Contact Us

Author name: Web Desk

S&P Global Pakistan and TiE Islamabad Launch Project Elevate to Mentor Over 600 Future Leaders
Pakistan

S&P Global Pakistan and TiE Islamabad Launch Project Elevate to Mentor Over 600 Future Leaders

/

Three-Year Mentorship Initiative Aims to Build Pakistan’s Next Generation of Professionals ISLAMABAD: S&P Global Pakistan, in partnership with The Indus Entrepreneurs (TiE) Islamabad, has launched Project Elevate, a structured three-year mentorship initiative designed to equip more than 600 young Pakistanis with the professional skills, leadership capabilities, and career guidance needed to succeed in an increasingly competitive global economy. The initiative reflects a shared commitment to developing Pakistan’s emerging talent by connecting participants with experienced industry leaders and entrepreneurs through structured mentorship and professional development programs. Project Elevate to Support More Than 600 Participants Project Elevate will be delivered through three annual cohorts, with each cohort comprising approximately 200 participants. The program is open to a diverse group of individuals, including university students, early-career professionals, aspiring entrepreneurs, and freelancers, reflecting the changing dynamics of Pakistan’s workforce. Participants will receive one-on-one and group mentorship, corporate readiness training, career development workshops, and networking opportunities with senior leaders from S&P Global Pakistan and members of TiE Islamabad’s entrepreneurial network. S&P Global Invests in Pakistan’s Talent Pipeline Speaking at the launch, Mujeeb Zahur, Managing Director of S&P Global Pakistan, described Project Elevate as a long-term investment in the country’s future workforce. “Project Elevate is a strategic investment in the people we believe will drive economic value both locally and globally. We are committing our expertise because we truly believe in Pakistan’s talent pipeline and creating an ecosystem that will give individuals the platform, mentorship and exposure they deserve.” He said the initiative aims to empower talented individuals by providing them with practical guidance, professional exposure, and access to experienced mentors. Focus on Skills, Confidence and Professional Growth Atta Rehman, Senior Regional People Advisor at S&P Global Pakistan, highlighted the importance of mentorship in building future leaders. “At S&P Global, we believe that people are the most powerful driver of organizational success. Project Elevate is designed to give participants not just skills, but visibility, confidence, and a professional community that stays with them long after the program ends.” He noted that the initiative is intended to help participants develop the confidence and networks needed to advance their careers in a rapidly evolving professional landscape. Strengthening Leadership and Career Development Project Elevate aligns with S&P Global’s enterprise-wide commitment to investing in learning, leadership development, and professional growth. The program is designed to equip participants with leadership capabilities, practical workplace skills, and access to valuable professional resources that will help them excel in today’s evolving global economy. By bringing together corporate leaders, entrepreneurs, and emerging professionals, the initiative seeks to strengthen Pakistan’s talent ecosystem and support the country’s long-term economic development. Investing in Pakistan’s Future Workforce The collaboration between S&P Global Pakistan and TiE Islamabad underscores the growing role of public-private partnerships in nurturing young talent and promoting innovation. With more than 600 participants expected to benefit over the next three years, Project Elevate aims to create a lasting mentorship ecosystem that prepares the next generation of professionals, entrepreneurs, and leaders to contribute to Pakistan’s economic growth and global competitiveness.

DIB Pakistan Partners with Pakistan Mortgage Refinance Company to Expand Affordable Shariah-Compliant Housing Finance
Business

DIB Pakistan Partners with Pakistan Mortgage Refinance Company to Expand Affordable Shariah-Compliant Housing Finance

