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Standard Chartered, Dolmen Group Partner To Offer Home Ownership Benefits In Karachi
Business

Standard Chartered, Dolmen Group Partner To Offer Home Ownership Benefits In Karachi

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Standard Chartered Bank Pakistan and Dolmen Group have joined hands to offer exclusive home ownership benefits to eligible clients interested in Grove Residency, a new residential development in Karachi. Under the partnership, qualifying buyers can receive savings of at least PKR 5 million on eligible purchases, along with tailored home financing options. Exclusive Financing For Eligible Buyers The collaboration combines Standard Chartered’s home finance expertise with Dolmen Group’s property development experience. Eligible clients will also have access to Saadiq Home Finance, offering flexible financing solutions designed to support buyers in managing one of their biggest long-term investments. Grove Residency Targets Modern Homebuyers Located near the KPT Interchange, Grove Residency is positioned as a modern residential development in one of Karachi’s emerging housing corridors. The partnership aims to give prospective homeowners greater financial flexibility while combining property and financing solutions under one offering. Focus On Long-Term Home Ownership Standard Chartered said the initiative reflects its focus on providing customers with financing solutions suited to their individual financial needs and long-term goals. For Dolmen Group, the collaboration is aimed at improving access to financing while supporting its vision of developing modern residential communities in Karachi. The partnership highlights the growing role of customised financing in Pakistan’s real estate market as buyers seek greater value and flexibility when purchasing homes.

Starlink Internet Still Delayed In Pakistan As PSARB Framework Remains Unfinished
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Starlink Internet Still Delayed In Pakistan As PSARB Framework Remains Unfinished

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Starlink satellites are already passing over Pakistan every few minutes, but homes and businesses still cannot access the service. The issue is increasingly becoming a question of regulation, policy and licensing, rather than satellite technology or launch costs. Why Fibre Cannot Reach Everyone Pakistan had around 164 million broadband connections by the end of FY26, with nearly 97% operating through mobile networks. Fixed broadband stood at only about 4.4 million connections. Fibre connections have grown significantly, reaching around 2.88 million in FY26 from roughly 100,000 in FY19. However, fibre coverage remains concentrated in urban areas because connecting individual homes can cost between PKR 60,000 and 120,000. This makes fibre expansion difficult in lower-density and underserved areas. Starlink Offers A Different Option Traditional geostationary satellites operate roughly 36,000 kilometres above Earth and can have round-trip delays exceeding 250 milliseconds. Starlink’s low-Earth-orbit satellites operate at around 550 kilometres, significantly reducing latency. The satellites move around Earth roughly every 95 minutes, with one satellite handing coverage to another as it moves across the sky. In many countries, satellite broadband has been used alongside terrestrial networks, particularly in areas where fibre and traditional broadband infrastructure are difficult or expensive to deploy. The Regulatory Roadblock Starlink received a reported NOC from the Pakistan Satellite Authority Regulatory Board (PSARB) in March 2025, but the approval was later reported to have been cancelled. The company is now waiting for PSARB to finalise its regulatory framework. Key issues such as local gateways, data localisation and lawful interception need clear rules before commercial services can move forward. Questions Over PSARB The structure of PSARB has also attracted criticism. Its board gives significant representation to the security and space establishment, while private telecom companies, universities and other industry stakeholders do not have direct representation. Critics have also raised concerns about SUPARCO’s role because it operates the PSARB secretariat while also managing satellite-related activities. Geopolitics Adds Another Layer Pakistan’s relationship with China and China’s growing interest in satellite technology could also influence how the country approaches Starlink. Bangladesh, by comparison, reportedly used its existing telecom regulator to facilitate Starlink’s rollout within seven months. For Pakistan, the challenge now is to establish a transparent regulatory framework that addresses national security and data concerns without unnecessarily delaying access to new broadband technology. The Real Test Is Policy Starlink technology is already capable of providing satellite internet coverage over Pakistan. The bigger question is whether Pakistan can create a regulatory system that allows the technology to operate while protecting legitimate national interests. How satellite internet develops in Pakistan may ultimately depend less on what is happening in space and more on the regulatory decisions being made on the ground.

