Author name: Web Desk

KARACHI: Pakistan has cemented its status as a net fuel oil exporter, with shipments hitting an all-time high of over 1.4 million metric tons (8.9 million barrels) in 2025 — up more than 16% from last year, according to Kpler and LSEG data.High domestic taxes and the rapid shift of power plants to coal, LNG and solar have made local sales unviable, pushing refiners to ship surplus high-sulphur fuel oil (HSFO) and very low-sulphur fuel oil (VLSFO) to Southeast Asia and the Middle East. The flood of Pakistani cargoes has added to Asia’s already oversupplied marine fuel market, further pressuring regional cracks.Cnergyico, the country’s largest refiner, exported ~247,000 tons in FY25 and expects at least 50% growth this fiscal year after switching to lighter crudes and tying up with Vitol for low-sulphur marine fuel supplies. Pak-Arab Refinery leads the export pack, followed by Attock, National and Pakistan Refineries.Industry officials say the trend will only strengthen. “Furnace oil has no future in power generation and is no longer profitable domestically after the latest budget taxes,” said Syed Nazir Abbas Zaidi, secretary general of the Oil Companies Advisory Council. “Exports will keep rising through 2026 and beyond.”From net importer in 2022 to record exporter in 2025, Pakistan’s fuel oil trade has flipped dramatically.

KARACHI: Pakistan National Shipping Corporation Limited (PNSC) has received cabinet approval to expand its business, with plans to invest US$500 million in fleet modernization and growth, targeting a 20% return on capital employed (ROCE) from new projects. According to the company’s corporate briefing, addition of new vessels is expected to take three to four years to reach break-even. PNSC has already awarded contracts for two Aframax tankers (110–111k DWT at US$74.5 million each) and one MR tanker (50k DWT at US$44.5 million), totaling US$193 million, with 20–25% financed via equity and the remainder through local currency debt. Deliveries are expected by January 2026. The company is also exploring further fleet additions, including vessels equipped with fuel-efficient tier-3 engines. Management highlighted challenges including a 20% sales tax on vessel imports, although deferment in installments is under consideration. Freight revenues remain under pressure due to geopolitical unrest in the Red Sea, the Russia-Ukraine conflict, Iran tensions, and US tariffs, though the new vessels are expected to improve revenues, reduce fuel and maintenance costs. During FY25, PNSC reported a profit after tax of Rs6.6 billion (EPS Rs33.72) on revenues of Rs6.9 billion, despite a 25% year-on-year decline in sales, driven by gains on vessel sales and impairment reversals. Early FY26 performance shows an 11% rise in sales and a 3 percentage point improvement in gross margins. The company reaffirmed its commitment to stable dividend payouts while balancing capital expenditure requirements.

