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VIS Reaffirms Entity Ratings of K-Electric Limited
Pakistan

VIS Reaffirms Entity Ratings of K-Electric Limited

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Karachi, May 15, 2026: K-Electric’s (KEL) entity ratings were reaffirmed at ‘AA/A1+’ (Double A/A One Plus) with a ‘Stable’ outlook by VIS Credit Rating Company. Medium to long-term rating of ‘AA’ denotes high credit quality; protection factors are strong; risk is modest but may vary slightly from time to time because of economic conditions. Short-term ratings of ‘A1+’ indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Previous rating action was announced on January 23, 2025. Read More: https://theboardroompk.com/sme-growth-in-pakistan-gains-momentum-as-pm-shehbaz-orders-easier-loans-for-women-entrepreneurs/ This development reaffirms the trust and faith capital markets and financial institutions place in KE, while also being a reflection of investor confidence in KE’s performance, growth plans, and future outlook. The assigned ratings are supported by KE’s cash flows that continue to support debt servicing. Meanwhile, long-term financial projections and capitalization strength are closely linked to regulatory outcomes under the Multi-Year Tariff (MYT) framework. As per the PSX notice issued by the Company, the relevant authority has advised KEL to transmit its annual financial statements for FY24 & FY25 latest by June 30, 2026.

Sitara Petroleum IPO Draws Massive Investor Response with 3.4x Oversubscription
Pakistan

Sitara Petroleum IPO Draws Massive Investor Response with 3.4x Oversubscription

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The Sitara Petroleum IPO has emerged as one of the hottest investment stories in Pakistan’s capital market this year after attracting extraordinary demand from investors across the country. The public offering generated a stunning response as applications poured in for more than 143.5 million ordinary shares against an offered size of just 42 million shares. The overwhelming participation pushed the IPO to an oversubscription level of nearly 3.4 times, signaling growing investor confidence in Pakistan’s petroleum and energy sector despite challenging economic conditions. According to details shared through a notification issued by Arif Habib Limited, the subscription process was conducted on May 11 and 12, 2026, through the Pakistan Stock Exchange and CDC e-IPO systems. Sitara Petroleum IPO Attracts Thousands of Applications The Sitara Petroleum IPO managed to attract an impressive 23,757 applications from investors belonging to multiple categories. The figures reveal strong participation from both retail and high-net-worth investors. However, the biggest surprise came from large-scale investors who aggressively targeted higher allocations. Applications exceeding 2,000 units alone accounted for more than 124 million shares, highlighting strong institutional and wealthy investor interest in the company. This strong demand reflects increasing optimism surrounding Pakistan’s fuel and petroleum distribution business, especially as investors continue searching for stable sectors capable of delivering long-term growth. Big Investors Dominate Sitara Petroleum IPO The subscription breakdown shows that high-volume investors dominated the IPO book-building process. Investors applying for more than 2,000 units contributed applications worth over Rs. 2.34 billion. Meanwhile, retail investors also maintained a visible presence in the public offering, with thousands of applications submitted for smaller allocations ranging from 500 to 2,000 shares. The total funds generated through the public subscription crossed Rs. 2.71 billion, making the offering one of the most closely watched IPOs on the Pakistan Stock Exchange in recent months. What Investors Will Receive After Oversubscription Due to the overwhelming response, the company will now follow the approved share allocation mechanism. Investors who applied for up to 2,000 shares are expected to receive their requested allocations in full. However, applicants seeking more than 2,000 units will receive shares on a pro-rata basis because demand significantly exceeded the available quantity. This means larger investors may receive only a portion of the shares they originally requested. Sitara Petroleum IPO Subscription Breakdown The Sitara Petroleum IPO data reveals how different investor categories participated in the offering. Applications for 500 shares attracted 6,582 investors requesting 3.29 million shares worth more than Rs. 62 million. The 1,000-share category received 5,872 applications for 5.87 million shares valued at nearly Rs. 111 million. Similarly, 1,880 applications were submitted for 1,500 shares, while 3,623 applications came in for the 2,000-share category. The most dominant segment remained applications above 2,000 units. Around 5,800 applications in this category sought an astonishing 124.27 million shares worth approximately Rs. 2.35 billion. Overall, the IPO received applications for 143.5 million shares with a total value of Rs. 2.71 billion. Why Sitara Petroleum IPO Matters for Pakistan’s Market The massive response to the Sitara Petroleum IPO sends a powerful signal about improving investor appetite in Pakistan’s equity market. Strong IPO participation often reflects renewed confidence among investors looking for growth opportunities despite economic uncertainty and market volatility. Market analysts believe the successful subscription could encourage more companies to explore public listings on the Pakistan Stock Exchange in the coming months. The development also highlights increasing investor interest in energy-related businesses, especially companies connected to fuel distribution and petroleum services. For Pakistan’s stock market, the Sitara Petroleum IPO may become a benchmark transaction that revives excitement around new listings and public offerings after a prolonged period of cautious investor sentiment.

