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Pakistan SPI Inflation Rises 0.91% as Tomato and Fuel Prices Push Up Cost of Living
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Pakistan SPI Inflation Rises 0.91% as Tomato and Fuel Prices Push Up Cost of Living

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Pakistan SPI Inflation Climbs on Higher Food and Energy Costs Pakistan’s SPI inflation increased by 0.91% during the week ending July 23, 2026, as sharp increases in tomato and fuel prices added further pressure on household budgets, according to the latest figures released by the Pakistan Bureau of Statistics (PBS). On a year-on-year (YoY) basis, the Sensitive Price Indicator (SPI) rose 9.66%, reflecting continued inflationary pressures across food, energy and essential consumer goods. The SPI is a weekly inflation gauge that tracks the prices of 51 essential commodities across 50 markets in 17 cities, providing policymakers with an early indication of changes in the cost of living. Tomato and Fuel Prices Lead Weekly SPI Inflation The biggest contributor to this week’s increase was the sharp rise in tomato prices, which surged 39.92% compared with the previous week. Fuel prices also recorded significant increases following recent adjustments in petroleum prices. Major Weekly Price Increases Higher fuel costs have also increased transportation and distribution expenses, contributing to price pressures across several food categories. Some Essential Commodities Became Cheaper Despite the overall increase in inflation, a number of essential food items recorded weekly price declines. Weekly Price Decreases These declines helped offset part of the increase caused by vegetables and petroleum products but were not enough to prevent overall weekly inflation from rising. Prices Increased for Nearly Half of Essential Items According to PBS data, price movements remained mixed across the basket of 51 commodities monitored under the SPI. Weekly Breakdown The data indicates that inflationary pressure remains broad-based, although price stability continued for a significant portion of essential goods. Annual SPI Inflation Remains Elevated Compared with the same week last year, SPI inflation increased 9.66%, driven largely by higher food, fuel and utility costs. Biggest Annual Price Increases Seasonal supply shortages continued to drive tomato prices sharply higher, while fuel and electricity costs added to transportation and production expenses. Several Commodities Were Cheaper Than a Year Ago Not all items recorded annual increases. Several staples were less expensive compared with the corresponding week of last year. Largest Annual Price Declines While these declines provided some relief, they were outweighed by substantial increases in vegetables, fuel and utility-related items. Urea and Cement Prices Continue to Increase PBS also reported higher prices for key agricultural and construction inputs during the week. The average price of Sona Urea increased to Rs4,655 per 50-kilogram bag, up 0.38% from the previous week and 5.44% higher than a year earlier. Meanwhile, the average price of cement rose to Rs1,536 per 50-kilogram bag, representing a 0.95% weekly increase and a 9.21% annual rise. Higher input costs may place additional pressure on farming, construction activity and broader inflation in the coming months. SPI Inflation Remains a Key Economic Indicator The Sensitive Price Indicator (SPI) remains one of Pakistan’s most closely watched measures of short-term inflation, offering timely insights into changes in food, fuel and household commodity prices. The latest figures suggest that rising petroleum prices and seasonal food supply constraints continue to drive inflationary pressures. Policymakers will be closely monitoring future SPI readings as they assess inflation trends and consider measures to support price stability while protecting household purchasing power.

Shield Corporation to Delist from Pakistan Stock Exchange on July 27 Following Sponsor Buyback
Pakistan

Shield Corporation to Delist from Pakistan Stock Exchange on July 27 Following Sponsor Buyback

