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Pakistan Foreign Currency Deposits increased to $6.779 billion in June 2026 as non-resident inflows strengthened despite a yearly decline in resident deposits. Read the latest SBP data, key trends, and what they mean for Pakistan's economy.
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Pakistan Foreign Currency Deposits Rise in June 2026 as Overseas Funds Offset Domestic Decline

Pakistan Foreign Currency Deposits recorded a modest increase in June 2026, offering a positive signal for the country’s external financing position even as annual figures continued to reflect pressure on domestic savings. The latest figures released by the State Bank of Pakistan (SBP) reveal that overseas inflows remained resilient, helping offset the continued decline in resident foreign currency holdings. While the month-on-month improvement appears encouraging, the broader trend highlights an important shift in how foreign currency is flowing into Pakistan. The growing contribution of overseas Pakistanis and non-resident investors is becoming increasingly significant at a time when the country continues to manage fiscal challenges, import financing needs, and external debt obligations. Pakistan Foreign Currency Deposits Reach $6.779 Billion According to SBP data, Pakistan Foreign Currency Deposits increased by $18.09 million during June 2026, reaching $6.779 billion compared to $6.761 billion in May. Despite the monthly improvement, annual performance remained under pressure. Total foreign currency deposits were still down by $208.69 million, or nearly 3 percent, compared to $6.988 billion recorded in June 2025. This indicates that while confidence has shown signs of stabilizing in recent months, deposit levels have yet to recover fully from last year’s decline. Resident Deposits Continue to Face Pressure Resident foreign currency deposits stood at $5.759 billion during June 2026, registering only a marginal monthly increase of $9.23 million. However, the yearly comparison paints a more concerning picture. Resident deposits declined by $329.73 million, representing a fall of more than 5 percent compared to June 2025. This trend suggests that businesses and individuals remain cautious about maintaining foreign currency balances, reflecting broader economic uncertainty, changing investment preferences, and liquidity requirements. The composition of resident deposits shows a balanced distribution across banking products. Demand deposits accounted for $2.127 billion, while savings deposits totaled $1.637 billion and time deposits reached $1.995 billion, indicating that long-term deposit instruments continue to attract significant interest despite overall declines. Overseas Depositors Strengthen Pakistan Foreign Currency Deposits One of the strongest highlights of the latest SBP data was the continued growth in non-resident deposits. Foreign currency deposits held by non-residents increased to $1.020 billion during June 2026, rising by $8.86 million compared to the previous month. Even more significant was the annual performance, with non-resident deposits jumping by $121.04 million, representing a robust 13.46 percent increase over June 2025. This steady rise demonstrates continued confidence among overseas Pakistanis and foreign account holders, providing valuable foreign exchange support at a time when Pakistan is focused on strengthening its external account and improving reserve stability. Non-resident balances consisted primarily of demand deposits worth $648.62 million, followed by savings deposits of $221.19 million and time deposits totaling $150.43 million. Why Pakistan Foreign Currency Deposits Matter for the Economy Foreign currency deposits play a critical role in Pakistan’s financial system. These funds help banks finance imports, facilitate international trade, and support the country’s external financing requirements. During June 2026, approximately $766.96 million was utilized for pre-shipment financing, while $143.59 million supported post-shipment financing. Import financing remained the largest use of these resources, with $1.011 billion allocated to facilitate trade and ensure the smooth availability of imported goods. The banking system also maintained a significant portion of these deposits with the State Bank of Pakistan and commercial banks. A total of $1.447 billion was placed with SBP and domestic banks, including allocations under Cash Reserve Requirement (CRR) and Statutory Cash Reserve Requirement (SCRR) regulations, ensuring sufficient liquidity and regulatory compliance. In addition, banks maintained $781.75 million as balances abroad and retained $288.33 million as cash holdings, strengthening their ability to meet international payment obligations and customer demand. Outlook for Pakistan Foreign Currency Deposits The latest SBP figures present a mixed but cautiously optimistic outlook. While annual declines in resident deposits continue to signal economic pressure, the steady increase in non-resident inflows offers an important source of stability. If overseas remittances remain strong, investor confidence improves, and macroeconomic reforms continue, Pakistan Foreign Currency Deposits could strengthen further in the coming months. However, sustained recovery will largely depend on domestic economic stability, exchange rate confidence, inflation trends, and the country’s external financing position. For policymakers, the latest data reinforces the growing importance of attracting overseas capital while rebuilding domestic confidence in Pakistan’s financial system.