Pak Suzuki Launches Biogas Plant, Solar Power Facility in Karachi
Pakistan

Pak Suzuki Launches Biogas Plant, Solar Power Facility in Karachi

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Pak Suzuki Motor Company Limited has launched a biogas plant and a solar power generation facility at its manufacturing plant in Karachi as part of its environmental sustainability and clean energy initiatives. The company confirmed that both projects have officially started operations. The biogas plant has a production capacity of 100 cubic meters per day, while the solar power facility has an output capacity of 920 kilowatts. Pak Suzuki said the projects are part of its long term commitment to carbon neutrality and environmentally friendly manufacturing practices in Pakistan. Biogas Plant to Produce Renewable Energy According to the company, the biogas plant uses Napier grass along with food waste collected from company cafeterias to produce renewable energy. Officials stated that the project aims to reduce waste while supporting sustainable energy generation at the manufacturing facility. Pak Suzuki said the clean energy projects reflect the company’s efforts to contribute to a greener and more sustainable future in Pakistan. Managing Director Hiroshi Kawamura said the launch of the biogas plant and solar facility demonstrates the company’s commitment to integrating renewable energy into its operations. He stated that Pak Suzuki would continue investing in environmentally friendly technologies and manufacturing systems that support Pakistan’s environmental priorities and global climate goals. Facility Located at Karachi Manufacturing Plant The biogas plant is located within the Pak Suzuki manufacturing facility in Karachi and covers an area of 360 square meters. The plant can generate 100 cubic meters of biogas daily by processing organic material and food waste. Officials explained that Napier grass was selected because it is widely available in Pakistan and can serve as an efficient renewable energy source. The project also helps reduce organic waste generated at company cafeterias. Meanwhile, the solar power generation system installed at the same facility has a production capacity of 920 kilowatts. According to the company, the system is expected to generate around 1,395,000 kilowatt hours of electricity annually. Energy experts believe projects like these can help industries lower electricity costs while reducing dependence on fossil fuels and conventional power sources. Renewable Energy Sector Expanding in Pakistan Pakistan has witnessed rapid growth in renewable energy adoption in recent years as businesses and consumers look for alternatives to expensive electricity and fuel costs. A recent study revealed that Pakistan imported more than 50 gigawatts of solar panels over the past five years. The estimated value of these imports reached nearly 18 billion dollars. The study stated that the imported solar panel volume is equal to Pakistan’s entire national grid capacity, highlighting the country’s growing shift towards renewable energy solutions. Industrial sectors across Pakistan are increasingly investing in solar energy systems to address rising electricity tariffs and power shortages. Experts say renewable energy projects also help companies meet international environmental standards and sustainability goals. Industries Shift Towards Green Manufacturing Environmental analysts noted that Pakistan remains highly vulnerable to climate change despite contributing a very small share to global carbon emissions. As a result, private sector investment in renewable energy is becoming increasingly important for reducing environmental risks and supporting sustainable economic growth. Pak Suzuki officials said the company plans to continue introducing environmental initiatives tailored to local conditions in Pakistan. The company believes clean energy adoption can play an important role in building a sustainable industrial sector. Industry observers described the project as a positive step for Pakistan’s automotive sector, which is gradually adopting greener technologies and cleaner manufacturing practices. The launch of the biogas plant also reflects a growing trend among companies worldwide to convert organic waste into renewable energy. Experts say such projects can help reduce landfill waste, lower greenhouse gas emissions, and improve energy efficiency. Pakistan’s renewable energy sector has expanded significantly over the last few years because of increasing fuel costs, electricity shortages, and rising awareness about climate related challenges. Analysts believe that more industries may follow similar clean energy strategies as businesses try to reduce operational expenses and improve environmental performance. The government has also encouraged renewable energy projects to reduce pressure on imported fuel and strengthen energy security. However, experts say more policy support and infrastructure improvements are still needed to accelerate the country’s transition towards cleaner energy sources. Pak Suzuki stated that the successful operation of the biogas plant and solar power facility marks another milestone in the company’s efforts to support environmental sustainability while improving operational efficiency.

