steel mill. The agreements provide a framework for assessing the condition of the existing facility, determining investment requirements and examining the feasibility of restoring production. Sources said an exercise has already been carried out to determine production costs and assess market feasibility. The findings of this exercise are expected to play an important role in determining whether the mill can be restored on a commercially sustainable basis. Govt To Seek Approval To Stop PSM Liquidation The concerned authority is expected to submit recommendations to the Cabinet Committee on State-Owned Enterprises (SOEs) seeking an end to the liquidation process. The proposed move is based on the expectation that PSM can be revived with support from international investors and technical partners. A formal summary regarding the revival has also been submitted to the Ministry of Industries and Production for consideration, according to sources. The new policy direction indicates that the government no longer intends to proceed with the earlier plan to dispose of the existing mill. A parliamentary secretary also stated that the government’s policy direction was now clear and that authorities intended to restore Pakistan Steel Mills to operational status. He added that the timeline agreed with the Russian company would be followed and that further measures would be taken accordingly. The government will now need to determine the investment required, production capacity, operating costs and potential market for locally manufactured steel before finalising the revival framework. Awais Leghari Signals Fresh Revival Efforts Minister for Power Sardar Awais Ahmad Khan Leghari has also indicated that recommendations for reviving Pakistan’s dormant steel giant will soon be presented to policymakers. Speaking during a webinar titled “Pakistan-Russia: Strengthening Trade, Education and Energy Collaboration,” jointly organised by the University of World Civilizations Moscow and the Institute of Regional Studies, Leghari highlighted the improving relationship between Pakistan and Russia. He said bilateral relations had gained positive momentum over the past two decades, supported by mutual trust, respect and a shared commitment to regional stability. The minister’s remarks reinforce the government’s renewed interest in using cooperation with Russia to support major industrial and economic projects. For Pakistan Steel Mills, Russian technical and investment expertise could potentially play a role in modernising outdated facilities and establishing a commercially viable production model. PSM Liquidation Plan Had Earlier Been Approved Pakistan Steel Mills has remained dormant for years, creating a significant financial burden for the government. The government had previously decided to scrap the entity after failing to find a buyer for the mill. The SIFC approved the decision to scrap PSM in May 2024, followed by approval from the Cabinet Committee on Rightsizing for liquidation in August 2024. Since then, the government has continued to bear the cost of salaries for the remaining employees. Meanwhile, bills and other expenses have reportedly been supported through proceeds generated from the sale of scrap from the mill. The proposed reversal therefore represents a major change in policy. Instead of proceeding with liquidation and disposing of the remaining assets, authorities are now examining whether the country’s largest integrated steel production facility can be restored through foreign investment, restructuring and modernisation. Revival Could Support Industrial Development A successful Pakistan Steel Mills revival could have wider implications for the country’s industrial sector. A functioning integrated steel mill could potentially reduce reliance on imported steel products, support downstream industries and create employment opportunities. It could also provide domestic industries with a larger source of locally produced steel for construction, engineering, manufacturing and infrastructure projects. However, experts are likely to closely examine the financial feasibility of any revival plan. PSM has faced years of operational, financial and management problems, while much of its infrastructure requires substantial investment and modernisation. The government’s ongoing assessment of production costs, capital expenditure and market feasibility will therefore be critical. The involvement of an international technical partner could help address some of these challenges, but the final structure of investment, management, financing and ownership will determine whether the revival can become sustainable.

Sindh To Collect Stamp Duty Online; Signs Service Level Agreement (SLA) With Pakistan Single Window (PSW)
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Sindh To Collect Stamp Duty Online; Signs Service Level Agreement (SLA) With Pakistan Single Window (PSW)

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Sindh has taken a major step towards digitising government revenue collection after the Board of Revenue Sindh (BoRS) signed a Service Level Agreement (SLA) with Pakistan Single Window (PSW) for the digital collection of Sindh Stamp Duty through the PSW platform. The agreement was signed on August 12, 2026, in Karachi by Naveed Abbas Memon, Chief Domain Officer at PSW, and Nazir Ahmed Qureshi, Member RS&EP at the Board of Revenue Sindh. Senior officials from both organisations attended the ceremony, which was also graced by Khalid Haider Shah, Senior Member of the Board of Revenue. The agreement formalises the transition of the existing electronic stamp duty collection arrangement from Pakistan Revenue Automation Limited (PRAL) to PSW. Digital Stamp Duty Collection Moves To PSW Under the new arrangement, Sindh Stamp Duty collection will be supported through PSW’s digital infrastructure. The transition is intended to provide the Board of Revenue Sindh with a more modern platform for managing stamp duty-related transactions and monitoring government receipts. The move forms part of PSW’s broader efforts to extend its digital infrastructure to government departments and facilitate more efficient electronic government services. Real-Time Monitoring Of Stamp Duty Collections A key feature of the new system is a dedicated interface for the Board of Revenue Sindh. Through this interface, the department will be able to monitor stamp duty collections in real time. It will also allow officials to conduct daily and monthly reconciliation of collected amounts against government receipts. The enhanced visibility is expected to strengthen revenue monitoring and improve the efficiency of the reconciliation process. Transition From PRAL To PSW The agreement also marks the transfer of the existing electronic stamp duty collection arrangement from PRAL to PSW. The new system will use PSW’s digital infrastructure to support the collection process, while providing the Board of Revenue Sindh with greater oversight of revenue flows. The transition represents another expansion of PSW’s role in digitising government transactions and services. PSW Expands Digital Government Services The integration of the Board of Revenue Sindh adds to the list of provincial and federal government bodies that have brought their processes onto the PSW platform over the past year. The development reflects PSW’s continuing efforts to expand the use of its digital infrastructure beyond its existing functions and into a wider range of government transactions. For Sindh, the digital stamp duty arrangement is expected to provide greater visibility over collections while supporting more efficient revenue administration.

