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Gold Prices on Friday Climb as US-Iran Ceasefire Deal Lifts Market Sentiment
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Gold Prices on Friday Climb as US-Iran Ceasefire Deal Lifts Market Sentiment

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Gold prices on Friday moved higher as investors tracked a developing ceasefire agreement between the United States and Iran. Spot gold gained 0.2% to reach $4,499.56 per ounce by early Asian trading hours. The market showed resilience after a sharp drop the day before. US gold futures edged 0.1% lower to settle at $4,529.80. A Volatile Week Tests Investor Nerves The precious metal had a turbulent week. Bullion slid to a two-month low on Thursday before staging a sharp recovery. The rebound came after reports emerged of a ceasefire extension between Washington and Tehran. Traders responded quickly to the news. Prices reversed course within hours of the announcement. Market Expert Breaks Down the Thursday Reversal Brian Lan, Managing Director at GoldSilver Central, explained the market reaction clearly. He said gold fell as low as $4,360 on Thursday and looked likely to fall further. The ceasefire announcement stopped the slide in its tracks. Lan told reporters that markets are now waiting for the deal to receive formal approval. He noted that traders remain cautious even as optimism grows. “Markets are now waiting for the deal to be signed even if it’s only just pending Trump’s signature,” Lan said. US-Iran Ceasefire Deal Awaits Final Approval The United States and Iran reached a preliminary agreement on Thursday. The deal aims to extend the ceasefire and lift restrictions on shipping through the Strait of Hormuz. Sources provided this information to Reuters. However, US President Donald Trump had not yet approved the agreement as of Friday morning. Iranian state media also confirmed that the deal had not been finalised. The uncertainty kept gold buyers alert but cautious.Inflation Hits Three-Year High and Rattles MarketsInflation concerns continued to weigh heavily on investor decisions. US inflation rose at its fastest pace in three years in April. Higher energy prices drove much of that increase. The ongoing Iran war pushed energy costs upward throughout the month. Economists widely agreed that the Federal Reserve would hold interest rates steady well into next year. Stubbornly high inflation leaves the central bank with few options to cut borrowing costs. Federal Reserve Signals Steady Hand on Rates Federal Reserve Bank of New York President John Williams addressed the situation directly. He stated that current monetary policy sits in the right place given the economic outlook. Williams told investors to expect elevated inflation in the near term. He added that price pressures should ease later in the year. His comments offered some reassurance but did little to change the broader market mood. Rate Policy and Geopolitics Pull Gold in Opposite Directions Gold prices on Friday reflected the push and pull between safe-haven demand and rate policy pressure. Higher interest rates traditionally weigh on gold because the metal pays no yield. Investors weigh the cost of holding gold against returns available in other assets. When rates stay high for longer, gold faces headwinds. But geopolitical uncertainty and inflation fears can offset that pressure. This week proved that balance in real time. Silver and Palladium Post Weekly Gains Silver also made gains on Friday. Spot silver rose 0.1% to $75.67 per ounce. The metal stayed on track for a weekly gain. Palladium performed even better. It gained 0.4% to reach $1,373.14 per ounce. Palladium also headed for a positive week. Both metals benefited from the improved risk sentiment linked to the ceasefire news. Platinum Bucks the Trend With Weekly Loss Platinum moved in the opposite direction. The metal fell 0.4% to $1,915.53 per ounce. Platinum remained on course for a weekly loss. The metal has struggled more than its peers in recent sessions. Industrial demand concerns and a stronger dollar contributed to its underperformance. All Eyes Remain on Iran Ceasefire Outcome Traders across the precious metals complex watched the Iran situation closely. Any breakdown in ceasefire talks could push gold sharply higher. A signed deal could ease energy prices and reduce safe-haven demand. The market remained in a holding pattern as both outcomes stayed possible. Gold Holds Ground Amid Global Uncertainty Gold prices on Friday captured the tension at the heart of global markets. Geopolitical risk, inflation pressure, and interest rate uncertainty all competed for attention at once. Investors in gold faced a complex set of signals. The metal managed to hold its ground and inch higher. Whether that momentum continues depends heavily on what happens next in Washington and Tehran.