Engro Corporation To Sell 56.19% Stake In Engro Polymer To Lotte Chemical Pakistan
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Engro Corporation To Sell 56.19% Stake In Engro Polymer To Lotte Chemical Pakistan

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Engro Corporation Limited has entered into a Share Purchase Agreement with Lotte Chemical Pakistan Limited for the sale of its entire shareholding in Engro Polymer & Chemicals Limited (EPCL). Under the agreement, Engro Corporation will sell its approximately 56.19% stake in EPCL for around PKR 19.7 billion, subject to regulatory approvals and other customary conditions. Engro Moves To Recycle Capital EPCL has been part of Engro’s portfolio since 1997 and has grown into Pakistan’s only integrated chlor-vinyl complex. The company supplies products including PVC resin, caustic soda and hydrogen peroxide to several downstream industries. The transaction is part of Engro Holdings’ broader portfolio strategy following its restructuring in 2025. The group says the sale will allow it to unlock value from the investment and redirect capital towards future growth opportunities. Lotte Chemical Sees Growth Opportunities For Lotte Chemical Pakistan, the proposed acquisition is expected to create opportunities for greater operational efficiency, innovation and long-term expansion in the petrochemicals sector. The company said the combination could generate synergies by bringing together the strengths of both businesses while supporting investment in technology, people, sustainability and future expansion. Deal Still Needs Regulatory Approval The proposed transaction is not yet complete. It remains subject to regulatory approvals and the fulfilment of other required conditions. Both companies are expected to provide further updates as the transaction progresses in line with applicable regulatory requirements. A Major Portfolio Move The proposed EPCL sale represents another significant portfolio decision for Engro Holdings as it reshapes its investment strategy. For Pakistan’s petrochemical industry, the transaction could also bring a new phase of ownership, investment and operational development for one of the country’s major industrial businesses.

Telecom Operators Call For End To Direct G2G Contracts
Pakistan

Telecom Operators Call For End To Direct G2G Contracts

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The Telecom Operators Association (TOA) has urged the government to remove a procurement rule that allows certain projects to be awarded directly to government-owned entities without open bidding. The association has called for the repeal of Clause 42(f) of the Public Procurement Rules, 2004, arguing that the provision is limiting opportunities for private IT, telecom and digital companies. Private Sector Seeks A Level Playing Field TOA says government spending on digital and technology services should allow private companies to compete where they already have the required expertise. The association argues that telecom and technology firms have invested billions in Pakistan over the past two decades and contributed significantly to the national exchequer. Concerns Over Competition And Jobs Pakistan’s technology sector is expanding into areas such as cloud computing, data centres and artificial intelligence. TOA believes a strong domestic market is essential for local companies to develop their capabilities and compete internationally. The association warns that directing more public contracts toward state-owned enterprises could weaken competition, reduce innovation and limit opportunities for private firms, particularly small and medium-sized businesses. TOA Raises Subcontracting Concerns The association has also questioned cases where state-owned entities receive government contracts through the G2G route and subsequently outsource the work to private companies. TOA believes such arrangements could create transparency and accountability concerns. Call For Equal Competition TOA wants government-owned companies to participate in public procurement on the same terms as private-sector firms. The association argues that removing Clause 42(f) would create a more competitive environment, encourage private investment and support the growth of Pakistan’s telecom and technology industries.

FBR Meets Rs1.71 Trillion Tax Target, But Revenue Growth Remains a Concern
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FBR Meets Rs1.71 Trillion Tax Target, But Revenue Growth Remains a Concern