Coca-Cola Foundation’s $500K Boosts Circular Plastic Economy Partnership in Pakistan
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Coca-Cola Foundation’s $500K Boosts Circular Plastic Economy Partnership in Pakistan

The Coca-Cola Foundation has committed USD 500,000 to a pilot project led by the United Nations Office for Project Services (UNOPS) and the International Labour Organization (ILO) to strengthen Pakistan’s circular plastic economy and improve conditions for informal waste workers. Titled “Promoting Sustainability & Decent Work in the PET Recycling Value Chain,” the initiative aims to enhance recycling systems, promote sustainable plastic waste management, and support workers operating in the informal recycling sector. A recent multi-stakeholder workshop in Islamabad highlighted how collaboration between the public and private sectors can deliver both environmental and social benefits. Partnership Aims to Strengthen Plastic Recycling Policies The project focuses on advancing Extended Producer Responsibility (EPR) policies to improve plastic waste management across Pakistan. Representatives from the Ministry of Climate Change, Pakistan Environmental Protection Agency (Pak-EPA), Capital Development Authority (CDA), development partners, and workers’ representatives participated in the workshop to discuss policy priorities and implementation strategies. The collaborative approach is intended to address key regulatory gaps while promoting a more sustainable and accountable recycling ecosystem. Diagnostic Study Identifies Key Challenges Participants reviewed preliminary findings from a diagnostic study examining Pakistan’s PET recycling value chain. The study identified several challenges, including policy and governance gaps, operational inefficiencies, limited market integration, resource constraints, and weaknesses in material recovery systems. Stakeholders shared recommendations to support evidence-based interventions aimed at improving the efficiency and sustainability of plastic recycling. Focus on Informal Waste Workers Improving the livelihoods, occupational safety, and working conditions of informal waste workers is a central objective of the project. Minister of State Dr. Shezra Mansab highlighted the important contribution of informal waste workers to Pakistan’s transition toward a circular economy and emphasized the need to create safer and more inclusive employment opportunities within the recycling sector. The initiative seeks to strengthen income opportunities while enhancing health and safety standards for workers engaged in waste collection and recycling. Model for a Scalable Circular Economy Pakistan generates nearly two million tonnes of plastic waste annually, underscoring the need for more effective recycling systems and stronger policy coordination. By combining corporate funding from the Coca-Cola Foundation with technical expertise from UNOPS and the ILO, alongside government participation, the project offers a collaborative model that could be replicated across other sectors and provinces. Advancing Sustainable Waste Management in Pakistan The Coca-Cola Foundation’s USD 500,000 investment represents an important step toward strengthening Pakistan’s circular plastic economy. Through improved policy frameworks, better recycling systems, and enhanced support for informal waste workers, the initiative aims to promote environmental sustainability while creating more inclusive and decent employment opportunities.

ABHI Microfinance Bank Partners with Saif Group to Introduce Earned Wage Access for Employees
Pakistan

ABHI Microfinance Bank Partners with Saif Group to Introduce Earned Wage Access for Employees