/

DIB Pakistan Signs PKR 6 Billion Musharakah Facility with PMRC KARACHI: DIB Pakistan has signed a PKR 6 billion Musharakah financing facility with Pakistan Mortgage Refinance Company Limited (PMRC) to expand access to affordable Shariah-compliant housing finance and promote sustainable homeownership across Pakistan. The partnership is aimed at increasing the availability of Islamic housing finance while supporting the Government of Pakistan’s broader objective of addressing the country’s housing shortage and improving financial inclusion through Islamic banking. Partnership to Boost Islamic Housing Finance The financing agreement enables DIB Pakistan to strengthen its housing finance portfolio by leveraging long-term liquidity provided by PMRC. The collaboration is expected to make home financing more accessible and affordable for individuals seeking Shariah-compliant mortgage solutions. By expanding the availability of Islamic home financing products, the initiative seeks to encourage greater homeownership while contributing to the growth of Pakistan’s housing finance market. DIB Pakistan Reaffirms Commitment to Customers Speaking at the signing ceremony, Muhammad Ali Gulfaraz, Chief Executive Officer of DIB Pakistan, said the partnership reflects the bank’s commitment to delivering innovative and customer-focused financial solutions. “DIB Pakistan remains committed to providing innovative, customer-centric financial solutions that create lasting value for our communities. Our collaboration with PMRC represents an important step in strengthening our housing finance portfolio and expanding access to affordable home financing.” He added that the agreement reinforces the bank’s focus on supporting sustainable growth in Pakistan’s Islamic banking sector. PMRC to Provide Long-Term Liquidity Commenting on the collaboration, Raheel Qamar Ahmad, Chief Executive Officer of PMRC, said the company continues to play a key role in expanding Pakistan’s housing finance market by providing long-term liquidity to financial institutions. “PMRC’s mission is to expand Pakistan’s housing finance market by providing long-term liquidity to financial institutions. Our collaboration with DIB Pakistan is promising for a larger number of Pakistanis looking for affordable, Shariah-compliant housing finance. We look forward to increased home ownership.” He noted that partnerships with financial institutions are essential to improving access to affordable housing finance across the country. Supporting Sustainable Homeownership The PKR 6 billion Musharakah facility is expected to help DIB Pakistan extend more Islamic home financing to eligible customers, supporting individuals and families seeking affordable homeownership opportunities. The agreement also aligns with ongoing efforts to strengthen Pakistan’s Islamic finance ecosystem and promote sustainable economic development through increased access to housing finance. The signing ceremony was attended by senior representatives from both DIB Pakistan and PMRC, underscoring the strategic importance of the collaboration for the country’s housing finance sector. Strengthening Pakistan’s Housing Finance Market The partnership between DIB Pakistan and PMRC represents another step toward expanding the availability of Shariah-compliant housing finance in Pakistan. By combining long-term refinancing support with Islamic banking solutions, the initiative aims to improve financial inclusion, increase homeownership, and contribute to the development of a more sustainable housing finance market.

National Tariff Policy 2025-30 Sparks Debate Over Future of Pakistan's Auto Industry
Business

National Tariff Policy 2025-30 Sparks Debate Over Future of Pakistan’s Auto Industry