Sindh Government Rejects Immediate Sugar Sector Deregulation
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Sindh Government Rejects Immediate Sugar Sector Deregulation

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The Sindh government has strongly opposed the immediate deregulation of Pakistan’s sugar sector, raising serious concerns over proposals to abolish crop zoning and allow the establishment of new sugar mills without comprehensive planning. The provincial government believes sudden reforms could negatively affect farmers, destabilize the market, and create long-term food security risks. Federal-Provincial Differences Over Sugar Reforms The Sindh cabinet has submitted multiple objections to the draft national sugar policy, arguing that sugar sector regulation largely falls under provincial jurisdiction. Officials warned that immediate liberalisation could disrupt the existing regulatory framework and harm local growers who depend on stable pricing and zoning systems. Sindh has instead proposed a gradual reform process spread over five to ten years rather than implementing abrupt deregulation measures. This position directly contrasts with the federal government’s commitment to meet the IMF-backed deadline for reforms by the end of June 2026. The provincial government wants to maintain strong authority over critical areas such as price fixation, licensing, and crop zoning. Sindh also opposes the establishment of new sugar mills, stating that many existing mills are already operating below their full production capacity. Concerns Over Farmers and Food Security Experts and farmer representatives have expressed concerns that sudden deregulation may expose growers to exploitation, particularly during periods of excess sugarcane supply when mills can exert greater control over prices. While some farmer groups acknowledge that additional mills could increase competition and benefit growers, they also warn that ending crop zoning entirely could create serious food security challenges. Sindh has further demanded the authority to independently export sugar while urging the federal government to bear the financial burden of imports during periods of domestic shortages. The province maintains that balanced regulation is essential to protect both consumers and farmers from market volatility. Pakistan’s Sugar Industry and Economic Importance Pakistan’s sugar sector represents a major component of the national economy, with an estimated total value chain of around Rs1.1 trillion. The country currently has 79 sugar mills and annual production of approximately 6.13 million tonnes, making Pakistan the world’s seventh-largest sugar producer. Despite the industry’s scale, farmer representatives criticized policymakers for allegedly finalizing reform proposals without adequate consultation with stakeholders directly linked to the sector. Sindh Calls for Stronger Regulation Instead of Abolition Rather than removing existing controls, the Sindh government has recommended strengthening the Sugar Factories Control Act through improved enforcement mechanisms, greater transparency, and wider stakeholder participation. The province also insists on maintaining regulatory duties to protect the local market from subsidized sugar imports that could damage domestic producers. Additionally, Sindh wants the federal government to share costs related to buffer stock management, agricultural research, and environmental compliance measures linked to the sugar industry. The ongoing disagreement highlights the broader tensions between federal reform commitments and provincial concerns over agriculture, food security, and economic stability as Pakistan moves toward implementing major policy changes in the sector.

Pakistan Govt Eyes 20% Windfall Tax on Oil Sector Rs130 Billion Profits During War Time
Business

Pakistan Govt Eyes 20% Windfall Tax on Oil Sector Rs130 Billion Profits During War Time