FBR Hints At Further Tax Relief, Super Tax And Sales Tax Cuts Under Review
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FBR Hints At Further Tax Relief, Super Tax And Sales Tax Cuts Under Review

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The FBR tax relief measures could be expanded as the Federal Board of Revenue (FBR) indicated that the government is considering further reductions in the tax burden on businesses, including a possible complete withdrawal of super tax and a reduction in the sales tax rate. The development came during a meeting of the Sub-Committee of the Senate Standing Committee on Finance, where business representatives raised concerns over high input costs, expensive financing, elevated electricity tariffs and what they described as harassment by tax authorities. Business leaders warned that the difficult operating environment was discouraging investment and industrial activity, with several multinational companies reportedly scaling down or leaving Pakistan. FBR Considers Further Tax Relief For Businesses Hamid Ateeq Sarwar, Member FBR, told the committee that the government had already introduced several tax relief measures since 2025 and remained willing to provide additional relief to taxpayers. He said super tax was among the areas being reviewed for further reduction. The government was also examining options to lower the sales tax burden faced by businesses. According to the FBR official, the government had already absorbed a revenue impact of around Rs361 billion to facilitate businesses and encourage economic activity. He said the tax burden was being rationalised while taking into account Pakistan’s fiscal position and import requirements. The measures already introduced include tax relief for salaried individuals, a reduction in super tax and the complete removal of super tax for exporters. Sarwar also informed the committee that exporters’ facilitation committees had been established in Karachi, Lahore, Sialkot, Faisalabad, Islamabad and Multan to address taxation-related concerns. Business Community Warns Of Investment Decline Mian Zahid Hussain, Chairman of the Policy Advisory Board of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and Tariq Khan Jadoon, Vice President, highlighted the challenges facing businesses. They argued that high taxation, expensive financing, rising input costs and interactions with FBR field formations were making it increasingly difficult for companies to operate in Pakistan. They warned that continued pressure could encourage more businesses to shift their operations abroad. According to the business representatives, industries are currently operating at only around 40% to 45% of capacity, highlighting the pressure faced by manufacturers. Committee Convener Muhammad Talha Mahmood said the meeting was aimed at finding ways to stimulate economic activity and create a more favourable environment for businesses. He expressed concern that high energy costs and the existing tax structure were forcing companies to reduce their operations or leave the country. Business Leaders Seek Tax And Regulatory Reforms Zahid Hussain said national economic policy appeared to place excessive emphasis on revenue collection instead of economic growth. He called for reductions in advance and withholding taxes, rationalisation of customs duties and simpler audit procedures. He also urged authorities to review factory surveillance mechanisms and reduce compliance requirements that increase the cost of doing business. Tariq Khan Jadoon said Pakistan continued to have an advantage in terms of labour costs, but businesses were struggling with high electricity prices and regulatory challenges. He called for a broader tax base, arguing that the government should bring new sectors and businesses into the tax net rather than repeatedly increasing the burden on existing taxpayers. Business representatives also complained about the conduct of FBR field formations. They alleged that frequent notices, audits and enforcement actions had created uncertainty and made it difficult for taxpayers to plan their business activities. The committee stressed that excessive taxation could ultimately undermine government revenue by discouraging investment and shrinking the formal economy. Committee Seeks Investor Protection Framework Talha Mahmood also questioned the effectiveness of existing policies designed to attract foreign investment. He sought details regarding mechanisms for protecting investors and facilitating share transfers. The convener directed relevant authorities to provide the Sub-Committee with a comprehensive briefing on the existing investment framework. The committee also expressed concern over the absence of the Secretary Finance from the meeting. Mahmood directed the secretary to ensure attendance at the next meeting and warned that continued absence could result in the matter being referred to the Senate Privileges Committee. He said sustainable economic growth required business-friendly policies, transparent governance and competent officials capable of developing policies that encourage investment, industrialisation and entrepreneurship. FBR Working On Taxpayer Facilitation Measures FBR officials also briefed the committee on measures being developed to improve taxpayer facilitation. The Board is working on a mobile application for tax reimbursements and plans to designate specific facilitation days in major commercial centres. Talha Mahmood recommended that taxpayers who correct genuine errors in their returns should have their accounts restored within 24 to 48 hours. He also emphasised the importance of an efficient biometric verification system to make tax-related services easier for citizens and businesses. The committee further observed that early market closing hours were negatively affecting commercial activity and called for measures to support businesses. Goods Transport Strike Raises Economic Concerns The Sub-Committee also discussed the ongoing goods transport strike and its impact on economic activity. Talha Mahmood expressed concern over delays in resolving the dispute, warning that perishable goods could spoil while businesses faced significant losses because of container detention charges. He urged the government to immediately engage with transporters and other affected stakeholders to resolve their concerns and restore normal freight movement. The committee strongly recommended immediate dialogue to end the dispute and minimise further losses. The discussions highlighted the broader challenge facing Pakistan’s economy: balancing revenue collection with policies that allow businesses to remain competitive. While the FBR has indicated that further FBR tax relief is under consideration, business representatives are seeking deeper structural reforms covering taxation, energy costs, regulation and enforcement.

