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Despite High Collections, OGDC's Rs595bn Remains Locked in Circular Debt
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Despite High Collections, OGDC’s Rs595bn Remains Locked in Circular Debt

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Collection Ratio Crosses 100% in 4QFY26 Oil and Gas Development Company (OGDC) recovered more than it billed on gas during the last quarter of FY26, but nearly Rs595 billion remains tied up in trade debts on the company’s books. According to Optimus Capital, OGDC’s gas sales collection ratio reached 106% in 4QFY26, while outstanding trade debts declined 3% year-on-year to Rs594.8 billion. The collection ratio above 100% indicates that OGDC collected current gas bills as well as a portion of previously outstanding arrears. While this represents an improvement in cash recovery, it has not materially resolved the company’s overall receivables overhang. Trade Debt Buildup Shows Some Improvement Optimus Capital’s analysis shows that the buildup in trade debts relative to gas sales turned negative in June 2026 after rising sharply in March. Both trade-debt changes and lease receivables contracted during the latest quarter, reversing some of the buildup recorded earlier in the year. However, the overall stock of trade debts remains close to Rs600 billion. The scale of the receivables means the improvement in quarterly collections has yet to translate into a meaningful resolution of OGDC’s long-standing liquidity overhang. Sui Companies Remain Major Source of Dues A significant portion of OGDC’s overdue receivables is linked to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), within the broader inter-corporate circular debt chain. Company filings earlier in FY26 showed overdue circular-debt receivables of more than Rs530 billion, with the majority owed by the two Sui companies. The government has also deferred the application of expected-credit-loss rules on certain government-linked dues until the end of 2026. These receivables continue to be treated as recoverable because the state has assumed responsibility for the obligations. However, an assumption of responsibility does not immediately translate into cash. Until the dues are settled, OGDC effectively continues to finance the gas utilities through its balance sheet. Pakistan’s Gas Circular Debt Remains a Major Challenge The wider gas-sector circular debt remains substantial, with the stock estimated at around Rs3.6 trillion when the late-payment surcharge is included. Plans to clear approximately Rs1.5 trillion through measures including additional dividends from state-owned enterprises, a petroleum levy and reductions in LNG cargoes have been presented to the cabinet and discussed with the International Monetary Fund. Despite these efforts, there has yet to be a decisive reduction in OGDC’s Rs594.8 billion trade-debt position. SNGPL continues to carry significant receivables and surcharge obligations, highlighting why improvements in producer collections can occur without producing a comparable reduction in the accumulated stock of unpaid dues. Strong FY26 Profit Supports Record Dividend OGDC reported a 43% increase in FY26 profit to Rs242 billion and recommended a record dividend of Rs17 per share. Improved recoveries and tariff adjustments contributed to stronger cash generation and helped support the proposed payout. However, the stronger earnings and dividend do not mean the legacy receivable has been eliminated. Receivables Continue to Tie Up OGDC’s Balance Sheet The nearly Rs595 billion locked in trade debts represents funds that cannot be freely deployed by OGDC for new drilling, faster field development or potentially higher shareholder distributions. For investors, the distinction between cash-flow improvement and balance-sheet cleanup remains important. The 106% collection ratio is a positive development because it indicates that OGDC is recovering current dues along with portions of older arrears. Yet the Rs594.8 billion trade-debt stock shows that the underlying circular-debt problem remains unresolved. Circular Debt Resolution Remains Key for Investors OGDC’s FY26 performance demonstrates that stronger collections can improve cash generation and support shareholder payouts even while substantial receivables remain outstanding. The bigger question is whether government plans to address Pakistan’s circular debt will ultimately translate into actual cash settlements for producers. Until that happens, OGDC’s 106% collection ratio should be viewed as a quarterly improvement rather than a complete solution to the company’s long-standing receivables problem.

FFC Organizes Farmer Incentive Program Prize Distribution Ceremony in Kasur
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FFC Organizes Farmer Incentive Program Prize Distribution Ceremony in Kasur