ABHI Microfinance Bank has entered into a strategic partnership with Saif Group to introduce its Earned Wage Access (EWA) solution for the Group’s workforce. The collaboration aims to enhance workplace financial wellness by enabling employees to access a portion of their earned wages before payday through a secure digital platform. The initiative represents another step toward expanding technology-driven financial services that improve employee financial well-being and promote greater financial inclusion across Pakistan. Partnership Brings Earned Wage Access to Saif Group Employees The agreement was signed by Mariam Pervaiz, Chief Commercial Officer of ABHI Microfinance Bank, and Abid Hussain, Executive Director Finance & Operations at Saif Textile Mills Ltd. The signing ceremony was attended by Kabeer Naqvi, Entrepreneur in Residence at ABHI, Asad Saifullah Khan, CEO of Saif Textile Mills Ltd. and Kohat Textile Mills Ltd., along with senior representatives from both organizations. The collaboration reflects the shared commitment of ABHI Microfinance Bank and Saif Group to providing employees with innovative financial solutions that enhance financial stability and flexibility. Employees to Access Earned Salaries Before Payday Under the partnership, employees of Saif Group will be able to access a portion of their earned salaries in real time before their scheduled payday. The Earned Wage Access solution is designed to provide employees with greater financial flexibility, allowing them to manage planned and unexpected expenses without relying on traditional short-term borrowing. The initiative is expected to strengthen financial resilience by giving employees timely access to wages they have already earned. Promoting Financial Wellness Through Technology Earned Wage Access is increasingly being adopted as a responsible alternative to conventional borrowing by allowing employees to receive part of their earned income before payday. The solution supports improved financial planning, reduces financial stress, and contributes to a healthier and more financially secure workforce. By integrating digital financial services into the workplace, ABHI Microfinance Bank aims to expand access to innovative financial products while supporting employee well-being. Shared Vision for Financial Inclusion The partnership reflects the shared vision of ABHI Microfinance Bank and Saif Group to leverage financial technology in addressing the evolving needs of employees. Both organizations believe that technology-driven financial solutions can play a significant role in promoting financial empowerment, improving workplace satisfaction, and expanding financial inclusion across Pakistan. Advancing Workplace Financial Empowerment The collaboration between ABHI Microfinance Bank and Saif Group reinforces the growing adoption of Earned Wage Access solutions in Pakistan. By enabling employees to access their earned wages before payday, the initiative supports better financial management while contributing to a more inclusive and financially resilient workforce.

Select Technologies Limited Successfully Completes Initial Public Offering, Raising PKR 3.02 Billion
Pakistan

Select Technologies Limited Successfully Completes Initial Public Offering, Raising PKR 3.02 Billion

Select Technologies Limited (SELECT), a leading Pakistani technology company engaged in the manufacturing and assembly of smartphones and consumer appliances, has successfully completed its Initial Public Offering (IPO), raising PKR 3.02 billion after receiving a strong response from investors during both the Book Building and General Public Subscription phases. The IPO comprised 88.9 million ordinary shares, representing 10% of SELECT’s post-issue paid-up capital, making it one of the most notable equity offerings in Pakistan’s technology sector. SELECT IPO Attracts Strong Investor Demand The IPO floor price was set at PKR 28.00 per share. Following healthy demand during the Book Building process, the strike price was discovered at PKR 34.00 per share, representing a 21% premium over the floor price. According to the company, the IPO attracted participation from a wide range of investors, including commercial banks, mutual funds, insurance companies, investment banks, pension and employees’ funds, brokerage houses, high-net-worth individuals, corporate investors, and retail investors. The broad-based participation reflects investor confidence in SELECT’s business fundamentals, growth strategy, and long-term prospects. IPO Proceeds to Support Expansion and Innovation The funds raised through the IPO will be used to support Select Technologies’ strategic growth initiatives, including expanding its manufacturing capabilities, strengthening product innovation, and enhancing its market presence. The company aims to further develop its portfolio of locally manufactured smartphones and consumer appliances while contributing to import substitution and the promotion of high-quality “Made in Pakistan” technology products. PSX Highlights Strong Capital Market Performance Speaking at the gong ceremony, Pakistan Stock Exchange (PSX) Managing Director and CEO Farrukh H. Sabzwari welcomed Select Technologies as the first company to list in the new fiscal year. He noted that FY2026 was a landmark year for the PSX, with 11 IPOs—the third-highest number in the past 25 years—raising approximately USD 66 million. Sabzwari added that average daily traded value reached a record USD 205 million (around PKR 57 billion) across 537 listed companies, while market capitalization touched a record PKR 21 trillion in January 2026 before closing the fiscal year at PKR 20.20 trillion, equivalent to 16% of Pakistan’s GDP. He also highlighted the expansion of the investor base to an all-time high of 583,052 accounts, with approximately 16,000 new accounts being opened every month. SECP Reaffirms Commitment to Capital Market Growth SECP Commissioner Zeeshan Rehman Khattak said the regulator remains committed to making the listing process more efficient while balancing regulatory requirements with investor protection. He noted that the successful listing of Select Technologies demonstrates continued progress in diversifying Pakistan’s economy and strengthening the country’s capital market ecosystem. Company Leadership Welcomes Successful Listing AirLink Communication Limited Chairman Aslam H. Piracha described the PSX listing as a significant milestone for both Select Technologies and the AirLink Group. He said the successful IPO reflects strong investor confidence in the company’s strategy and reaffirmed its commitment to maintaining high standards of corporate governance and transparency. Select Technologies CEO Adnan Aftab called the listing a proud moment for the company, saying it validates its position as a leading local manufacturer in Pakistan’s consumer technology sector. He added that the company remains focused on innovation, quality, customer trust, and delivering sustainable long-term value to shareholders. IPO Oversubscribed More Than Three Times Arif Habib Limited CEO Shahid Ali Habib said the IPO received an overwhelmingly positive response from both institutional and retail investors. According to him, the offering was 3.23 times oversubscribed and attracted participation from approximately 13,000 investors, highlighting growing confidence in Pakistan’s capital markets and Select Technologies’ future growth potential. Milestone for Pakistan’s Technology Sector The successful completion of Select Technologies Limited’s IPO represents a significant milestone for Pakistan’s technology and manufacturing industries. By raising PKR 3.02 billion and securing strong investor participation, the company is well-positioned to expand its manufacturing operations, invest in innovation, and strengthen its role in Pakistan’s growing consumer technology market.