Goods Transporters Alliance, Govt Agree To Joint Monitoring Committee On Customs Issues
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Goods Transporters Alliance, Govt Agree To Joint Monitoring Committee On Customs Issues

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The Goods Transporters Alliance and the government have agreed to establish a Joint Monitoring Committee to address issues faced by the transport industry, particularly in dealing with customs authorities and other relevant government departments. The agreement was reached after two days of negotiations between the government and the All Pakistan Goods Transporters Alliance in Islamabad. The discussions focused on immediate and long-term measures to resolve operational difficulties faced by goods transporters across the country. The concluding session was chaired by Federal Minister for Communications Abdul Aleem Khan, who is also the convener of the committee constituted by Prime Minister Shehbaz Sharif to address the transporters’ concerns. Federal Minister for Maritime Affairs Junaid Anwaar also participated in the meeting through a video link. He assured representatives of the transport sector that his ministry would extend full cooperation on issues related to maritime transportation and port operations. The five-hour concluding meeting was attended by the Federal Secretary for Communications, Chairman of the National Highway Authority (NHA), Inspector General of the Motorway Police and senior officials from relevant government departments. Representatives of the All Pakistan Goods Transporters Alliance, including Malik Shehzad Awan, Nasir Jafri, Owais Chaudhry, Qamar-uz-Zaman, Bakhtawar Khan and Shabar Malik, also participated in the discussions. Joint Monitoring Committee To Oversee Customs Issues Under the agreement, a Joint Monitoring Committee comprising representatives of Customs authorities and goods transporters will be established. The committee will monitor issues between transporters and customs officials and work toward resolving them through coordinated measures. The government also reviewed proposals submitted by transporters regarding customs procedures and other operational challenges. Senior officials of the Federal Board of Revenue (FBR) presented recommendations on these proposals during the meeting. Officials from port and shipping authorities, as well as the Karachi Port Trust (KPT), also briefed participants on matters related to cargo movement and port operations. The discussions are expected to provide a platform for transporters and government departments to resolve complaints more efficiently while improving coordination across the supply chain. The government also considered short-term measures to provide immediate relief to transporters, alongside longer-term reforms aimed at improving the overall freight transportation system. State-Of-The-Art Weigh Stations Planned One of the major issues discussed during the meeting was the functioning of weigh stations on national highways and motorways. Abdul Aleem Khan directed authorities to address complaints raised by transporters regarding weigh stations on a priority basis. He said state-of-the-art weigh stations with minimal human intervention would be established on all motorways. The planned system is aimed at reducing manual interference and improving transparency in the weighing process. Automated facilities could also help reduce delays for freight vehicles and ensure more consistent enforcement of weight regulations. Transporters welcomed the minister’s efforts and appreciated the government’s engagement with their representatives. The meeting also discussed the axle-load issue, which has remained an important concern for the goods transportation industry. Transporters Support Uniform Axle-Load Policy During the negotiations, transporters expressed support for the government’s policy on axle-load regulations. However, they stressed that the issue should be controlled at its source through a uniform policy. A consistent axle-load mechanism across the country could help prevent differences in enforcement between various routes and authorities. It could also improve road safety while providing greater certainty for transport operators. Officials from the NHA and Motorway Police participated in discussions concerning road infrastructure, enforcement and other issues affecting freight transportation. The government also reviewed proposals involving the NHA and Motorway Police as part of its broader effort to address concerns raised by the transport sector. Petroleum And Port Issues Also Discussed The negotiations also covered matters related to the petroleum sector. Senior officials from the Ministry of Petroleum held detailed discussions with representatives of the transporters. Fuel-related issues remain important for goods transport operators because changes in fuel costs directly affect freight charges, operating expenses and the prices of goods transported across the country. Maritime-related matters were also discussed in the presence of officials from port and shipping authorities and the Karachi Port Trust. Junaid Anwaar assured the transporters of his ministry’s cooperation in resolving issues linked to maritime transportation and port operations. The government’s engagement with the transporters comes as authorities seek to improve the efficiency of Pakistan’s logistics and freight movement system. The establishment of the Joint Monitoring Committee could provide a structured mechanism for addressing complaints and monitoring progress on agreed reforms. The two sides are expected to continue consultations on the remaining issues, with the government focusing on measures that can improve coordination among Customs, FBR, NHA, Motorway Police, port authorities and transport operators.