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Shield Corporation Limited, one of Pakistan’s leading manufacturers of baby care and oral care products, will officially be delisted from the Pakistan Stock Exchange (PSX) on July 27, 2026, after the exchange approved the company’s voluntary delisting request. The move follows the completion of the sponsor buyback process, allowing the company to exit the stock market after nearly five decades as a listed entity. Minority shareholders who still own shares will continue to have the opportunity to sell them to the sponsors at a fixed price until July 2027. PSX Approves Shield Corporation’s Voluntary Delisting The Pakistan Stock Exchange has accepted Shield Corporation’s application for voluntary delisting after the company fulfilled all regulatory requirements. According to the PSX notice issued on July 23, 2026, the company’s shares will be removed from the exchange with effect from Monday, July 27, 2026, under Regulation 5.14 of the PSX Regulations and Section 19(5) of the Securities Act, 2015. The notice was also shared with the Securities and Exchange Commission of Pakistan (SECP), the Central Depository Company (CDC), the National Clearing Company of Pakistan Limited (NCCPL), and the company’s purchase agent. Shareholders Can Still Sell Shares at Rs750 Each Although the company will no longer be listed on the PSX, minority shareholders who continue to hold Shield Corporation shares can still sell them to the sponsors. The sponsors have committed to purchasing all remaining shares at Rs750 per share, with Arif Habib Limited serving as the official purchase agent. The buyback offer will remain valid until July 16, 2027, giving shareholders who did not participate during the initial buyback period another opportunity to exit their investment. The original buyback window was open from May 18 to July 16, 2026, while the company completed all voluntary delisting requirements on July 18, 2026. Company to Continue Operations as a Private Entity Established in 1975 and headquartered in Karachi, Shield Corporation is widely known for manufacturing baby care and oral care products, including baby feeders, nipples, soothers, teethers, toothbrushes, and other hygiene items. The company had previously discontinued its diaper manufacturing business after reviewing production costs and market conditions. Shield Corporation operates as a subsidiary of PharmEvo and has exported its products to several markets across Asia, Europe, and Africa. Following the delisting, the company will continue operating as a privately held business with a focus on its core product portfolio. Delisting Aims to Improve Operational Efficiency The decision to delist comes after a period of weak stock market performance. Low average daily trading volumes, consecutive financial losses in recent years, and the absence of dividend payments since 2021 were among the factors that contributed to the company’s decision to leave the stock market. By becoming a private company, Shield Corporation aims to reduce regulatory compliance costs and focus on improving operational efficiency and long-term business performance. Minority shareholders who still wish to sell their shares can contact Arif Habib Limited, the designated purchase agent, before the buyback offer expires in July 2027. The delisting marks the end of Shield Corporation’s public listing, concluding a presence on Pakistan’s capital market that spanned nearly 50 years.

Pakistan FDI Falls to $1.64 Billion in FY26 as Foreign Investment Slows
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Pakistan FDI Falls to $1.64 Billion in FY26 as Foreign Investment Slows

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Pakistan’s foreign direct investment (FDI) declined sharply during fiscal year 2025-26, reflecting weaker investor confidence and rising capital outflows despite ongoing economic reforms. Fresh data released by the State Bank of Pakistan (SBP) shows that annual FDI dropped significantly compared with the previous fiscal year, while foreign divestment increased, underscoring the challenges facing the country’s investment climate. The latest figures suggest that although Pakistan continues to attract investment into selected sectors, international investors remain cautious amid economic uncertainty and global market volatility. Pakistan FDI Declines by One-Third in FY26 According to SBP data, Pakistan received $1.64 billion in foreign direct investment during FY26, compared with $2.48 billion in the previous fiscal year. The decline of nearly one-third highlights a slowdown in long-term foreign capital inflows at a time when Pakistan is seeking overseas investment to support economic growth, industrial development, and job creation. The figures indicate that foreign investors have become more selective, delaying or scaling back investment decisions despite efforts to improve the country’s business environment. June FDI Drops to Just $13.5 Million Investment activity weakened further in June 2026, when Pakistan recorded only $13.5 million in net foreign direct investment, compared with $210 million in the same month last year. Although gross investment inflows totaled $294.4 million during June, the increase in capital withdrawals significantly reduced the overall net inflow. Foreign investment outflows surged to $280.9 million, an increase of more than 168 percent year-on-year, leaving only a marginal net gain for the month. The sharp rise in outflows suggests that several foreign investors chose to repatriate funds or reduce their exposure to Pakistan. Portfolio Investment Remains Under Pressure Portfolio investment continued to reflect cautious investor sentiment. During June 2026, foreign investors recorded an equity portfolio outflow of $28.7 million. While this was lower than the $42.9 million outflow recorded in June 2025, it indicates that international investors remain hesitant about Pakistan’s financial markets. Portfolio flows are generally viewed as an important indicator of investor confidence because they respond quickly to economic and political developments. Foreign Private Investment Turns Negative One of the most notable developments during June was the reversal in foreign private investment. Instead of generating fresh inflows, foreign private investment registered a negative $15.2 million, compared with a positive $167.1 million during the same month last year. Foreign public investment also remained weak, recording an equity outflow of $11.8 million. Combined, these movements resulted in total foreign divestment of $27 million during June 2026, reversing the $184.2 million net investment recorded in June 2025. Rising Divestment Highlights Investor Concerns The broader fiscal year trend also points to growing caution among international investors. Total foreign divestment during FY26 reached $450.6 million, compared with $1.75 billion in net foreign investment during the previous fiscal year. The increase in capital outflows reflects ongoing concerns over global economic conditions, domestic financial challenges, exchange rate risks, and investor assessments of Pakistan’s economic outlook. For Pakistan, sustaining higher levels of foreign direct investment remains essential for strengthening foreign exchange reserves, supporting exports, creating employment, and driving long-term economic growth. The latest SBP figures underscore the importance of maintaining macroeconomic stability, implementing structural reforms, and improving the ease of doing business to rebuild investor confidence. Outlook for Foreign Investment While Pakistan continues to attract foreign investment in selected industries, the latest data highlights the need for stronger policy consistency and a more predictable investment environment. If investor confidence improves through continued reforms and economic stability, the country could regain momentum in attracting long-term foreign capital. However, sustained capital outflows and weak FDI could pose additional challenges for Pakistan’s economic recovery and future growth prospects.

