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Haleon Pharma 2QCY26 Earnings Expected To Fall 9% As Volumes Decline And Costs Rise
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Haleon Pharma 2QCY26 Earnings Expected To Fall 9% As Volumes Decline And Costs Rise

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Haleon Pakistan is expected to report weaker earnings for the second quarter of calendar year 2026, with declining sales volumes and rising input costs likely to put pressure on profitability. According to estimates from Optimus Capital, the company’s earnings per share (EPS) is projected at PKR 12.6, representing a 3% decline from the previous quarter and a 9% year-on-year drop. Profit after tax (PAT) is expected to come in at approximately PKR 1.5 billion. The anticipated decline reflects a combination of weaker domestic demand, limited pricing flexibility and higher production and transportation costs. Sales Volumes Expected To Weaken Haleon’s net sales are projected to decline 8% year-on-year during 2QCY26. The expected weakness is largely attributed to an estimated 3% decline in local volumes. The company’s FMCG-focused portfolio has also not received a price increase during the period under review. This leaves Haleon more exposed to changes in consumer demand, particularly at a time when households continue to face pressure from higher living costs. Lack Of Price Increases Adds Pressure Pricing has become an important earnings driver across Pakistan’s pharmaceutical sector. Several pharmaceutical companies have benefited from price increases that helped offset higher input costs and protect margins. Haleon, however, has not enjoyed the same benefit during the quarter because its consumer-health portfolio has remained largely price-static. With volumes expected to decline and prices remaining unchanged, the company has limited room to absorb rising production and distribution expenses. Gross Margin Likely To Compress Haleon’s gross margin is expected to decline by around one percentage point sequentially to 38.2%. Higher active pharmaceutical ingredient (API) costs are expected to be a key factor behind the pressure. Pain-care products are particularly exposed to rising prices of relevant pharmaceutical ingredients. Transportation costs have also increased, adding another layer of pressure to the company’s cost structure. The combination of higher input and logistics expenses could continue to weigh on profitability if pricing remains unchanged. Dividend Expected To Remain At PKR9 Per Share Despite the expected decline in earnings, Optimus Capital projects a quarterly dividend of PKR9 per share. Maintaining the dividend would indicate continued confidence in Haleon’s cash-generation capacity despite weaker quarterly profitability. However, the expected payout also highlights the challenge facing the company: maintaining shareholder distributions while margins are under pressure from rising costs and weaker volumes. Haleon Faces A Different Sector Environment The broader pharmaceutical sector is expected to perform better during the period. Optimus Capital estimates that the pharmaceutical sector could record around a 6% increase in profit after tax, supported by price increases and lower financial charges. Haleon’s position is different because of its consumer-health and FMCG exposure. The company’s lack of pricing gains during the quarter means it is less able to offset cost inflation through higher selling prices. Export Challenges Add To Industry Pressure Pakistan’s pharmaceutical industry is also facing external challenges. Constraints along the Afghan border continue to affect export opportunities for pharmaceutical companies, limiting potential growth from regional markets. For Haleon, however, the immediate concern appears to be domestic demand. A combination of weaker local volumes and higher API and logistics costs could remain a challenge if regional supply-chain pressures persist. API And Logistics Costs Remain Key Risks Haleon’s earnings outlook remains sensitive to movements in raw material and transportation costs. Any further increase in API prices could put additional pressure on gross margins. Higher freight and logistics expenses could have a similar impact, particularly if the company remains unable to pass these costs on to consumers through price increases. This makes cost management increasingly important for protecting profitability in the coming quarters. Volume Recovery Could Be Critical The company’s near-term performance will depend heavily on whether domestic volumes begin to recover. A rebound in consumer demand could provide support to revenue and help improve operating leverage. Selective pricing adjustments could also provide Haleon with greater flexibility to manage future cost increases. Without improvement in either volumes or pricing, however, the company could continue to lag behind pharmaceutical peers benefiting from stronger pricing dynamics. Haleon Earnings Outlook Remains Under Pressure The projected PKR12.6 EPS for 2QCY26 highlights the difficult operating environment facing Haleon. A projected 9% year-on-year earnings decline, an 8% fall in sales and expected gross-margin compression point to continued pressure on the company’s core operations. The expected PKR9 dividend provides some positive news for shareholders, but sustained earnings improvement will ultimately depend on stronger volumes and better control over API and transportation costs. For investors, the key indicators to watch in coming quarters will be domestic demand, pricing flexibility, API prices and logistics costs.