Haroon Akhtar Appointed Adviser to Prime Minister With Federal Minister Status for Industries and Production
Pakistan

Haroon Akhtar Appointed Adviser to Prime Minister With Federal Minister Status for Industries and Production

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The federal government has made a significant change in its economic and industrial leadership by appointing Haroon Akhtar as Adviser to the Prime Minister with the status of Federal Minister, giving him responsibility for the Industries and Production portfolio. The appointment was made by the President under clause 1 of Article 93 of the Constitution of Pakistan and takes effect immediately. The Cabinet Division formally issued the notification, confirming Haroon Akhtar’s new position and portfolio. The move puts the Industries and Production Ministry under a political figure with cabinet-level status at a time when Pakistan’s industrial sector faces mounting challenges, including high production costs, weak competitiveness, energy constraints, import pressures and concerns over declining industrial activity. Haroon Akhtar Gets Industries and Production Portfolio As part of the new arrangement, Haroon Akhtar will oversee the Industries and Production portfolio, placing him at the center of several issues that directly affect Pakistan’s manufacturing and business sectors. The portfolio covers a broad industrial landscape and carries implications for manufacturing growth, industrial policy, state-owned enterprises, production capacity and investment conditions. For businesses, the real significance of the appointment will not be determined by the cabinet designation alone. The critical question is whether the new leadership can translate political authority into practical reforms that reduce the cost of doing business and improve industrial competitiveness. Pakistan’s industrial sector has repeatedly highlighted expensive electricity and gas, taxation pressures, regulatory uncertainty, limited access to financing and inconsistent policy as major obstacles to expansion. Simply changing the person responsible for the portfolio will not resolve these structural problems. Haroon Akhtar will therefore face pressure to demonstrate measurable progress rather than rely on administrative announcements or policy statements. What Haroon Akhtar’s Appointment Means for Pakistan’s Industry The appointment could provide the government with an opportunity to place greater political attention on industrial growth. A Federal Minister level adviser may have stronger access to decision makers and greater influence when coordinating industrial policy with the finance, energy, commerce and planning authorities. This coordination is particularly important because industrial problems in Pakistan rarely originate from one ministry alone. Energy prices, taxation, interest rates, import restrictions, exchange rate movements and infrastructure bottlenecks all influence factory output and investment decisions. However, the government should also be prepared to judge the appointment against concrete economic outcomes. Investors and manufacturers need predictable policies, faster approvals and competitive input costs rather than repeated changes in administrative arrangements. The appointment therefore represents both an opportunity and a test for the government. Haroon Akhtar Replaces Previous Special Assistant Arrangement Following his appointment as Adviser to the Prime Minister, Haroon Akhtar will cease to serve as Special Assistant to the Prime Minister. The Cabinet Division said earlier notifications issued on February 27 and March 7, 2025, have been superseded to the extent relevant to his previous position. The administrative change formally establishes his new status while retaining his involvement in the federal government’s economic decision making. The Bigger Question Behind Haroon Akhtar’s Appointment The appointment comes at a sensitive time for Pakistan’s industrial economy. Manufacturers require policy stability and practical solutions to long-standing cost and competitiveness problems. The government will now need to show whether Haroon Akhtar’s enhanced status can produce tangible improvements in industrial policy. If the appointment leads to faster reforms, stronger coordination and improved conditions for manufacturers, it could become an important step for Pakistan’s industrial sector. If it remains only a change in designation, however, businesses are unlikely to see much difference. The real measure of Haroon Akhtar’s appointment as Adviser to the Prime Minister will therefore be its impact on factories, investment, exports, employment and industrial production rather than the title attached to the office.