KPT Handles One of the World’s Largest Container Vessels MSC Erica
Pakistan

KPT Handles One of the World’s Largest Container Vessels MSC Erica

The Karachi Port Trust (KPT) has successfully handled MSC Erica, one of the world’s largest container vessels, reaffirming Karachi Port’s capability to accommodate ultra-large container ships and strengthening Pakistan’s position in regional maritime trade. The mega container vessel arrived at South Asia Pakistan Terminals Limited (SAPTL) at Karachi Port on July 12, 2026. According to KPT, more than 3,000 containers are expected to be handled during the vessel’s stay before it continues its voyage to Dalian, China. MSC Erica Berths at Karachi Port MSC Erica is among the world’s largest container ships, measuring 398.5 metres in overall length (LOA) with a 59-metre beam and a carrying capacity of 20,000 twenty-foot equivalent units (TEUs). The vessel has a Gross Tonnage (GT) of 194,308 metric tonnes and a draught of 12 metres, making it one of the largest ships to call at Karachi Port. After completing cargo operations, the vessel is scheduled to sail onward to Dalian, China. Over 3,000 Containers to Be Handled During its port call, Karachi Port is expected to handle more than 3,000 containers, demonstrating the operational capacity of South Asia Pakistan Terminals Limited (SAPTL) and the Karachi Port Trust to efficiently manage high-volume cargo operations. The successful handling of ultra-large container vessels highlights the port’s growing role in facilitating Pakistan’s international trade and supporting regional shipping networks. Karachi Port Pilots Receive Praise The Master of MSC Erica commended the Karachi Port pilots for their professionalism, safe navigation, and efficient ship-handling during the vessel’s arrival. He also praised the warm hospitality extended by port authorities and described Karachi Port as one of the best ports in the region. Strengthening Pakistan’s Maritime Infrastructure The successful berthing of MSC Erica reflects Karachi Port’s continued investment in maritime infrastructure and operational capabilities to accommodate next-generation container vessels. Handling vessels of this size enhances Pakistan’s competitiveness in international shipping while supporting growing trade volumes and improving connectivity with major global ports. KPT Reinforces Its Position as a Regional Shipping Hub By successfully accommodating one of the world’s largest container vessels, Karachi Port Trust has demonstrated its ability to handle ultra-large container ships safely and efficiently. The arrival of MSC Erica underscores the port’s strategic importance in Pakistan’s logistics and maritime sector while reinforcing its role as a key gateway for international trade.

Saqib Chadhar Cyber Harassment Case: Court Extends Pre-Arrest Bail in Momina Iqbal Complaint
Pakistan

Saqib Chadhar Cyber Harassment Case: Court Extends Pre-Arrest Bail in Momina Iqbal Complaint