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Pakistan’s Federal Board of Revenue (FBR) has met its combined tax collection target for the first two months of the current fiscal year, collecting around Rs1.722 trillion during July and August. The collection was about Rs12 billion above the Rs1.71 trillion target. However, the headline achievement masks a concern: revenue grew by only 3.3% compared with the same period last year, significantly below the 17.4% growth needed to meet the annual target. August Collection Falls Short While strong collection in July helped the FBR meet its two-month target, August performance was weaker. The FBR collected around Rs900 billion in August, against a monthly target of Rs930 billion, leaving a shortfall of approximately Rs29 billion. Income tax remained a major weakness. Collections stood at more than Rs685 billion, falling Rs74 billion below the two-month target and declining around 4% from the previous year. Sales Tax Provides Support Sales tax collections provided much of the support for the overall performance. The FBR collected around Rs719 billion in sales tax, exceeding the two-month target by Rs85 billion and registering 14% growth compared with last year. A significant portion of this revenue came from imports. Federal excise duty generated around Rs118 billion, while customs duty collection reached approximately Rs198 billion. Annual Target Remains a Challenge For FY2026–27, Pakistan has agreed with the IMF on an ambitious FBR tax collection target of Rs15.263 trillion. Reaching this figure requires tax revenues to grow by around 17.4% compared with the previous year. The current 3.3% growth rate therefore leaves a considerable gap to close in the remaining months. The IMF has also linked progress on tax collection to the country’s programme commitments, increasing the pressure on the FBR to improve revenue performance. Enforcement And Tax Base Expansion The government has introduced several measures to improve tax compliance and broaden the tax base. However, implementation remains a challenge. The FBR has made progress in integrating large retailers into its digital Point-of-Sale system, with more than 17,300 businesses integrated during FY2025–26. At the same time, some planned digital tax measures and enforcement mechanisms have faced delays. For the FBR, the challenge now is to turn early-year target achievement into sustained revenue growth. What Comes Next Meeting the first two months’ target provides some breathing space, but it does not remove the pressure on Pakistan’s tax authorities. The coming months will be critical. Stronger income-tax collection, wider documentation of the economy and more effective enforcement will be necessary if the FBR is to maintain the pace required for its annual target. For Pakistan’s fiscal position and IMF programme, the quality and sustainability of revenue growth will matter more than simply meeting individual monthly targets.

Telecom Operators Pakistan Demand End to Direct G2G Government Contracts
Pakistan

Telecom Operators Pakistan Demand End to Direct G2G Government Contracts

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Pakistan’s telecom industry has launched a strong challenge against a government procurement mechanism that allows state owned entities to secure public contracts without open competitive bidding. The Telecom Operators Association has warned that the policy is increasingly shutting private companies out of government funded technology projects and could weaken competition, innovation and investment. In a letter addressed to Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal and IT and Telecommunication Minister Shaza Fatima Khawaja, the association urged the government to repeal the provision permitting direct government to government contracting with eligible state owned organizations. The demand puts a major question before policymakers. If the government claims that Pakistan’s future depends on digital transformation, artificial intelligence, cloud computing and technology exports, why should private companies that have invested billions in the country’s digital infrastructure be denied a fair opportunity to compete for government work? Telecom Operators Pakistan Say State Firms Are Crowding Out Private Companies The disputed procurement provision was introduced in 2021. It allows procuring agencies to directly award certain time sensitive and public interest projects to eligible state owned organizations without competitive bidding, provided the work is undertaken using the organization’s own resources rather than private partners or subcontractors. Where several state owned entities qualify, limited tendering is required among them and authorities are expected to determine whether the proposed price is reasonable. The Telecom Operators Association argues that the problem has grown because federal and provincial governments have expanded existing state owned enterprises and established numerous new entities. According to the association, these