10kW Solar System In Pakistan Offers Major Savings Despite Net Metering Changes
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10kW Solar System In Pakistan Offers Major Savings Despite Net Metering Changes

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The rising cost of electricity is pushing more Pakistani households towards rooftop solar, with a 10kW solar system in Pakistan emerging as an increasingly attractive option for consumers seeking to reduce their dependence on the national grid. Although the government has tightened solar net-metering rules because of the growing financial and technical impact of rooftop generation on the power system, consumers who can afford the upfront investment continue to install solar systems. Many households are also moving towards off-grid solutions and battery storage to maximise self-consumption and reduce exposure to rising electricity tariffs. Industry estimates suggest that a 10kW rooftop solar system can generate between 1,200 and 1,500 units of electricity per month, depending on the location, sunlight conditions and seasonal variations. This level of generation can cover a substantial portion of the electricity requirements of an upper-middle-income household. 10kW Solar System Can Cut Monthly Electricity Costs With electricity tariffs remaining high, solar generation can provide significant savings for households with substantial monthly consumption. Consumers paying electricity tariffs between Rs45 and Rs60 per unit can potentially save between Rs50,000 and Rs90,000 per month through solar self-consumption, depending on their electricity usage and the amount of generation available. Under the traditional net-metering arrangement, households first use the electricity generated by their solar panels. Any surplus generation can then be exported to the national grid, with distribution companies providing credits that are adjusted against electricity bills. For example, a household consuming around 1,200 units per month and generating approximately 1,400 units through a 10kW solar system could export nearly 400 units to the grid. Combining savings from self-consumption with credits for exported electricity could provide total monthly financial benefits of around Rs55,000 to Rs60,000 under the assumptions cited by industry participants. However, the financial return depends heavily on the applicable electricity tariff, export compensation rate, household consumption pattern and regulatory framework. Solar Capacity Has Expanded Rapidly Pakistan has witnessed a dramatic increase in rooftop solar adoption over recent years. Analysts estimate that solar net-metering capacity expanded nearly 37-fold in six years, reaching around 7,000 MW by June 2026. When net-metering and off-grid generation are combined, the installed generation capacity is estimated at around 20,000 MW. The rapid expansion has created challenges for the national power system. Large amounts of rooftop solar generation during daylight hours can sharply reduce demand from the national grid, creating what is commonly known as the duck curve. The situation becomes particularly challenging during periods when solar generation falls rapidly but electricity demand remains high. This can create operational and financial pressures for conventional power plants and the national grid. The growing solar capacity has therefore contributed to the government’s policy shift from the traditional net-metering framework towards net billing. 10kW Solar System Installation Cost The upfront cost remains one of the biggest considerations for households considering solar. According to industry estimates, installing a 10kW system currently costs between Rs1.5 million and Rs2.2 million, depending on the quality of solar panels, inverter technology, batteries, mounting equipment and installation standards. Despite the high initial investment, the payback period has become considerably shorter because of higher electricity tariffs. Based on prevailing electricity prices and the assumptions surrounding system generation, experts estimate that a 10kW solar system can recover its initial cost in approximately 2.5 to four years. After the payback period, the system can continue generating electricity for many years, although components such as inverters and batteries may require replacement during the system’s lifetime. Experts estimate that a properly maintained solar system could operate for around 20 to 25 years. Over that period, consumers could potentially save between Rs15 million and Rs25 million, depending on electricity prices, system performance and future policy changes. Why Pakistan Is Moving Towards Solar The expansion of rooftop solar has not been driven by government policy alone. Several economic factors have made solar increasingly attractive to consumers. The Pakistani rupee has depreciated by around 75% over the period cited by industry analysts, while electricity tariffs have increased by nearly 140%. At the same time, solar panel import prices declined by approximately 60% between FY2021 and FY2025. The combination of expensive grid electricity and cheaper solar equipment significantly improved the economics of rooftop installations. Consumers are also increasingly looking beyond traditional net metering. Changes in regulations and concerns about future export compensation have encouraged households to maximise the amount of solar electricity they consume themselves. Battery Storage Could Transform Solar Adoption The solar market is also shifting towards battery energy storage systems (BESS). Instead of exporting large amounts of surplus electricity during the day, households can store excess solar generation and use it during evening and night-time hours when solar production is unavailable. The market is reportedly moving from smaller residential battery modules towards larger systems with capacities of around 14–16 kWh. Falling battery costs and growing consumer confidence are supporting this transition. Battery storage could also help reduce pressure on the national grid by allowing consumers to rely more heavily on their own stored electricity during peak demand periods. The government is encouraging BESS deployment as part of efforts to manage the impact of large-scale rooftop solar adoption and reduce pressure on the national grid, particularly during winter months. Policy Changes Remain A Key Risk Despite the strong financial case for rooftop solar, investors face uncertainty over future regulations. Net-metering rules, export compensation rates and other aspects of the electricity market remain subject to decisions by the National Electric Power Regulatory Authority (Nepra) and the Power Division. Any significant reduction in compensation for exported electricity could affect the payback period of systems designed around selling surplus generation to the grid. For this reason, experts increasingly recommend focusing on self-consumption and battery storage rather than relying entirely on grid exports. Pakistan’s rooftop solar market is therefore entering a new phase. While traditional net metering helped accelerate adoption, the combination of higher electricity prices, cheaper solar technology and expanding battery storage is encouraging consumers to build systems designed primarily for their own energy needs.