The Saqib Chadhar Cyber Harassment Case remains under intense public scrutiny after a Lahore sessions court extended the interim pre-arrest bail of Pakistan Muslim League-Nawaz (PML-N) Member of Provincial Assembly (MPA) Saqib Chadhar and his wife until July 28. The high-profile legal battle, involving television actress Momina Iqbal, has drawn attention to allegations of cyber harassment, online privacy violations, and the misuse of digital platforms in Pakistan. The latest court proceedings indicate that investigators require additional time to complete the inquiry, suggesting that the case will continue before any final legal determination is made. Saqib Chadhar Cyber Harassment Case Moves to Next Hearing The hearing was conducted before Additional District and Sessions Judge Nusrat Ali Siddiqi on Monday. Saqib Chadhar appeared before the court alongside his legal team, while his wife did not attend the proceedings. During the hearing, the investigation officer from the National Cyber Crime Investigation Agency (NCCIA) informed the court that further time was needed to complete the ongoing investigation into the allegations. Accepting the request, the court extended the couple’s interim pre-arrest bail until July 28 and directed the investigating officer to submit a detailed progress report at the next hearing. The extension means that both accused individuals will continue to receive interim legal protection while investigators gather additional evidence. Serious Cybercrime Allegations Under Investigation The legal proceedings originated from a complaint filed by actress Momina Iqbal, following which the NCCIA registered a criminal case against Saqib Chadhar and his wife earlier this month. According to the First Information Report (FIR), the accused allegedly engaged in a prolonged campaign involving cyber harassment, online stalking, criminal intimidation, defamation, unlawful surveillance, blackmail, and threats directed at the actress and members of her family. The investigation has been registered under multiple provisions of Pakistan’s Prevention of Electronic Crimes Act (PECA), including offences relating to unauthorized access to digital information, unauthorized transmission of data, offences against personal modesty, and cyberstalking. The case also includes several provisions of the Pakistan Penal Code covering criminal intimidation, disappearance of evidence, common intention, and abetment. These legal provisions reflect the seriousness with which Pakistani authorities are treating allegations involving digital crimes and online abuse. Momina Iqbal’s Complaint Details Allegations According to the FIR, Momina Iqbal alleged that the dispute began after she rejected a marriage proposal from Saqib Chadhar upon discovering that he was already married. The complaint claims that following the rejection, the accused allegedly initiated repeated acts of intimidation, including attempts to gain unauthorized access to her private information, sending threatening and violent material, and using alleged private videos to pressure and blackmail her. The FIR further alleges that false information was circulated to damage her social standing and professional reputation, including claims that her marriage proposal in 2023 was deliberately sabotaged through misinformation. The complaint also states that the threats escalated in recent months, with allegations that private material would be leaked, harm would be caused to both the actress and her fiancé, and efforts would be made to disrupt her upcoming marriage. The actress maintains that these alleged actions caused significant emotional, personal, and professional distress. Case Highlights Growing Focus on Cybercrime Laws The Saqib Chadhar Cyber Harassment Case extends beyond a dispute involving public personalities. It highlights the increasing importance of Pakistan’s cybercrime laws in addressing allegations of online harassment, digital intimidation, privacy violations, and cyberstalking. With social media becoming deeply integrated into everyday life, legal experts believe that cases involving digital abuse are likely to receive greater judicial attention. The outcome of this investigation may also influence how authorities apply the Prevention of Electronic Crimes Act in cases involving public figures and elected officials. Investigation Continues Ahead of Next Hearing For now, the court has granted investigators additional time, while all allegations remain under investigation. No final determination regarding the accusations has been made, and the legal proceedings are expected to continue at the next hearing scheduled for July 28.

BankIslami Partners with EFU Life and EFU General to Expand Digital Microtakaful Access
Pakistan

BankIslami Partners with EFU Life and EFU General to Expand Digital Microtakaful Access