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The Pakistani government is actively considering imposing a 20% windfall gain tax on oil sector companies that earned substantial profits following sharp increases in global fuel prices triggered by recent international conflicts. Authorities estimate that oil marketing companies and refineries collectively benefited from billions of rupees in additional profits after fuel prices surged domestically. Committee Formed to Review Recovery Mechanism Prime Minister Shehbaz Sharif has constituted a high-level committee headed by Finance Minister Muhammad Aurangzeb to examine ways of recovering an estimated Rs72 billion from oil marketing companies. Alongside the windfall tax issue, the committee has also been tasked with addressing salary concerns of foreign-qualified professors working under the Tenure Track System, whose pay has remained frozen since 2021 despite rising inflation. The panel is expected to review broader fiscal and policy matters linked to the upcoming federal budget and economic reforms. Petroleum Division Opposes Immediate Recovery The Petroleum Division has expressed reservations regarding immediate recovery of windfall gains from oil companies. Officials argue that the firms should first be compensated for inventory losses before any tax or recovery mechanism is implemented. They also believe the government should wait until global oil markets stabilize following the ongoing geopolitical crisis. Shortly after the conflict began, the government increased petrol and diesel prices by Rs55 per litre. This move reportedly generated around Rs130 billion in combined profits for refineries and oil marketing companies. According to tax authorities, a 20% windfall gain tax could potentially be imposed through a Statutory Regulatory Order (SRO), eliminating the need for fresh legislation. The tax would likely be applied once companies finalize their accounts for the current fiscal year. Another proposal under consideration involves passing recovered funds directly to consumers through reduced fuel prices in the future. Committee Reviews Wider Budget Priorities Although the committee recently held its first meeting, detailed discussions on the recovery mechanism were postponed. Senior officials indicated that any final decision would only be taken after the current crisis subsides. Beyond the oil sector, the committee is reviewing several major budget priorities for fiscal year 2026-27. These include cross-subsidies, public sector development spending, pending international litigation, and proposals allowing revenue-generating divisions to retain a portion of their collections. Finance Minister Aurangzeb’s committee will also evaluate tax reform proposals submitted by the Tax Policy Office, including performance-based funding models for government ministries and institutions. Salary Concerns in the Education Sector A significant part of the committee’s work also focuses on addressing compensation issues faced by highly qualified university professors under the Tenure Track System. These academics last received salary increases in 2021, while inflation and taxation have risen sharply since then. Officials noted that inflation has increased by nearly 87%, while the tax burden on this category has risen by approximately 81%, creating financial stress for many professionals in higher education. Industry and Consumer Concerns Representatives of the oil sector argue that sudden taxation measures could discourage future investment in Pakistan’s refining and fuel marketing infrastructure. Industry stakeholders warn that unpredictable fiscal policies may affect long-term sector expansion and modernization efforts. At the same time, consumers continue to face elevated fuel prices, which have contributed significantly to broader inflationary pressures across the country. Adding to concerns, the government is also expected to double the Climate Support Levy on fuel from July as part of its commitments under the IMF programme. Conclusion The government’s final decision on imposing a windfall gain tax will likely attempt to balance immediate revenue requirements with the long-term stability of Pakistan’s energy sector. The recommendations of the Finance Minister-led committee are expected to play an important role in shaping key fiscal and taxation policies in the federal budget for 2026-27.