organizations have secured a growing number of IT and telecom projects over the past five years through direct contracting. For private operators, this creates a particularly uncomfortable situation. Companies such as Jazz, PTCL, Telenor, Ufone, Naya Tel and Transworld have invested heavily in networks, data infrastructure and digital services while paying taxes and operating under commercial pressures. Government Procurement Could Undermine Pakistan’s Digital Ambitions The association’s argument goes beyond individual contracts. It says government procurement can help domestic technology companies develop references, expertise and financial strength before competing in international markets. That opportunity becomes critical as Pakistan attempts to transform from a traditional telecom market into a broader digital services economy. Private companies are increasingly investing in data centers, cloud computing, artificial intelligence and other digital technologies. If government spending is diverted away from competitive domestic firms, the industry could lose an important source of growth at precisely the time Pakistan wants to increase technology exports. There is also a broader competition concern. State owned organizations can possess advantages that private companies do not have, including government backing, regulatory privileges and preferential access to public contracts. This creates what can effectively become an uneven playing field. Direct G2G Contracting Raises Transparency Questions One of the most serious allegations concerns subcontracting. The Telecom Operators Association claims that some state owned entities receive projects through direct G2G arrangements and later transfer portions of the work to preferred private contractors without conducting competitive procurement. If such practices are occurring, the issue deserves much greater scrutiny. A procurement system cannot reasonably claim to protect transparency merely because the initial contract is awarded to a state owned entity. If the actual implementation is eventually performed by private companies selected without open competition, the government could simply be moving the noncompetitive part of the process one step further down the chain. This is an area where independent audits and public disclosure would be far more useful than assurances. Telecom Operators Pakistan Warn of Jobs and SME Impact The association also warned that reduced access to government projects could particularly hurt small and medium sized technology businesses. Government contracts often provide companies with the revenue, references and credibility required to expand. Losing that pathway could restrict entrepreneurship and job creation, especially for educated young Pakistanis entering the technology sector. The association also linked the procurement issue to Pakistan’s broader financing environment. Heavy government borrowing encourages banks to favor sovereign lending, potentially leaving SMEs with fewer affordable financing options. If government procurement simultaneously becomes less accessible to these companies, the pressure on smaller technology firms could intensify. What Should the Government Do Next? The government’s response will be important because this dispute is ultimately about more than telecom contracts. It concerns the role of the state in Pakistan’s emerging digital economy. The association has proposed a straightforward solution: state owned entities should compete with private companies on equal terms whenever they seek government funded projects. That approach deserves serious consideration. If a state owned company can genuinely deliver better quality at a lower price, competitive procurement should allow it to win. If it cannot, taxpayers should not be forced to finance inefficient businesses simply because they have government ownership. Pakistan has repeatedly struggled with inefficient state owned enterprises, including Pakistan International Airlines, Pakistan Steel Mills and loss making power distribution companies. The telecom industry’s criticism therefore touches a much wider policy problem: protecting state institutions from competition can preserve them, but it does not necessarily make them efficient. Prime Minister Shehbaz Sharif has himself argued that the government has no business running businesses. The procurement policy now faces a test of whether that principle is being applied consistently. For Pakistan’s technology sector, the stakes are significant. A competitive procurement system could encourage investment, innovation and exports. A preferential system could instead deepen the divide between state backed organizations and the private companies expected to drive the country’s digital future. The government should therefore publish data on contracts awarded under the G2G mechanism, disclose any subsequent subcontracting arrangements and demonstrate that taxpayers are receiving value for money. Without such transparency, concerns over preferential treatment will continue to grow.