CCP Clears CVC Fund IX Acquisition of DSM-Firmenich’s Animal Nutrition Business
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CCP Clears CVC Fund IX Acquisition of DSM-Firmenich’s Animal Nutrition Business

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The Competition Commission of Pakistan (CCP) has approved the acquisition of controlling equity interests in DSM-Firmenich’s Animal Nutrition and Health Business by four investment vehicles indirectly owned and financed by CVC Fund IX, following a Phase-I competition assessment. The transaction was reviewed under Section 11 of the Competition Act, 2010 because DSM’s Animal Nutrition and Health Business operates in Pakistan through DSM-Firmenich Pakistan (Private) Limited. The review assessed whether the acquisition could create or strengthen a dominant position or otherwise raise competition concerns in relevant Pakistani markets. CCP Approves CVC Fund IX Acquisition After Competition Review Under the transaction, DSM B.V., a Netherlands-based company and wholly owned subsidiary of Swiss-based DSM-Firmenich AG, will reorganise its Animal Nutrition and Health Business into two separate entities: SpecialtyCo Business and EssentialCo Business. DSM-Firmenich Group will retain non-controlling equity interests, while the CVC-backed acquirers will obtain controlling equity interests and corresponding voting rights in both entities. The acquisition involves four newly incorporated investment vehicles: Specialty Bidco B.V. and Essential Bidco B.V., incorporated in the Netherlands, and Specialty (U.S.) Bidco Inc. and Essential (U.S.) Bidco Inc., incorporated in Delaware, USA. All four investment vehicles are indirectly owned and financed by CVC Fund IX, which is managed and advised by affiliates of CVC Capital Partners plc. DSM Animal Nutrition Business Covers Multiple Product Segments DSM’s Animal Nutrition and Health Business produces animal nutrition ingredients across a range of essential products and services. Its portfolio includes vitamins and carotenoids, performance solutions, premixes, precision services and aroma ingredients. The business operates in Pakistan through DSM-Firmenich Pakistan (Private) Limited, making the acquisition subject to review by Pakistan’s competition regulator. CCP Finds No Competition Overlap in Pakistan The CCP’s assessment found that CVC Fund IX, the acquiring entities and their controlled portfolio companies are not active in Pakistan in any of the relevant product markets in which DSM’s business operates. As a result, the Commission found no horizontal overlap between the businesses involved in the transaction. The assessment also found no vertical relationship between the acquiring parties and DSM’s relevant business operations in Pakistan. Consequently, the transaction is not expected to increase market share or market concentration in the affected markets. Acquisition Unlikely to Harm Competition Following its Phase-I assessment, the CCP concluded that the transaction is unlikely to create entry barriers, materially enhance market power or substantially lessen competition in Pakistan. The Commission therefore authorised the acquisition under the Competition Act, 2010. The decision provides regulatory clearance for the transaction in Pakistan while allowing the restructuring of DSM-Firmenich’s Animal Nutrition and Health Business to proceed from a competition-law perspective. CCP Highlights Investor-Friendly Regulatory Environment The CCP said it remains committed to facilitating investment, supporting business growth and promoting a competitive and investor-friendly environment in Pakistan. The Commission also emphasised the importance of an efficient and transparent merger review process in providing regulatory certainty to investors and businesses. According to the CCP, such regulatory processes can help enable investments that contribute to economic growth, innovation and consumer welfare. Final Takeaway The CCP’s approval removes a key regulatory hurdle for CVC Fund IX’s acquisition of controlling interests in DSM-Firmenich’s Animal Nutrition and Health Business in Pakistan. The Commission’s Phase-I assessment found no horizontal overlap or vertical relationship between the acquiring entities and DSM’s relevant business in Pakistan. On that basis, the transaction was considered unlikely to materially affect competition or market concentration.

Pakistan Privatization Plan Gains Momentum as Government Targets DISCOs, Banks and Airports
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Pakistan Privatization Plan Gains Momentum as Government Targets DISCOs, Banks and Airports