Google Launches Digital Pasban In Pakistan To Improve Online Safety For 200,000 Households
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Google Launches Digital Pasban In Pakistan To Improve Online Safety For 200,000 Households

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Google has launched Digital Pasban in Pakistan, a new initiative aimed at helping 200,000 households improve online safety and develop stronger digital literacy skills. Google.org, the technology company’s philanthropic arm, has committed $500,000 to expand digital citizenship and artificial intelligence safety programmes across Pakistan. The initiative was unveiled at the “Safe Raho with Google” event on Thursday and will provide families with Urdu-language digital safety toolkits, instructional videos and practical training. The programme will reach families through schools, broadcast media, SMS alerts and campaigns conducted with partner organisations. Digital Pasban is being implemented in collaboration with the Pakistan Telecommunication Authority (PTA), with support from the Ministry of Information Technology and Telecommunication, Ministry of Federal Education and Professional Training and Ministry of Inter Provincial Coordination. The initiative is designed to help parents, children and guardians navigate the growing digital environment while understanding common online risks. Digital Pasban Focuses On Four Areas Of Online Safety The programme focuses on four key areas of digital safety and literacy, including parental controls, online safety education for children, responsible AI use and practical training for parents and guardians. Google’s Family Link will allow parents to manage their children’s screen time, approve applications, apply content filters and locate devices. Parents will also be able to use YouTube’s parental controls to manage age-appropriate content and establish healthier viewing habits. These controls include “Take a Break” and “Bedtime” reminders. Parents can also set limits on their children’s use of YouTube Shorts, including reducing Shorts usage to zero. The tools are intended to give parents greater control over their children’s digital activities while encouraging safer and more balanced internet use. Google Introduces Online Safety Programme For Children Digital Pasban will also use Google’s Be Internet Awesome programme for children between the ages of seven and 12. The programme uses interactive learning, including the Interland game, to teach children basic online safety principles. Children will learn about issues such as identifying scams, creating stronger passwords, behaving responsibly online and reporting inappropriate or concerning activity. The initiative aims to make digital safety education easier for younger users to understand by combining practical lessons with interactive activities. Google believes that teaching children responsible online behaviour at an early age can help them develop safer digital habits as internet access expands across Pakistan. Families To Learn About Safe And Responsible AI Use Artificial intelligence is another major component of Digital Pasban. The programme will introduce families to Google’s Gemini AI as a tool for responsible artificial intelligence use. Google said safeguards designed for minors restrict harmful role-play and inappropriate content. Gemini’s Guided Learning feature is also intended to help students understand difficult subjects through step-by-step explanations, questions and visual aids. The focus on AI safety comes as generative AI tools become increasingly accessible to students and families. Digital Pasban aims to help parents understand how AI tools can be used constructively while also encouraging them to remain aware of potential risks associated with online and AI-powered services. Parent Safety Clinics To Provide Practical Training The initiative will also organise safety clinics for parents and guardians. These sessions will provide hands-on guidance on digital safety and allow families to practise responding to common online risks. PTA Chairman Major General (Retired) Hafeez Ur Rehman said the programme would contribute towards creating a safer digital environment for children and families. He highlighted the importance of practical tools, localised resources and engagement through schools. Google’s Cluster Director for Pakistan, the Philippines, Thailand and Frontier Markets, Farhan Qureshi, said the initiative was designed to help families benefit from the country’s expanding digital ecosystem while keeping children safer online. The company said Digital Pasban builds on its previous digital education and safety initiatives in Pakistan. Google Expands Digital Literacy Efforts In Pakistan Google said its Digital Safar programme has already trained more than 300,000 students and 5,000 educators in digital citizenship. The company has also partnered with Punjab’s Ministry of Education to introduce Google for Education and AI-powered learning and safety resources to 1.5 million students. The latest initiative expands those efforts by bringing digital safety resources directly to families and parents. With the internet, social media platforms and AI tools becoming increasingly important in education and everyday life, the Digital Pasban programme seeks to improve awareness of online risks while helping Pakistani families use digital technology more responsibly. The $500,000 Google.org commitment is expected to support the expansion of digital citizenship and AI-safety programmes, while the involvement of government institutions and schools could help the initiative reach a wider audience. The programme’s focus on Urdu-language resources, school engagement and practical parent training is intended to make online safety guidance more accessible to families across Pakistan.

$10 Billion US Facility Is Not a Loan, Says Finance Minister Aurangzeb
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$10 Billion US Facility Is Not a Loan, Says Finance Minister Aurangzeb