ISLAMABAD: Pakistan’s annual gold demand is estimated at 60 to 90 tonnes, valued at roughly $8–12 billion, yet over 90% of this trade occurs in the informal and undocumented market, according to the Competition Commission’s latest report. To put this in perspective, the total demand is comparable to the empty weight of a Boeing 767 airliner, which ranges between 80–82 tonnes depending on the model. The Competition Commission of Pakistan (CCP) has released its maiden Competition Assessment Study of the Gold Market in Pakistan, providing the first evidence-based analysis of the sector’s structure, regulatory landscape, and competitiveness challenges. The study, conducted by CCP’s Center of Excellence in Competition Law (CECL), maps a market historically dominated by informality, fragmented oversight, and pricing opacity. According to the report, Pakistan’s annual gold consumption ranges between 60 to 90 tonnes, driven largely by cultural demand, while over 90% of gold trading occurs outside formal channels. The market relies almost entirely on imports, with USD 17 million worth of gold imported in FY 2023-24. The study highlights the transformative potential of the Reko Diq copper-gold project, expected to generate up to USD 74 billion over its 37-year of useful life and significantly reshape domestic supply chains. The report identifies deep-rooted barriers that suppress competition and distort market functioning: Informal market dominance: Weak documentation and cash-based transactions allow large informal networks to set prices and influence supply. Opaque price-setting: Daily gold rates are largely influenced by associations rather than transparent market mechanisms. Fragmented regulation: Overlapping and unclear mandates of Ministry of Commerce, Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Pakistan Gems and Jewelry Development Company (PGJDC) , and Trade Development Authority of Pakistan (TDAP) create policy inconsistencies and enforcement gaps. High taxes and compliance costs: Complex procedures, and inconsistent taxation encourage smuggling and under-invoicing. Limited refining, assaying and hallmarking capacity: Pakistan has negligible refining capability and inadequate assaying and hallmarking facilities, leading to widespread purity issues and weak consumer protection. Data deficiencies: Absence of reliable import, traders registration, sales, and purity data prevents evidence-based policymaking. To address these challenges, CCP has proposed a comprehensive reform package: 1. Establish a unified regulator: CCP suggest to establish the Pakistan Gold & Gemstone Authority to harmonize rules, licensing, imports, and Anti Money Laundering (AML) and Counter Financing Terrorism (CFT) compliance. 2. Mandatory assaying and hallmarking nationwide to ensure purity, protect consumers, and enable exports. 3. Digital transformation of the gold value chain with blockchain-based traceability integrated with FBR’s Track & Trace system. 4. Creation of a Gold Banking System, inspired by the Türkiye, Gold Banking System to mobilize household gold into the formal sector. 5. Strengthen data governance through centralized reporting, market documentation, and scientific price-monitoring mechanisms. CCP emphasizes that modernizing the gold sector will boost transparency, safeguard consumers, reduce illicit trade, and unlock significant economic value, particularly as Pakistan prepares for the commercial rollout of Reko Diq.

Islamabad: In a major push to realise Prime Minister Shehbaz Sharif’s “Made in Pakistan” vision, the 35th Board meeting of the Small and Medium Enterprises Development Authority (SMEDA), chaired by Special Assistant to the Prime Minister on Industries & Production Haroon Akhtar Khan on Tuesday formally announced the landmark “Made in Pakistan MSME Clusters 2025” national exhibition, scheduled for January 2026. The high-profile event, to be personally inaugurated by the Prime Minister, will showcase hundreds of MSME products, feature dedicated exhibition stalls, host a prestigious national MSME awards ceremony, and include panel discussions with top national and international experts. A special high-level panel in collaboration with D-8 countries is also being formed, while invitations are being extended to global buyers and partners. Auto sector expert Mashood Ali Khan, who attended the meeting, welcomed the decisions, stating, “These steps will drive the Made in Pakistan initiative, enhance SME competitiveness and create millions of sustainable jobs.” The meeting was attended by Federal Secretary Industries & Production Saif Anjum, Acting CEO SMEDA Nadia Jahangir Seth and senior officials. SAPM Haroon Akhtar Khan described Pakistan’s SME clusters as possessing “immense untapped potential” and confirmed that a detailed SME Business Plan – prepared with strategic support from A.T. Kearney – will soon be presented to the Prime Minister. He announced that top 100 MSMEs will be shortlisted for national recognition. Key initiatives approved in the meeting include: Launch of a dedicated e-commerce portal exclusively for women-led enterprises Deployment of specialised designer and digital marketing teams to promote SME products globally Reserved 50–100 acres in upcoming Special Economic Zones (SEZs) for ready-to-use SME facilities Aggressive push for single-digit markup long-term financing to bridge the SME funding gap Full policy alignment across Ministries of Finance, Commerce and Industries Provincial coordination led by SMEDA Board members for nationwide implementation The Board was briefed that cluster-specific business models are being finalised for both urban and rural regions, while Pakistani handicrafts will receive facilitated access to international trade fairs. Reiterating government priorities, SAPM Haroon Akhtar Khan said enabling women entrepreneurs through digital commerce and boosting exports via stronger digital advertising remain at the top of the agenda.