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The Pakistan Privatization Plan is entering a potentially decisive phase as the government and Pakistan Business Council move to expand private-sector participation in state-owned enterprises, capital markets and major public services. The plan includes possible privatization of power distribution companies, banks and airports, along with restructuring, rightsizing and the listing of major public-sector entities. The development signals a major shift in Pakistan’s economic policy, but it also raises an uncomfortable question: can privatization deliver better services and stronger governance, or will it simply transfer inefficient public assets into private hands without fixing the underlying problems? Advisor to the Finance Minister Khurram Schehzad held discussions with Pakistan Business Council Chairman Ziad Bashir and Chief Executive Officer Javed Kureishi at the Finance Division. The meeting focused on attracting investment, restructuring state-owned enterprises and creating a business environment capable of supporting long-term economic growth. Pakistan Privatization Plan Puts DISCOs, Banks and Airports in Focus Under the Pakistan Privatization Plan, the government is considering greater private-sector involvement in power distribution companies, banks and airports. The stated objective is to improve efficiency, attract investment and raise the quality of public services. The proposal is significant because DISCOs remain closely linked to Pakistan’s chronic power-sector inefficiencies, including distribution losses, weak recoveries and governance problems. Bringing private investors into the sector could introduce stronger financial discipline, but privatization alone will not solve structural weaknesses if regulatory oversight remains ineffective. The proposed privatization of banks and airports also deserves close scrutiny. The government must ensure that transactions are transparent, competitively structured and designed to protect consumers and taxpayers rather than merely generate short-term fiscal receipts. State Life IPO Could Open a New Capital Market Chapter Another important element of the Pakistan Privatization Plan is the proposal to bring major public-sector entities to the capital markets through Initial Public Offerings. The State Life Insurance Corporation is among the entities being considered for an IPO. A successful listing could broaden investor participation, improve corporate transparency and expose a major public-sector institution to greater market discipline. However, listing a state-owned company should not be confused with genuine reform. An IPO can improve transparency only if investors receive meaningful financial information, independent governance is strengthened and management is held accountable for performance. Rightsizing Could Become the Real Test of Reform The Pakistan Business Council has supported the government’s rightsizing initiative and agreed to submit recommendations on privatization, SOE restructuring and areas where private-sector participation could improve economic efficiency. This is perhaps the most important part of the government’s agenda. Pakistan has repeatedly announced plans to reform loss-making state enterprises, yet implementation has often been slowed by political resistance, institutional interests and concerns over employment. Rightsizing therefore cannot simply mean reducing government employees. It must involve eliminating overlapping institutions, improving management accountability, digitizing operations and stopping politically motivated appointments. Without these measures, Pakistan could end up privatizing individual entities while leaving the broader culture of inefficient public-sector management untouched. Pakistan Privatization Plan Also Targets Tax Reform The discussions also covered tax rationalization and the development of a medium-term tax policy framework. The government and PBC agreed on the need for a predictable, transparent and competitive tax system that encourages investment and business expansion. PBC welcomed measures under the Federal Budget FY27 that focus on broadening the tax base and increasing economic activity rather than relying mainly on higher tax rates. It also supported incentives for exporters and businesses designed to reduce the cost of doing business. This is an area where the government deserves credit, but implementation will determine whether the policy produces results. Businesses need consistency, not temporary concessions followed by sudden tax changes. Privatization Will Not Work Without Transparency The Pakistan Privatization Plan could become one of the country’s most consequential economic reform programmes, but its success should not be measured by the number of entities sold. The real test will be whether privatization reduces fiscal pressure, improves services, attracts fresh investment and creates competitive markets. The government and PBC have agreed to continue consultations on economic reforms, private investment and competitiveness. That engagement is useful, but the business community must also demand transparency over valuations, bidding procedures, regulatory safeguards and post-privatization performance. Pakistan does not merely need to sell state assets. It needs to build institutions capable of ensuring that private ownership delivers public economic value. If the government gets this balance right, the Pakistan Privatization Plan could help move the economy from state dependence toward investment-led growth. If it focuses only on raising immediate cash, however, privatization could become another short-term fiscal exercise rather than the structural transformation Pakistan urgently needs. Final Takeaway Pakistan’s renewed privatization push reflects a broader attempt to reduce the state’s role in commercial activity while attracting private investment and improving the performance of public-sector entities. The focus on DISCOs, banks, airports, State Life and SOE rightsizing could create meaningful opportunities for reform. However, successful privatization will depend on transparent transactions, credible valuations, effective regulation and stronger corporate governance. Selling state assets without addressing their underlying structural weaknesses would provide only temporary fiscal relief rather than lasting economic reform.

Pakistan Car Sales Surge 79.6 Percent in July 2026, But Monthly Drop Raises Fresh Questions
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Pakistan Car Sales Surge 79.6 Percent in July 2026, But Monthly Drop Raises Fresh Questions