Unity Foods Faces FIA Criminal Case Over Alleged Rs 44.7 Billion Accounting Gap
Business

Unity Foods Faces FIA Criminal Case Over Alleged Rs 44.7 Billion Accounting Gap

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The Unity Foods FIA case has sent a major warning signal through Pakistan’s corporate and capital markets after the Federal Investigation Agency registered a criminal case against former senior executives of Unity Foods Limited. The FIA alleges that billions of rupees were diverted from the KSE-100 listed edible oil company through a series of questionable transactions, while an estimated Rs 44.7 billion difference emerged between the company’s published financial statements and its internal SAP records. The allegations are serious because they do not relate to a single disputed transaction or accounting error. According to the FIR, the suspected activities stretch across several financial years and involve company funds, rights issue proceeds, related-party transactions, subsidiaries, bank deposits and financial reporting. However, the allegations remain subject to investigation and judicial proceedings. The registration of an FIR does not establish criminal liability. Unity Foods FIA Case Begins After SECP Regulatory Inquiry The Corporate Crime Circle of FIA Karachi registered FIR No. FIR-CCC-KHI-15/26 on August 29, 2026, following a referral from the Securities and Exchange Commission of Pakistan. The case names former Chief Executive Officer Muhammad Farrukh Amin Godil, his mother Fehmida Amin, former Chief Financial Officer Jalees Edhi, former director and later CEO Amir Shehzad, and director Safdar Sajjad. The accused have been booked under provisions of the Pakistan Penal Code dealing with criminal breach of trust, cheating, falsification of accounts, abetment and common intention. The investigation follows SECP Inquiry No. 47/2026. FIA Assistant Director Umayad Arshad Butt has been assigned to investigate the allegations. Six Allegations Put Billions of Rupees Under the Microscope According to the FIR, investigators have identified six major areas of concern. The first involves alleged payments of approximately Rs 5.32 billion linked to loans recorded in the name of Fehmida Amin, the former CEO’s mother. The FIA alleges that these transactions lacked appropriate banking instruments and board approvals. The second concerns Unity Foods’ Rs 3.75 billion rights issue launched in February 2019. The company had stated that the funds would finance acquisitions and expansion projects, including its Port Qasim refinery and a proposed oil storage terminal. The FIR alleges that only around Rs 876.6 million could be substantiated, leaving approximately Rs 2.87 billion unexplained. A third allegation involves Rs 2.6 billion allegedly advanced through subsidiary Sunridge Foods to two undisclosed parties. Around Rs 2 billion reportedly remained outstanding and interest-free when the exposure was presented to the Unity Foods board in February 2026. Rs 12.45 Billion Deposit Liens Raise Balance Sheet Concerns Another major allegation concerns Unity Technologies and Unity Plantations, former subsidiaries that the FIA says were transferred without proper due diligence or arm’s-length procedures. The FIR alleges that Unity Foods’ own bank deposits, including approximately Rs 7.25 billion at BankIslami Pakistan and Rs 5.2 billion at Al Baraka Bank Pakistan, were pledged against borrowings associated with a company that Unity Foods no longer owned. This allegation is particularly important for investors because pledged corporate cash can directly affect liquidity and financing risk. The FIA describes the arrangement as a circular movement of funds. Whether that characterization survives detailed investigation will depend on documentary evidence, banking records and the explanations provided by the parties involved. Al-Shaheer Deal Adds Related-Party Questions The FIA has also raised questions about transactions involving Al-Shaheer Corporation. According to the FIR, while Farrukh Godil was Unity Foods’ CEO, an agreement was signed concerning the acquisition of Al-Shaheer shares through several nominees, including individuals connected with Unity Foods’ management. The FIA alleges that approximately Rs 1.1 billion worth of goods were subsequently transferred from Unity Foods to Al-Shaheer without corresponding recovery. Additional expenses were allegedly paid through Sunridge Foods. If substantiated, the allegations could raise significant questions about conflicts of interest, related-party governance and the use of corporate resources. Rs 44.7 Billion Accounting Gap Is the Biggest Red Flag The most consequential allegation in the Unity Foods FIA case concerns the reported Rs 44.7 billion difference between published accounts and SAP records. The FIR refers to alleged fictitious or inadequately supported receivables, an inventory shortfall of around Rs 5.2 billion, approximately Rs 5 billion in aged receivables attributed to Sunridge Mart, delayed sales recognition and inconsistencies in trade-payable reconciliations. The company also reportedly failed to prepare or publish its half-yearly accounts for the period ended December 31, 2025. This is where the case becomes much bigger than an alleged diversion of funds. For investors, audited financial statements are the foundation upon which investment decisions are made. If the investigation ultimately establishes that published accounts materially differed from underlying company records, the issue could extend beyond individual transactions to the credibility of the company’s financial reporting and governance framework. Why the Unity Foods FIA Case Matters to Investors Unity Foods is a significant listed company with exposure to Pakistan’s edible oil and consumer food markets. Its shareholder structure also includes interests associated with Singapore-based agribusiness major Wilmar International. That makes the allegations particularly sensitive for minority shareholders, lenders and the wider Pakistan Stock Exchange. A reported Rs 44.7 billion accounting discrepancy against total assets of roughly Rs 77.5 billion would represent a substantial proportion of the company’s balance sheet. If confirmed, investors would have legitimate questions about historical earnings, assets, liabilities, cash flows and disclosures. The critical issue now is evidence. The FIA must establish where the money went, who authorised the transactions, who benefited, whether disclosures were deliberately withheld and whether financial statements were knowingly falsified. Investigation Could Expand Beyond Five Accused The FIA has indicated that the investigation may examine the roles of additional individuals, including other former officers and directors, the recipients of the alleged Rs 2.6 billion advances, parties involved in the acquisition of former subsidiaries, DJM Securities and statutory auditors. The investigation will also reportedly examine related-party transactions involving Unity Feeds. This means the current FIR may represent only the opening stage of a much broader corporate investigation. For Unity Foods shareholders, the next major developments will be the company’s response to the allegations, FIA investigative actions, potential court

Iran US Strikes Escalate Hormuz Crisis as Larak Island Attack Triggers Retaliation
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Iran US Strikes Escalate Hormuz Crisis as Larak Island Attack Triggers Retaliation

