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Meezan Bank, LUMS Partner to Launch Online Islamic Finance Certification Program
Pakistan

Meezan Bank, LUMS Partner to Launch Online Islamic Finance Certification Program

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Pakistan’s largest Islamic bank, Meezan Bank, has partnered with the Centre for Islamic Finance (CIF) at LUMS to promote industry-led Islamic finance education by launching a specialized online certification program for learners across Pakistan and beyond. The partnership was formalized through the signing of a Memorandum of Understanding (MoU), bringing together Meezan Bank’s industry expertise and LUMS’ academic excellence to help develop skilled professionals for the rapidly growing Islamic finance sector. Online Islamic Finance Certification to Launch Through LUMSx As the first initiative under the collaboration, the two institutions will jointly introduce an online certification course titled “Learning from Leaders of Islamic Finance.” The program will provide participants with practical knowledge through a structured curriculum, comprehensive assessments, and certification standards developed with input from leading Islamic finance practitioners and experts. The certification course will be offered through LUMSx, the university’s digital learning platform, making high-quality Islamic finance education accessible to students, professionals, and aspiring practitioners regardless of their location. MoU Signed by Meezan Bank and LUMS Leadership The MoU was signed by Khalid Zaman Khan, Group Head of Human Resources, Learning & Organizational Development at Meezan Bank, and Dr. Tariq M. Jadoon, Provost at LUMS. The signing ceremony was attended by senior representatives from both institutions, including Dr. Saad Azmat, Founding Director of the Centre for Islamic Finance at SDSB-LUMS, Jazib Zahir, Director of LUMSx, and Meezan Bank officials Shayan Ahmed Baig, Head of Shariah Compliance, Anwar ul Haq, Distribution Head Central, and Mehar Younus, Head of Learning & Organizational Development. Partnership Aims to Build Future Islamic Finance Professionals Speaking at the ceremony, Dr. Tariq M. Jadoon said Islamic finance is among the fastest-growing segments of the global financial industry, increasing the demand for accessible and high-quality educational opportunities. He said the partnership combines LUMS’ academic strengths with Meezan Bank’s industry leadership to prepare future-ready professionals while strengthening the knowledge ecosystem supporting the continued growth of Islamic finance. Khalid Zaman Khan said the future of Islamic finance depends on professionals who possess both technical expertise and a strong understanding of Shariah principles. He added that the collaboration reflects Meezan Bank’s commitment to advancing Islamic finance education, building industry capacity, and expanding access to quality learning through a scalable digital platform. Strengthening Academia-Industry Collaboration The partnership is expected to strengthen collaboration between academia and industry by creating a practical learning pathway for students, professionals, and individuals seeking specialized expertise in Islamic finance. The initiative also supports the continued development of Pakistan’s Islamic banking sector by helping address the growing demand for qualified talent equipped with both theoretical knowledge and practical industry experience. Expanding Access to Industry-Led Islamic Finance Education By combining academic excellence with real-world industry expertise, Meezan Bank and LUMS aim to create a sustainable talent pipeline for Pakistan’s expanding Islamic finance sector. The online certification program is expected to enhance professional skills, promote lifelong learning, and support the continued growth of Islamic banking both in Pakistan and internationally.

Tarbela-5 Cost Soars 285% as Cofferdam Collapse Delays Project by Two Years
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Tarbela-5 Cost Soars 285% as Cofferdam Collapse Delays Project by Two Years