/

Auto Industry Divided Over National Tariff Policy 2025-30 Pakistan’s proposed National Tariff Policy 2025-30 has triggered a heated debate within the country’s auto industry, with manufacturers warning that sweeping tariff reforms could weaken local manufacturing, reduce investment and threaten thousands of jobs. However, economists and trade experts argue that lowering tariffs could increase competition, improve efficiency and make vehicles more affordable for consumers. The federal government’s proposed tariff overhaul aims to simplify Pakistan’s import duty structure and gradually reduce protection for domestic industries. While supporters believe the reforms will encourage productivity and integrate Pakistan into global supply chains, local manufacturers fear the policy could undermine decades of investment in the country’s automotive sector. Industry representatives say Pakistan has spent more than 40 years developing a domestic automotive ecosystem that now includes vehicle assemblers and nearly 2,000 local auto parts manufacturers. They argue that reducing tariff protection without addressing other structural issues would put this ecosystem at risk. Manufacturers Say Taxes, Not Tariffs, Drive High Vehicle Prices Ishtiaq Hussain Siddiqi, Chief Executive of SM Engineering, said the country’s high vehicle prices are not primarily the result of tariff protection but rather the heavy tax burden imposed on the sector. He explained that the automotive industry remains one of Pakistan’s largest contributors to indirect taxes and is subject to multiple levies, including customs duty, additional customs duty, regulatory duty, federal excise duty, sales tax and high corporate taxes. According to Siddiqi, these cumulative taxes significantly increase vehicle prices and have kept Pakistan’s car ownership rate among the lowest in the region. He also challenged comparisons with India, which is often presented as an example of successful tariff liberalisation. Siddiqi noted that India still imposes import duties ranging from 60% to 100% on imported passenger vehicles, depending on engine size. Incentives are mainly provided for electric vehicles, but only when manufacturers commit to substantial local production. He added that India also protects its domestic industry through strict import licensing, mandatory Bureau of Indian Standards certification and the government’s “Make in India” programme, which promotes local manufacturing. According to Siddiqi, Indian policymakers describe these measures as a carefully sequenced industrial strategy rather than protectionism. He argued that Pakistan remains one of the few developing countries capable of manufacturing vehicles across the entire automotive value chain, including passenger cars, commercial vehicles, trucks, buses, tractors, motorcycles and three-wheelers. He warned that removing tariff protection without broader industrial reforms could sacrifice this manufacturing capability for only limited short-term reductions in vehicle prices. Industry Calls for Localisation and Tax Reforms Siddiqi recommended improving the enforcement of SRO 693, reducing the cascading tax burden and correcting the customs duty imbalance introduced through the Finance Act 2026. He said the current structure has created an anomaly where imported completely built-up (CBU) vehicles and some imported parts have become cheaper than completely knocked-down (CKD) kits used by local assemblers. Auto industry expert Mashood Ali Khan also expressed concern over the proposed National Tariff Policy 2025-30, saying the reforms are being influenced by both the federal government and the International Monetary Fund (IMF). He acknowledged that previous tariff policies introduced between 2016 and 2026 successfully attracted several new automotive companies into Pakistan. However, he said many of these new entrants failed to significantly increase local production despite receiving tariff incentives. According to Khan, new manufacturers concentrated on launching new vehicle models instead of investing in localisation and expanding Pakistan’s vendor industry. He said established manufacturers, commonly referred to as the “Big Three,” have maintained localisation levels of between 60% and 70%, helping sustain domestic parts manufacturers. In contrast, many newer Korean and Chinese brands have yet to develop a comparable local supplier network. Khan questioned whether lowering tariffs to around 15% would improve localisation when significantly higher tariff protection had already failed to encourage deeper local investment. He recommended introducing legally binding localisation targets for new manufacturers, setting measurable benchmarks for local parts development over the next five years and promoting investment in raw material production through business-to-business partnerships. He also urged policymakers to extend localisation efforts to trucks and buses, where increased imports are similarly affecting local parts manufacturers. Economists Support Greater Competition Meanwhile, IBA Assistant Professor and international trade specialist Aadil Nakhoda offered a different perspective. He agreed that Pakistan’s complicated tariff structure has increased vehicle prices but stressed that tariffs should not be confused with ordinary taxes. According to Nakhoda, customs duties and additional customs duties raise the value on which other taxes are calculated, making imported products even more expensive for consumers. He argued that this cascading effect contributes significantly to high vehicle prices in Pakistan. Comparing Pakistan with India, Nakhoda highlighted that India produces more than 4.4 million passenger vehicles annually and hosts dozens of original equipment manufacturers (OEMs) competing at large production scales. India’s automotive parts industry exports products worth more than $20 billion annually while investing heavily in research and development. Pakistan, by comparison, lacks major Tier-1 automotive suppliers and has limited investment in research, innovation and advanced manufacturing. Balancing Protection and Competitiveness Nakhoda argued that long-term tariff protection has largely sheltered an uncompetitive market rather than creating globally competitive manufacturers. He said Pakistan should focus on improving productivity, quality certification, manufacturing standards and non-tariff measures that would allow local companies to participate in international supply chains. He also pointed to India’s ongoing free trade agreements with the European Union and ASEAN countries as examples of how industrial competitiveness can be strengthened alongside gradual market liberalisation. Policy Debate to Shape the Future of Pakistan’s Auto Industry The debate surrounding the National Tariff Policy 2025-30 highlights the challenge facing policymakers as they seek to balance consumer affordability with industrial development. While manufacturers argue that continued protection and stronger localisation policies are necessary to safeguard investment and employment, economists contend that greater competition, improved productivity and integration into global value chains are essential for building a more competitive automotive industry. The government’s final tariff policy is expected to play a critical role in shaping the future

PIA Privatisation: Govt Transfers Rs14.2bn Properties to New Owners, Islamabad Set to Become Airline Hub
Pakistan

PIA Privatisation: Govt Transfers Rs14.2bn Properties to New Owners, Islamabad Set to Become Airline Hub