Govt Treats Phones Like Luxury Goods Despite Digital Economy Push
Pakistan

Govt Treats Phones Like Luxury Goods Despite Digital Economy Push

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Smartphone taxes in Pakistan are increasing the country’s digital divide and creating obstacles for education, employment, and online business opportunities, according to a new policy report. The study warned that the government’s heavy taxation on mobile phones and telecom services contradicts its own digitalisation agenda. The report, titled “Taxing Connectivity How Taxes and Tariffs Deepen Pakistan’s Digital Divide,” was published by the Policy Research Institute of Market Economy. It argued that Pakistan continues to treat smartphones and internet access as luxury products instead of essential economic tools. According to the report, although 81 percent of Pakistan’s population lives in areas covered by 3G and 4G services, only 29 percent of people actively use the internet. This leaves a digital usage gap of 52 percent mainly because of affordability issues rather than infrastructure shortages. The study stressed that digital connectivity has become critical for economic growth, learning, and employment opportunities. However, Pakistan’s tax policies continue placing heavy financial pressure on consumers trying to access digital services. The report highlighted that Pakistan imposes one of the highest telecom tax burdens in the region. Imported smartphones face multiple taxes including regulatory duties, advance income tax, withholding tax, and sales tax. Under the current taxation structure, smartphones priced above 500 dollars face an additional 25 percent sales tax. Premium mobile phones can eventually carry a total tax burden exceeding 50 percent of their original value. Researchers estimated that a smartphone worth 700 dollars eventually costs Pakistani consumers around Rs294,500 after taxes and duties. The total tax amount on the device reaches nearly Rs98,500. The report warned that such high taxation has encouraged the growth of the grey market for mobile phones. Smuggled and patched smartphones are becoming increasingly common as consumers search for cheaper alternatives. The study referred to the Pakistan Telecommunication Authority and its Device Identification, Registration and Blocking System known as DIRBS. According to industry estimates cited in the report, the PTA blocked nearly 100 million illegal mobile devices during fiscal year 2024 and 2025. These included millions of cloned and duplicate IMEI devices. Experts believe the increasing grey market is reducing government revenue while also damaging legitimate businesses operating in the telecom sector. The report also examined the performance of Pakistan’s Mobile Device Manufacturing Policy introduced in 2020. The policy aimed to encourage local smartphone manufacturing and reduce import dependence. While local assembly has expanded significantly, the report stated that genuine localisation remains extremely limited. Pakistan now assembles more than 30 million mobile phones annually, with over 30 companies operating assembly plants. However, localisation remains below 10 percent against the government’s target of 49 percent. Most manufacturers continue importing completely knocked down kits instead of producing high value components locally. The report stated that the policy successfully reduced imports of finished mobile phones but failed to create a strong domestic manufacturing ecosystem. Pakistan still depends heavily on imported parts, meaning the country’s foreign exchange burden has not decreased significantly. Researchers also highlighted the social impact of expensive smartphones in a country increasingly dependent on digital work and online services. Using Household Integrated Economic Survey 2024 and 2025 data, the report estimated that an entry level smartphone priced around Rs25,000 consumes nearly 62 percent of the monthly expenditure of the poorest households. Even middle income families face affordability challenges. The average affordability ratio for smartphones stands at 31 percent nationwide. The report warned that high smartphone prices are affecting women, students, freelancers, and gig workers the most. Pakistan currently has more than 1.5 million freelancers who depend on affordable internet access and smartphones to earn income online. Researchers noted that women with access to mobile phones are more likely to participate in the labour force. As a result, digital connectivity is becoming directly linked to economic inclusion and financial independence. The study urged the government to reform its taxation structure on mobile phones and telecom services. It recommended introducing a uniform 18 percent sales tax on smartphones while removing additional punitive tax slabs on expensive devices. The report also called for reducing taxes on telecom services and treating digital connectivity as essential national infrastructure rather than a revenue generation tool. Analysts believe that lowering smartphone taxes could increase internet usage, improve digital inclusion, support freelancers, and strengthen Pakistan’s growing digital economy.