S&P Upgrades Pakistan's Sovereign Credit Rating to B on Reform Progress and Economic Stability
Pakistan

S&P Upgrades Pakistan’s Sovereign Credit Rating to B on Reform Progress and Economic Stability

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Pakistan has received a significant boost to its international credit profile after S&P Global Ratings upgraded the country’s long-term sovereign credit rating to B from B-. The rating agency cited improved political stability, stronger institutions, and continued implementation of economic reforms as the main reasons behind the upgrade. The improved rating reflects growing confidence in Pakistan’s fiscal management and reform agenda, although S&P also highlighted several economic and external risks that continue to weigh on the country’s outlook. Political Stability and Reforms Drive Rating Upgrade According to S&P Global Ratings, Pakistan’s relatively stable political environment over the past two years has strengthened institutional capacity, enabling the government to implement key reforms under the International Monetary Fund (IMF) programme. The agency said these reforms have accelerated fiscal consolidation, improved policy implementation, and helped rebuild the country’s external financial buffers. S&P identified political stability, institutional strengthening, and fiscal discipline as the three primary factors supporting the sovereign rating upgrade. Fiscal Consolidation Improves Economic Outlook The rating agency noted that Pakistan has remained committed to fiscal consolidation despite facing resistance to several difficult policy measures. Efforts to broaden the tax base and strengthen public finances have contributed to a gradual improvement in the government’s fiscal position and a decline in the net government debt-to-GDP ratio. S&P also referred to tax measures such as the Agriculture Income Tax and efforts to expand the retail tax base as contributors to higher tax revenues. However, it is worth noting that both initiatives were not fully implemented during 2025. The agency added that the government’s policy of allowing fuel price adjustments while providing targeted support to vulnerable households should help limit fiscal pressures arising from volatile global energy prices. Economy Expected to Maintain Moderate Growth S&P estimates Pakistan’s economy expanded by 3.6 percent during fiscal year 2026, marking the third consecutive year of economic growth. For the current fiscal year, the agency forecasts GDP growth of 3.5 percent, supported by continued macroeconomic stability and structural reforms. However, several economic indicators are expected to remain under pressure. Investment is projected at 14.4 percent of GDP, while national savings are forecast to reach 13.5 percent of GDP. The exports-to-GDP ratio is expected to decline to 9.6 percent, and net foreign direct investment is projected at only 0.4 percent of GDP. External Financing Needs Remain High Despite the improved rating, S&P cautioned that Pakistan continues to face significant external financing challenges. The agency projects gross external financing requirements to rise to 104.9 percent of current account receipts, while narrow net external debt could reach 113 percent of current account receipts during the current fiscal year. Pakistan is also expected to continue relying on the rollover of financial support from key bilateral partners, including China, Saudi Arabia, and Kuwait. According to S&P, total bilateral support through central bank deposits and currency swap arrangements reached approximately $16.8 billion by the end of fiscal year 2026. Debt Sustainability and Regional Risks Persist S&P expects Pakistan’s net government debt-to-GDP ratio to continue declining gradually but remain above 60 percent over the medium term. The agency also warned that high interest payments relative to government revenues remain a major challenge for long-term debt sustainability. In addition, S&P highlighted geopolitical risks, noting that border tensions with India and Afghanistan could increase the risk of regional instability and economic uncertainty. Despite these concerns, the agency believes continued implementation of structural reforms and prudent fiscal management could support steady economic growth and stronger public finances in the years ahead.