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The latest Iran US strikes have pushed the Middle East conflict into another dangerous phase, with the Strait of Hormuz once again emerging as the biggest economic risk for global energy markets. The United States says it carried out limited and precise strikes against two rocket launchers on Iran’s Larak Island, accusing Iranian forces involved in minelaying of posing an imminent threat to shipping through the strategic waterway. Iran’s Islamic Revolutionary Guard Corps said the attack killed two people and injured two others and vowed retaliation. The location of the attack makes the development particularly significant. Larak Island lies near Bandar Abbas and directly beside the Strait of Hormuz, one of the world’s most important energy corridors. Before the current conflict, roughly one fifth of global oil and liquefied natural gas supplies moved through the strait. Any prolonged disruption could therefore quickly move beyond a military confrontation and become a global inflation and energy security problem. Iranian Retaliation Expands the Regional Battlefield Iran said it responded to the Larak Island attack by targeting US military installations in Jordan. Iranian media reported ballistic missile attacks against the King Hussein and al Azraq bases, while Jordanian authorities said they intercepted eight missiles. Iranian state television also reported that the Iranian army targeted Al Minhad Air Base in the United Arab Emirates with drones. However, the UAE Ministry of Defence rejected the claim that the base had been targeted, while confirming that it had intercepted a drone. These conflicting accounts underline a major problem in the current conflict: battlefield information is increasingly mixed with official propaganda and competing narratives. Iranian President Masoud Pezeshkian said Tehran was not seeking war but would deliver a decisive response to aggression. Iran’s Foreign Ministry described the attack on Larak as American military aggression and characterized its retaliation as legitimate defence. Hormuz Shipping Faces an Even Bigger Economic Threat The most worrying element for businesses is not simply the exchange of missiles. It is the growing pressure on commercial shipping. Iran is reportedly demanding that tanker traffic pass near Larak Island for inspection and has allegedly forced vessels to pay as much as 2 million dollars to cross. If sustained, such measures could increase transportation costs, insurance premiums and delivery times across international energy markets. The United States has also continued its naval blockade of Iran. Centcom recently said its forces had disabled three vessels, boarded two and redirected 82 others. For oil importing economies, including Pakistan, the consequences could become serious if disruption continues. Higher crude prices would increase fuel costs, transport expenses and inflationary pressure at a time when many economies are already vulnerable to external energy shocks. Trump Threats and AI Videos Add to Market Uncertainty US President Donald Trump has also intensified the information battle. Following the Larak attack, he posted apparent AI generated videos on Truth Social depicting oil infrastructure exploding, including an image associated with Iran’s major Kharg Island oil terminal. Such posts can have consequences beyond politics. Financial markets react not only to actual attacks but also to expectations of future supply disruptions. Trump has previously claimed that mines placed in the Strait of Hormuz had been removed or detonated and warned that vessels attempting to deploy new mines would be destroyed. Iran’s Deputy Foreign Minister Kazem Gharibabadi dismissed the claim as propaganda. The credibility gap surrounding such statements makes it increasingly difficult for traders, shipping companies and governments to distinguish between confirmed operational developments and psychological warfare. Iran US Strikes Could Deepen the Global Energy Shock The latest Iran US strikes come after Washington announced another sanctions campaign against Tehran on August 24, expanding pressure on Iran and its economic partners. The conflict began a new and much broader phase after US and Israeli forces launched extensive attacks on Iran on February 28. Iran subsequently attacked Israel, American bases and allied states in the Gulf, while maritime traffic through the Strait of Hormuz was severely disrupted. Now entering its sixth month, the war is no longer merely a regional security crisis. It is becoming a direct threat to global energy supply chains. The immediate question is whether the Larak Island attack remains an isolated US operation or becomes the beginning of another cycle of strikes and retaliation. For global markets, the answer could determine whether the Hormuz crisis produces another temporary oil shock or develops into a prolonged economic disruption.