Pakistan Jewellers Tax Reform 2026 Sparks Hope After FIA Raid Controversy
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Pakistan Jewellers Tax Reform 2026 Sparks Hope After FIA Raid Controversy

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Pakistan Jewellers Tax Reform 2026 is quickly becoming one of the most talked-about developments in the country’s gold and jewellery market. At a time when traders are facing uncertainty, raids, inflation, and increasing business pressure, the newly proposed tax mechanism has created fresh hope for thousands of jewellers across Pakistan. The proposed “Special Procedure for Income Tax 2026” under Section 99C of the Income Tax Ordinance 2001 promises to introduce a simpler, transparent, and business-friendly taxation system for the jewellery sector. However, the announcement comes amid rising tensions in Karachi after traders at Karachi Jewellers Centre staged a strong protest against an alleged illegal raid conducted by the Federal Investigation Agency (FIA). The protest forced markets to shut down completely, exposing the growing frustration within Pakistan’s jewellers community. Pakistan Jewellers Tax Reform 2026 Offers Simpler Tax Structure According to All Pakistan Sarafa Gems & Jewellers Association President Qasim Shikarpuri, the proposed system is designed to eliminate unnecessary complications and reduce fear among traders. Under the suggested framework, jewellers will be taxed through a straightforward turnover-based model instead of complicated valuation methods that often create disputes between traders and tax authorities. The proposal introduces separate final tax rates for different segments of the jewellery business, including goldsmiths, retailers, manufacturers, and bullion dealers. Industry representatives believe this categorization could finally bring clarity to a sector that has long struggled with inconsistent taxation policies. Gold Price Fluctuations Push Government Toward Flexible Tax Rules One of the biggest concerns for jewellers has always been the volatile nature of gold prices. The proposed Pakistan Jewellers Tax Reform 2026 directly addresses this issue. Instead of forcing traders to declare the constantly changing monetary value of their stock, jewellers would only need to declare inventory in grams or tola. This move is being welcomed as a practical solution that could save businesses from massive accounting complications caused by daily gold price fluctuations. The proposal also includes simplified tax return procedures, which could reduce paperwork and improve compliance across the sector. Business leaders argue that a less complicated system may encourage more traders to enter the documented economy voluntarily rather than operating informally. Major Relief Proposed for Pakistan’s Jewellery Traders Another major feature attracting attention is the promise that once taxes are paid under the special procedure, jewellers would not face re-assessment or additional proceedings. For years, traders have complained about repeated notices, audits, and alleged harassment by authorities. Many within the jewellery market believe this new approach could restore confidence between businesses and government institutions. The proposal also encourages banking channels and digital payment systems, which aligns with Pakistan’s broader push toward financial transparency and digital economic reforms. Industry experts believe this could help increase tax collection while simultaneously reducing tensions between regulators and traders. Karachi Jewellers Centre Protest Intensifies Pressure on Authorities While hopes are rising around the tax reform proposal, anger among traders escalated dramatically after the alleged FIA operation at Karachi Jewellers Centre in Saddar. Jewellers shut down shops and launched a fierce protest, calling the raid unlawful and demanding immediate action against what they described as harassment of the business community. The association condemned the operation in strong words and demanded a transparent investigation into the incident. The protest highlighted the fragile relationship between enforcement agencies and traders at a time when the government is attempting to build trust with the business sector through new taxation reforms. Pakistan Jewellers Tax Reform 2026 Could Expand Tax Net Supporters of the proposal say the reform is not just about easing business operations. They argue it could play a major role in documenting Pakistan’s economy and expanding the national tax base. By introducing a predictable and trader-friendly system, authorities may finally succeed in bringing more jewellery businesses into the formal economy. Analysts believe the success of the policy will depend heavily on whether the government can balance enforcement with trust-building measures. For now, Pakistan’s jewellers are watching closely. Many see the proposed Pakistan Jewellers Tax Reform 2026 as a potential turning point that could either stabilize the industry or deepen tensions if implementation fails to address traders’ long-standing concerns.