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Pakistan car sales delivered a dramatic year on year jump in July 2026, with sales of cars, light commercial vehicles, vans and jeeps reaching 19,818 units, up 79.6 percent from 11,034 units recorded in July 2025, according to the latest data released by the Pakistan Automotive Manufacturers Association. The headline figure points to a powerful recovery in Pakistan’s automobile market, but a closer look at the numbers tells a more complicated story. Total car sales fell 12.9 percent month on month from 22,741 units in June 2026, while the broader LCV, van and jeep segment suffered a steep monthly decline. The contrasting figures suggest that Pakistan’s auto market is recovering, but the recovery is not evenly distributed across vehicle categories. Pakistan Car Sales Growth Led by Passenger Vehicles The biggest driver behind the July surge was passenger cars. Sales reached 17,216 units during the month, representing a remarkable 141.3 percent increase compared with 7,135 units in July 2025. Passenger car sales also increased 12 percent compared with June 2026, when manufacturers sold 15,378 units. This makes passenger vehicles the strongest part of the domestic automobile market and indicates that consumer demand for conventional passenger cars has improved significantly over the past year. The 1,300cc and above category accounted for 9,066 passenger cars sold in July. Toyota’s Corolla, Yaris and Corolla Cross led this segment with 4,283 units, followed by Honda’s Civic and City with 2,529 units. Suzuki Swift recorded 2,018 units, while Hyundai Elantra and Sonata posted 211 and 25 units respectively. The below 1,000cc segment was the second largest category, recording 7,710 units. Suzuki Alto dominated this market with 7,217 units, while Suzuki Every contributed 493 units. The 1,000cc segment remained extremely small, with only 392 units sold. Suzuki Cultus accounted for the entire category, while the discontinued Suzuki WagonR recorded zero sales. Pakistan Car Sales Expose a Major Weakness in LCV and Jeep Demand While passenger cars posted spectacular growth, the LCV, van and jeep segment tells a very different story. Sales in this category dropped 33.3 percent year on year to 2,602 units from 3,899 units in July 2025. More importantly, sales collapsed 64.7 percent month on month from 7,363 units in June. This sharp contraction deserves greater attention than the headline growth number. It suggests that demand for commercial and utility vehicles remains under considerable pressure, potentially reflecting weaker business activity, financing constraints or changes in fleet purchasing patterns. Toyota Fortuner and IMVs led the category with 806 units, followed by Haval and Tank models sold by Sazgar with 663 units. JAC Pickup, distributed by Ghandhara, recorded 357 units, while Hyundai Porter posted 286 units. Other notable sales included Hyundai Tucson at 171 units, Jetour at 133 units, Honda BR-V and HR-V at 111 units, Isuzu D-Max at 44 units, Hyundai Santa Fe at 17 units and Dewan Kia Shehzore at 14 units. The newly introduced Suzuki Fronx did not record any sales in July. Auto Production Also Accelerates The production side of the industry showed improvement. Pakistan’s total vehicle production increased 54.8 percent year on year to 21,668 units in July 2026 from 13,998 units a year earlier. Passenger car production rose 75.6 percent to 17,307 units from 9,856 units. Production of LCVs, vans and jeeps, however, increased only 5.3 percent year on year to 4,361 units. On a monthly basis, total production increased 3.7 percent, while passenger car production rose 13.8 percent. LCV, van and jeep production declined 23.3 percent from June. The production figures indicate that manufacturers are responding to stronger passenger car demand, although the uneven performance across segments remains a concern. FY26 Car Sales Show a Broader Market Recovery For the full financial year 2026, sales of cars, LCVs, vans and jeeps reached 206,436 units, compared with 148,042 units in FY25, representing growth of 39.4 percent. The annual increase is significant because Pakistan’s automobile industry has faced prolonged pressure from high vehicle prices, expensive financing, currency volatility and economic uncertainty. However, the July figures also demonstrate why simply describing the market as being in a full recovery could be premature. Passenger cars are driving the rebound, while commercial and utility vehicles are showing substantial weakness. The critical question for the industry is whether this passenger car momentum can continue without a corresponding recovery in commercial vehicle demand. Electric Vehicles Remain a Small Part of Pakistan’s Auto Market Electric vehicle sales also showed improvement, although from a very low base. Dewan Honri-Ve sold 48 units in July 2026, compared with 24 units in July 2025. The 100 percent year on year increase is encouraging for the electric vehicle segment, but the absolute sales volume remains too small to materially change Pakistan’s overall automobile market. For now, conventional passenger vehicles continue to dominate domestic sales. What the July Numbers Really Mean for Pakistan’s Auto Industry Pakistan’s automobile market is clearly performing better than it was a year earlier, but the latest data should be read with caution. The 79.6 percent year on year increase in Pakistan car sales is impressive, yet it is heavily concentrated in passenger vehicles. The 64.7 percent monthly collapse in LCVs, vans and jeeps exposes a significant weakness that the headline growth figure can easily conceal. The industry therefore appears to be experiencing a selective recovery rather than a uniform boom. If purchasing power improves, vehicle financing becomes more accessible and economic activity strengthens, manufacturers could sustain the recovery. If those conditions fail to materialize, the sharp difference between passenger car demand and commercial vehicle demand could become an important warning signal for the automobile sector. For investors, manufacturers and policymakers, the real story is not simply that Pakistan car sales surged in July. The more important question is whether this growth represents a durable revival of automobile demand or a concentrated rebound in selected passenger vehicle categories. Final Takeaway Pakistan’s July 2026 auto sales data presents a mixed picture. Passenger vehicle demand has recovered strongly, driving a 79.6 percent year-on-year increase in combined car, LCV, van and

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