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A government-appointed inquiry committee has held all three principal stakeholders—the Water and Power Development Authority (Wapda), the contractor, and the project consultant—responsible for the Tarbela-5 cofferdam collapse, concluding that unauthorized post-contract design changes and multiple contractual violations led to the failure. The inquiry found that the collapse of the cofferdam at the 1,530-megawatt Tarbela-5 Extension Hydropower Project in August 2025 has delayed the project by at least two years and caused its estimated cost to surge by more than 285%. Originally approved at Rs82.36 billion in 2017, the project’s revised cost has now climbed to Rs317 billion, with further increases still possible. Inquiry Blames Contractor, Consultant and Wapda According to the findings of the three-member independent inquiry committee, responsibility for the incident rests with all parties involved in the project. The report stated that the contractor proposed changes to the original cofferdam design despite contractual provisions prohibiting such modifications. The consultant accepted the revised design without ensuring that it fully complied with technical and contractual requirements, while Wapda approved the changes shortly before construction was completed without questioning either their contractual validity or engineering implications. The committee concluded that these combined failures resulted in the construction of a vulnerable cofferdam that ultimately collapsed. Unauthorized Design Changes Identified The inquiry revealed that the original cofferdam design was altered following a proposal by the contractor, Power Construction Corporation of China Ltd (PCCCL). Instead of the originally approved design, the cofferdam was converted into a rock-filled structure across the entire project area, including the diversion channel. According to the committee, this alternative design provided weaker structural protection and significantly increased the risk of failure. The report noted that Wapda approved the revised design without conducting adequate scrutiny or questioning whether such changes were permissible under the contract. Flooding Not the Main Cause Following the collapse, Wapda attributed the incident to unusually high flood flows. However, the inquiry rejected that explanation. The committee found that water flows during the incident remained within Tarbela Dam’s historical annual range and were considerably lower than the cofferdam’s original design capacity. Instead, investigators concluded that inadequate protection layers and insufficient filter arrangements contributed to the structural failure. The report stated that the collapse could have been avoided had the original engineering specifications been maintained. Consultant Failed to Conduct Independent Review The inquiry also criticized the performance of the project’s consultant. According to the report, Wapda requested a performance review of the cofferdam in July 2023. Rather than carrying out an independent technical assessment, the consultant forwarded Wapda’s request to the contractor. The contractor submitted its monitoring report more than a year later, in October 2024. The inquiry concluded that the consultant failed to exercise proper engineering oversight throughout the project. The consultant for the project was a joint venture comprising MM Pakistan and BIDR China, while MML-UK was later removed from the project. Massive Financial Impact The inquiry highlighted the severe financial consequences of the Tarbela-5 cofferdam collapse. The project, financed partly through approximately $700 million in loans from the World Bank and the Asian Infrastructure Investment Bank (AIIB), has experienced significant cost overruns and schedule delays. Initially targeted for completion in 2026, the hydropower project is now expected to be completed by June 2028. According to the Planning Commission, the delays and rising costs could increase the project’s levelised electricity generation cost over a 30-year period to around Rs27–28 per unit. If realised, this would make Tarbela-5 the most expensive renewable energy project in Pakistan in terms of generation cost, raising concerns about its long-term economic viability. Irregular Payments Also Identified The inquiry committee further reported irregularities in project payments. According to the findings, payments intended for permanent construction works were instead made for temporary structures. The report warned that these financial decisions could weaken the government’s legal position when seeking compensation from the contractor for losses resulting from the cofferdam collapse. Investigators concluded that the collapse not only halted construction but also created cascading contractual, financial, and operational liabilities that continue to affect the project. Consultancy Contract Terminated Separately, Wapda terminated the consultancy agreement with MML-UK, citing persistent staffing deficiencies. According to the report, the consultancy firm failed to provide an appropriately qualified project manager throughout its engagement. The inquiry also noted that MML issued a termination notice in May 2025 and withdrew its personnel from the project site without observing the contractually required 30-day notice period. Lessons for Future Infrastructure Projects The inquiry described the incident as an example of serious weaknesses in the planning, execution, monitoring, and governance of major infrastructure projects financed through foreign loans. The committee stressed that contractual obligations, engineering standards, and independent technical oversight must be strictly enforced to avoid similar failures in future public-sector projects. With construction now expected to continue until mid-2028 and project costs continuing to rise, the Tarbela-5 cofferdam collapse has become one of Pakistan’s most expensive infrastructure setbacks, raising fresh questions about project management, accountability, and the protection of public funds.