Bangladesh Foreign Exchange Reserves Rise to $36.47 Billion, Central Bank Reports
Pakistan

Bangladesh Foreign Exchange Reserves Rise to $36.47 Billion, Central Bank Reports

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Bangladesh’s foreign exchange reserves remained on an upward trajectory as the country’s gross reserves climbed to $36.47 billion, according to the latest data released by Bangladesh Bank. The updated figures also showed that reserves measured under the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual (BPM6) methodology stood at $31.77 billion. The latest reserve position reflects Bangladesh’s external financial strength and remains a key indicator closely monitored by investors, businesses, and policymakers. Bangladesh Bank Releases Latest Reserve Figures Bangladesh Bank published the updated foreign exchange reserve data on July 23, 2026, confirming that the country’s gross reserves reached $36.47 billion. At the same time, reserves calculated under the IMF’s BPM6 methodology were reported at $31.77 billion. The central bank regularly publishes both figures to provide a comprehensive view of the country’s external reserve position. Understanding Gross Reserves and BPM6 Methodology The two reserve figures represent different methods of measuring a country’s foreign exchange assets. Gross reserves include the total stock of international reserve assets held by the central bank. In contrast, the IMF’s BPM6 methodology applies a stricter standard by focusing on reserves that are readily available for meeting external financing needs and managing balance-of-payments pressures. As a result, the BPM6 figure is generally lower than the gross reserve total. Strong Reserves Support External Stability Maintaining healthy foreign exchange reserves strengthens Bangladesh’s ability to finance imports, meet external debt obligations, and respond to global economic uncertainties. Higher reserve levels also provide confidence to investors and financial markets by improving the country’s capacity to manage exchange rate movements and external payment requirements. Analysts closely monitor reserve trends as an important measure of overall external sector stability. Remittances and Trade Remain Key Drivers Future movements in Bangladesh’s foreign exchange reserves will depend on several factors, including remittance inflows, export earnings, import payments, and central bank operations in the foreign exchange market. With gross reserves remaining above the $36 billion mark, Bangladesh continues to maintain a solid external buffer while policymakers monitor global economic developments and domestic foreign currency flows. Bangladesh Bank remains the official source for the country’s reserve statistics and is expected to provide further updates as economic conditions evolve.

Pakistan

Flash Floods and Monsoon Rains Claim 22 Lives in Khyber Pakhtunkhwa Since July 19

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Heavy monsoon rains and flash floods have claimed at least 22 lives and injured 23 others across Khyber Pakhtunkhwa since July 19, according to the Provincial Disaster Management Authority (PDMA). The severe weather has also damaged dozens of homes, prompting authorities to intensify relief efforts and issue fresh safety advisories as more rainfall is forecast. The ongoing spell of rain has affected multiple districts, with rescue teams and local administrations working to assist affected families and monitor the evolving situation. Death Toll Rises as Heavy Rains Batter Khyber Pakhtunkhwa According to the PDMA, 22 people have lost their lives due to rain-related incidents, including house collapses and flash floods that swept away residents in different parts of the province. The victims include nine men, 10 children, and three women. Meanwhile, 23 people sustained injuries during the severe weather. The injured comprise 11 men, five women, and seven children who are receiving medical treatment. Dozens of Houses Damaged by Flash Floods The heavy rains have also caused significant damage to residential properties across the province. A total of 37 houses were affected, with 29 suffering partial damage while eight homes were completely destroyed. Local authorities are assessing the damage and coordinating assistance for displaced families. Multiple Districts Affected by Monsoon Rains The widespread rainfall and flash flooding have impacted several districts across Khyber Pakhtunkhwa, including Peshawar, Nowshera, Khyber, Mardan, Buner, Bajaur, Shangla, Swabi, Lower Chitral, Upper Dir, Lower Dir, Abbottabad, Mansehra, Haripur, Tank, Tor Ghar, Kurram, North Waziristan, and South Waziristan. Emergency response teams remain active in the affected areas to support rescue operations and provide relief where needed. PDMA Intensifies Relief Operations The PDMA said it is working closely with Rescue 1122, district administrations, and other emergency response agencies to ensure timely assistance reaches affected communities. District authorities have been instructed to accelerate relief activities and provide essential support to people impacted by the floods and heavy rainfall. Officials also confirmed that water levels in major rivers and streams remain within normal limits despite the ongoing weather conditions. Public Urged to Exercise Caution With intermittent heavy rain expected to continue through Thursday, authorities have advised residents to remain vigilant and avoid unnecessary travel. People have been urged to stay away from flood-prone areas and vulnerable tourist destinations while closely following official weather advisories. The PDMA’s Emergency Operations Centre remains operational, and citizens can seek information or report emergencies through the toll-free helpline 1700.