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Pakistan’s Finance Minister Muhammad Aurangzeb has clarified that the proposed $10 billion facility from the United States is not a loan or conventional credit line. According to the minister, the facility is being pursued primarily as a signal of currency and exchange-rate stability. Such a signal could help improve market confidence and enable Pakistan to raise longer-term financing from international capital markets on more favourable terms. The proposed arrangement is being discussed with the US Treasury’s Exchange Stabilisation Fund, with Pakistan expecting a response by the end of September. US Facility Aims to Strengthen Market Confidence Aurangzeb said the proposed facility should not be viewed as additional borrowing for Pakistan. Instead, its purpose is to provide a confidence signal that could support the rupee and foreign-exchange market while helping Pakistan regain stronger access to international debt markets. The government hopes that greater confidence in Pakistan’s currency stability will allow the country to raise financing directly from global investors rather than relying heavily on short-term bilateral arrangements. This would represent a shift in Pakistan’s external financing strategy. Pakistan Seeks to Replace Short-Term Bilateral Loans Pakistan currently has around $12.3 billion in short-term debt owed to Saudi Arabia, China and Kuwait. These arrangements require regular rollovers, creating recurring refinancing pressure for the country. Aurangzeb acknowledged the importance of bilateral partners that have supported Pakistan over the past decade but said the government does not want to continue increasing its dependence on short-term bilateral external debt. Moving toward longer-maturity, market-based financing could give Pakistan greater flexibility in managing its external obligations. It could also reduce the frequency with which the country needs to seek extensions or rollovers from bilateral lenders. Talks Under Way With US Financial Institutions Pakistan is also holding discussions with the US Export-Import Bank and the Development Finance Corporation. These talks form part of a broader effort to strengthen Pakistan-US financial and economic cooperation. The government appears to be pursuing several channels simultaneously rather than relying exclusively on the proposed Exchange Stabilisation Fund facility. If successful, these arrangements could support investment and financing opportunities while strengthening confidence among international investors. Pakistan Plans Eurobonds and Other Long-Term Debt The government has already appointed three consortiums to work on potential international debt offerings, including Eurobonds, sukuk and dollar-settled rupee bonds. Pakistan is considering bonds with maturities of five, seven and 10 years, depending on market conditions. The strategy reflects the government’s intention to move toward longer-term market financing and away from repeated short-term borrowing. However, Pakistan’s ability to raise funds at competitive rates will ultimately depend on investor confidence, global interest rates, domestic economic stability and the country’s creditworthiness. Credit Rating Still Below Investment Grade Pakistan recently received an upgrade to a B credit rating, but the country remains below investment-grade status. This means international borrowing is likely to remain relatively expensive compared with financing available to higher-rated sovereign borrowers. The government will therefore need to demonstrate sustained improvements in fiscal management, external balances, reserves and economic stability if it wants to secure cheaper long-term financing. Pakistan also raised a $250 million Panda bond during the previous fiscal year with guarantees from the Asian Development Bank and Asian Infrastructure Investment Bank. The transaction provided an example of how external guarantees can help Pakistan access international capital markets despite its below-investment-grade rating. Why the US Facility Matters for Pakistan Although the proposed $10 billion facility is not being described as a loan, its potential importance for Pakistan’s economy could still be substantial. A credible stability signal from the United States could help improve investor confidence and support Pakistan’s efforts to return more consistently to international capital markets. For a country facing recurring external financing requirements, access to longer-term market debt could reduce the pressure created by frequent short-term loan rollovers. It could also provide the government with greater flexibility in managing its external liabilities. However, the facility itself would not solve Pakistan’s underlying financing challenges. Long-term improvement will still depend on stronger exports, sustainable foreign-exchange earnings, fiscal discipline and a reduction in the country’s recurring external financing needs. Government Launches Simplified Tax Scheme for Small Traders Aurangzeb made the remarks after launching a simplified tax scheme for small traders. Under the new arrangement, eligible traders will pay 1% tax on annual sales or a minimum of Rs25,000, depending on the applicable calculation. The scheme also provides exemptions from audits and from being classified as withholding agents. The government is presenting the simplified framework as an effort to bring more small businesses into the formal tax system while reducing compliance burdens. Pakistan’s Financing Strategy Is Changing The proposed US facility is part of a broader shift in Pakistan’s approach to external financing. Rather than continuously depending on short-term bilateral loans, the government wants to establish greater access to long-term market-based financing. That transition could improve debt-management flexibility, but it also comes with greater exposure to international market conditions. Investors will closely monitor whether Pakistan can maintain macroeconomic stability and improve its credit profile enough to borrow at sustainable rates. The proposed US facility, therefore, should be viewed less as a direct injection of $10 billion and more as an attempt to create the conditions required for Pakistan to access significantly larger pools of international capital. The Real Test Will Be Market Access Finance Minister Aurangzeb’s clarification removes the impression that Pakistan is seeking another $10 billion conventional loan from Washington. The government instead wants the proposed facility to signal currency and exchange-rate stability, strengthen investor confidence and help unlock longer-term borrowing from global markets. The strategy could reduce Pakistan’s reliance on frequently rolled-over bilateral debt and provide a more sustainable financing structure. But the success of the plan will ultimately depend on whether international investors believe Pakistan can maintain economic stability without repeatedly turning to emergency financing. For Pakistan, the real objective is therefore not simply securing a US-backed stability signal. It is using that confidence to build lasting access to international capital markets on sustainable terms.