CCP Clears Lotte Group's Restructuring Involving Pakistan Operations
Pakistan

CCP Clears Lotte Group’s Restructuring Involving Pakistan Operations

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The Competition Commission of Pakistan (CCP) has approved a pre-merger application paving the way for an internal restructuring within South Korea’s Lotte Group, concluding that the transaction raises no competition concerns in Pakistan’s food and beverage markets. CCP Approves Internal Lotte Group Restructuring The transaction involves Japan’s Lotte Co., Ltd. acquiring shareholding in Singapore-based Lotte Confectionery (S.E.A.) Pte. Ltd. from Lotte Wellfood Co., Ltd. As the target company owns interests in Pakistan’s Lotte Kolson and Lotte Akhtar Beverages, the share acquisition required prior approval from the Competition Commission of Pakistan (CCP) under the Competition Act, 2010. Phase-I Review Finds No Competition Concerns Following a Phase-I competition assessment, the Commission concluded that the transaction is purely an internal change in ownership within the Lotte Group and will not alter the market structure or competitive dynamics in Pakistan. The CCP noted that the acquiring company does not conduct confectionery or food business in Pakistan. As a result, the transaction will neither increase market concentration nor create or strengthen a dominant position in any relevant product market. Pakistan Food and Beverage Markets Remain Unaffected The Commission assessed competition across the markets for pasta, gum, savoury snacks, sweet biscuits, cakes, and beverages, identifying Pakistan as the relevant geographic market. The review found that the market shares of Lotte Kolson and Lotte Akhtar Beverages will remain unchanged following the transaction, with no adverse impact on competition in the country’s food and beverage sector. Acquisition Approved Under Competition Act Accordingly, the CCP authorised the acquisition under Section 31(1)(d)(i) of the Competition Act, 2010, concluding that the transaction would not result in a substantial lessening of competition. Decision Supports Investment and Ease of Doing Business The Commission stated that the approval reflects its commitment to facilitating investment, corporate restructuring, and business expansion through an efficient merger review process. By providing timely regulatory certainty for transactions that do not raise competition concerns, the CCP aims to support ease of doing business while continuing to safeguard competitive markets in Pakistan.

Standard Chartered Pakistan has announced the appointment of Adil Salahuddin as its new Chief Executive Officer
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Standard Chartered Pakistan Has Announced The Appointment Of Adil Salahuddin As Its New Chief Executive Officer

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Standard Chartered Pakistan has announced the appointment of Adil Salahuddin as its new Chief Executive Officer & Head of Coverage, subject to regulatory and statutory approvals. The appointment reinforces the bank’s long-term commitment to Pakistan, one of its oldest and most established international markets. Adil Salahuddin Named CEO of Standard Chartered Pakistan Standard Chartered Pakistan confirmed the appointment of Adil Salahuddin as Chief Executive Officer & Head of Coverage on July 13, 2026. His appointment remains subject to the required regulatory and statutory approvals. The bank said the leadership change reflects its continued confidence in Pakistan’s long-term economic potential and its commitment to strengthening relationships with clients across the country. Standard Chartered Reaffirms Commitment to Pakistan Commenting on the appointment, Rola Abu Manneh, Chief Executive Officer, UAE, Middle East and Pakistan, Standard Chartered, said Pakistan remains an important market for the bank and one of its longest-established franchises. She highlighted the bank’s deep client relationships, strong local presence, and extensive international network, adding that Adil Salahuddin’s appointment reflects Standard Chartered’s confidence in the country’s long-term growth prospects. According to her, the bank’s global network continues to provide clients with access to international trade, investment, and capital flow opportunities while supporting Pakistan’s economic development. Veteran Banker Brings Three Decades of Experience Adil Salahuddin brings more than 30 years of banking experience, including 25 years with Standard Chartered. He has held several senior leadership positions across Markets and Coverage in Pakistan, the United Arab Emirates, and Saudi Arabia. Before relocating to Dubai in April 2021, he served as Head of Markets in Pakistan for five years. In Dubai, he led the Corporate Sales business across the Middle East, Pakistan, and Africa. Over the past four months, he has served as Head of Coverage in Pakistan before being selected for the CEO role. Standard Chartered Strengthens Leadership for Future Growth The bank expects Adil Salahuddin’s extensive regional experience, client knowledge, and leadership expertise to further strengthen its franchise in Pakistan. Standard Chartered aims to continue supporting clients as they navigate changing global trade, investment, and capital flows while expanding opportunities through its international network. Standard Chartered Continues 163-Year Legacy in Pakistan Standard Chartered has been operating in Pakistan since 1863 and remains the country’s oldest and largest international bank. The bank serves Corporate & Institutional Banking as well as Wealth and Retail Banking customers through a wide range of financial products and services, including Islamic banking solutions under the Standard Chartered Saadiq brand.