BankIslami has partnered with EFU Life Assurance and EFU General Insurance to make affordable microtakaful protection more accessible to customers through the Bank’s mobile banking application. Announced on July 13, 2026, the collaboration enables BankIslami customers to enroll, make contributions, and submit claims for exclusive microtakaful plans directly through the Bank’s digital platform, expanding access to Shariah-compliant protection solutions across Pakistan. Digital Microtakaful Services Available Through Mobile App Under the partnership, customers can access a variety of affordable microtakaful products with flexible contribution options. The available protection plans include health and accidental coverage, mobile device protection, digital transaction security, theft protection, home protection, and travel Takaful, among other offerings. The initiative is designed to simplify access to essential protection products by integrating them into BankIslami’s existing mobile banking ecosystem. Partnership Formalized at Signing Ceremony The agreement was signed during a ceremony held at EFU’s headquarters in Karachi. The event was attended by BankIslami Chief Digital & AI Officer Waqas Anis, Head of Digital Products & Channels Hasan Saeed Akbar, Head of Digital Finance Saad Tanveer, EFU General Executive Director Abdul Sattar Baloch, EFU Life GM Channel Strategy & Growth Nilofer Sohail, along with senior representatives from the three organizations. Focus on Shariah-Compliant Financial Protection The partnership aligns with BankIslami’s ongoing investment in digital banking services while reflecting a shared commitment with EFU Life and EFU General to broaden access to Shariah-compliant takaful protection. By offering microtakaful solutions through digital channels, the initiative aims to make financial protection more convenient and affordable for a wider segment of customers across the country. Commenting on the partnership, BankIslami Chief Digital & AI Officer Waqas Anis said the Bank is focused on building a digital ecosystem that supports customers beyond routine banking transactions. He added that the collaboration leverages the Bank’s digital capabilities to make Takaful coverage more accessible and affordable, allowing customers to obtain protection through the same platform they already use for their banking needs. Supporting Financial Inclusion Through Digital Innovation The collaboration reflects the shared objective of BankIslami, EFU Life, and EFU General to expand the reach of Shariah-compliant financial protection in Pakistan. The initiative also strengthens BankIslami’s growing portfolio of digital banking services as the Bank continues to enhance its digital ecosystem in line with its mission of promoting interest-free financial solutions and improving customer convenience. Expanding Access to Affordable Takaful With the launch of digital microtakaful services, BankIslami customers will have easier access to a range of affordable protection products through a seamless mobile banking experience. The partnership represents another step toward increasing financial inclusion by combining digital banking innovation with accessible Shariah-compliant insurance solutions.

Industrial Concessions on Raw Materials is Being Diverted to Local Market, Says Salim Valimuhammad
Pakistan

Industrial Concessions on Raw Materials is Being Diverted to Local Market, Says Salim Valimuhammad

The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has expressed serious reservations over the federal government’s decision to allow manufacturers to sell up to 50% of imported raw materials in the local market without value addition, arguing that the measure effectively legitimizes the misuse of export-related industrial concessions. In a statement, PCDMA Chairman Salim Valimuhammad said that raw materials imported under concessionary tax and duty schemes meant exclusively for export-oriented production should, under no circumstances, be allowed to enter the domestic market. PCDMA Opposes Sale of Concessionary Raw Materials in Local Market He said the new provision introduced through the Sales Tax Act in the federal budget, permitting manufacturers to sell up to 50% of imported raw materials without processing, runs contrary to the very objective of export facilitation. Instead of curbing abuse, the policy effectively grants legal cover to the diversion of concessionary imports into the local market, undermining genuine commercial importers that pay the full spectrum of applicable taxes, duties, and levies. “Raw materials imported under export incentive schemes must be used solely for value addition and subsequent exports. Allowing even 50% of such imports to be sold domestically defeats the purpose of these incentives and creates an uneven playing field,” Mr. Valimuhammad said. Complete Ban on Domestic Sale Urged He maintained that the issue was not the percentage allowed for resale but the principle itself. “There should be no permission whatsoever to sell concessionary imported raw materials in the local market. If imports are allowed under special incentives for export production, they must be utilized exclusively for that purpose,” he added. The PCDMA chairman urged the government to replace the 50% resale cap with a complete prohibition on the domestic sale of concessionary imported raw materials and called upon the Federal Board of Revenue (FBR) to launch an impartial crackdown against all those misusing industrial concessions under the guise of manufacturing. Tax Disparity Distorts Competition Mr. Valimuhammad further said that the long-standing disparity in the tax treatment of commercial importers and industrial manufacturers has severely distorted competition in Pakistan’s chemicals and dyes sector. While commercial importers supplying raw materials to small and medium-sized enterprises (SMEs) are required to pay higher withholding tax and value-added tax (VAT) at the import stage, some industrial units continue to benefit from concessionary imports and subsequently divert part of those consignments into the domestic market without any value addition. “This practice not only harms tax-compliant commercial importers but also deprives the national exchequer of legitimate revenue while weakening market discipline,” he observed. Calls for Uniform Import Tax Regime Rejecting the argument that the newly introduced 50% cap would resolve the issue, Salim Valimuhammad stressed that sustainable reform could only be achieved through a uniform import tax regime applicable to all importers without discrimination. Such a system, he said, would eliminate tax distortions, ensure equal business opportunities, strengthen the supply chain for SMEs, and promote fair competition in the chemicals and dyes market. PCDMA Seeks Comprehensive Tax Reforms The PCDMA chief called upon the federal government and the FBR to immediately implement comprehensive reforms, including uniform taxation at the import stage, strict enforcement against the misuse of industrial concessions, and effective regulatory oversight to safeguard the interests of the trading community and strengthen Pakistan’s documented economy.