Despite Govt's Big Claims, FDI Inflows Fall 20% to $178.6 Million in July FY27
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Despite Govt’s Big Claims, FDI Inflows Fall 20% to $178.6 Million in July FY27

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Pakistan’s net Foreign Direct Investment (FDI) fell 20.1% year-on-year to $178.6 million in July FY27, highlighting continued challenges in attracting long-term foreign capital despite the government’s efforts to promote investment. According to State Bank of Pakistan data, net FDI stood at $223.5 million in July FY26. The latest decline reflects weaker gross inflows alongside higher capital outflows. Gross FDI Inflows Decline Gross FDI inflows dropped 8.8% to $304 million in July FY27, compared with $333.5 million during the same month last year. At the same time, capital outflows increased 13.9% to $125.4 million, up from $110.1 million in July FY26. The combination of lower inflows and higher outflows resulted in the significant decline in net FDI. Portfolio Investment Provides Some Support While direct investment weakened, Pakistan saw improvement in portfolio investment. Foreign private investment increased 3.8% to $197 million, supported largely by a strong recovery in portfolio equity securities. Portfolio equity investment recorded a net inflow of $18.4 million, compared with a net outflow of $33.8 million in July FY26. This represents a 154.4% year-on-year improvement. The recovery suggests that foreign investors showed greater interest in Pakistan’s financial markets, even as long-term direct investment remained under pressure. Foreign Public Investment Turns Positive Foreign public investment also recorded a positive trend. The sector registered a net inflow of $7.5 million in July FY27, compared with a net outflow of $10.8 million during the same period last year. This represents a 169.4% year-on-year improvement. Supported by stronger portfolio and public investment flows, total foreign investment in Pakistan increased 14.3% to $204.5 million, compared with $178.9 million in July FY26. FY26 FDI Remains Under Pressure The broader trend remains challenging. Pakistan’s net FDI during FY26 stood at $1.672 billion, down 32.5% from $2.477 billion in FY25. The latest annual figure was also below the $2.347 billion recorded in FY24, indicating that Pakistan has yet to regain the stronger levels of direct investment seen previously. Long-Term Investment Remains the Key Challenge The July figures present a mixed picture for Pakistan’s external investment position. While portfolio investment and foreign public investment improved, the 20.1% decline in FDI points to continued difficulties in attracting stable, long-term capital. For policymakers, the challenge is not simply increasing headline investment numbers but creating conditions that encourage foreign companies to establish and expand long-term operations in Pakistan. Improved policy consistency, regulatory certainty, infrastructure, energy availability and investor confidence will remain important factors in determining whether FDI can recover in the coming months.

Petrol Price Rises Rs5.77, HSD Rs6.47 As New Rates Take Effect
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Petrol Price Rises Rs5.77, HSD Rs6.47 As New Rates Take Effect