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FFC Celebrates Farmers Through Incentive Program Fauji Fertilizer Company (FFC) organized the Farmer Incentive Program Prize Distribution Ceremony 2026 on September 2 at Aiwan-e-Shah Jahan in Kasur. The event brought together around 100 farmers, dealers and representatives from the Agriculture Department to recognize the achievements of winning farmers. The ceremony highlighted FFC’s continued engagement with the farming community and its efforts to encourage farmers through incentive-based initiatives. Hassan Ali Zafar Distributes Prizes Among Winning Farmers Mr. Hassan Ali Zafar, Head of North Zone, attended the ceremony as the Chief Guest and distributed prizes among the winning farmers. His participation underscored the importance of recognizing farmers for their contribution to the agricultural sector and encouraging them to adopt practices that can support improved farm productivity. FFC Officials Address Participants Several senior FFC officials addressed the participants during the ceremony. Mr. Aftab Naseem, Head of NGN Lahore, Mr. Imran Sheikh, Head of Sales Region Lahore, and Mr. Tariq Javid, Head of Sona Agri Hub, Sheikhupura, shared their views with the farmers and other attendees. The proceedings of the event were conducted by Mr. Imran Ghafoor, Head of Sales District Kasur. Senior FFC and Agriculture Officials Attend Ceremony The ceremony was also attended by Madam Naveen Saeed, Head of Marketing; Mr. Imran Salamat, Head of Branding; Dr. Midrar Ul Haq, Head of NGN Territory Lahore; Mr. Hassan Ali Khan, Head of Sales District Lahore; Mr. Danish Ali Tariq and Mr. Muhammad Usman. Representatives from the Agriculture Department were also present, including District Director of Agriculture Extension Mr. Ejaz Ali Jathala. Strengthening Engagement With the Farming Community The Farmer Incentive Program Prize Distribution Ceremony provided an opportunity for FFC officials, farmers, dealers and agriculture representatives to come together and acknowledge the efforts of successful farmers. Such initiatives can help strengthen engagement between fertilizer companies and the farming community while creating greater awareness around agricultural productivity and farmer support.

MG Pakistan Hosts “Experience More Karachi”, Introduces All New MG HS Petrol and Showcases Latest Line-Up
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MG Pakistan Hosts “Experience More Karachi”, Introduces All New MG HS Petrol and Showcases Latest Line-Up

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MG Brings Its Latest Mobility Portfolio to Karachi MG Motor Pakistan hosted “Experience More Karachi”, an exclusive brand experience that brought together customers, business partners, media representatives and automotive enthusiasts to explore the company’s latest products, technology and vision for modern mobility. Karachi served as the backdrop for the introduction of the All New MG HS Petrol, while the event also provided a broader look at MG’s expanding product portfolio and global product direction. The showcase reflects MG Pakistan’s growing focus on offering customers more choices across conventional petrol, hybrid and fully electric powertrains. All New MG HS Petrol Enters Pakistan The key highlight of the event was the introduction of the All New MG HS Petrol in Karachi. The SUV has been priced at PKR 8,999,999, while MG Motor Pakistan announced an introductory price of PKR 8,799,999 for a limited period. The booking amount has been set at PKR 1,500,000. With the Petrol variant now joining the HS Hybrid+ and HS Super Hybrid, MG has expanded the HS family across three different powertrain options. This gives customers the opportunity to choose between performance, efficiency and conventional petrol-powered driving based on their individual preferences. MG Showcases Expanding Vehicle Line-Up Alongside the HS Petrol, the event featured several other models from MG’s current portfolio. The showcase included the All New MG HS Hybrid+, HS Super Hybrid, All New MG ZS range, MG4 Urban EV and MG U9. The combination of SUVs, electric vehicles and other mobility options demonstrates the company’s effort to build a broader presence across different segments of Pakistan’s automotive market. The line-up also highlights the growing role of electrified mobility in MG’s product strategy. IM5 Makes First Showcase Appearance in Pakistan Another major attraction was the IM5, which was showcased in Pakistan for the first time. Although the model has not yet been introduced to the Pakistani market, its appearance gave visitors an opportunity to see MG’s evolving global design language and technology direction. The vehicle provided a glimpse into the wider portfolio available within the global MG ecosystem and offered an indication of the technologies and design concepts that could shape the brand’s future mobility offerings. MG Focuses on Technology, Safety and Design “Experience More Karachi” was designed not simply as a vehicle display but as a broader brand experience. MG Pakistan used the event to highlight its focus on performance, efficiency, safety, technology and design. The company is positioning its latest line-up around changing consumer preferences, particularly as Pakistani buyers increasingly consider different powertrain options and technology features when choosing new vehicles. CEO Highlights MG’s Future Direction Jianqiang Shao, CEO of MG Motor Pakistan, said Karachi was a natural setting for an event focused on the future of mobility. He said the addition of the All New MG HS Petrol, together with the ZS range, MG4 Urban EV, MG U9 and the preview of the IM5, reflects both where the company currently stands and the direction it intends to take. Shao reaffirmed MG Pakistan’s commitment to bringing global technology, design and innovation closer to Pakistani customers. More Powertrain Choices for Pakistani Customers The expansion of the HS family gives MG customers greater flexibility in selecting a vehicle according to their driving and efficiency requirements. The HS Petrol provides a conventional internal-combustion option, while the Hybrid+ and Super Hybrid variants cater to customers looking for electrified alternatives. Meanwhile, the MG4 Urban EV strengthens the company’s presence in electric mobility, while the wider SUV portfolio allows MG to target customers across different vehicle preferences. A New Chapter for MG Motor Pakistan The “Experience More Karachi” event comes as MG continues to expand its mobility offering in Pakistan. By introducing the HS Petrol while showcasing its hybrid, electric and global models, the company is presenting a broader product strategy rather than relying on a single vehicle category or powertrain. For Pakistani consumers, the expanding line-up means greater choice across petrol, hybrid and electric vehicles. The first appearance of the IM5 also signals MG’s intention to keep Pakistani customers connected with developments in its global portfolio. As competition in Pakistan’s automotive market continues to evolve, MG’s emphasis on technology, design, safety and multiple powertrain options could become an increasingly important part of its strategy for attracting and retaining customers.