/

Government Transfers Rs14.2 Billion in PIA Assets Under Privatisation Deal The federal government has transferred 11 Pakistan International Airlines (PIA) properties worth Rs14.2 billion, including seven overseas assets, to the airline’s new owners as part of the ongoing PIA privatisation process, the Privatisation Commission informed the Senate Standing Committee on Privatisation on Tuesday. The value of the transferred properties exceeds the Rs10 billion cash payment made by the new owners during the first phase of the transaction. The government has already completed the transfer of 75% of PIA’s shares, while the remaining 25% stake and an additional Rs45 billion payment will be completed during the second phase of the agreement. Privatisation Secretary Usman Bajwa briefed the parliamentary committee on the progress of the transaction, the transfer of PIA assets, the future of the Roosevelt Hotel in New York, and the government’s broader privatisation programme, including power distribution companies. He said the government completed the first closing of the PIA transaction on June 29, 2026, transferring management control of the national airline to the successful buyer. Buyer Injects Rs80 Billion to Strengthen PIA Under the agreement, the purchaser paid Rs10 billion to the government as the initial sale consideration while injecting Rs80 billion into PIA as fresh equity. According to Bajwa, the additional investment will strengthen the airline’s financial position, support fleet expansion and modernisation, improve operational performance, expand domestic and international routes, enhance customer services, and place the airline on a stronger footing for long-term growth. The committee was informed that the second phase of the agreement will take place within one year of the initial closing. During this stage, the buyer has committed to inject another Rs45 billion into PIA and exercise its option to acquire the remaining 25% shares for an additional Rs45 billion, completing the government’s divestment of the airline. Bajwa told lawmakers that out of 44 PIA-owned properties, only 11 assets, valued at Rs14.2 billion, were transferred to the new owners under the privatisation agreement. The remaining 33 properties have been retained by the PIA Holding Company. Local Properties Included in the Transaction Among the domestic assets transferred to the buyer is the PIA Booking Office on Mall Road, Rawalpindi, valued at approximately Rs2.3 billion. The PIA Sales Office on Arbab Road, Peshawar, is valued at around Rs5.1 billion, making it the most valuable local property included in the transaction. The package also includes the PIA Sales Office on Jinnah Avenue in Islamabad’s Blue Area, worth approximately Rs2.4 billion, and the PIA Sales Office building in Quetta Cantonment, valued at around Rs837 million. Seven Overseas Properties Handed Over The Privatisation Commission also disclosed details of seven overseas properties transferred as part of the PIA privatisation deal. Two of the properties are located in India. One is a residential flat in Mumbai’s Cuffe Parade, valued at 112.5 million Indian rupees, while the other comprises the fifth and sixth floors of Narain Manzil in New Delhi, valued at 121.92 million Indian rupees. Three properties are situated in Amsterdam, Netherlands. These include a commercial property on Leidsestraat valued at €2.1 million, another property on Koningsvaren valued at €750,000, and a third property on Van Nijenrodeweg worth €583,000. The package also includes a property in Tashkent, Uzbekistan, valued at 4 billion Uzbekistani som, and a residential property in Scarsdale, New York, valued at approximately $1.7 million. Islamabad to Become PIA’s Main Business Hub Bajwa informed the committee that the new management has expressed its intention to make Islamabad the airline’s primary business hub. The move is expected to centralise key corporate and operational functions in the federal capital as the airline begins implementing its post-privatisation business strategy. Roosevelt Hotel Attracts Interest from US Investors The committee was also updated on the future of the Roosevelt Hotel in New York, one of Pakistan’s most valuable overseas assets. According to Bajwa, several US-based financial institutions have shown interest in acquiring the hotel. He said the government plans to take the property to the market by December 2026 to ensure maximum competition among potential investors and secure the best possible value. However, important policy decisions regarding the structure of the proposed joint venture and the category of foreign investors eligible to participate are still under consideration. Foreign Investors Show Interest in Power Distribution Companies The committee also discussed the government’s ongoing privatisation of power distribution companies (Discos). Bajwa revealed that investors from Türkiye, China and Saudi Arabia have expressed interest in acquiring electricity distribution companies but have linked their participation to reforms in Pakistan’s power sector. According to the Privatisation Secretary, potential investors are seeking greater regulatory certainty, clearly defined performance targets and a level playing field before making investment decisions. He added that the deadline for submitting Expressions of Interest (EOIs) for the acquisition of Faisalabad Electric Supply Company (FESCO) is August 7, followed by Gujranwala Electric Power Company (GEPCO) on August 21, and Islamabad Electric Supply Company (IESCO) on September 7. Government Continues Broader Privatisation Programme Bajwa clarified that while investors may submit bids for multiple distribution companies, each successful bidder will be allowed to acquire only one Disco, a measure intended to encourage broader participation and maintain competition in the privatisation process. The latest developments mark another major milestone in the PIA privatisation process as the government advances its broader strategy of restructuring state-owned enterprises, attracting private investment and improving operational efficiency across key sectors of the economy.