US launches fresh strikes on Iran despite ongoing ceasefire
World

US launches fresh strikes on Iran despite ongoing ceasefire

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Fresh US military strikes on missile sites and naval assets in southern Iran have raised fears of a renewed regional escalation, casting uncertainty over ongoing ceasefire talks and diplomatic efforts aimed at ending months of conflict in the Middle East. According to the US Central Command, American forces launched what it described as “self-defence strikes” targeting missile launch facilities and boats allegedly attempting to lay mines near the Strait of Hormuz. The strikes came as senior Iranian negotiators arrived in Doha for another round of high-stakes negotiations intended to preserve a fragile ceasefire between Washington and Tehran. Explosions Reported Near Bandar Abbas Iranian state broadcaster IRIB reported loud explosions near the southern port city of Bandar Abbas around midnight local time. The broadcaster said local authorities were investigating the blasts while insisting that the situation in the city remained under control. The latest military action threatens the ceasefire that began on April 8, as both countries attempt to negotiate a broader agreement to end a conflict that has shaken global energy markets and intensified instability across the region. Oil Markets React to Rising Tensions Global oil prices fluctuated sharply following the US strikes amid fears that renewed fighting could further disrupt shipping through the Strait of Hormuz, one of the world’s most critical energy corridors. The strategic waterway remains under pressure after Iranian restrictions reportedly disrupted fuel shipments, contributing to volatility in global oil markets. On Tuesday morning, West Texas Intermediate crude dropped more than 5 percent, while Brent crude prices remained elevated as traders assessed the risk of broader regional conflict. Trump Demands Iran Surrender Enriched Uranium US President Donald Trump further complicated diplomatic efforts by demanding that Iran surrender its enriched uranium stockpile to the United States for destruction. In a social media post, Trump said the uranium should either be transferred to the US or destroyed inside Iran under international supervision. However, analysts noted confusion surrounding Trump’s reference to the “Atomic Energy Commission,” an agency that was dissolved decades ago in 1974. It remains unclear whether Trump’s statement reflects an official negotiating position in the ongoing talks with Tehran. Abraham Accords Expansion Proposal Sparks Debate Trump also called for several Muslim-majority nations, including Pakistan, Saudi Arabia, Qatar, Türkiye, Egypt, Jordan, Bahrain, and the United Arab Emirates, to join the Abraham Accords as part of a wider regional peace agreement. The accords, brokered in 2020, normalized relations between Israel and several Arab nations, including Bahrain and the UAE. However, the agreements remain controversial across much of the Middle East because they do not address the Palestinian issue. Saudi Arabia and Qatar have repeatedly stated that normalization with Israel cannot happen without the establishment of an independent Palestinian state. Analysts Doubt Gulf States Will Accept Pressure Regional analysts expressed skepticism over Trump’s proposal. Anna Jacobs of the Arab Gulf States Institute in Washington said Gulf countries were unlikely to accept pressure to normalize ties with Israel under current circumstances. She argued that rising instability and military escalation have increased security concerns among Gulf nations rather than encouraging diplomatic normalization. Iran Says Final Deal Not Yet Close Despite ongoing negotiations, Iranian officials cautioned against expectations of an immediate breakthrough. Iranian Foreign Ministry spokesperson Esmaeil Baqaei said negotiators had made progress on several major issues but stressed that no final agreement was imminent. His remarks contrasted with earlier comments from US Secretary of State Marco Rubio, who suggested a possible agreement could emerge within days. Israel Intensifies Lebanon Operations Meanwhile, Israeli Prime Minister Benjamin Netanyahu announced an escalation of military operations against Hezbollah in southern Lebanon. Netanyahu accused Hezbollah of carrying out drone attacks against Israeli forces and vowed to intensify military action. The Israeli leader also stated that any final agreement with Iran must completely eliminate what he described as the Iranian nuclear threat. Iranian officials, however, maintain that discussions regarding uranium enrichment and the country’s nuclear program will only take place after an initial political agreement is secured.

India Bans Public Eid ul Adha Prayers, Spark Concerns Over Religious Freedom
Pakistan