Borrowing Strategy Shift: Pakistan Targets Dollar-Settled Rupee Bonds
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Borrowing Strategy Shift: Pakistan Targets Dollar-Settled Rupee Bonds

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Pakistan plans rupee-denominated, dollar-settled bond, says Aurangzeb Pakistan Plans New Rupee-Linked Dollar-Settled Bond Pakistan is preparing to introduce a new rupee-denominated bond that would be settled in US dollars, as the government looks to diversify its borrowing sources and reduce its dependence on the domestic banking system. Finance Minister Muhammad Aurangzeb disclosed the plan while addressing the Asian Development Bank’s “Mobilising Private Capital: National Strategic Dialogue on PPPs and Privatisation” in Islamabad. According to the minister, institutions have already been mandated to work on the proposed instrument. However, the government has not yet disclosed its expected size, maturity or issuance timeline. Government Seeks to Reduce Reliance on Banks Aurangzeb stressed that relying heavily on banks to meet the government’s borrowing requirements is not sustainable over the long term. The government is therefore looking to deepen Pakistan’s debt capital market and attract a wider range of institutional investors, including insurance companies and non-bank financial institutions. A broader investor base could give the government more options for raising funds while reducing pressure on commercial banks to absorb a large share of public-sector borrowing. New Bond Comes After $3 Billion Eurobond The announcement follows Pakistan’s successful return to international debt markets with a $3 billion Eurobond issuance. The government raised $1.75 billion through a 5.5-year bond carrying a 7.5 per cent coupon and another $1.25 billion through a 10-year bond with a 7.9 per cent coupon. The transaction attracted nearly $6 billion in orders from institutional investors across global markets, highlighting strong demand for Pakistan’s latest international debt offering. The strong order book has provided the government with an opportunity to explore additional financing structures beyond conventional Eurobonds. Pakistan Looks to Broaden Its Investor Base The proposed rupee-linked, dollar-settled instrument is part of a wider effort to diversify Pakistan’s capital-market investor base. Aurangzeb said the government needs to develop debt capital markets that can attract investors beyond traditional banking institutions. The Ministry of Finance has also been working to broaden retail access to government securities. The minister said the ministry had collaborated with JazzCash, while the State Bank of Pakistan had launched an application allowing individuals to invest directly in government securities. These measures could gradually expand participation in government debt and create additional channels for mobilising domestic savings. Government Explores Tokenisation of Eurobonds Pakistan is also examining newer financing mechanisms, including the potential tokenisation of some existing Eurobond debt. Aurangzeb referred to Hong Kong’s experience with tokenised financial instruments and said Pakistan had attempted to explore a similar approach for part of its existing Eurobond debt. If developed successfully, tokenisation could offer another route for improving access to government securities and modernising the country’s debt-market infrastructure. Foreign Exchange Reserves Target Set at $21 Billion The finance minister also provided an update on Pakistan’s foreign exchange position. According to Aurangzeb, foreign exchange reserves stood at $18.4 billion as of June 30, with the government targeting $21 billion by the end of the current fiscal year. He said reaching that level would provide a little more than three months of import cover, which he described as a good international benchmark. The reserve target is particularly important as Pakistan continues to manage external financing requirements and maintain stability in its balance of payments. US-Iran Conflict Remains an Economic Risk Aurangzeb also said the government was closely monitoring the ongoing US-Iran conflict because of its potential impact on Pakistan’s growth and inflation projections. Geopolitical tensions can affect Pakistan through higher energy prices, supply-chain disruptions and increased pressure on external financing requirements. For policymakers, maintaining adequate foreign exchange buffers and diversifying financing sources therefore remains important as global risks remain elevated. A Shift Toward More Diversified Financing Pakistan’s latest borrowing strategy suggests a broader effort to move beyond dependence on a single source of financing. The successful $3 billion Eurobond has reopened international market access, while the planned rupee-denominated, dollar-settled bond could offer a different structure for attracting investors. At the same time, efforts to bring insurance companies, non-bank financial institutions and retail investors into government securities could help build a deeper domestic capital market. The success of these initiatives will ultimately depend on investor confidence, pricing, currency risk management and the government’s ability to maintain fiscal and external stability.