Pakistani Rice Exports Receive Major Boost as China Places 60,000 Metric Ton Orders
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Pakistani Rice Exports Receive Major Boost as China Places 60,000 Metric Ton Orders

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Pakistan’s rice export sector has received a significant boost after Chinese buyers placed orders for 60,000 metric tons of Pakistani rice during a trade mission led by the Rice Exporters Association of Pakistan (REAP). The development is expected to strengthen Pakistan-China trade relations, increase export earnings, and create new opportunities for local rice exporters in one of the world’s largest food markets. The latest orders reflect growing international confidence in the quality and competitiveness of Pakistani rice, particularly as demand continues to rise in China. REAP Secures Large Rice Orders During China Trade Visit A 17-member REAP delegation, headed by Senior Vice Chairman Muhammad Jawed Jillani, visited Guangzhou, Shenzhen, and Dongguan from July 20 to July 24, 2026, to promote Pakistan’s agricultural exports and build stronger commercial partnerships. The delegation secured confirmed purchase orders for 60,000 metric tons of Pakistani rice from leading Chinese importers based in Guangzhou and Shenzhen. The agreements mark one of the major commercial achievements of the visit and reinforce China’s position as a key export destination for Pakistan’s rice industry. The trade mission received support from the Consulate General of Pakistan in Guangzhou, which facilitated meetings between Pakistani exporters and Chinese businesses. Business Meetings Open New Export Opportunities A business matchmaking event jointly organized by the Pakistani Consulate and the Guangdong Chamber of Commerce of Importers and Exporters brought together 17 Pakistani exporters and 18 Chinese companies. The meetings enabled both sides to discuss rice, sesame, and maize trade while exploring long-term commercial partnerships. Exporters showcased Pakistan’s production capacity, quality standards, and ability to meet growing international demand. Chinese buyers expressed strong interest in expanding imports of Pakistani rice, citing its premium quality, distinctive aroma, competitive pricing, and reliable supply. Chinese Market Remains Key for Pakistani Rice Exports During discussions with Guangdong Agribusiness Group and the Guangzhou International Cooperation Center, REAP representatives highlighted Pakistan’s expanding rice industry and its ability to serve China’s growing food import requirements. Business-to-business meetings allowed exporters to negotiate future contracts, discuss product specifications, and strengthen relationships with established Chinese importers and distributors. Trade and Investment Counsellor Muhammad Imran also invited Chinese companies to participate in the FoodAgro Exhibition scheduled to be held in Karachi from November 23 to 26, 2026, to further enhance bilateral trade cooperation. Exporters Seek Greater Government Support Alongside celebrating the new export orders, the delegation held discussions with Pakistan’s Consul General in Guangzhou regarding challenges facing rice exports to China. Exporters highlighted regulatory and market-access issues and called for stronger institutional support to help Pakistani businesses expand their presence in the Chinese market. They also reviewed export performance over the past three years and emphasized that resolving existing barriers could significantly increase Pakistan’s share in China’s food imports. Stronger Pakistan-China Trade Prospects REAP Senior Vice Chairman Muhammad Jawed Jillani described the trade mission as a major success, saying the 60,000 metric ton orders demonstrate the growing acceptance of Pakistani rice in China. REAP Chairman Rafique Suleman said Pakistani rice continues to gain recognition among Chinese consumers for its quality, aroma, consistency, and value. He added that continued engagement with international buyers and participation in overseas trade events will help Pakistan expand its global export footprint. The successful trade mission underscores the importance of targeted business diplomacy in boosting exports. With fresh orders from China and growing international demand, Pakistan’s rice sector is well positioned to contribute further to the country’s export growth and strengthen long-term economic cooperation with China.