India Bans Public Eid ul Adha Prayers, Spark Concerns Over Religious Freedom

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Eid ul Adha restrictions in India have triggered debate and concern after authorities in several Indian states imposed strict rules on animal sacrifice, public prayers, and meat sales ahead of the Muslim festival. The latest measures, introduced mainly in Uttar Pradesh and Delhi, have drawn criticism from rights observers and members of the Muslim community who say the restrictions target Islamic religious practices during one of the most important festivals in Islam. As Muslims across India prepare to celebrate Eid ul Adha, authorities in different regions announced tighter controls on religious activities linked to the festival. The moves come at a time when concerns over religious freedom and minority rights continue to grow in the country. Yogi Adityanath Orders Strict Enforcement Uttar Pradesh Chief Minister Yogi Adityanath instructed officials to strictly enforce restrictions related to Eid celebrations. According to Indian media reports, Adityanath chaired a high level law and order meeting through video conference and directed district administrations to ensure full compliance with government rules. The chief minister ordered that animal sacrifices should only take place at pre designated sites approved by local authorities. He also warned officials not to allow any new traditions during the festival period. Authorities further prohibited Eid prayers on roads and public spaces. Adityanath said Muslims should offer namaz only at traditional and designated prayer locations. He instructed officials not to grant permission for road blockades for Eid prayers under any circumstances. The Uttar Pradesh administration also intensified monitoring around slaughterhouses and meat markets. Officials were directed to take action against illegal slaughter activities and maintain restrictions on open meat sales during the festival. Police and local administrations increased security measures in sensitive areas. Authorities also conducted flag marches and expanded patrols around mosques and religious sites before Eid ul Adha. Delhi Authorities Warn of Strict Action In Delhi, minister Kapil Mishra warned of strict action against illegal animal transportation and unauthorised slaughter activities. During a review meeting with officials, Mishra instructed authorities to permit sacrifices only at officially approved locations. He said the measures were necessary to ensure hygiene standards and compliance with legal requirements. Delhi authorities also announced plans to closely monitor animal transport routes and slaughter points during Eid celebrations. The latest announcements added to concerns among Muslims who believe authorities are imposing increasing restrictions on religious activities connected to Islamic festivals. Concerns Over Religious Freedom Human rights observers and activists have repeatedly raised concerns about restrictions imposed on Muslim religious practices in different Indian states. Critics argue that rules targeting animal sacrifice and public prayers disproportionately affect the Muslim community. Several Muslim organisations expressed concern over the growing scrutiny surrounding Eid ul Adha celebrations. Community leaders said authorities should facilitate peaceful religious observances instead of creating fear and pressure during the festival. Eid ul Adha holds deep religious significance for Muslims around the world. The festival commemorates the willingness of Prophet Ibrahim AS to sacrifice his son in obedience to Allah before God replaced the sacrifice with a ram. Muslims traditionally observe the occasion by sacrificing animals such as goats, cows, camels, and sheep. Families distribute the meat among relatives, friends, and poor communities as part of the religious practice. The festival also includes special congregational prayers, family gatherings, and charitable activities. Growing Debate in India The issue of cow slaughter remains highly sensitive in India. Several Indian states already enforce strict laws against cow slaughter due to religious and political reasons linked to the Hindu majority population. However, critics argue that recent measures have increasingly affected Muslim communities and intensified religious tensions. Political analysts say restrictions related to Eid ul Adha have become part of a broader national debate about minority rights and religious freedoms in India. The administration led by Prime Minister Narendra Modi and the ruling Bharatiya Janata Party has often faced criticism from international rights groups over policies affecting Muslims and other minorities. Supporters of the restrictions argue that authorities are enforcing existing laws and maintaining public order during religious events. Government officials insist the measures aim to prevent illegal slaughter activities and ensure cleanliness and security. Despite official explanations, the latest Eid ul Adha restrictions in India have renewed discussions about religious tolerance and equal treatment of minority communities. With Eid celebrations approaching, security remains high across several Indian states as authorities continue to monitor religious gatherings, slaughter activities, and public events linked to the festival.

Karachi Chamber announces Eid-ul-Azha Holidays from May 26 to 29
Pakistan

Karachi Chamber announces Eid-ul-Azha Holidays from May 26 to 29

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KARACHI: The Karachi Chamber of Commerce & Industry has announced Eid-ul-Azha holidays for all its employees from Tuesday, May 26, 2026 to Friday, May 29, 2026 on the auspicious occasion of Eid-ul-Azha.During the holiday period, all offices and departments of KCCI shall remain closed. The Chamber will resume its normal business operations on Saturday, May 30, 2026. President KCCI Rehan Hanif extended warm Eid greetings to the business and industrial community, members of the Chamber, and the entire nation. He prayed that Eid-ul-Azha brings peace, prosperity, unity, and economic stability to the country. He also urged the business community and citizens to celebrate Eid with simplicity, compassion, and a spirit of sacrifice while remembering the underprivileged segments of society.