US-Iran Tensions Escalate: Trump Threatens Power Plant Strikes Amid Hormuz Crisis
Uncategorized

US-Iran Tensions Escalate: Trump Threatens Power Plant Strikes Amid Hormuz Crisis

/

Trump Warns of Expanded Military Action Against Iran US President Donald Trump has warned of expanded military action against Iran, including potential strikes on power plants and bridges, unless Tehran returns to negotiations. The warning comes as the United States resumes a naval blockade of Iranian ports and carries out additional military strikes. According to President Trump, the coming week could see intensified pressure on Iran if diplomatic efforts fail to produce results. He said critical infrastructure, including power plants and bridges, could become targets as part of Washington’s strategy to compel Tehran to negotiate. Threats to Energy Infrastructure Raise Regional Concerns Trump’s remarks were made during a recent interview as military operations in the region continued to intensify. The comments have heightened concerns over the security of Iran’s energy infrastructure and the potential for a broader regional conflict that could further disrupt global oil supplies. Analysts warn that attacks on key infrastructure could significantly increase geopolitical risks and place additional pressure on international energy markets. Hormuz Blockade and Shipping Risks Intensify Iran has responded by warning that it could block additional strategic seaways beyond the Strait of Hormuz if military pressure continues. Meanwhile, Iranian-linked vessels have reportedly moved through the Strait of Hormuz ahead of the renewed US naval blockade. The latest developments mark a significant escalation in US-Iran tensions, raising concerns over the security of one of the world’s most important maritime oil routes. Market participants are closely monitoring tanker movements and shipping activity for any signs of disruption to global crude oil supplies. Regional Conflict Fuels Global Energy Market Uncertainty The United States has carried out multiple consecutive nights of strikes targeting Iranian positions, while Tehran has also launched attacks on neighbouring areas, adding to regional instability. For countries such as Pakistan, which rely heavily on imported petroleum products and overseas remittances, prolonged disruption in the Strait of Hormuz could increase fuel import costs, worsen inflationary pressures and affect economic stability. Earlier expectations of easing tensions following discussions between Washington and Tehran have now been replaced by renewed uncertainty surrounding the region. Markets Monitor Oil Prices and Supply Chain Risks President Trump has described the renewed blockade and military operations as part of a maximum-pressure strategy designed to bring Iran back to the negotiating table. The administration has linked its actions to concerns over maritime security and broader regional stability. Iran’s warning that it could restrict additional export corridors has further increased concerns about international trade routes that are critical for global energy exports. Reports of vessels attempting to transit the area before the full implementation of the blockade have added to market uncertainty. Oil markets have already experienced heightened volatility following previous escalations, and analysts caution that any disruption to shipping through the Strait of Hormuz could trigger further increases in crude oil prices. Businesses in Pakistan, particularly those dependent on imported raw materials or international shipping routes, are being advised to closely monitor developments for potential supply chain disruptions. Diplomatic Outlook Remains Uncertain The situation remains highly fluid, with diplomatic efforts showing little sign of immediate progress. As both Washington and Tehran maintain firm positions over the Strait of Hormuz and regional security, global markets will continue to watch for further military developments and their impact on energy supplies and international trade.

Shadab Textile Uses 79% of Right Issue Funds for Expansion and Solar Project
Pakistan