Ethiopian Airlines Veteran Tewolde Named New PIA CEO
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Ethiopian Airlines Veteran Tewolde Named New PIA CEO

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Pakistan International Airlines (PIA) has selected Tewolde Gebremariam, former CEO of Ethiopian Airlines, as its new chief executive to steer the national carrier’s revival following privatisation. Seasoned Aviation Leader Joins PIA Tewolde is credited with transforming Ethiopian Airlines into Africa’s largest carrier. He expanded its international network and strengthened Addis Ababa as a major aviation hub. His appointment is pending mandatory security clearances before formal announcement. A senior PIA official and major shareholder described him as a strong choice with a proven turnaround track record. Privatisation Injects Fresh Capital The move follows the first phase of privatisation. Management control transferred to a consortium led by Arif Habib Corporation after meeting all conditions of the Share Purchase and Subscription Agreement (SPSA). The consortium paid Rs10 billion to the government as sale proceeds. It injected Rs80 billion into PIA to improve finances, modernise the fleet, expand routes, and boost operations. Strategic Revival Goals Overall, the consortium committed Rs180 billion. This includes Rs55 billion for a 75% stake and Rs125 billion in fresh investment for long-term revival. The second closing is due within 12 months, with an additional Rs45 billion injection planned. The consortium also holds an option to acquire the remaining 25% stake for another Rs45 billion. Leadership Expected to Drive PIA’s Turnaround Tewolde’s leadership is expected to drive operational efficiency and strengthen PIA’s position in regional and international markets. The appointment aligns with the new owners’ ambitious post-privatisation strategy. Industry observers view this as a significant step towards restoring PIA’s competitiveness. Success at Ethiopian Airlines offers valuable lessons for fleet modernisation and network expansion in Pakistan’s aviation sector. A New Chapter for Pakistan’s National Carrier The appointment of an experienced global aviation executive, combined with significant private investment, marks a major milestone in PIA’s transformation. Stakeholders expect the airline’s restructuring, fleet expansion, and operational improvements to enhance service quality and strengthen its presence in regional and international markets.

JF-17 Success Highlights Pakistan’s Aerospace is Better Than its Auto Sector
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JF-17 Success Highlights Pakistan’s Aerospace is Better Than its Auto Sector

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Pakistan’s automobile industry has struggled to achieve meaningful exports despite decades of protection and substantial subsidies, while the aerospace sector has emerged as a success story with the JF-17 Thunder fighter jet gaining international recognition. Policy Failures in Auto Industry The auto sector has long operated as a protected domestic market. Foreign assemblers benefited from limited competition and generous policies without facing strong export obligations or global quality pressures. Government policies emphasised narrow localisation targets. Agencies micromanaged imports, locking the industry into outdated technologies amid rapid global advancements in electronics and manufacturing. Contrast with Aerospace Success In contrast, Pakistan developed the JF-17 Thunder in collaboration with China. Around 60% of components are produced locally, enabling control over production, maintenance, and upgrades. The JF-17 is priced between $25-40 million, roughly one-third the cost of competitors like the Eurofighter or Rafale. It has earned praise at international airshows, including Dubai, and secured export interest. Pakistan’s auto exports remain negligible. Passenger vehicle exports are zero, while auto parts exports (excluding tyres) stand at just over $20 million — far below peers like Indonesia, India, and Vietnam. Auto Industry Struggles Despite Government Support The government provided over Rs250 billion in subsidies under older SROs, yet assemblers resisted export targets in the 2021-26 Auto Policy through court stays. Countries like Turkiye, Thailand, and Mexico export over $10 billion annually in vehicles and parts. Need for Export-Led Growth and Innovation Experts urge a shift towards export-led growth and integration into global value chains. Success stories like the Long Tyre collaboration and entrepreneur Shahid Khan’s bumper manufacturing highlight potential in auto parts. The National Tariff Policy 2025-30 offers a chance to move from import substitution to competitiveness. The auto sector must embrace electric vehicles and new technologies, mirroring aerospace achievements through innovation and global integration. A Roadmap for Pakistan’s Manufacturing Future The contrasting performance of Pakistan’s aerospace and automobile industries highlights the importance of innovation, technology adoption, and export-oriented policies. Industry experts believe sustained competitiveness, stronger integration into global supply chains, and a focus on advanced manufacturing will be essential for transforming the country’s auto sector into a major export contributor.