Kerosene and Jet Fuel Prices Kept Unchanged for Pakistan Armed Forces
Pakistan

Kerosene and Jet Fuel Prices Kept Unchanged for Pakistan Armed Forces

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Kerosene and jet fuel prices for Pakistan’s armed forces and Hajj flights have been frozen as the country begins facing financial pressure from the ongoing US and Iran conflict. Local oil refineries agreed to provide fuel at old rates despite rising international oil prices and increasing import costs. According to official sources, refineries will continue supplying kerosene oil and jet fuels at the prices that were effective on March 1, 2026. The arrangement will remain in place until June 30, 2026, covering the remaining months of the current fiscal year. The decision came after the government informed refinery officials that the armed forces required fuel support because of growing regional tensions and the sharp increase in global oil prices. Sources said the refineries would collectively bear losses of nearly Rs8 billion due to the discounted fuel supply. However, the companies agreed to support national security operations and Hajj flights during the ongoing energy crisis. In an official letter sent by the Petroleum Division to refinery chief executives, the government confirmed that local refineries had agreed to provide SKO and JP 8 fuel to Pakistan’s armed forces and Air Force at March 1 prices. The agreement also included JP 1 fuel for Hajj flights at the same rates. The letter stated that the issue was discussed during meetings of the National Crisis Management Cell and follow up discussions with refinery chief executives on May 11, 2026. Pakistan Army is one of the country’s largest users of kerosene oil, particularly in remote northern regions where fuel demand increases because of harsh weather and operational requirements. The ongoing US and Iran war has disrupted global energy markets and caused a sharp increase in jet fuel prices worldwide. Several international airlines have already reduced or suspended operations because of rising fuel costs and operational uncertainty. Pakistan has also started feeling the impact of the global fuel crisis. Petrol and diesel prices in the country have crossed Rs400 per litre, increasing transportation costs and adding pressure on households and businesses. Economic experts warn that Pakistan remains highly vulnerable to international oil shocks because the country imports nearly 80 percent of its petroleum requirements from Middle Eastern countries. Major oil suppliers to Pakistan include Saudi Arabia, United Arab Emirates, and Kuwait. Officials said Kuwait recently resumed diesel exports to Pakistan to help the country avoid a major fuel shortage as tensions continue in the Gulf region. Saudi Arabia also continues supplying petroleum products to Pakistan under deferred payment arrangements. Prime Minister Shehbaz Sharif recently warned that Pakistan’s oil import bill had surged dramatically because of the conflict. He said the weekly import cost increased from 300 million dollars to 800 million dollars within days. Analysts believe the rising oil bill could create additional pressure on Pakistan’s foreign exchange reserves and inflation rate. They also fear that prolonged instability in the Middle East may further weaken the country’s economic position. Government officials are closely monitoring the fuel situation while considering additional measures to ensure uninterrupted energy supplies across the country. Authorities are also reviewing strategies to control inflation and reduce pressure on consumers. Industry experts say the refinery decision may provide temporary relief for defence operations and Hajj travel. However, they stress that Pakistan still faces long term energy security challenges because of its heavy reliance on imported oil. The latest crisis has once again highlighted the urgent need for Pakistan to increase investment in local energy exploration and alternative energy projects to reduce dependence on expensive imported fuel.