Pakistan Stock Exchange Crash Deepens as KSE-100 Tumbles on Middle East Tensions and Rising Oil Prices
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Pakistan Stock Exchange Crash Deepens as KSE-100 Tumbles on Middle East Tensions and Rising Oil Prices

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Pakistan’s equity market remained under heavy pressure as the Pakistan Stock Exchange Crash extended for another trading session, with the benchmark KSE-100 Index suffering a sharp decline amid escalating geopolitical tensions in the Middle East and a surge in global oil prices. The latest selloff reflects growing investor concerns that prolonged regional instability could fuel inflation, increase Pakistan’s import bill, weaken the rupee, and slow the country’s economic recovery. Pakistan Stock Exchange Crash Driven by Middle East Conflict Investor sentiment deteriorated after renewed military developments in the Middle East raised concerns about global energy supplies. Reports of attacks on commercial vessels in the Red Sea by Yemen’s Houthi forces, along with fresh US strikes targeting Iran, heightened fears of further disruption to oil shipments through key maritime routes. As a result, Brent crude oil climbed close to $96 per barrel, reaching its highest level in more than six weeks. For Pakistan, which imports a significant portion of its petroleum requirements, higher crude prices translate into increased import costs, stronger inflationary pressures, and additional strain on the country’s external account. These concerns triggered broad-based selling across the Pakistan Stock Exchange. KSE-100 Index Drops Nearly 2,700 Points The benchmark KSE-100 Index closed Thursday’s session at 171,739.44 points, down 2,690.48 points, or 1.54 percent. Trading remained highly volatile throughout the day. The index initially climbed to an intraday high of 175,237.59 points, gaining more than 800 points before selling pressure intensified. It later touched an intraday low of 171,655.09 points, resulting in a swing of over 3,580 points during the session. Trading volume within the KSE-100 Index reached 242.21 million shares, indicating active participation despite the negative market sentiment. Selling Pressure Spreads Across Major Sectors The decline was broad-based, with 91 of the 100 companies in the benchmark index ending the day in negative territory, while only nine stocks closed higher. The biggest pressure on the index came from: Commercial Banks Banking stocks led the decline as investors reduced exposure to large-cap financial companies. Cement Sector Cement manufacturers remained under pressure amid concerns over slowing economic activity and rising production costs. Fertilizer Companies Fertilizer stocks also contributed significantly to the market’s losses. Oil and Gas Exploration Exploration companies declined despite higher international oil prices, reflecting broader market risk aversion. Major index-heavy companies including United Bank Limited, Fauji Fertilizer Company, Engro Holdings, Lucky Cement, and Hub Power collectively erased hundreds of index points. Refinery Stocks Buck the Trend While most sectors ended lower, a few areas of the market managed to attract buying interest. Refinery companies performed relatively better as investors anticipated stronger refining margins amid rising petroleum prices. Modest gains were also recorded in selected: Property companies Synthetic and rayon manufacturers Sugar producers Textile weaving companies However, these gains were insufficient to offset widespread selling across the broader market. Select Stocks Post Gains Despite Weak Market A handful of companies managed to close in positive territory despite the overall market decline. Among the notable gainers were: Meanwhile, some of the session’s biggest losers included: Trading Activity Remains Strong Despite weaker sentiment, trading volumes remained relatively healthy. Among the most actively traded companies were: Broader Market Also Ends Lower Weakness extended beyond the benchmark index. The All-Share Index declined 1.35 percent to close at 104,259.23 points. Overall market participation also moderated: Out of 493 listed companies: The market breadth highlighted the widespread nature of the selling pressure. Investors Focus on Oil Prices and Regional Developments Market participants are expected to closely monitor developments in the Middle East, as well as movements in international crude oil prices. Persistently higher energy prices could increase Pakistan’s import bill, place additional pressure on inflation, influence future monetary policy decisions, and impact corporate earnings. Since the beginning of the current fiscal year, the KSE-100 Index has already fallen by approximately 8,562 points, or 4.75 percent, underscoring the challenging environment facing Pakistan’s capital markets. Unless geopolitical tensions ease and global oil markets stabilize, investor sentiment is likely to remain cautious, with volatility expected to persist in the weeks ahead.

Ufone-Telenor Merger Narrows Gap with Jazz, Signals Major Shift in Pakistan's Telecom Market
Pakistan

Ufone-Telenor Merger Narrows Gap with Jazz, Signals Major Shift in Pakistan’s Telecom Market