Massive LNG Carrier Docked in Record Monsoon Operation at Port Qasim
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Massive LNG Carrier Docked in Record Monsoon Operation at Port Qasim

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The Port Qasim Authority (PQA) successfully berthed a massive LNG carrier under severe monsoon conditions, preventing a potential national power crisis in Pakistan. Emergency Berthing Operation PQA guided the S K Resolute through a 49-kilometre navigational channel amid extreme weather on Saturday. This high-risk operation pushed the port’s capabilities to their limits. Record-Breaking Cargo Delivery The vessel carried 171,951 cubic metres of LNG, the largest single cargo at the PGPCL terminal. With a 47.8-metre beam, it marked the widest LNG carrier handled at Port Qasim during the monsoon season. The move came after two QatarEnergy shipments were cancelled under Force Majeure due to escalating tensions in the Strait of Hormuz. Pakistan LNG Limited (PLL) swiftly secured an emergency spot cargo already in transit, according to PQA Public Relations Officer Asad Altaf Hussain Warsi. This timely intervention ensured an uninterrupted gas supply to the national transmission system. It stabilised the power grid, safeguarding electricity for millions of households and industrial units during peak summer demand. Emergency LNG Procurement After Qatar Supply Disruptions Regional hostilities forced Pakistan back into the costly spot LNG market. Bloomberg reported the urgent need for alternative cargoes following disruptions from Qatar suppliers. PLL issued a tender for delivery on July 15–16 after government approval. The successful berthing demonstrates PQA’s operational excellence under pressure and highlights vulnerabilities in Pakistan’s energy supply chain. Strengthening Pakistan’s Energy Security Experts view this as a critical achievement for energy security. It underscores the importance of robust port infrastructure and rapid response capabilities in mitigating geopolitical risks affecting fuel imports. Continued Focus on Reliable Energy Imports The successful handling of the record LNG cargo highlights the strategic role of Port Qasim in ensuring Pakistan’s energy security during periods of regional uncertainty and challenging weather conditions. Efficient port operations and timely procurement remain essential to maintaining stable gas supplies and supporting uninterrupted electricity generation across the country.

SECP IBAN-Based Digital Verification Launched to Simplify Customer Onboarding
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SECP IBAN-Based Digital Verification Launched to Simplify Customer Onboarding