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The government has increased the petrol price by Rs5.77 per litre and the price of high-speed diesel (HSD) by Rs6.47 per litre, raising fuel costs for consumers and businesses across Pakistan. Following the latest revision, petrol will be sold at Rs331.20 per litre, while HSD will cost Rs390.42 per litre. The new prices are effective from August 18, 2026, according to a notification issued by the Petroleum Division. The government continues to collect Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel, adding significantly to the overall cost paid by consumers. The latest increase comes amid continued volatility in international oil markets and renewed tensions in the Middle East, which have disrupted global energy supply routes and increased uncertainty over crude oil prices. Petrol Price Increases To Rs331.20 Per Litre The petrol price has increased by Rs5.77, moving from Rs325.43 to Rs331.20 per litre. Petrol is primarily used by private vehicles, motorcycles, rickshaws and other small vehicles. As a result, increases in petrol prices directly affect household transportation expenses, particularly for middle- and lower-middle-income consumers. Higher petrol prices can also increase the cost of transportation services and put additional pressure on businesses that depend on road-based mobility. The latest rate remains significantly below the record high reached earlier this year. Petrol had climbed to Rs458.41 per litre on April 3, after beginning an upward trend from around Rs266 per litre during the first week of March. Although prices have subsequently declined from those peaks, the latest increase reflects renewed pressure from international market conditions. HSD Price Rises To Rs390.42 The government has increased the price of high-speed diesel by Rs6.47 per litre, taking it to Rs390.42 per litre. Diesel plays a critical role in Pakistan’s economy because it powers heavy transport, agricultural machinery, power plants and large generators. An increase in HSD prices can therefore have a broader impact on the economy than petrol price increases. Higher diesel costs can raise transportation expenses and increase the cost of moving agricultural and industrial goods across the country. The HSD price is still well below its record level of Rs520.35 per litre, recorded on April 3. According to the available price history, HSD had started increasing from around Rs281 per litre after the US-Iran conflict began on February 28. Govt Moves Toward Daily Fuel Pricing The latest price revision comes after Petroleum Minister Ali Pervaiz Malik announced that the government would move toward daily fuel price adjustments because of fluctuations in international petroleum prices. Under the new mechanism, the Oil and Gas Regulatory Authority (OGRA) has been given responsibility for determining fuel prices on a daily basis based on movements in international markets. Previously, the government had been announcing fuel price revisions on a weekly basis. The weekly system had been introduced alongside fuel conservation measures amid concerns over possible disruptions to global oil supplies caused by the conflict in the Middle East. The shift to daily pricing is intended to allow domestic fuel prices to respond more quickly to changes in international crude oil and petroleum product prices. However, the All Pakistan Dealers Association has opposed the daily pricing mechanism and said it would consider a protest plan. Fuel Prices Affect Consumers And Businesses Changes in petroleum prices have a direct impact on consumers as well as businesses. Petrol is widely used for private transportation, motorcycles, rickshaws and small vehicles. A rise in petrol prices therefore increases daily commuting costs for millions of people. Diesel is particularly important for the transportation and industrial sectors. Heavy trucks and other commercial vehicles depend heavily on HSD, meaning an increase in diesel prices can raise freight costs. Higher transportation expenses can eventually affect the prices of food, consumer goods and other products because businesses may pass increased logistics costs on to customers. The impact can also extend to electricity generation in areas where diesel-powered generators are used. Petrol And Diesel Remain Major Revenue Sources Petrol and HSD remain among the government’s largest petroleum revenue sources because of their high consumption levels. Monthly sales of petrol and HSD are estimated at around 700,000 to 800,000 tonnes, compared with monthly kerosene demand of only around 10,000 tonnes. The large consumption base means changes in petroleum taxes and prices can have a substantial effect on government revenues. At the same time, higher fuel prices can increase inflationary pressure and raise transportation costs for households and businesses. The government therefore faces a difficult balance between maintaining petroleum revenues, responding to international market movements and limiting the impact of higher fuel costs on consumers. With the new rates effective from August 18, petrol will now cost Rs331.20 per litre, while HSD will be available at Rs390.42 per litre. Further changes will depend on international oil prices, global supply conditions and the government’s daily pricing mechanism.

Karachi Police Tighten Security Rules for Non-CPEC Projects Amid Rising Threats
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Karachi Police Tighten Security Rules for Non-CPEC Projects Amid Rising Threats

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Karachi police have introduced stricter security requirements for non-CPEC projects operating in Malir, particularly those involving Chinese nationals and other foreign personnel. The new measures reflect growing concerns over the security arrangements at foreign-linked industrial and infrastructure projects and place additional responsibilities on project operators to strengthen protection and coordination with law enforcement. Stricter Security Measures for Foreign-Linked Projects The directives, issued by Sub Divisional Police Officer Sukhan Ghulam Ahmed Sheikh on June 8, require projects to revise their existing security arrangements. Private security guards are to be replaced with ex-servicemen equipped with advanced weapons. Security personnel will also be required to carry walkie-talkies, while the use of mobile phones during duty hours has been prohibited. The authorities have also instructed project management to nominate a focal person who will remain responsible for coordination with the police and other law-enforcement agencies. Tighter Restrictions on Movement of Chinese Nationals Movement of Chinese nationals and other foreign personnel connected with the projects will now require at least eight hours’ advance notification to designated officials, including the China Desk and relevant police stations. Foreign nationals must travel in bulletproof vehicles accompanied by a Special Protection Unit squad. The directives further prohibit late-night movement and require personnel to follow approved travel routes without deviation. Projects Face Tougher Site Security Requirements The new protocols also establish specific physical security standards for project sites. These include the installation of vehicle scanners at entry and exit points, construction of boundary walls measuring 12 feet and topped with barbed wire, and installation of CCTV cameras with a minimum resolution of five megapixels. The CCTV systems must maintain recordings for at least 30 days, allowing authorities to review footage when required. Project operators have also been instructed to comply with the revised standard operating procedures issued in September 2024. Security Concerns Could Affect Investor Confidence The tighter requirements highlight the security challenges facing foreign-linked businesses operating outside the formal China-Pakistan Economic Corridor framework. According to the concerns outlined in the source material, persistent security risks can influence how international investors assess Pakistan as a destination for long-term industrial investment. Foreign companies may also face difficulties bringing technical experts and personnel to project sites when travel advisories or security restrictions are in place. Security Challenges Could Weigh on Export Growth Security concerns can extend beyond investment decisions and affect Pakistan’s export ambitions. International buyers may be cautious about relying on supply chains where security risks could potentially disrupt manufacturing, transportation or shipments. For export-oriented projects, this can become particularly important because industrial investments generally require sustained operations and long-term participation from international partners. Reliable Security Remains Critical for Industrial Investment The latest measures demonstrate the importance of maintaining a secure operating environment for foreign-linked projects in Karachi. While stronger security protocols can provide additional protection, the broader challenge is to create conditions in which international companies can operate with confidence over the long term. A sustained improvement in the security environment would help support investor confidence, facilitate foreign technical participation and strengthen Pakistan’s prospects for attracting export-oriented industrial investment.