Guddu Power Plant Rehabilitation Could Cut Electricity Cost by Rs4.19 Per Unit
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Guddu Power Plant Rehabilitation Could Cut Electricity Cost by Rs4.19 Per Unit

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Pakistan is moving to revive one of its underutilized power assets as the Guddu Power Plant rehabilitation project enters a critical procurement phase. The rehabilitation of the fire-damaged Steam Turbine-16 could reduce the plant’s generation cost from Rs13.87 to Rs9.68 per unit, translating into savings of Rs4.19 per unit. The project could also restore an additional 297 MW of generation capacity, taking the plant from its current output of around 450 MW to its original designed capacity of 747 MW. At a time when Pakistan continues to face high electricity costs, circular debt pressures and concerns over expensive generation, the rehabilitation could provide a relatively faster route to improving the economics of existing power infrastructure. Fire-Damaged Steam Turbine Has Kept Guddu Below Its Potential The Guddu plant has been operating in open-cycle mode since July 2022, when Steam Turbine-16 and its associated generator were forced out of service following a fire. The outage has had a significant impact on the plant’s economics. Operating at approximately 450 MW has restricted the facility’s ability to benefit from combined-cycle generation, while its relatively high generation cost has placed it around 11th in the dispatch queue. This raises an important question for policymakers. Why has a major generation asset remained below its designed capacity for more than four years? The answer now appears to be a long-awaited rehabilitation process. Guddu Power Plant Rehabilitation Could Restore 747 MW Capacity Once Steam Turbine-16 is restored, the plant is expected to return to full combined-cycle operation and achieve its designed 747 MW capacity. That would mean an additional 297 MW becoming available without constructing an entirely new power plant. More importantly, the plant’s expected merit-order position could improve from approximately 11th to around 7th. A better position in the dispatch order could allow Guddu to displace more expensive electricity from the national grid. For consumers, this distinction matters. Adding generation capacity alone does not guarantee cheaper electricity. The real benefit comes when additional capacity is available at a competitive generation cost. Procurement Begins as Commissioning Is Targeted for 2028 Following technical studies, engineering reviews and comprehensive integrity assessments, authorities have prepared an EPC turnkey procurement package for the rehabilitation. International competitive bids have now been invited for the restoration of Steam Turbine-16 and associated equipment. Bidders are required to submit their proposals by October 7, 2026. The targeted commissioning date is December 2028. However, the timeline deserves scrutiny. Pakistan’s electricity sector has repeatedly suffered from delays in maintenance, rehabilitation and infrastructure projects. A commissioning target more than two years away means the country could continue carrying the economic cost of underutilized capacity for a considerable period. The government will therefore need to ensure that procurement, contract execution and project supervision remain transparent and strictly time-bound. Guddu Power Plant Rehabilitation Has Strategic Grid Importance The project’s importance extends beyond generation costs. Guddu is positioned at a critical point in Pakistan’s transmission network and the north-south power flow corridor. Restoring its full generation capability could provide the national grid with greater operational flexibility and resilience. The additional 297 MW could also become particularly valuable during periods of high demand, provided the transmission system can efficiently absorb and distribute the additional electricity. Existing Assets May Offer Pakistan a Cheaper Power Solution The Guddu Power Plant rehabilitation highlights a broader issue facing Pakistan’s energy sector. The country does not necessarily need to rely only on new generation projects to address electricity shortages and high costs. There may be significant value locked inside existing plants that are operating below capacity because of technical failures, outdated equipment or delayed maintenance. Rehabilitating such assets can potentially be faster and less capital-intensive than building new generation facilities from scratch. But the government must avoid treating rehabilitation as an end in itself. The real test will be whether Guddu actually delivers the projected Rs4.19 per unit reduction, restores 297 MW of capacity and maintains reliable operations after commissioning. If those targets are achieved, the project could become a strong example of how Pakistan can extract greater value from its existing power infrastructure while putting downward pressure on the cost of electricity.

Pak Suzuki Exports Alto and Every to Brunei in Major Breakthrough for Pakistan Auto Industry
Auto

Pak Suzuki Exports Alto and Every to Brunei in Major Breakthrough for Pakistan Auto Industry