Weak Pakistan GDP Ratio Raises Concerns Over Economic Recovery
Pakistan

Weak Pakistan GDP Ratio Raises Concerns Over Economic Recovery

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Pakistan investment to GDP ratio remained stagnant during the current fiscal year as the government failed to achieve another key economic target despite efforts to attract foreign investment and improve economic stability. Official provisional figures showed that investment stayed at 14.4 percent of the national economy while savings declined further to 14 percent. According to data prepared by the planning ministry based on National Accounts results, the investment to GDP ratio remained unchanged from last year. However, it still fell short of the official target of 14.7 percent. The figures highlighted the government’s continued struggle to boost investment activity at a time when economic growth and job creation remain weak. The savings to GDP ratio also missed the official target of 14.3 percent. Savings dropped to 14 percent because of an expected current account deficit during the fiscal year. The ratio also remained lower than last year by 0.9 percent of GDP. Economic experts believe that weak investment levels continue to slow infrastructure development and social sector progress. The government is increasingly relying on borrowing to meet its financing needs because exports also declined by more than 6 percent during the first ten months of the fiscal year. Officials have started internal discussions about whether the second phase of trade liberalisation should be implemented from July. Policymakers fear that the first phase increased imports rapidly without helping exports grow. The government had launched the Sovereign Wealth Fund three years ago to attract foreign investment into Pakistan. However, the initiative remained inactive this year after the International Monetary Fund raised objections over its legal framework. The government has now tabled an amendment bill in the National Assembly to address IMF concerns. The Senate Standing Committee on Finance delayed voting on the bill and postponed the matter until its next meeting. The Special Investment Facilitation Council also failed to attract major foreign investment during the fiscal year. However, the council continued addressing procedural issues faced by local investors and businesses. The fixed investment to GDP ratio remained at 12.7 percent, missing the official target of 13 percent. Private sector investment slightly increased to 9.6 percent of GDP but stayed below the target of 9.8 percent. These figures are expected to be officially released in the upcoming Economic Survey of Pakistan. Public sector investment also weakened. The public investment to GDP ratio declined to 3.1 percent after the federal government reduced its development budget by nearly Rs200 billion. For the next fiscal year, the government has proposed a development budget of Rs1.126 trillion. However, actual spending will depend on whether revenue targets are achieved. Economists warn that failure to increase investment limits the government’s ability to improve roads, energy infrastructure, education, and healthcare using domestic resources. This situation increases dependence on domestic and foreign loans for development projects. Finance Minister Muhammad Aurangzeb is currently visiting China to secure a 250 million dollar loan by accessing Chinese debt markets. The government is seeking support through guarantees from the Asian Infrastructure Investment Bank and the Asian Development Bank. Pakistan’s current credit rating remains too weak to independently raise debt from Chinese markets. The government also failed to achieve its broader economic growth target during the fiscal year. Pakistan’s economy expanded by only 3.7 percent, which economists say is insufficient to generate employment opportunities for the growing youth population. A recent report warned that Pakistan’s population may rise by 62 percent to 389 million people by 2050. The report estimated that nearly 255 million people would fall within the working age category. Analysts say this population trend increases pressure on the government to accelerate investment and economic reforms. Despite the overall weak performance, some sectors recorded investment growth. Private investment in agriculture rose by 8.7 percent due to increased imports of machinery and livestock. Small scale investment, including slaughtering activities, increased by 25 percent. Investment in electricity, gas, and water supply increased by 7.6 percent. Surprisingly, the construction sector recorded growth of more than 60 percent despite a broader slowdown in the industry. Hotels and restaurants saw investment growth of 12.8 percent, while transportation and storage increased by 6.2 percent. The information and communication sector showed the highest growth with investment jumping by 110 percent during the fiscal year. Public sector investment also improved in selected industries. Manufacturing investment increased by 97 percent because of projects linked to the National Radio Telecommunication Corporation. Mining investment rose by 25.9 percent because of spending by Oil and Gas Development Company Limited. Investment in electricity, gas, and water supply grew by 5.1 percent due to projects undertaken by WAPDA. Public investment in transport and storage rose by 51.2 percent because of spending by the Civil Aviation Authority and the Pakistan National Shipping Corporation. In the construction sector, public investment increased by 7.4 percent due to development work by the Lahore Development Authority, the Gwadar Development Authority, and the Federal Government Employees Housing Authority. Public investment in communication increased by 31 percent because of purchases by Ufone and preparations linked to the 5G spectrum auction.