Goods Transporters Suspend Nationwide Strike for 40 Days After Government Assurances
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Goods Transporters Suspend Nationwide Strike for 40 Days After Government Assurances

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Pakistan’s goods transportation network is set to return to normal after transporters agreed to put their nationwide wheel-jam strike on hold for 40 days following negotiations with federal and provincial authorities. The decision came after nine days of disruption that affected the movement of imports, exports and essential supplies. Transporters had been pressing the government to address several issues, including axle-load regulations, fuel pricing, taxes and other operational concerns. Transporters Resume Operations After Government Talks The agreement was reached during a meeting at the Governor House in Karachi chaired by Sindh Governor Syed Mohammad Nihal Hashmi. Federal Communications Minister Abdul Aleem Khan, Sindh Labour Minister Saeed Ghani, Punjab Transport Minister Bilal Akbar, Karachi Mayor Murtaza Wahab and senior officials attended the negotiations. The transporters’ delegation was led by All Pakistan Goods Transport Ittehad President Malik Shahzad Awan. Following the discussions, the transporters agreed to suspend the strike and allow freight operations to resume. 40-Day Suspension Gives Government Time to Act The agreement does not represent a permanent settlement of all disputes. Transporters have given the government a 40-day window to make progress on their outstanding demands. Some matters have reportedly been addressed immediately, while issues requiring cabinet-level approval are expected to be considered within 15 to 20 days. Transporters have also indicated that they could reconsider the strike if the commitments made during negotiations are not implemented. Fuel Pricing Remains a Major Concern One of the industry’s central demands involves the government’s mechanism for determining petrol and diesel prices. Transporters have objected to frequent fuel price adjustments and have sought a more predictable system. The government has requested additional time to examine the issue, with discussions expected to continue between the relevant committees and industry representatives. For freight operators, fuel costs have a direct impact on transportation charges and ultimately influence the cost of moving goods across the country. Axle-Load Rules Also Under Discussion The axle-load regime remains another important issue for the transport industry. Transporters have sought clarity and implementation of weight limits in a way that does not undermine the economics of freight operations. Government representatives have given assurances regarding the enforcement of permissible weight limits, including concerns involving 10-wheel vehicles. The issue is particularly significant because changes in permissible cargo loads can affect the number of trips required to move goods and increase transportation costs. Toll Taxes and Parking Issues To Be Reviewed The negotiations also covered toll charges and parking facilities for heavy vehicles. A committee is expected to examine the transporters’ concerns regarding toll taxes, while the Sindh government has committed to addressing parking-related problems. The discussions are particularly relevant for Karachi, a major centre for Pakistan’s port, industrial and commercial activity. Better parking and freight-handling arrangements could also help reduce congestion and improve the efficiency of cargo movement. Nine-Day Strike Disrupted Supply Chains The suspension comes after a prolonged strike that disrupted Pakistan’s freight network for nine days. According to the transporters, the stoppage caused economic losses exceeding Rs50 billion while affecting the movement of imports, exports and essential commodities. Their demands included changes to the axle-load regime, customs rules, withholding tax arrangements and fuel pricing. The resumption of transportation should allow businesses to begin clearing accumulated cargo and restore disrupted supply chains. Government Faces Test of Delivering on Commitments The 40-day deferment provides temporary relief to businesses and consumers, but the underlying disagreements have not completely disappeared. The government’s ability to deliver on its assurances will determine whether the latest agreement develops into a lasting settlement. Failure to make meaningful progress could revive the threat of another nationwide transport disruption. For Pakistan’s economy, maintaining an uninterrupted freight network is particularly important because road transport connects ports, factories, markets and distribution centres across the country. Transport Sector Seeks Long-Term Solution The latest agreement offers both sides an opportunity to move beyond repeated cycles of strikes and negotiations. A durable solution would require clear rules on vehicle weights, predictable fuel costs, reasonable taxation and improved infrastructure. For transporters, these measures could provide greater certainty over operating expenses, while businesses could benefit from a more reliable logistics network. The 40-day period will therefore be closely watched to see whether the government’s assurances translate into concrete policy measures or merely provide a temporary pause in the dispute.