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The SECP IBAN-Based Digital Verification system has been introduced to make customer onboarding faster, easier, and more secure across Pakistan’s regulated financial sector. The Securities and Exchange Commission of Pakistan (SECP) announced on Saturday that it has amended its Anti-Money Laundering, Counter Financing of Terrorism, and Countering Proliferation Financing (AML/CFT/CPF) Regulations, 2020, allowing financial institutions to verify customers through their International Bank Account Number (IBAN). The new initiative is aimed at reducing paperwork, eliminating repetitive verification procedures, and improving access to financial services while maintaining strict regulatory standards. The move forms part of SECP’s broader strategy to accelerate digital transformation in Pakistan’s financial ecosystem and promote greater efficiency for both investors and regulated entities. IBAN Verification to Simplify KYC Process Under the revised regulatory framework, customers will be able to complete Know Your Customer (KYC) requirements using their verified IBAN details instead of relying solely on traditional documentation. According to the SECP, this digital verification process will significantly simplify customer onboarding by reducing unnecessary documentation and shortening the time required to open accounts or access regulated financial services. The regulator said the initiative reflects its commitment to adopting technology-driven solutions that improve customer experience while preserving the integrity of Pakistan’s financial system. The use of IBAN-based verification is expected to make financial services more accessible, especially for customers seeking quicker account opening and investment opportunities. Wide Range of Financial Institutions Covered The amended regulations apply to a broad range of institutions regulated by the SECP. These include securities brokers, futures brokers, insurance companies, takaful operators, non-banking finance companies (NBFCs), and modarabas. All of these regulated persons can now use customers’ IBAN information as an approved method for fulfilling KYC requirements. By enabling a standardized digital verification process, the SECP aims to create a more efficient and consistent onboarding framework across Pakistan’s financial sector. The regulator believes the change will improve operational efficiency while reducing compliance costs for regulated entities. Digital Transformation of Pakistan’s Financial Sector The SECP IBAN-Based Digital Verification initiative is part of the regulator’s broader efforts to modernize Pakistan’s financial markets through technology. According to the commission, the updated framework supports digital access to financial services, improves the ease of doing business, and strengthens secure customer verification mechanisms. The revised regulations formally recognize digital verification methods as an alternative to conventional paper-based procedures. This shift is expected to encourage greater adoption of digital financial services while ensuring that institutions continue to comply with anti-money laundering and counter-terrorism financing requirements. The SECP emphasized that technological innovation remains a key priority in improving regulatory efficiency and expanding access to financial products. Stronger Investor Protection Measures Alongside simplifying customer onboarding, the new framework introduces additional safeguards to strengthen investor protection and reduce the risk of unauthorized financial transactions. Under the amended regulations, future financial transactions will only be permitted through verified bank accounts registered in the customer’s own name. This requirement is designed to improve transparency, increase traceability, and reduce the possibility of fraudulent or unauthorized transfers within Pakistan’s financial markets. The SECP believes that linking financial transactions to verified personal bank accounts will strengthen market integrity while enhancing confidence among investors and financial institutions. Advanced Biometric Verification Introduced The revised regulations also align with the digital initiatives introduced by the National Database and Registration Authority (NADRA). As part of the amendments, advanced biometric verification methods, including facial recognition technology, have been incorporated into the customer verification framework. These biometric tools will provide regulated entities with additional options to verify customer identities digitally while maintaining high security standards. The inclusion of facial recognition is expected to further streamline remote onboarding processes and reduce reliance on physical document verification. The regulator said these measures support Pakistan’s ongoing transition toward a digitally enabled financial environment. Immediate Action on Blocked CNICs Another important feature of the amended framework is the treatment of customer accounts associated with blocked or impounded Computerized National Identity Cards (CNICs). According to the SECP, customer accounts linked to CNICs that have been blocked or impounded by NADRA will be immediately blocked under the revised regulations. This measure is intended to prevent unauthorized financial activities and strengthen compliance with national identity verification standards. The integration between financial institutions and NADRA’s verification systems is expected to enhance the overall security of Pakistan’s financial infrastructure. Digital Records Recognized for Compliance The amendments also modernize record-keeping requirements by recognizing digital logs as valid records for AML/CFT compliance and data retention purposes. This change allows regulated entities to maintain electronic records that satisfy regulatory obligations, reducing reliance on physical documentation while supporting digital business operations. In addition, the prescribed regulatory forms have been updated to align with the Companies Regulations, 2024, ensuring consistency across Pakistan’s evolving corporate and financial regulatory framework. A Step Toward a Digital Financial Ecosystem The launch of SECP IBAN-Based Digital Verification represents another milestone in Pakistan’s digital financial transformation. By enabling IBAN-based KYC verification, introducing biometric authentication, strengthening investor protection measures, and recognizing digital compliance records, the SECP aims to build a more efficient, secure, and technology-driven financial system. The regulator expects these reforms to improve customer experience, reduce onboarding delays, enhance regulatory compliance, and encourage greater participation in Pakistan’s financial markets. As digital financial services continue to expand, the updated framework is expected to play a key role in supporting innovation while maintaining strong safeguards against financial crime.