BankIslami and EXIM Bank Sign Pakistan's First Shariah-Compliant Trade and Export Finance Partnership
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BankIslami and EXIM Bank Sign Pakistan’s First Shariah-Compliant Trade and Export Finance Partnership

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Karachi, May 14, 2026: BankIslami Pakistan Limited and EXIM Bank of Pakistan have signed a Memorandum of Understanding (MoU) to establish Pakistan’s first Shariah-compliant trade and export finance partnership of its kind. The collaboration aims to strengthen the country’s trade finance framework while expanding access to Riba-free financial solutions for exporters across Pakistan. The partnership is designed to transform how Pakistani exporters access trade finance by creating a framework covering export credit insurance, credit risk management, digital solutions, and capacity building. Both institutions aim to place Riba-free solutions at the center of Pakistan’s export ecosystem while enhancing the trade footprint of the two organizations. The MoU was signed by Rizwan Ata and Shahbaz H. Syed. Senior executives from both institutions were also present during the signing ceremony, including representatives from treasury, wholesale banking, operations, and regional business management divisions. Speaking on the occasion, Rizwan Ata said strengthening Pakistan’s trade and export sector is a national priority and emphasized BankIslami’s commitment to making Riba-free trade finance accessible to the broader business community. He noted that the partnership with EXIM Bank reflects a shared commitment to expanding Pakistan’s export footprint while ensuring compliance with Islamic finance principles. Shahbaz H. Syed stated that Pakistan’s export sector holds significant untapped potential and said EXIM Bank remains focused on unlocking growth opportunities through strategic partnerships. He added that combining EXIM Bank’s trade finance expertise with BankIslami’s Shariah-compliant framework would help create accessible and effective financial solutions for Pakistani exporters. The collaboration reflects the shared vision of both institutions to build a more inclusive, resilient, and Riba-free financial ecosystem that supports businesses, strengthens Pakistan’s export ambitions, and promotes Islamic finance across the country.

National Assembly Passes Key Economic Bills to Strengthen Pakistan’s Fiscal and Financial Framework
Pakistan

National Assembly Passes Key Economic Bills to Strengthen Pakistan’s Fiscal and Financial Framework