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Pakistan’s mobile telecom sector is approaching a historic turning point as the Ufone-Telenor merger rapidly closes the gap with long-time market leader Jazz. The latest subscriber data released by the Pakistan Telecommunication Authority (PTA) shows the combined operator is now just over half a million subscribers behind Jazz, setting the stage for one of the biggest competitive shifts in the country’s telecommunications history. With network integration progressing and customer numbers continuing to rise, industry experts believe the merged company could soon overtake Jazz to become Pakistan’s largest mobile operator. Ufone-Telenor Merger Brings Subscriber Base Close to Jazz According to the latest PTA statistics, Jazz remains Pakistan’s largest telecom operator with 75.42 million subscribers. However, the combined subscriber base of Ufone and Telenor Pakistan has climbed to 74.86 million, reducing the difference to just 564,166 subscribers. The narrowing gap reflects the strong momentum gained since the merger, positioning the combined operator as a serious challenger for the industry’s top position. Merger Strengthens Competitive Position The merger has brought together the infrastructure, spectrum assets, retail presence, and digital capabilities of both telecom operators, creating a stronger nationwide network. Industry analysts believe the integration is expected to deliver several long-term benefits, including: Improved Network Coverage The combined infrastructure enables broader nationwide coverage while improving network reliability and capacity. Enhanced Service Quality Pooling spectrum resources and technical capabilities is expected to improve voice quality, mobile internet speeds, and overall customer experience. Faster Customer Growth A larger retail footprint and expanded service portfolio could help the merged operator attract new subscribers while improving customer retention. Pakistan’s Mobile Subscriber Base Continues to Expand The PTA data also highlights continued growth across Pakistan’s telecom sector. Pakistan’s total mobile subscriber base reached 208.06 million in June 2026, reflecting steady demand for digital connectivity. Several factors continue to support this growth, including: Rising Smartphone Adoption More consumers are switching to smartphones, increasing demand for mobile broadband services. Expanding 5G Services The rollout of 5G-compatible services is encouraging users to upgrade both devices and mobile packages. Higher Digital Usage Growing reliance on digital banking, online education, video streaming, e-commerce, and remote work continues to boost mobile data consumption across the country. Competition Moves Beyond Subscriber Numbers While subscriber growth remains important, industry experts note that competition is increasingly focused on overall service quality rather than customer numbers alone. Telecom operators are now competing across multiple areas, including: Network Performance Reliable connectivity and faster mobile internet have become key factors influencing customer choice. Digital Innovation Operators are investing heavily in fintech, digital payments, cloud services, entertainment platforms, and enterprise solutions. Customer Experience Improved customer support, attractive data packages, and value-added services are becoming increasingly important in retaining subscribers. The merged Ufone-Telenor operator is expected to leverage its expanded infrastructure to strengthen its position across consumer, enterprise, and digital financial services. Jazz Faces Strongest Challenge in Nearly Two Decades Jazz has maintained its position as Pakistan’s largest mobile operator for almost two decades. However, the latest PTA figures indicate that the competitive gap has narrowed to its lowest level in recent years, making a change in market leadership increasingly possible. If current subscriber growth trends continue, Pakistan’s telecom market could witness its most significant leadership transition in decades. Consumers Stand to Benefit Most Industry observers believe increased competition between major telecom operators will ultimately benefit consumers. Greater rivalry is expected to encourage: Wider 5G Expansion Operators are likely to accelerate investment in next-generation mobile networks. Better Service Quality Competition typically drives improvements in network performance and customer support. More Competitive Packages Consumers may benefit from better data offers, value-added services, and digital products as operators compete for market share. Pakistan’s Telecom Industry Enters a New Phase The Ufone-Telenor merger is reshaping Pakistan’s telecommunications landscape by creating a stronger competitor capable of challenging the industry’s long-standing leader. As subscriber numbers continue to grow and digital services become increasingly important, the race for market leadership is expected to intensify. Whether the merged operator ultimately overtakes Jazz or not, the heightened competition is likely to accelerate innovation, improve connectivity, and support Pakistan’s broader digital transformation.

Pakistan Daily Petrol Prices: Why Fuel Prices Are Now Changing Every Working Day
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Pakistan Daily Petrol Prices: Why Fuel Prices Are Now Changing Every Working Day