Shadab Textile Uses 79% of Right Issue Funds for Expansion and Solar Project

/

Shadab Textile Utilises 79% of Right Issue Proceeds Shadab Textile Mills Limited (PSX: SHDT) has utilised nearly four-fifths of the funds raised through its recent Shadab Textile right issue, with the company investing the proceeds in machinery upgrades, renewable energy infrastructure and working capital to strengthen its operations. According to the company’s first quarterly progress report on the utilisation of right issue proceeds, covering the period from April 13, 2026, to June 30, 2026, SHDT had utilised Rs197.59 million, representing 79.04% of the Rs250 million net proceeds raised through the issue. The report has been submitted in line with regulatory requirements to keep shareholders informed about how the company is deploying the funds raised from investors. Right Issue Completed Successfully The Shadab Textile right issue was successfully completed on April 13, 2026, after the company’s Board of Directors approved the allotment of right shares. The transaction generated Rs250 million in net proceeds, providing the company with additional capital to support operational expansion and improve efficiency. According to the report, the subscription proceeds became available in two stages after being released by the company’s banker and the Central Depository Company (CDC). The banker transferred the funds on April 16, 2026, while the CDC released the remaining proceeds on April 22, 2026. The company stated that utilisation of the funds began immediately after they became available. Machinery Upgrades Receive the Largest Allocation SHDT had previously outlined three major objectives for the use of the proceeds in its offer document: investment in plant and machinery, installation of a solar power system and strengthening working capital. The largest allocation was made for the purchase of new plant and machinery, reflecting the company’s focus on improving manufacturing capacity and operational efficiency. Out of the Rs131.5 million earmarked for machinery purchases, the company utilised Rs79.09 million during the reporting period. This represents 60.14% of the amount allocated for machinery investment, leaving an unutilised balance of Rs52.41 million, which the company is expected to spend in the coming months as planned. The report indicates that the remaining machinery-related investments are progressing according to schedule. Solar Project Completed and Working Capital Strengthened Another major component of the Shadab Textile right issue proceeds was the installation of a solar energy system. The company allocated Rs47.5 million for the project and confirmed that the entire amount had been utilised by June 30, 2026. The successful completion of the solar investment is expected to help reduce electricity costs, improve energy efficiency and lessen the company’s dependence on conventional power sources amid rising energy prices. Like many manufacturers in Pakistan, textile companies have increasingly turned to renewable energy solutions to manage production costs and ensure more reliable electricity supplies. The third area of investment involved strengthening the company’s working capital position. SHDT had allocated Rs71 million for working capital requirements, and the report confirmed that the full amount had been utilised during the reporting period. The additional working capital is expected to support the company’s day-to-day business operations, improve liquidity and facilitate smoother procurement of raw materials and production activities. Company Confirms No Deviation in Use of Funds Overall, the company utilised Rs197.59 million out of the total Rs250 million raised through the right issue by the end of June. This leaves an outstanding balance of Rs52.41 million, which remains allocated exclusively for the purchase of plant and machinery. Importantly, the company confirmed that there has been no deviation or variation in the utilisation of funds compared with the objectives disclosed in the right issue offer document. The confirmation provides assurance to shareholders that the proceeds are being spent exactly as approved when the company sought additional capital from investors. Maintaining transparency in the use of right issue proceeds is a key regulatory requirement for companies listed on the Pakistan Stock Exchange (PSX), ensuring investors receive regular updates on how their funds are being utilised. The quarterly utilisation report demonstrates SHDT’s compliance with these disclosure obligations while providing investors with visibility into the progress of its capital expenditure plans. Remaining Machinery Investment to Complete Expansion Plan The company’s investments in machinery and renewable energy also reflect broader trends within Pakistan’s textile sector, where manufacturers are increasingly focusing on modernising production facilities, improving productivity and reducing operating costs to remain competitive in both domestic and export markets. Energy efficiency has become an important priority for textile exporters as electricity tariffs and fuel prices continue to affect manufacturing costs. Similarly, investments in modern machinery can improve product quality, increase production capacity and enhance operational efficiency, helping textile companies strengthen their market position. With nearly 80% of the proceeds from the Shadab Textile right issue already deployed, the company has made significant progress in implementing its investment plans. The remaining Rs52.41 million will be utilised for additional machinery purchases, completing the objectives outlined in the right issue and supporting SHDT’s long-term strategy of expanding production capacity, improving operational efficiency and strengthening its financial position.

Pakistan's Early Debt Repayment Hits Record Rs4.72tr, Debt Burden Eases
Editor pick