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Pakistan’s National Assembly on Wednesday approved several important economic and financial reform bills aimed at improving fiscal discipline, strengthening debt management, promoting exports, and modernising the country’s financial system. The lower house of parliament passed the Fiscal Responsibility and Debt Limitation (Amendment) Bill, 2026, the Export-Import Bank of Pakistan (Amendment) Bill, 2026, the Special Economic Zones (Amendment) Bill, 2026, and the Netting of Financial Arrangements Bill, 2026. The bills received majority support during the National Assembly session. State Minister for Finance Bilal Azhar Kiani presented the four economic bills before the House. Meanwhile, Federal Minister for National Health Services Syed Mustafa Kamal tabled the Pakistan Nursing and Midwifery Council Bill, 2026, while Federal Minister for Housing and Works Riaz Hussain Pirzada introduced the Islamabad Capital Territory Condominium (Ownership and Management) Bill, 2026. The House also introduced the Pakistan Air Safety Investigation Amendment Bill 2026 and the Customs Amendment Bill 2026 for further consideration. Fiscal Responsibility Bill Focuses on Debt Management The Fiscal Responsibility and Debt Limitation (Amendment) Bill, 2026 seeks to strengthen Pakistan’s debt management framework and improve fiscal oversight. According to the statement of objects and reasons attached to the bill, the existing Fiscal Responsibility and Debt Limitation Act, 2005 already provides a framework for reducing the federal fiscal deficit and maintaining public debt at a prudent level in relation to the country’s Gross Domestic Product (GDP). The amendment aims to further strengthen the Debt Management Office (DMO), which plays a critical role in supporting the government’s debt management operations. Officials said the proposed changes will provide the DMO with additional resources and authority to improve planning, coordination, and execution of public debt management functions. Under Clause 2 of the amendment bill, the Director General and Directors of the DMO will be appointed on a contract basis for three years. Their contracts may be extended after performance evaluations. The appointments will depend on prescribed academic qualifications, professional expertise, and relevant experience. The government believes the move will improve institutional efficiency and create a more professional debt management structure. EXIM Bank Amendment Aims to Improve Governance Lawmakers also approved the Export-Import Bank of Pakistan (Amendment) Bill, 2026 to improve governance standards and operational efficiency at the state-owned financial institution. The amendment seeks to align the operations of the Export-Import Bank with the broader legal and regulatory framework governing state-owned enterprises in Pakistan. According to the official statement attached to the bill, the reforms are designed to ensure transparency, accountability, and sound corporate governance practices. The government said the changes will strengthen the bank’s compliance with the State-Owned Enterprises (SOE) Act while supporting broader national economic and trade objectives. Officials believe improved governance at the EXIM Bank could help facilitate exports, encourage investment, and support Pakistan’s external trade sector. Financial Sector Reforms Through Netting Law The National Assembly also passed the Netting of Financial Arrangements Bill, 2026, which seeks to reduce risks in Pakistan’s growing financial markets. The government stated that Pakistan’s financial sector has evolved significantly over the years with the introduction of new financial products and increased exposure among banks and financial institutions. The bill aims to provide legal clarity for netting arrangements used by banks and financial counterparties to reduce credit and settlement risks. Netting arrangements allow financial institutions to offset mutual obligations and exposures under financial contracts. These mechanisms help institutions optimise regulatory capital and improve financial stability. The statement of objects and reasons noted that such arrangements are already commonly used globally through privately negotiated agreements and international standards like International Swaps and Derivatives Association (ISDA) Master Agreements. However, uncertainty regarding the enforceability of these arrangements during bankruptcy, insolvency, or termination events has limited the growth of Pakistan’s domestic financial markets. The new legislation aims to remove those legal ambiguities and encourage both local and international financial counterparties to engage more confidently in Pakistan’s financial sector. Government Pushes Broader Economic Reforms The passage of these bills reflects the government’s broader efforts to strengthen economic governance and modernise Pakistan’s fiscal and financial systems amid ongoing economic challenges. Analysts say the reforms could improve investor confidence, enhance institutional transparency, and support long-term financial stability if implemented effectively. The government has increasingly focused on fiscal reforms, debt sustainability, export promotion, and regulatory improvements as part of its wider economic agenda.

Pakistan’s Economy Expands to $452 Billion with 3.99% Q3 Growth
Pakistan

Pakistan’s Economy Expands to $452 Billion with 3.99% Q3 Growth

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Pakistan’s economy demonstrated robust momentum in the third quarter of fiscal year 2025-26, registering a year-on-year GDP growth of 3.99%. According to the National Accounts Committee (NAC), industry led the expansion, supported by steady gains in agriculture and services. The overall size of the economy has now reached $452.1 billion. Sectoral Performance Highlights The industrial sector posted the strongest growth at 4.65% in Q3, primarily fueled by a remarkable 9.53% surge in large-scale manufacturing. This offset contractions in mining & quarrying (-2.55%) and electricity, gas & water supply (-13.53%). Construction showed modest recovery with 0.48% growth. Agriculture and Services Contributions Agriculture expanded by 3.01%, with positive contributions across all sub-sectors: important crops (1.10%), other crops (2.27%), livestock (3.70%), forestry (1.62%), and fishing (1.37%). Services grew by 4.18%, driven by strong performances in information & communication (9.78%), public administration (8.88%), and wholesale & retail trade (4.13%). The NAC also revised upward the growth figures for Q1 and Q2 FY26 to 3.92% and 4.05% respectively. For the full fiscal year, provisional GDP growth stands at 3.70%. Final revised growth rates for previous years were set at 2.62% for FY24 and 3.18% for FY25. These figures reflect improving economic stability amid ongoing reforms and external support, including recent IMF disbursements. Per capita income has risen to $1,901 based on the latest population projections. Analysts view the industrial rebound, especially in manufacturing, as a positive signal for job creation and investment. However, challenges like energy shortages in certain segments and the need for broader sectoral diversification remain. The government continues to emphasize digitalization and export-led growth to sustain this trajectory.

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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