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Pakistan’s auto industry has secured a notable export breakthrough as Pak Suzuki Motor Company begins supplying Suzuki Alto and Every models to Brunei, giving Pakistan a rare opportunity to strengthen its position in the regional automotive supply chain. The development was announced by Suzuki on August 27, with the Japanese automaker describing the launch as the first time it has exported vehicles from an overseas production base that match the body size and engine displacement specifications of Japanese mini-vehicles. For Pakistan, the move is more than another overseas vehicle shipment. It offers evidence that locally assembled Suzuki vehicles can meet the requirements of an international market. However, the real test will be whether this development can develop into sustained exports rather than remaining a limited market initiative. Pak Suzuki Exports Alto and Every to Brunei Suzuki has introduced the Alto and Every in Brunei as part of an expansion of its vehicle lineup in the Southeast Asian market. Boustead, Suzuki’s local partner in Brunei, will also begin handling Suzuki motorcycles, with sales expected to start in autumn 2026. The introduction gives Pak Suzuki exports greater significance because the vehicles are being sourced from Pakistan rather than directly from Japan. The Alto and Every are particularly important because of their compact dimensions and small-engine characteristics. Such vehicles have traditionally been strongly associated with Japan’s domestic mini-vehicle market. Their export from Pakistan therefore highlights the possibility of using Pakistan as a manufacturing and export base for compact automobiles. Can Pak Suzuki Turn One Export Deal Into a Larger Business? The biggest question is whether the Brunei launch can become the beginning of a broader export strategy. Pakistan has a large automotive market, but its industry has historically remained heavily dependent on domestic demand. Local manufacturers have faced challenges involving imported components, foreign exchange shortages, production costs, taxation and inconsistent economic policies. The Brunei development could help demonstrate that Pakistani automotive production has export potential. But one market launch should not be treated as proof that Pakistan has suddenly become a major automobile exporter. For Pak Suzuki, sustained exports would require competitive pricing, reliable production, consistent quality and a dependable supply chain. These factors will determine whether the company can move beyond occasional shipments and establish a meaningful export business. Pak Suzuki Faces a Complicated Domestic History The export development comes against the backdrop of significant difficulties for Pak Suzuki Motor Company. Established in Pakistan in August 1983 as a joint venture between Pakistan Automobile Corporation Limited and Suzuki Motor Corporation of Japan, the company has become one of the country’s most recognizable automobile manufacturers. Pak Suzuki has traditionally maintained a dominant position in Pakistan’s passenger car market and operates an extensive dealership network covering more than 100 cities. However, the company experienced severe operational disruption in 2023 after import restrictions affected the opening of Letters of Credit. Shortages of imported components forced repeated production shutdowns at its automobile and motorcycle plants. These disruptions exposed a major weakness in Pakistan’s automotive model: despite having local assembly operations, manufacturers remain vulnerable to restrictions on imported parts and foreign exchange availability. Pak Suzuki Delisting Raises Bigger Questions Another major development in Pak Suzuki’s recent history was its decision to voluntarily delist from the Pakistan Stock Exchange in 2023. The company cited recurring losses, limited dividend payments and historically weak share performance among the factors behind the decision. This makes the Brunei export development particularly interesting. International sales could provide manufacturers with an additional source of revenue and foreign exchange while reducing excessive dependence on Pakistan’s domestic market. Yet exports alone cannot solve structural problems. Pakistan’s automotive sector still needs deeper localization, stronger supplier capabilities, predictable policies and improved cost competitiveness. Pakistan Auto Industry Needs More Than Headlines The Brunei launch is undoubtedly a positive development for Pak Suzuki exports, but it should also trigger a wider debate about Pakistan’s automobile industry. Pakistan has spent decades building an automotive assembly ecosystem, yet its export footprint remains relatively modest compared with major automobile-producing countries in Asia. The challenge now is to convert isolated export successes into a sustainable strategy. If Pak Suzuki can expand shipments to other markets, increase local value addition and use Pakistan as a competitive production base, the Brunei launch could eventually become an important milestone. For now, however, it is best viewed as a promising signal rather than a transformation of Pakistan’s auto industry. The real success will be measured by what happens after the first shipment. The launch of Suzuki Alto and Every in Brunei represents an important milestone for Pak Suzuki exports and Pakistan’s automotive ambitions. The development demonstrates that vehicles produced by Suzuki’s Pakistani subsidiary can potentially serve markets beyond Pakistan. But the industry must avoid celebrating a single export development as a complete turnaround. Pakistan needs a broader automotive export strategy built around competitive manufacturing, local parts production, policy stability and access to international markets. Without these reforms, individual export successes may remain isolated achievements rather than the foundation of a globally competitive Pakistani automobile industry.

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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