Pakistan’s Early Debt Repayment Hits Record Rs4.72tr, Debt Burden Eases

/

Pakistan Achieves Record Early Debt Repayment of Rs4.722 Trillion Pakistan has achieved a historic milestone in public debt management by making Pakistan early debt repayment of more than Rs4.722 trillion (approximately $17 billion) ahead of schedule, marking the first time the country has repaid such a large volume of debt before its maturity. The announcement was made by Khurram Schehzad, Adviser to the Finance Minister, who said the early repayment reflects the government’s efforts to strengthen fiscal management, reduce financial risks and improve macroeconomic stability. According to the adviser, Pakistan has so far repaid Rs4.722 trillion in debt ahead of schedule, making it the largest early repayment in the country’s history. He added that Rs2.9 trillion of the total amount was repaid during fiscal year 2025-26 (FY26) alone, highlighting the pace at which the government has accelerated its debt management strategy. FY26 Early Repayments Rise by 62% Khurram Schehzad said the amount repaid ahead of schedule in FY26 represents a 62% increase compared with the previous fiscal year, demonstrating a significant improvement in the government’s approach to managing public liabilities. The adviser explained that the early repayments were made under a broader strategy aimed at reducing borrowing costs, improving fiscal sustainability and strengthening Pakistan’s financial position. According to the government, 51% of the debt repaid ahead of schedule consisted of liabilities owed to the State Bank of Pakistan (SBP), while the remaining 49% was paid to other domestic financial institutions. By reducing outstanding debt before its scheduled maturity, the government expects to lower future debt servicing costs and improve budgetary flexibility for development and public spending. Debt-to-GDP Ratio Declines to 68.5% Khurram Schehzad also highlighted improvements in one of the country’s key fiscal indicators. He said Pakistan’s debt-to-GDP ratio has declined from below 75% to approximately 68.5%, reflecting stronger debt management and improved economic performance. The debt-to-GDP ratio is widely used to assess a country’s ability to meet its debt obligations relative to the size of its economy. A lower ratio generally indicates a healthier fiscal position and greater confidence among investors and lenders. According to the adviser, the government’s prudent financial management has helped strengthen investor confidence and improve Pakistan’s overall economic stability. He said disciplined borrowing, better debt management practices and effective fiscal planning have contributed to the improvement in the country’s financial outlook. The adviser added that Pakistan is gradually moving towards a more sustainable and lower-cost financing model, which is expected to reduce financial vulnerabilities over the long term. Government Continues Fiscal Reform Agenda The record Pakistan early debt repayment comes as the government continues implementing economic reforms aimed at improving public finances, increasing revenue collection, controlling expenditures and maintaining macroeconomic stability. Pakistan has faced significant debt servicing pressures in recent years due to rising interest rates, currency depreciation and large financing requirements. Reducing debt obligations ahead of schedule is viewed as an important step in easing future repayment pressures and improving the government’s fiscal flexibility. Economic analysts generally regard proactive debt management as an important tool for reducing refinancing risks and improving a country’s credit profile. Lower debt servicing requirements can also create additional fiscal space for investment in infrastructure, education, healthcare and other development priorities. Improved Debt Management Strengthens Investor Confidence The government has repeatedly stated that strengthening debt management remains one of its key economic priorities alongside maintaining foreign exchange stability and promoting sustainable economic growth. Pakistan’s public debt has expanded significantly over the past decade as successive governments relied on domestic and external borrowing to finance budget deficits and development spending. In recent years, however, policymakers have increasingly focused on improving debt sustainability through better fiscal discipline, careful borrowing strategies and enhanced financial management. The latest figures announced by the Finance Ministry suggest that these efforts are beginning to produce measurable results. The decline in the debt-to-GDP ratio is also expected to improve Pakistan’s standing with international financial institutions and credit rating agencies, although analysts note that maintaining the trend will depend on continued fiscal reforms and sustained economic growth. Outlook: Early Debt Repayment Supports Long-Term Fiscal Stability Khurram Schehzad said the government’s improved debt management strategy has already strengthened investor confidence by demonstrating Pakistan’s ability to manage its financial obligations more effectively. He added that prudent financial planning is helping the country build a stronger and more resilient economy capable of supporting long-term development. The government believes that reducing debt servicing costs through Pakistan early debt repayment will contribute to a more sustainable fiscal framework while lowering the overall cost of financing. Officials say the strategy will also help improve the efficiency of public finances by allowing resources that would otherwise have been spent on interest payments to be redirected toward productive sectors of the economy.

FBR Bars Officers from Entering Small Shops Displaying Green Plate
Editor pick

FBR Bars Officers from Entering Small Shops Displaying Green Plate

/

FBR Introduces Green Plate Scheme to Protect Compliant Retailers The Federal Board of Revenue (FBR) has introduced a major relief measure for small shopkeepers by barring Inland Revenue officers from entering their premises if they display the official “Green Plate.” This initiative aims to reduce harassment and simplify tax compliance for retailers across Pakistan. Simplified Tax Procedure for Small Shopkeepers The FBR notified the draft Special Procedure for Small Shopkeepers through S.R.O. 1109(I)/2026 on Tuesday. Eligible shopkeepers with an annual turnover of up to Rs200 million can opt for a simplified tax compliance regime. Under the scheme, they will file a simplified return declaring total sales, purchases, expenses and net profit through the IRIS portal or a dedicated mobile application. The return form will be available in Urdu and regional languages to improve accessibility for taxpayers across the country. Under the proposed regime, tax will be charged at a flat rate of 1% on gross turnover, while taxpayers will be allowed to adjust withholding taxes against their final tax liability. Green Plate Offers Protection from Tax Officer Visits A compliant shopkeeper displaying the FBR-issued Green Plate, featuring a QR code containing the shop’s details and ownership information, will be protected from visits by Inland Revenue officers on tax-related matters. The Green Plate must be displayed prominently outside the shop to qualify for the protection offered under the scheme. Eligibility Criteria for the New Retail Tax Scheme The simplified procedure applies only to individuals whose primary source of income is from operating a retail shop. However, the scheme does not apply to: Retailers who filed income tax returns for Tax Year 2025 may switch to the new regime provided their tax liability does not decrease and they have not restructured their business solely to qualify for the scheme. Registration can be completed online, through the mobile application or by visiting the nearest FBR tax office. The scheme remains optional, allowing eligible retailers to continue filing regular income tax returns if they prefer. Minimum Tax Requirement Under the Scheme A minimum tax payment of Rs25,000 in cash must accompany the return, irrespective of any withholding tax adjustments. Taxpayers will be required to pay whichever amount is higher—the calculated tax under the 1% turnover regime or the minimum tax of Rs25,000. New Scheme Aims to Encourage Documentation The FBR believes the simplified taxation framework will encourage greater formalization among small retailers by making tax compliance easier while reducing unnecessary interaction between taxpayers and field officers. The initiative is also expected to ease the administrative burden on the FBR and improve voluntary tax compliance across Pakistan’s retail sector.