Rs 12b Gadani Shipbreaking Yard Overhaul Begins
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Rs 12b Gadani Shipbreaking Yard Overhaul Begins

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Rs12 Billion Project Enters Construction Phase Work has begun on a Rs12 billion project aimed at modernizing Pakistan’s Gadani shipbreaking yard and upgrading its infrastructure to meet international safety and environmental standards. Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry announced the development while chairing a steering committee meeting in Islamabad to review progress on the overhaul. The project is intended to transform Gadani’s traditional shipbreaking operations into a more modern and environmentally responsible ship-recycling industry. Hospital, Labour Colony and School Under Construction Physical construction has started on several important facilities at the yard. These include a 30-bed hospital, a labour colony, a school and solar power infrastructure. The social infrastructure component is designed to improve basic services and living conditions for workers and communities associated with the shipbreaking industry. The minister said the objective is to establish a safer and more sustainable ship-recycling environment while improving the overall operational capacity of the yard. Industrial Infrastructure to Be Upgraded The modernization project covers a wide range of industrial and public infrastructure. Plans include 32 kilometres of internal roads, a public park, hazardous and industrial waste-treatment facilities, fire and rescue stations and dedicated water-treatment systems. These facilities are expected to address some of the key safety, environmental and operational challenges associated with ship recycling. The improvements could also strengthen Gadani’s role in Pakistan’s steel-scrap market, where shipbreaking remains an important source of raw material for the country’s wider industrial supply chain. Project Moves Into Procurement and Construction Project Director Saeed Ahmed Umrani told the steering committee that implementation has entered the active procurement and construction phase. The project is backed by a federal Public Sector Development Programme (PSDP) allocation of Rs780 million for the 2026-27 financial year. The latest progress indicates that the modernization plan has moved beyond the planning stage, with construction now underway on key components. Gadani to Align With International Ship-Recycling Standards A major objective of the overhaul is to bring Gadani shipbreaking yard in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. The convention sets international standards aimed at improving the safety and environmental performance of ship-recycling operations. Aligning the yard with these standards could help improve Pakistan’s position in the international ship-recycling industry while addressing concerns surrounding worker safety, hazardous materials and waste management. Safety and Environmental Compliance Take Centre Stage Shipbreaking involves complex industrial activities and can expose workers and surrounding areas to hazardous materials if appropriate safeguards are not in place. The inclusion of waste-treatment systems, fire and rescue facilities and water-treatment infrastructure indicates a broader effort to address these risks through dedicated facilities. The modernization is therefore not limited to improving the yard’s physical appearance or industrial capacity. It is also aimed at establishing stronger systems for workplace safety and environmental management. Government Pushes for Faster Implementation Minister Junaid Anwar Chaudhry directed project authorities to maintain momentum and ensure that the new infrastructure meets strict operational benchmarks. The government’s focus is to ensure that the project delivers a modern ship-recycling facility capable of operating according to internationally recognized safety and environmental requirements. For Gadani, the overhaul could mark a significant shift from conventional shipbreaking practices toward a more structured and sustainable industrial model.