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Pakistan’s fuel pricing system has entered a new phase as Pakistan Daily Petrol Prices are now being revised every working day instead of every fortnight. The new pricing framework introduced by the Oil and Gas Regulatory Authority (OGRA) allows petrol and diesel prices to reflect international market movements much faster, directly affecting motorists, businesses, transport operators, and industries across the country. Within days of the new mechanism taking effect, consumers witnessed consecutive increases in fuel prices, highlighting how closely domestic petroleum rates are now linked to fluctuations in global oil markets. Pakistan Daily Petrol Prices Replace the Fortnightly Pricing System For years, Pakistan reviewed petroleum prices every two weeks. During heightened volatility caused by the US-Iran conflict, the government temporarily shifted to weekly price revisions. The latest reform goes a step further by introducing daily ex-depot fuel prices on every working day. Under the new system, OGRA publishes revised petrol and diesel prices from Monday to Friday, while Friday’s rates remain applicable over the weekend. The objective is to make domestic fuel prices more responsive to international oil market trends instead of delaying adjustments until the next review cycle. Fuel Prices Rise Within Days of the New Mechanism The impact of the daily pricing formula became evident almost immediately. Motor Spirit (MS) petrol increased from Rs315.80 per litre on July 21 to Rs320.73 on July 22, before climbing further to Rs327.12 per litre on July 23. High-Speed Diesel (HSD) followed a similar trajectory, rising from Rs360.06 to Rs367.21, and then reaching Rs375.04 per litre over the same period. These back-to-back revisions demonstrate how domestic prices can now change rapidly in response to global market conditions. How Pakistan Daily Petrol Prices Are Calculated Many consumers believe petrol prices depend only on international crude oil prices. However, the calculation involves several cost components before fuel reaches retail filling stations. International Benchmark Prices The pricing process begins with the seven-working-day rolling average of Platts Arab Gulf benchmark prices. For July 23, the benchmark prices stood at: These benchmarks serve as the primary international reference for imported petroleum products. Freight and Import Costs Freight charges are then added to the benchmark prices. For petrol, freight is based on the weighted average transportation cost of Pakistan State Oil (PSO) imports over the previous seven working days. Diesel freight is calculated using Pakistan’s long-term supply arrangement with Kuwait Petroleum Corporation (KPC). Exchange Rate Conversion The Cost and Freight (C&F) value is converted into Pakistani rupees using the seven-day average exchange rate published by the State Bank of Pakistan (SBP). The calculation also applies the industry-standard conversion factor of 158.98 litres per barrel. Additional Charges Several other costs are incorporated before arriving at the import price, including: Banking and insurance expenses Marine insurance HDIP fees Port handling charges Ocean transportation losses or gains Exchange rate adjustments Customs duties After these calculations, the Ex-Refinery/Import Price on July 23 stood at: Government Taxes Continue to Influence Retail Fuel Prices The ex-refinery price represents only one portion of the final amount consumers pay at petrol pumps. Additional charges include: Inland Freight Equalization Margin (IFEM) This covers transportation costs across different regions of Pakistan. OMC and Dealer Margins Fixed margins are allocated to Oil Marketing Companies (OMCs) and petroleum dealers. Petroleum Levy The Petroleum Levy remained Rs80 per litre on July 23. Climate Support Levy An additional Rs5 per litre was charged under the Climate Support Levy. Sales Tax Sales Tax remained zero on both petrol and diesel. After incorporating these components, the retail ex-depot petrol price increased from approximately Rs242.12 per litre before taxes and levies to Rs327.12 per litre, excluding secondary transportation costs. New Import Rules Strengthen Supply Management The revised pricing framework also introduces stricter petroleum import regulations. For the FY2027, all High-Speed Diesel (HSD) imports will be handled exclusively by Pakistan State Oil (PSO). Motor Spirit (MS) imports will continue through multiple Oil Marketing Companies under OGRA’s Product Requirement Mechanism, with allocations based on market share. Companies failing to fulfill import commitments, delaying shipments, or failing to lift refinery allocations may face suspension from future import allocations for up to nine months. The objective is to improve supply discipline and reduce disruptions in the fuel market. Greater Transparency Through Daily Benchmark Publication One of the key features of the new system is improved transparency. OGRA now publishes the daily Platts Arab Gulf benchmark prices used in fuel calculations, allowing consumers, businesses, and industry participants to better understand how petroleum prices are determined. The same daily pricing methodology has also been extended to Superior Kerosene Oil (SKO) and Light Diesel Oil (LDO). What Pakistan Daily Petrol Prices Mean for Consumers The introduction of Pakistan Daily Petrol Prices marks one of the most significant reforms in the country’s petroleum pricing system. While the mechanism enhances transparency and aligns Pakistan more closely with international pricing practices, it also exposes consumers to more frequent fluctuations in fuel costs. Motorists, transport companies, manufacturers, logistics operators, and businesses will now need to monitor fuel prices more closely, as changes in global oil prices and exchange rates can influence domestic petrol and diesel prices within days rather than weeks. As international energy markets remain volatile, daily fuel price revisions are expected to become a permanent feature of Pakistan’s energy landscape.

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