Pakistan UK Economic Reforms Enter New Phase with Strong British Support
Pakistan

Pakistan UK Economic Reforms Enter New Phase with Strong British Support

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Pakistan UK Economic Reforms are once again in the spotlight after Islamabad and London reaffirmed their commitment to deepening economic and institutional cooperation during a high-level meeting in Islamabad. Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met British High Commissioner to Pakistan Jane Marriott at the Finance Division, where both sides discussed Pakistan’s fragile but improving economy, ongoing reforms, and rising geopolitical pressures affecting global markets. The meeting comes at a crucial time when Pakistan is navigating economic uncertainty, volatile energy prices, and pressure on global supply chains. However, government officials insist the country is gradually stabilizing after months of difficult economic adjustments. Pakistan UK Economic Reforms Focus on Stability and Investor Confidence During the talks, Senator Muhammad Aurangzeb highlighted what he described as encouraging economic signals emerging from Pakistan’s economy. According to the finance minister, the government has managed to improve several key indicators, including external account stability, stronger remittance inflows, and improving investor sentiment. These developments are being presented as proof that Pakistan’s aggressive reform agenda is beginning to deliver results. Officials also briefed the British side on efforts to expand the tax net and modernize revenue collection through technology-driven systems. The government believes digital reforms can reduce leakages, improve transparency, and increase public trust in state institutions. The discussions also emphasized fiscal discipline and continuity of economic policies, issues long viewed by international investors as critical for Pakistan’s long-term recovery. Britain Signals Confidence in Pakistan’s Reform Agenda The United Kingdom’s support carries major symbolic and diplomatic importance for Pakistan at a time when the country is seeking greater global economic confidence. British High Commissioner Jane Marriott appreciated Pakistan’s continued engagement on regional and economic matters and reaffirmed London’s support for Islamabad’s development and reform priorities. The British side also showed interest in Pakistan’s broader institutional reform efforts, including public sector efficiency, coordination between state institutions, and creating a more business-friendly environment for private investment. Analysts believe stronger UK backing could improve Pakistan’s international economic image and encourage broader investor engagement from Western markets. Pakistan UK Economic Reforms Linked to Global Economic Pressures Another major focus of the meeting was the rapidly evolving global economic situation. Both sides discussed the impact of geopolitical tensions, rising energy costs, and disruptions in international supply chains. Pakistan’s economic managers remain concerned about how external shocks could affect inflation, imports, and industrial growth. Climate resilience and humanitarian concerns also featured prominently in the talks. Pakistan continues to face economic risks linked to climate-related disasters, making international cooperation increasingly important for future planning and recovery strategies. Population planning, social sector coordination, and engagement with international financial institutions were also discussed as part of broader development cooperation between Islamabad and London. Pakistan Seeks Long-Term Economic Resilience The government is attempting to project an image of economic resilience and policy consistency to international partners. Finance Minister Muhammad Aurangzeb stressed that Pakistan remains committed to structural reforms aimed at long-term sustainability rather than short-term fixes. These reforms include improving governance standards, increasing institutional efficiency, and encouraging private sector-led economic expansion. Economic experts say sustained implementation will be critical because Pakistan has historically struggled to maintain reform momentum after periods of temporary stabilization. Still, the latest Pakistan UK Economic Reforms dialogue signals that international partners are closely watching Islamabad’s progress and remain willing to support reform-driven economic recovery. For Pakistan, maintaining that confidence may now be just as important as the reforms themselves.

Islamabad High Court Halts Eviction of One Constitution Avenue Apartment Owners
Pakistan