Govt Increases Petrol Prices in Pakistan, HSD Up Rs13.80 Per Litre from July 11
Pakistan

Govt Increases Petrol Prices in Pakistan, HSD Up Rs13.80 Per Litre from July 11

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The petrol prices in Pakistan have increased significantly after the federal government announced a fresh revision in petroleum product prices, effective from July 11, 2026. The Ministry of Energy’s Petroleum Division said the ex-depot prices of both Motor Spirit (MS), commonly known as petrol, and High-Speed Diesel (HSD) have been raised by more than Rs13 per litre. According to a notification issued by the Petroleum Division, the ex-depot price of High-Speed Diesel (HSD) has increased by Rs13.80 per litre, taking the new price to Rs323.30 per litre, compared with the previous rate of Rs309.50 per litre. Similarly, the price of Motor Spirit (MS) has been raised by Rs13.18 per litre. Consumers will now pay Rs310.71 per litre for petrol instead of the earlier price of Rs297.53 per litre. The revised prices came into effect on July 11, 2026, and will remain applicable until the next fortnightly review by the government. Sharp Increase Reverses Previous Price Cut The latest increase has reversed the relief provided to consumers just a week earlier. During the previous fortnightly review, the government had reduced fuel prices to provide temporary relief amid fluctuations in international oil markets. At that time, the price of HSD was cut from Rs311.47 per litre to Rs309.50 per litre, while the price of petrol was reduced from Rs299.50 per litre to Rs297.53 per litre. However, the latest revision has not only withdrawn that relief but has pushed fuel prices well above the previous levels, increasing transportation and operating costs across several sectors of the economy. Govt Announces New Fuel Rates The Ministry of Energy stated that the revised ex-depot prices would apply nationwide from July 11. The announcement follows the government’s regular fortnightly review of petroleum prices, which considers movements in international oil prices, exchange rate fluctuations, taxes, and other pricing components. The government reviews petroleum prices every two weeks to reflect changes in global crude oil markets and import costs. The latest adjustment represents one of the largest increases in recent months. Although the official notification confirmed the revised rates, it did not provide a detailed explanation for the size of the increase. Estimates Suggested Prices Could Have Remained Stable Market estimates had indicated that the government had room to keep petroleum prices unchanged or even announce another modest reduction. According to estimates available before the official announcement, the pricing formula did not point to a significant increase in domestic fuel prices. Instead, analysts expected either stable prices or a slight decrease, depending on the final exchange rate adjustment and applicable tax calculations. The government’s decision to raise prices therefore came as a surprise to many market observers and consumers. Higher Fuel Prices Expected to Affect Economy The increase in petrol prices in Pakistan is expected to have a direct impact on household budgets and business operating costs. Petrol is widely used by private vehicles, motorcycles, ride-hailing services, and commercial transport. A higher petrol price generally leads to increased commuting expenses for millions of people across the country. High-Speed Diesel, on the other hand, is the primary fuel used by heavy transport vehicles, buses, agricultural machinery, and many industrial operations. Any increase in diesel prices usually raises freight charges and logistics costs, which can eventually push up the prices of essential goods and services. Businesses involved in transportation, agriculture, construction, and manufacturing are also expected to face higher operating expenses following the latest increase. Consumers Face Fresh Financial Pressure The latest hike comes at a time when consumers are already dealing with rising living costs. Fuel prices play a key role in determining transportation expenses and the overall cost of doing business. Higher petroleum prices often have a ripple effect throughout the economy by increasing the cost of moving goods from producers to markets. This can contribute to higher prices for food items, consumer products, and other daily necessities. Motorists filling their tanks from July 11 will immediately feel the impact of the revised rates, while businesses dependent on diesel-powered transport may also adjust their service charges in response to higher fuel costs. The government is expected to conduct its next petroleum price review in the coming weeks. Future adjustments will largely depend on international crude oil prices, movements in the exchange rate, import costs, and the government’s tax policy.

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

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