Author name: Web Desk

Karachi: The Korangi Association of Trade and Industry (KATI) President, Ikram Rajput, has strongly rejected the Oil and Gas Regulatory Authority’s (OGRA) decision to increase gas tariffs for Sui Southern Gas Company, warning that the move will intensify economic hardships for both industries and the public.Rajput said the price hike is unjustified in the current economic environment and places an unfair burden on already struggling manufacturers and households. He stressed that the decision ignores key positive economic indicators, including a reduction in UFG (unaccounted-for gas) losses and declining interest rates, which should have supported stable or reduced gas tariffs.The KATI president called on Prime Minister Shehbaz Sharif to immediately intervene and direct the withdrawal of the revised gas tariff, noting that the increase will make Pakistani industries uncompetitive in global markets and undermine export performance.He reminded the government of its earlier commitments to support export-oriented industries, saying the tariff hike is contradictory to those promises. Rajput urged policymakers to prioritize pro-industry and pro-consumer measures that would help stabilize the economy and reduce unemployment.Rajput also criticized the tariff increase without first addressing gas theft and systemic inefficiencies, arguing that pushing the financial burden onto consumers is unjust. He cautioned that rising gas costs will particularly harm industries dependent on gas-fired plants, already grappling with high production costs and weakening international demand.He warned that escalating gas prices will further erode export competitiveness, deter investment, and heighten uncertainty among the business community. Rajput reiterated his appeal to the prime minister, urging him to place the welfare of citizens and industries at the center of national economic decision-making.“Pakistan’s economic recovery depends on sustainable industrial growth,” he said. “Raising gas prices at this stage risks undermining both industry and employment. The government must act swiftly in the national interest.”

BELEM, Brazil: In a landmark shift for an emerging economy, Pakistan’s rooftop solar generation will exceed daytime grid demand in major industrial regions next year, according to Aisha Moriani, Secretary of the Ministry of Climate Change and Pakistan’s lead negotiator.She confirmed that cities like Lahore, Faisalabad, and Sialkot will experience “negative grid-linked demand” during peak sunshine hours in 2026 as behind-the-meter solar completely offsets consumption in large areas.Driven by frequent power outages and steep tariff hikes, Pakistan has become the world’s third-largest solar panel importer. Its solar adoption rate now surpasses even neighbouring China on a per-capita basis, slashing emissions and household bills but hammering the finances of debt-laden distribution companies.“Pakistan’s challenge is no longer whether renewables will grow, but how fast the grid, regulations, and market design can adapt,” Moriani said.To address revenue losses, the government plans new tariffs for large solar users and revised fixed charges to ensure fair contributions toward grid maintenance. The solar boom has also prompted Islamabad to renegotiate LNG contracts with Qatar, cancel Eni cargoes, and seek greater flexibility and lower prices.While grid demand is still projected to rise 3-4% this year, the rapid solar surge means traditional consumption growth will be increasingly suppressed during daylight hours, marking a turning point for South Asia’s energy landscape.

Karachi: Premium Textile Mills Limited (PSX: PRET), one of Pakistan’s leading yarn manufacturers, has approved a $4.15 million investment to install a 7.5-megawatt wind turbine, the company informed the Pakistan Stock Exchange on Monday.The decision was taken through a circular resolution by the Board of Directors on November 24, 2025. The new turbine will substantially boost the renewable share in the company’s energy mix and reduce reliance on grid electricity amid soaring power tariffs.“Keeping up with our commitment towards sustainable environment practices, the contribution of renewable energy in the power mix will significantly increase after the completion of the above-mentioned project, the filing stated. The project is the latest addition to Premium Textile’s ongoing efforts to adopt cleaner energy sources and lower its carbon footprint in an energy-intensive industry.

The federal government is going to abolish the Export Development Surcharge (EDS), a move widely welcomed by the export sector as critical relief at a time when rising input costs and regional competition continue to erode profitability. Waqas Ghani Kukaswadia, Head of Research at JS Global Capital, commented: “The removal of the Export Development Surcharge is a meaningful relief for exporters facing intense cost pressures. Although the direct fiscal burden of the surcharge was modest, its elimination sends a strong positive signal that policy is finally moving in the direction of export-led growth. The real test now is follow-through. This step needs to be supported by broader trade facilitation measures and structural reforms that tangibly lower the cost of doing business — faster tax refunds, competitive energy pricing for exporters, and streamlined temporary importation procedures will determine whether this marks a genuine turning point for Pakistan’s export competitiveness.” Export Development Surcharge imposed at 0.25% of the FOB value of exports, the EDS has been a longstanding grievance for exporters who argued it effectively taxed foreign exchange earnings at a time when margins were already under severe strain. Industry sources indicate that the decision is part of an emerging package of export-supportive measures, with expectations building for additional steps such as phased reduction in minimum turnover tax and duty rationalization on imported raw materials in the near term.  

The government is under increasing pressure to prevent a steady exodus of multinational companies from Pakistan. While more than 200 global firms remain active, their growing departures are raising serious economic red flags. These multinationals contribute a substantial portion of tax revenues, but their lack of exports and high repatriation of profits is creating an unsustainable pattern. According to insiders, the authorities are now considering a business-protection framework aimed at retaining these companies. A key part of this involves rethinking tax strategies—moving away from heavy import tariffs toward policies that reward efficient, export-oriented operations. One proposal under review is to eliminate or reduce the burden of federal excise duty and other indirect taxes for well-compliant multinationals. The sharp rise in foreign firm exits has been linked to a range of issues: discriminatory tax policies, steep corporate tax rates, regulatory uncertainty, and growing difficulties in repatriating profits. Additionally, rupee devaluation, inflation, and frequent policy changes are adding pressure. Some companies reportedly face blocked dividends running into the billions of dollars. Experts warn that a further foreign-company run could deal a blow to Pakistan’s reputation. These multinational players are not just profit machines—they bring advanced technology, best-in-class management practices, and valuable employment opportunities. Their exit creates a gap not only in capital but also in expertise and innovation. Industry associations are calling for urgent reforms. They want simplified tax structures, stable regulation, and clear protection mechanisms. Their concern is not just profit—it’s about sustaining foreign direct investment, preserving high-quality jobs, and maintaining the country’s competitiveness on the global stage. As the debate intensifies, the hope among business leaders is that the government recognizes the wider cost of these exits and takes decisive steps to stem the tide before it’s too late.