Islamabad High Court Halts Eviction of One Constitution Avenue Apartment Owners

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The Islamabad High Court (IHC) issued a major order on Monday, restraining authorities from evicting sub-lease holders of apartments at One Constitution Avenue. The interim relief comes as legal proceedings continue in the long-running dispute involving the Capital Development Authority (CDA), the developer, and apartment buyers. A division bench comprising Justice Muhammad Azam Khan and Justice Inaam Ameen Minhas heard intra-court appeals filed by several prominent figures, including former air chief Mujahid Anwar Khan and other residents of the luxury apartment complex. Court Hears Appeals on Third-Party Rights During the hearing, the bench focused on paragraph 30 of an earlier single bench decision that addressed the protection of third-party rights in the disputed project. The appellants challenged the previous ruling, which had dismissed petitions filed against the cancellation of the lease. The residents argued that they were bona fide buyers who purchased apartments after the CDA had approved building plans and issued the required No Objection Certificate (NOC). They maintained that the dispute primarily concerns the CDA and the developer and should not negatively affect genuine purchasers. CDA Opposes Stay, Court Seeks Clarification Counsel representing the CDA argued before the court that the intra-court appeals were not maintainable. However, the division bench decided to hear the matter in detail at a later stage while also considering the request for interim relief. During the proceedings, the judges questioned how residents had moved into the apartments without the issuance of a completion certificate. Justice Muhammad Azam Khan remarked that the CDA appeared inactive at the time when people started occupying the residential units. After hearing arguments, the bench ruled that no eviction would take place until further orders, providing temporary relief to apartment owners facing uncertainty over their properties. Background of the Long-Running Dispute The One Constitution Avenue project spans approximately 13.5 acres and was originally auctioned to BNP Group in 2005. The development has remained embroiled in legal and financial disputes for years, including issues related to lease conditions and outstanding payments. The CDA cancelled the project’s lease in 2016, citing multiple violations. The matter later reached the Supreme Court, which restored the lease subject to payment conditions. However, reports suggest that only a fraction of the required amount has been paid so far. Last month, the Islamabad High Court had ruled that apartment buyers did not possess ownership rights following the termination of the lease. The latest order now offers temporary respite to residents while the broader legal dispute continues.

Pakistan Fiscal Reform Crackdown Deepens as Government Tightens Grip on Illicit Tobacco Trade
Pakistan

Pakistan Fiscal Reform Crackdown Deepens as Government Tightens Grip on Illicit Tobacco Trade

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Pakistan Fiscal Reform has entered a more aggressive phase as the government ramps up efforts to crack down on undocumented economic activity and strengthen tax enforcement across major industries. The latest high-level discussions between the government and tobacco industry stakeholders revealed how Islamabad is pushing forward with an ambitious strategy focused on revenue mobilization, digitization, and tighter regulatory oversight. At the center of the talks was the government’s determination to widen the tax net and eliminate leakages that continue to drain billions from the national economy every year. Federal Minister for Finance and Revenue Muhammad Aurangzeb reaffirmed that enforcement and compliance remain key pillars of the country’s broader economic recovery and fiscal stability plan. Pakistan Fiscal Reform Strategy Expands Beyond Traditional Tax Collection Officials involved in the discussions highlighted that the government is no longer relying on conventional tax collection methods alone. Instead, Pakistan Fiscal Reform policies are now heavily focused on technology-driven monitoring systems, digital enforcement tools, and coordinated operations between federal and provincial authorities. Authorities believe these reforms are already producing measurable improvements in revenue collection and compliance rates across multiple industries. Sectors currently under close scrutiny include: • Tobacco• Sugar• Cement• Beverages• Textiles These industries have long faced allegations of undocumented production, tax evasion, and illicit market activity. Government officials stressed that stricter monitoring systems are helping authorities identify illegal operators more effectively while improving transparency within the formal economy. Tobacco Industry Warns About Illicit Trade Crisis During the talks, representatives from Pakistan Tobacco Company raised concerns regarding the growing scale of illicit trade in the tobacco sector. Company officials acknowledged recent government action against illegal and non-compliant businesses but emphasized the need for a predictable and stable taxation framework. Industry representatives argued that excessive market uncertainty could hurt formal sector growth and reduce long-term revenue potential for the government itself. The delegation also discussed: • Excise taxation challenges• Smuggling and counterfeit products• Export competitiveness• Market conditions• Regulatory enforcement gaps According to industry stakeholders, illegal tobacco products operating outside the documented economy continue to undermine legitimate businesses and reduce tax revenues. Digitization Emerges as Government’s Strongest Weapon One of the strongest themes emerging from the discussions was the government’s increasing reliance on digitization and technology. Officials explained that Pakistan Fiscal Reform efforts are now centered around three major pillars: People Improving accountability and strengthening institutional capacity. Processes Modernizing outdated tax collection and enforcement systems. Technology Using digital tracking, monitoring systems, and data integration to reduce tax leakages and identify undocumented economic activity. Authorities believe technology-backed enforcement will play a critical role in dismantling illegal supply chains and improving overall market transparency. Pakistan Eyes Tobacco Export Growth Despite Regulatory Pressure Interestingly, the discussions were not limited to taxation and enforcement alone. Both sides also explored investment opportunities and export potential within Pakistan’s tobacco sector and related value-added industries. Representatives from the tobacco industry highlighted Pakistan’s growing importance as a regional manufacturing and export hub for selected product categories. The talks included discussions on: • Export market expansion• Regional competitiveness• International regulatory trends• Investment opportunities• Manufacturing capacity growth Officials also exchanged views on international taxation models and enforcement practices being implemented in comparable regional economies. Government Signals Continued Engagement With Formal Business Sector Finance Minister Muhammad Aurangzeb stated that all sector-specific proposals would be evaluated in line with broader economic priorities while maintaining policy consistency. He emphasized that the government remains committed to engaging with formal businesses to support: • Sustainable economic growth• Industrial expansion• Export development• Investment inflows• Improved compliance systems The latest developments indicate that Pakistan Fiscal Reform is rapidly evolving into a nationwide campaign aimed at reshaping the country’s tax culture and reducing the size of the undocumented economy. As enforcement intensifies and digitization expands, industries operating outside the formal system may soon face mounting pressure from authorities determined to boost state revenues and stabilize the economy.