Kohat Cement Coal-Fired Power Plant Project Continues as Company Clarifies No Court Stay Order
Pakistan

Kohat Cement Coal-Fired Power Plant Project Continues as Company Clarifies No Court Stay Order

Kohat Cement Company Limited has clarified that there is no court order preventing work on its Kohat Cement coal-fired power plant project, dismissing media reports that suggested the Peshawar High Court had halted construction of the company’s 28.5-megawatt Coal Fired Power Plant (CFPP). In a notice submitted to the Pakistan Stock Exchange (PSX), the cement manufacturer said the reports circulating in sections of the media did not accurately reflect the court proceedings. The company emphasized that the Peshawar High Court has not issued any direction to suspend or stop the construction or development of the project. The clarification was issued to remove uncertainty among investors and stakeholders after media reports created confusion regarding the legal status of the project. Kohat Cement stated that the disclosure was intended to present the factual position and ensure that shareholders receive accurate information. Construction Continues Under EPA Approvals According to the company, construction of the Kohat Cement coal-fired power plant is continuing in accordance with all approvals granted by the Environmental Protection Agency (EPA). The company said the project remains on schedule and is being developed within the framework of Pakistan’s environmental laws and regulatory requirements. Kohat Cement explained that the Peshawar High Court has not questioned the ongoing construction activities. Instead, the court observed that the commercial operation of the coal-fired power plant would remain subject to obtaining the necessary approvals from the Environmental Protection Agency before it begins generating electricity. The company noted that this requirement is a routine legal obligation applicable to industrial projects and should not be interpreted as a restriction or suspension of construction work. It added that obtaining operational approval from the EPA is a standard regulatory process designed to ensure compliance with environmental standards before any industrial facility becomes operational. 28.5MW Project Supports Energy Strategy The 28.5MW Coal Fired Power Plant forms part of Kohat Cement’s strategy to strengthen its energy infrastructure and improve operational efficiency. Like many cement manufacturers, the company has been exploring captive power generation solutions to manage energy costs and ensure a reliable electricity supply for its manufacturing operations. Pakistan’s cement industry is among the country’s most energy-intensive sectors, with fuel and electricity accounting for a significant portion of production costs. Companies have increasingly invested in alternative energy sources and captive power projects to reduce dependence on the national power grid and improve cost competitiveness. Company Reaffirms Environmental Compliance Kohat Cement reaffirmed that it remains committed to complying with all applicable environmental regulations throughout the development and future operation of the project. The company stated that the power plant will only commence operations after fulfilling every legal requirement prescribed by the relevant authorities. The company further said it will continue to comply with all applicable laws, rules, regulations, environmental guidelines, and standard operating procedures issued by competent authorities, including the Environmental Protection Agency. It stressed that environmental compliance remains an integral part of the project’s implementation and future operation. PSX Filing Aims to Clarify Legal Position In its filing to the PSX, Kohat Cement reiterated that the purpose of the disclosure was to “set the record straight” following reports that had created an inaccurate impression about the legal proceedings. The clarification is expected to reassure investors after concerns emerged over the potential impact of the reported court proceedings on the company’s investment plans. Regulatory disclosures made through the Pakistan Stock Exchange play a key role in ensuring transparency and keeping shareholders informed of material developments affecting listed companies. Project Remains on Track The company’s statement indicates that there has been no interruption to the development of the project and that construction activities are proceeding under the approvals already granted by the Environmental Protection Agency. The only condition highlighted by the court relates to securing the necessary environmental clearance before the facility begins commercial operations, which Kohat Cement described as a standard regulatory requirement applicable to such projects. By reaffirming its commitment to regulatory compliance and environmental safeguards, Kohat Cement has sought to address investor concerns while confirming that the Kohat Cement coal-fired power plant project remains on track. The company maintains that it will continue working closely with the relevant authorities to ensure the project fully complies with Pakistan’s environmental and legal framework before entering into operation.