# Pakistan Seeks 50% Cut In Iran Gas Price To Revive IP Pipeline Pakistan has asked Iran to reduce the price of gas supplied through the long-delayed Iran-Pakistan (IP) pipeline by as much as 50 percent, as Islamabad seeks to make the project commercially viable. The government is also seeking lower contracted gas volumes, citing limited demand from power producers, fertiliser manufacturers and other industries for expensive imported gas. ## Pakistan Proposes Lower Gas Pricing Formula Pakistan currently estimates the price of gas under the existing IP pipeline formula at around $10.6 per mmBtu, based on an oil price of $80 per barrel. An additional $1.25 per mmBtu would be required for transportation from Hub to Nawabshah. The government believes power producers cannot economically absorb imported gas priced above Rs2,000 per mmBtu, making this level the proposed commercial benchmark for the project. Islamabad has therefore proposed a new pricing structure calculated at 6.11 percent of Brent crude plus $1. Under the proposed formula, IP gas would cost approximately $4.67 per mmBtu at a Brent price of $60, $5.28 at $70 and $5.89 at $80. ## Proposed IP Gas Could Undercut LNG The proposed pricing would make Iranian gas significantly cheaper than LNG available under Pakistan's existing long-term arrangements. At the same Brent price scenarios, LNG under Pakistan State Oil's second long-term agreement would cost around $7.14, $8.16 and $9.18 per mmBtu respectively. This pricing gap is central to Pakistan's argument that the IP pipeline could become commercially attractive if Iran agrees to a substantial reduction. Domestic gas is currently supplied to fertiliser plants at around Rs1,500 per mmBtu and to domestic consumers at approximately Rs1,000 per mmBtu. These price differences make expensive imported gas difficult for several sectors to absorb. ## Pakistan Also Wants Lower Gas Volumes Alongside the price reduction, Islamabad wants to revise the contracted volume of gas under the project. The IP pipeline was originally designed to transport around 750 million cubic feet per day. Pakistan now believes this volume is too high given existing demand conditions and its limited capacity to absorb additional imported gas. The country must also honour existing LNG commitments, including long-term supplies from Qatar. Increasing gas imports without sufficient domestic demand could therefore create additional financial pressure. ## US Sanctions Waiver Remains Critical A major obstacle remains the sanctions regime affecting Iran. Pakistan has indicated that it is prepared to move forward with the project only if the United States provides a sanctions waiver allowing the pipeline project to proceed. Pakistan and Iran originally signed the framework for the pipeline in 2009. However, US sanctions against Iran prevented construction from progressing on the Pakistani side and eventually contributed to arbitration proceedings. Islamabad is now hoping that any broader understanding between Washington and Tehran could create room for the project to move ahead. ## $2.5 Billion Project Faces Commercial Test The IP pipeline is estimated to require around $2.5 billion in investment and has faced delays for years. The latest pricing proposal reflects Pakistan's attempt to address the project's fundamental commercial challenge: whether local industries will actually purchase the imported gas. Officials maintain that without a substantial reduction in both price and contracted volume, power producers, fertiliser manufacturers and other potential consumers are unlikely to take the gas. ## Pakistan Seeks Cheaper Alternative To LNG The proposal comes as Pakistan continues to manage the financial and operational challenges associated with imported LNG. Domestic exploration companies have already faced gas curtailments as authorities seek to accommodate costly LNG supplies. Bringing additional imported gas into the system at an uncompetitive price could further complicate the situation. A substantially cheaper Iranian gas supply could therefore provide Pakistan with another source of energy while potentially reducing reliance on expensive LNG. However, the project's revival will depend on more than pricing. A US sanctions waiver, agreement with Iran on the proposed formula, revised volumes and sufficient domestic demand will all be critical to determining whether the IP pipeline can finally become operational. ### SEO Optimized Keywords Iran-Pakistan gas pipeline, IP pipeline price cut, Pakistan Iran energy deal, Iran gas price Pakistan, IP pipeline Pakistan, Iranian gas imports, Pakistan LNG prices, Pakistan energy crisis, Iran Pakistan pipeline 2026, US sanctions waiver Iran Pakistan pipeline #### Focus Key Phrase Iran-Pakistan Gas Pipeline #### Meta Description Pakistan seeks up to a 50% cut in Iran gas prices and lower IP pipeline volumes, proposing cheaper gas than LNG while awaiting a US sanctions waiver.
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Pakistan Seeks 50% Cut In Iran Gas Price To Revive IP Pipeline