Policy Instability and Rising Costs Threaten Ghee Industry: PVMA Chairman Warns
Pakistan

Policy Instability and Rising Costs Threaten Ghee Industry: PVMA Chairman Warns

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KARACHI: An Extraordinary General Body Meeting of the Pakistan Vanaspati Manufacturers Association (PVMA) was held under the chairmanship of Sheikh Umer Rehan, where participants discussed in detail the challenges confronting the ghee and cooking oil industry, government policies, raw material situation, taxation, regulatory matters, and the prevailing economic conditions affecting the sector, particularly difficulties related to freight and transportation costs. The meeting was attended by PVMA Senior Vice Chairman Asjad Arif, Vice Chairman Sheikh Khalid Islam, Special Assistant to the Chief Minister Punjab on Food Security Salma Butt, prominent business leader and former provincial minister S M Tanveer, along with industrialists and association members from across the country.Various agenda items related to the industry were discussed in detail, while participants also deliberated on future strategies for the sector. Speaking on the occasion, Chairman PVMA Sheikh Umer Rehan said that the ghee and cooking oil industry is a key pillar of the country’s food supply chain. However, he noted that the sector is currently under severe pressure due to prevailing economic conditions, rising production costs, fluctuations in imported raw material prices, frequent changes in petroleum prices causing instability in freight charges, and various regulatory challenges. He stressed that continuous engagement with the government and relevant institutions, along with effective policymaking, was essential for placing the industry on sustainable footing. He further emphasized that the industry remains fully committed to providing quality and safe food products to consumers, but rising business costs and policy instability are adversely affecting industrial activities.Sheikh Umer Rehan stated that if the industry is provided with a conducive business environment, it would not only increase investment but also create new employment opportunities. Addressing the meeting, Salma Butt said that Punjab Chief Minister Maryam Nawaz Sharif has a clear policy to promote industrialization and facilitate the business community in order to strengthen the economy. She said the Punjab government believes in working closely with the private sector for food security, quality food standards, and the development of the food industry. She assured participants that the issues faced by industrialists would be taken up with the relevant forums on a priority basis to further improve the business environment. S M Tanveer said that continuity in policies, a business-friendly environment, and restoration of industrialists’ confidence are essential for Pakistan’s industrial growth. He added that the edible oil and ghee industry plays a significant role in the national economy, and resolving the issues faced by the sector would help promote investment and economic activity. Participants reaffirmed their commitment that PVMA would continue playing its role in resolving industry issues, promoting quality production, and ensuring the supply of safe food products to consumers.

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

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