Consumer Confidence Hits Two-Year Low in Q3 FY2026, Amid Inflation and Job Worries
Pakistan

Consumer Confidence Hits Two-Year Low in Q3 FY2026, Amid Inflation and Job Worries

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Consumer Confidence Falls Sharply in Q3 FY2026 Consumer confidence in Pakistan deteriorated sharply during the third quarter of FY2026, with the latest Consumer Confidence Index (CCI) showing growing concerns over inflation, employment and household finances. The 20th edition of the Consumer Confidence Index, released by Dun & Bradstreet Pakistan and Gallup Pakistan, recorded a reading of 65.3, down from 86.4 in the previous quarter. The decline represents a 24.4 per cent drop and marks a two-year low in consumer confidence, reflecting a significant deterioration in how households view both their current financial position and the broader economy. Current Sentiment Drops Into Extremely Pessimistic Territory The latest survey shows that consumers are facing difficulties in the present as well as worrying about the future. The current sentiment index fell to 51.8, while the future outlook stood at 78.7. Although the future outlook remains considerably stronger than current sentiment, it too declined compared with the previous quarter. The gap between the two measures suggests that consumers retain some hope for improvement but are currently experiencing considerable financial pressure. Inflation Remains the Biggest Concern Inflation emerged as the most widespread concern among respondents. According to the survey, 89.3 per cent of the 1,592 respondents said they had experienced price increases for essential goods during the previous six months. The continued rise in the cost of necessities can directly affect household purchasing power, leaving consumers with less disposable income for non-essential spending and savings. For businesses, weaker consumer confidence can also signal softer demand as households become more cautious about spending. Unemployment Concerns Intensify Employment conditions added another layer of pressure. Around 81 per cent of respondents said unemployment had worsened over the previous six months. The figure highlights the extent to which job security and employment prospects are influencing consumer sentiment. Concerns over unemployment can affect spending decisions even among households that remain employed, as uncertainty about future income often encourages consumers to delay purchases and increase precautionary savings. Household Finances Offer Little Relief Household financial expectations also remained weak. Nearly 40 per cent of respondents expected their personal financial situation to deteriorate further over the next six months. This suggests that pessimism is not limited to perceptions about the national economy. A significant portion of consumers also see potential deterioration in their own financial circumstances. The combination of higher prices, employment concerns and weaker household expectations creates a challenging environment for consumer-facing businesses. Older Consumers Record the Sharpest Decline The deterioration in confidence was not uniform across age groups. Respondents aged 50 and above experienced the steepest decline, with confidence falling 30.4 per cent. Consumers below the age of 30 recorded a comparatively smaller decline, but their confidence was still significantly lower than in the previous survey. The variation suggests that different segments of the population may be responding differently to inflation, employment conditions and financial uncertainty. Gallup Pakistan Warns of Pressure on Consumers Bilal Gilani, Executive Director of Gallup Pakistan, said the Q3 2026 reading of 65.3 placed Pakistan in an extremely pessimistic territory. He described the decline as the sharpest single-cycle drop recorded by the survey in recent years and emphasized that the weakness was not limited to expectations about the future. The current sentiment reading of 51.8, he noted, indicates that consumers are facing financial challenges in the present rather than simply worrying about what may happen tomorrow. Businesses and Policymakers Face a Clear Warning Signal Zubair Qureshi, Chief Business Officer at Dun & Bradstreet Pakistan, said the results demonstrate that consumers are under significant pressure. He emphasized that confidence is unlikely to recover without visible improvements in the economic conditions affecting households. For businesses, the CCI provides an important indicator when assessing consumer demand, market risks and spending patterns. Policymakers can also use such sentiment data to understand how economic conditions are being experienced at the household level. Consumer Sentiment Could Shape Economic Activity Consumer confidence plays an important role in economic activity because household expectations can influence spending, saving and borrowing decisions. The latest CCI reading suggests that Pakistani consumers are becoming increasingly cautious amid persistent inflation and employment concerns. While the relatively stronger future outlook offers some indication of continued expectations for improvement, the sharp fall in current sentiment shows that households remain under considerable pressure. A sustained recovery in consumer confidence will likely depend on improvements in purchasing power, employment conditions and household financial stability.

90% Women Farmers Faced Climate Extremes; Most Still Lack Land and Bank Accounts
Pakistan