Federal Constitutional Court Declares Monal Restaurant’s Demolition Illegal
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Federal Constitutional Court Declares Monal Restaurant’s Demolition Illegal

The Federal Constitutional Court has set aside the earlier judicial decision that led to the demolition of Monal Restaurant at Pir Sohawa, directing trial courts to independently determine the ownership dispute without being influenced by observations made in previous judgments. The ruling marks a significant development in the long-running Monal Restaurant demolition case, which has remained at the center of legal proceedings involving land ownership, environmental protection, and administrative jurisdiction in Islamabad’s Margalla Hills National Park. The Constitutional Court accepted appeals filed by the Capital Development Authority (CDA) and the Metropolitan Corporation Islamabad (MCI). It also vacated the stay order that had previously been in place, clearing the way for the pending ownership cases to proceed before the relevant trial courts. Trial Courts Directed to Decide Ownership Dispute Independently In its judgment, the Constitutional Court instructed the trial courts to decide the pending ownership cases independently and as expeditiously as possible. The bench emphasized that the courts must not be influenced by observations contained in earlier judicial decisions while deciding the merits of the dispute. The court further clarified that issues relating to the administration, regulation, and management of the land should be determined by the competent regulatory authorities rather than through judicial intervention. By separating the ownership dispute from administrative matters, the court sought to ensure that each issue is decided by the appropriate legal and regulatory forum. Justice Hassan Azhar Rizvi Raises Concerns Over Earlier Judgment During the hearing, Justice Hassan Azhar Rizvi observed that several important legal aspects had not been considered in the earlier Supreme Court judgment. He questioned both the filing of the original petition and the subsequent review petition, suggesting that certain matters included in the earlier ruling extended beyond the actual issues raised before the court. Justice Rizvi remarked that the previous judgment addressed issues that were not part of the pleadings presented by the parties. He stressed that the Constitutional Court would not issue an emotional judgment and would confine itself strictly to the legal questions argued before the bench. Court Urges Lawyers to Avoid Praising the Bench During the proceedings, senior lawyer Ahsan Bhoon praised the court. However, Justice Rizvi asked legal counsel not to commend the bench during hearings. He reiterated that judges are required to decide cases solely on the basis of arguments presented before the court and the available judicial record. Justice Rizvi also stated that the Constitutional Court’s judgment would avoid unnecessary commentary or narratives unrelated to the issues under consideration. According to him, after reviewing the earlier Supreme Court judgment, it appeared that several observations had gone beyond the scope of the actual court proceedings. Background of the Monal Restaurant Case Monal Restaurant began operations at Pir Sohawa in 2006 after obtaining a lease for land located within the scenic area overlooking Islamabad. The legal dispute intensified in January 2022 when the Islamabad High Court examined issues relating to commercial activities and land ownership inside the Margalla Hills National Park. The matter was later taken to the Supreme Court, which, in June 2024, ruled that commercial activities inside the national park were incompatible with environmental conservation objectives. The Supreme Court directed Monal Restaurant, La Montana, and other commercial establishments operating within the protected area to vacate the premises within three months. The court held that preserving the ecological integrity of the national park was of greater public importance than allowing commercial operations to continue. Restaurant Structures Demolished in 2024 Following the Supreme Court’s decision, review petitions challenging the judgment were dismissed. In October 2024, the Capital Development Authority informed the Supreme Court that the restaurant buildings had been demolished and that possession of the land had been restored to the authorities. The demolition of Monal Restaurant brought an end to one of Islamabad’s best-known dining destinations, which had attracted visitors for nearly two decades because of its panoramic views of the capital. CDA and MCI Challenge Earlier Decision The latest proceedings arose after the CDA and the Metropolitan Corporation Islamabad challenged aspects of the earlier judgment. The Islamabad local government argued that the previous ruling had deprived it of valuable lease and rental income. According to court proceedings, the Metropolitan Corporation Islamabad claimed that Monal Restaurant owed more than Rs63.9 million in lease-related payments. The Constitutional Court has now directed that these disputes be resolved independently by the competent trial courts without relying on conclusions drawn in earlier judicial observations. Decision Reopens Legal Questions While the Constitutional Court has set aside the earlier ruling relating to the ownership dispute, it has not restored commercial operations at the demolished restaurant. Instead, the judgment focuses on ensuring that the ownership issues are decided fairly, independently, and in accordance with the evidence presented before the trial courts. The ruling also reinforces the principle that administrative and regulatory matters should remain within the jurisdiction of the relevant government authorities. The Monal Restaurant demolition case is expected to continue before the trial courts, where the ownership dispute and related financial claims will now be examined afresh under the Constitutional Court’s directions.

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