Govt Mulls Daily Oil Price Reviews to Tackle Hormuz Volatility
Breaking News

Govt Mulls Daily Oil Price Reviews to Tackle Hormuz Volatility

/

Pakistan Considers Daily and Weekly Oil Price Reviews Amid Global Uncertainty ISLAMABAD: Following the fresh closure of the Strait of Hormuz, the Pakistani government is considering revising oil prices on a weekly or even daily basis to manage market volatility, protect consumers and prevent fuel shortages. The proposal was discussed during the fourth meeting of the Prime Minister’s committee reviewing Pakistan’s petroleum pricing mechanism, chaired by Federal Minister for Petroleum Ali Pervaiz Malik. Petroleum Pricing Committee Reviews Market Risks The committee examined options for introducing more frequent oil price reviews in response to heightened volatility in international energy markets. Sources indicated that proposals relating to the oil price review mechanism and the Petroleum Price Stabilization Fund will be finalized during the committee’s next meeting before being submitted to Prime Minister Shehbaz Sharif. KPMG presented a study highlighting the advantages and challenges of daily or twice-weekly petroleum price revisions, warning that the continued closure of the Strait of Hormuz could trigger significant price fluctuations. The study also noted that petrol prices in Pakistan remain lower than those in Bangladesh, Sri Lanka and Türkiye, while remaining broadly comparable with neighboring India. Recent domestic fuel prices increased by nearly Rs14 per litre following the latest geopolitical developments. Petroleum Stabilization Fund to Operate Under Rule-Based Framework The committee agreed that the Petroleum Price Stabilization Fund should operate under a transparent, rule-based framework governing both the collection and utilization of financial resources. Members emphasized that clearly defined procedures would help ensure the fund functions independently of discretionary or political decisions while providing an effective mechanism to stabilize fuel prices during periods of exceptional market volatility. Petroleum Minister Ali Pervaiz Malik stressed the importance of protecting consumers without relying on ad-hoc policy decisions. The meeting also reviewed international best practices and current developments affecting global energy markets. Refinery Reforms and Transparency Measures Proposed The committee also discussed amendments to Pakistan’s Refinery Policy aimed at increasing domestic diesel production and reducing reliance on imported petroleum products. As part of efforts to improve transparency, the Oil and Gas Regulatory Authority (OGRA) will publish daily Platts benchmark pricing data on its official website, enabling consumers and businesses to better understand how domestic petroleum prices are determined. Committee members also emphasized the need to digitize Pakistan’s oil supply chain through improved monitoring, transportation, storage and distribution systems to enhance efficiency and strengthen regulatory oversight. Final Recommendations to Be Submitted to Prime Minister The next meeting of the petroleum pricing committee will serve as its final session before submitting a comprehensive set of recommendations to Prime Minister Shehbaz Sharif. The meeting was attended by Federal Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance Bilal Azhar Kayani, OGRA Chairman Nabeel Awan, representatives of KPMG and senior officials from relevant government institutions. The government’s latest review comes after international crude oil prices experienced sharp swings, briefly climbing above $100 per barrel before retreating below $80 following the Iran-US peace agreement. Analysts warn that crude prices could surge beyond $150 per barrel if disruptions in the Strait of Hormuz continue. Pakistan’s proactive policy review aims to strengthen energy security, improve pricing transparency and shield the economy from global oil market shocks while maintaining affordability for consumers.

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

Facebook Instagram X-twitter Linkedin Youtube
News
Categories
Company
  • Privacy Policy
  • Terms of Services
  • Sitemap
  • Contact Us

© 2025 theboardroom. All rights reserved.

Scroll to Top