90% Women Farmers Faced Climate Extremes; Most Still Lack Land and Bank Accounts

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Mobilink Bank, SDPI Study Highlights Growing Financial Vulnerability of Women Farmers in Pakistan Climate Shocks Are Pushing Women Farmers Toward Borrowing A new study by Mobilink Bank and the Sustainable Development Policy Institute (SDPI) has highlighted a growing financial vulnerability among women farmers in Pakistan, with many turning to borrowing to cope with climate-related shocks while continuing to face limited access to formal financial services. The study points to an urgent need for more inclusive and climate-responsive financial products that can help women farmers protect their livelihoods, recover from losses and build greater resilience against future climate risks. Titled “Designing Gender-Responsive Climate Finance: A Diagnostic Study and Product Framework for Women Farmers in Pakistan,” the research is based on fieldwork conducted across eight districts of Punjab and Sindh. Women Farmers Face a Major Finance and Climate Gap The study identifies a significant disconnect between women’s contribution to agriculture, their exposure to climate risks and their ability to access formal financial services. The findings were presented at a policy dialogue jointly hosted by SDPI and Mobilink Bank in Islamabad. The event brought together government officials, financial regulators, banks, development finance institutions and development partners to discuss how the research could be translated into practical financial solutions. The discussion focused particularly on designing products that reflect the realities of women working in agriculture rather than relying on conventional lending models that may exclude them. More Than 90pc Experienced Climate-Related Shocks The scale of climate exposure among women farmers is particularly concerning. More than nine in ten women surveyed had experienced an extreme climate-related event during the previous five years. These events included heatwaves, flooding, heavy rainfall and drought-like conditions. More than 80 per cent also reported crop losses or other negative impacts on their farming activities. Borrowing emerged as one of the first- or second-most common coping strategies across every district surveyed. In Khushab, every woman who reported using a coping strategy had borrowed money. More than half of the affected women in the district had also sold livestock, a step that could weaken their future earning capacity and make household recovery more difficult. Women’s Role in Agriculture Remains Underrecognized The research also highlights structural barriers that limit women’s access to agricultural finance. Around 67 per cent of Pakistan’s employed women work in agriculture, yet only 1.5 per cent of agricultural households are formally recorded as female-headed. Land ownership is another major obstacle. Only around 2 per cent of ever-married women aged 15 to 49 own land either individually or jointly, while 97.2 per cent have not inherited land or a house. The situation is even more restrictive in Sindh, where 99.1 per cent of surveyed women did not own land either alone or jointly. Without land ownership or formal documentation, many women struggle to meet the collateral and eligibility requirements attached to conventional agricultural financing. Financial and Digital Gaps Add to the Problem The barriers extend beyond land ownership. The study highlights a substantial gender gap in access to financial and digital services. Around 56 per cent of men have a full-service financial account compared with only 14 per cent of women. The difference is also visible in mobile-wallet ownership, which stands at 48 per cent among men but only 11 per cent among women. These gaps can make it harder for women farmers to access credit, insurance, digital payments and other financial tools that could help them manage climate-related losses. Government Calls for More Inclusive Financial Products Adviser to the Finance Minister Adnan Pasha, who attended the launch as guest of honour, stressed the importance of formally recognizing women farmers as economic actors and contributors to Pakistan’s agricultural economy. He said the government was considering policy recommendations emerging from the study and called on financial institutions to develop systems and products that are better suited to women’s circumstances. Particular attention, he said, should be given to barriers involving access to finance, collateral requirements and climate resilience. Pasha also appreciated SDPI’s work on policy reform and Mobilink Bank’s efforts to expand women’s financial inclusion. Mobilink Bank Looks to Expand Gender-Responsive Finance Mobilink Bank said its existing agricultural finance portfolio already reflects a significant focus on the sector. Khowla Shoaib, Head of Strategy, Sustainability & Women Financial Services at Mobilink Bank, said agriculture represents approximately 60 per cent of the bank’s total gross loan portfolio, while women account for more than 21 per cent. She said the SDPI study reinforced the bank’s understanding of the financial and climate-related challenges confronting women farmers and provided additional insights to strengthen its existing portfolio. The findings are also expected to support the development of new gender-responsive financial products specifically designed for women farmers. Climate Resilience Has Become an Economic Priority Pakistan’s vulnerability to climate change makes the issue broader than financial inclusion alone. The 2022 floods caused more than US$30 billion in damage and economic losses, while an estimated US$16.3 billion was required for resilient reconstruction. For rural communities dependent on agriculture and livestock, climate shocks can quickly translate into lost income, damaged assets and increased borrowing. This makes access to suitable financial products increasingly important for helping farmers absorb shocks without being forced to sell productive assets or fall deeper into debt. Research Focused on the Micro-Farmer Level Dr. Sajid Amin Javed, Deputy Executive Director (Research) at SDPI, said the study’s strength was its focus on climate finance at the micro-farmer level. He emphasized the importance of applying a gender lens to agricultural policy, particularly because a large share of women’s contribution to agricultural work remains insufficiently recognized. According to Javed, strengthening agriculture and livestock is essential for strengthening Pakistan’s broader rural economy. He also highlighted the importance of partnerships with institutions such as Mobilink Bank, particularly because access to large-scale customer data can help sustain research and support the development of more targeted financial solutions. Existing Financial Products Do Not Reflect Women’s Reality Engr. Ubaid Zia, Head of Energy Unit at SDPI, said women are already carrying out significant agricultural work, absorbing

CCP, NFA sign MoU to Strengthen Competition Law Enforcement
Business

CCP, NFA sign MoU to Strengthen Competition Law Enforcement

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CCP and NFA Join Hands to Improve Competition Law Enforcement The Competition Commission of Pakistan (CCP) and the National Forensics Agency (NFA) have signed a Memorandum of Understanding (MoU) to strengthen institutional cooperation and bring advanced forensic capabilities into competition law enforcement. The agreement was signed at the CCP Headquarters in Islamabad in the presence of CCP Chairman Farid Ahmad Tarar and NFA Director General Jawad Ahmad Dogar. CCP Member Bushra Naz Malik and senior officials from both institutions also attended the signing ceremony. Stronger Investigations Through Scientific Evidence Speaking at the ceremony, CCP Chairman Farid Ahmad Tarar said effective enforcement increasingly depends on reliable evidence, scientific analysis and specialised technical expertise alongside a strong legal framework. He said the partnership would strengthen the Commission’s investigative capabilities by allowing it to benefit from the NFA’s forensic expertise. The collaboration comes as commercial activities and evidence are increasingly shifting into digital environments. This has created new challenges for regulators investigating potentially complex competition-related matters involving electronic and digital evidence. Digital Evidence Becomes Increasingly Important The growing use of digital platforms, electronic communications and technology-driven business systems means that competition investigations can involve evidence in formats that require specialised technical examination. Under the new partnership, the CCP will be able to draw on NFA expertise in handling and analysing digital and electronic evidence. This is expected to support investigations where conventional evidence-gathering methods may not be sufficient. The agreement also reflects the increasing importance of forensic capabilities in modern regulatory enforcement, particularly as businesses generate and store large volumes of digital information. NFA Offers Technical and Forensic Support NFA Director General Jawad Ahmad Dogar described the CCP as an important national institution whose work contributes to maintaining a level playing field and protecting citizens’ rights. He outlined the development of the NFA and the specialised forensic capabilities the agency has built over time. Dogar reaffirmed the NFA’s commitment to providing technical assistance to the CCP and offered support in digital, document and other forensic disciplines. He also described the MoU as the starting point for a long-term institutional relationship between the two organisations. Capacity Building and Knowledge Sharing The MoU establishes a framework for cooperation covering forensic examination, technical assistance and capacity building. The partnership will allow the CCP to benefit from the NFA’s specialised scientific expertise when examining and analysing evidence relevant to competition law matters. Beyond investigations, the two institutions will also promote knowledge sharing and technical training. Closer coordination between the agencies is expected to help develop institutional expertise and improve the handling of technically complex evidence. A Broader Approach to Competition Enforcement The agreement comes at a time when competition regulators face increasingly sophisticated commercial practices and rapidly evolving technologies. For the CCP, access to specialised forensic capabilities can provide an additional layer of technical support in investigations. For the NFA, the partnership expands the practical application of its forensic expertise within an important area of economic regulation. The cooperation therefore goes beyond a single technical arrangement and creates a framework for continued institutional engagement. Partnership Could Strengthen Regulatory Capacity The effectiveness of competition law depends not only on legislation but also on the ability of enforcement institutions to establish facts through credible and properly analysed evidence. By combining the CCP’s regulatory and competition-law expertise with the NFA’s forensic capabilities, the MoU is intended to strengthen that investigative process. The partnership could become particularly relevant in cases involving digital records, electronic documents and other technically complex forms of evidence.

Security Papers Profit Falls 40pc As Sales Slip And Margins Compress
Pakistan

Security Papers Profit Falls 40pc As Sales Slip And Margins Compress

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Security Papers Reports Sharp Profit Decline in FY26 Security Papers Limited (SPL) ended the financial year 2025-26 with a significant decline in both sales and profitability as weaker volumes, higher production costs and lower other income weighed on its results. The company’s sales fell 7.2 per cent to Rs7.31 billion from Rs7.87 billion a year earlier. Profit after tax dropped 40 per cent to Rs907 million, while earnings per share declined to Rs15.31 from Rs25.72. The decline was also visible in margins. Gross margin narrowed to around 21.7 per cent from 28 per cent, while net margin fell to approximately 12.4 per cent from 19.4 per cent. Higher Costs Deepen the Impact of Lower Sales SPL’s cost of sales increased by around 1 per cent to Rs5.72 billion despite the decline in revenue. As a result, gross profit fell 28 per cent to Rs1.59 billion from Rs2.20 billion. The company had already shown signs of weaker operating momentum during the year. Sales volume for the nine months ended March 31 stood at 2,594 tons, compared with 2,839 tons during the same period last year. Administrative expenses also moved higher, increasing 5 per cent to Rs522 million. This meant that overhead costs did not decline in line with the weaker revenue base. Dependence on PSPC Remains a Key Risk A major factor behind SPL’s earnings performance is its dependence on a single large customer, Pakistan Security Printing Corporation (PSPC). PSPC takes the bulk of the company’s banknote paper, meaning changes in its procurement requirements can quickly affect SPL’s production volumes and financial results. The trade agreement between the two companies was renewed in April 2026, maintaining the commercial relationship. However, the renewal does not eliminate the concentration risk associated with relying heavily on one customer. SPL’s exposure is particularly important because its core products include watermarked paper used for banknotes, prize bonds, defence savings certificates, stamp papers, passports, cheque books, degrees and ballot papers. Other Income Also Loses Momentum Other income, which has provided meaningful support to SPL’s earnings in stronger years, declined 25 per cent to Rs688 million from Rs916 million. Other expenses provided some relief, falling 29 per cent to Rs146 million. However, the reduction was not enough to compensate for the decline in gross profit and other income. Finance costs also increased, doubling to Rs6.75 million from Rs3.36 million. Although the absolute amount remains relatively small, the increase added further pressure to the bottom line. Profit before tax consequently fell 34 per cent to Rs1.60 billion from Rs2.41 billion. The company’s tax expense declined 22 per cent to Rs691 million from Rs890 million, limiting the overall impact but not preventing a 40 per cent decline in net profit. PM-2 Upgrade Could Shape the Next Growth Cycle The Balancing, Modernisation and Replacement (BMR) project for Paper Machine-2 is now central to SPL’s next phase. The company is executing the upgrade with the objective of enabling the mill to produce banknote paper containing features required for the State Bank of Pakistan’s new currency series. Chairman Mohammad Aftab Manzoor has described the PM-2 project as an important milestone for improving the company’s efficiency and production capabilities. The project, however, also introduces a short-term operational risk. SPL has indicated that the upgrade could require an extended plant shutdown of between 15 and 30 days on technical grounds. Such a stoppage could interrupt production, delay customer orders and create financial losses. The timing of the shutdown will therefore be closely watched, particularly because the new currency series is expected to be an important source of future demand. Energy, Water and Supply Chains Remain Watchpoints SPL also faces broader operating risks linked to energy prices, imported spares and regional supply chains. Geopolitical tensions surrounding the US-Iran conflict could increase energy costs and disrupt supply routes, according to management. The company is coordinating with suppliers to keep critical raw materials and project-related work moving. Water availability is another operational constraint. During the year, SPL added a 500,000-gallon storage tank and new reverse-osmosis bores to strengthen its water security. The company also upgraded its cogeneration plant and installed 350 kW of solar capacity. These investments are intended to reduce reliance on external water supplies and grid electricity. Fire, pilferage and cyber disruption remain additional risks because the company operates a strategically important, single-site manufacturing facility. Dividend Payout Remains Intact Despite the sharp decline in earnings, the Board has recommended a final cash dividend of Rs9 per share, or 90 per cent, subject to shareholder approval. The proposed final payout is the same as last year’s final dividend. However, it is below the total FY25 payout of Rs11.50 per share, which included an interim dividend of Rs2.50. The company’s shares are scheduled to go ex-dividend on September 18, while payment is due on October 9. FY26 Reverses Two Years of Strong Performance The latest results mark a clear reversal from the company’s recent performance. In FY25, SPL’s sales increased 8 per cent to Rs7.87 billion, while profit after tax reached Rs1.52 billion. The company is now dealing with the opposite combination: weaker sales, higher production costs and reduced other income. The balance sheet continues to provide some financial support through its relatively strong cash position compared with debt. The bigger question for investors is whether customer demand can recover before the PM-2 shutdown affects production. What Investors Will Watch Next SPL’s annual general meeting is scheduled for September 25, and investors are likely to focus on three key issues. First is the order outlook from PSPC, particularly demand linked to the new currency series. Second is the timing, duration and cost of the PM-2 shutdown. Third is the trajectory of energy and input prices if regional supply routes remain under pressure. SPL retains a strategically important position as Pakistan’s domestic producer of security paper, helping reduce dependence on imports. But its FY26 results demonstrate that strategic importance alone cannot shield the company from margin pressure when its largest customer reduces orders. With sales down 7.2 per

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