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Pakistan has asked Iran to reduce the price of gas supplied through the long-delayed Iran-Pakistan (IP) pipeline by as much as 50 percent, as Islamabad seeks to make the project commercially viable. The government is also seeking lower contracted gas volumes, citing limited demand from power producers, fertiliser manufacturers and other industries for expensive imported gas. Pakistan Proposes Lower Gas Pricing Formula Pakistan currently estimates the price of gas under the existing IP pipeline formula at around $10.6 per mmBtu, based on an oil price of $80 per barrel. An additional $1.25 per mmBtu would be required for transportation from Hub to Nawabshah. The government believes power producers cannot economically absorb imported gas priced above Rs2,000 per mmBtu, making this level the proposed commercial benchmark for the project. Islamabad has therefore proposed a new pricing structure calculated at 6.11 percent of Brent crude plus $1. Under the proposed formula, IP gas would cost approximately $4.67 per mmBtu at a Brent price of $60, $5.28 at $70 and $5.89 at $80. Proposed IP Gas Could Undercut LNG The proposed pricing would make Iranian gas significantly cheaper than LNG available under Pakistan’s existing long-term arrangements. At the same Brent price scenarios, LNG under Pakistan State Oil’s second long-term agreement would cost around $7.14, $8.16 and $9.18 per mmBtu respectively. This pricing gap is central to Pakistan’s argument that the IP pipeline could become commercially attractive if Iran agrees to a substantial reduction. Domestic gas is currently supplied to fertiliser plants at around Rs1,500 per mmBtu and to domestic consumers at approximately Rs1,000 per mmBtu. These price differences make expensive imported gas difficult for several sectors to absorb. Pakistan Also Wants Lower Gas Volumes Alongside the price reduction, Islamabad wants to revise the contracted volume of gas under the project. The IP pipeline was originally designed to transport around 750 million cubic feet per day. Pakistan now believes this volume is too high given existing demand conditions and its limited capacity to absorb additional imported gas. The country must also honour existing LNG commitments, including long-term supplies from Qatar. Increasing gas imports without sufficient domestic demand could therefore create additional financial pressure. US Sanctions Waiver Remains Critical A major obstacle remains the sanctions regime affecting Iran. Pakistan has indicated that it is prepared to move forward with the project only if the United States provides a sanctions waiver allowing the pipeline project to proceed. Pakistan and Iran originally signed the framework for the pipeline in 2009. However, US sanctions against Iran prevented construction from progressing on the Pakistani side and eventually contributed to arbitration proceedings. Islamabad is now hoping that any broader understanding between Washington and Tehran could create room for the project to move ahead. $2.5 Billion Project Faces Commercial Test The IP pipeline is estimated to require around $2.5 billion in investment and has faced delays for years. The latest pricing proposal reflects Pakistan’s attempt to address the project’s fundamental commercial challenge: whether local industries will actually purchase the imported gas. Officials maintain that without a substantial reduction in both price and contracted volume, power producers, fertiliser manufacturers and other potential consumers are unlikely to take the gas. Pakistan Seeks Cheaper Alternative To LNG The proposal comes as Pakistan continues to manage the financial and operational challenges associated with imported LNG. Domestic exploration companies have already faced gas curtailments as authorities seek to accommodate costly LNG supplies. Bringing additional imported gas into the system at an uncompetitive price could further complicate the situation. A substantially cheaper Iranian gas supply could therefore provide Pakistan with another source of energy while potentially reducing reliance on expensive LNG. However, the project’s revival will depend on more than pricing. A US sanctions waiver, agreement with Iran on the proposed formula, revised volumes and sufficient domestic demand will all be critical to determining whether the IP pipeline can finally become operational.

Pakistan Debt Growth Drops to 7.7 Percent, Two Decade Low in FY26
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Pakistan Debt Growth Drops to 7.7 Percent, Two Decade Low in FY26

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Pakistan debt growth has slowed to its lowest level in nearly two decades, according to financial analyst Khurram Schehzad, who highlighted a series of debt and fiscal indicators pointing toward an improving debt profile. According to the figures shared by Schehzad, Pakistan debt growth stood at 7.7 percent during FY26, significantly below the approximately 16 percent average recorded over the previous 20 years. The slowdown is important because rapid debt accumulation has remained one of Pakistan’s most persistent economic weaknesses, particularly when borrowing has increased faster than the country’s ability to generate revenues and foreign exchange. The debt to GDP ratio has also improved, falling to 68.3 percent in FY26 from 75 percent in FY23. It had reached exceptionally high levels of around 86 percent to 88 percent during FY19 to FY21. However, the improvement should not be interpreted as a complete victory over Pakistan’s debt problem. A lower debt ratio can reflect stronger nominal economic growth as well as slower borrowing, meaning the government still needs sustained fiscal discipline to prevent the trend from reversing. Pakistan External Debt Exposure Reaches Nine Year Low One of the more significant developments is the decline in external debt exposure. External debt as a percentage of GDP fell to 21.5 percent in FY26, its lowest level in nine years, compared with around 31 percent during FY19 to FY21. The shift reduces Pakistan’s vulnerability to sudden exchange rate movements because foreign currency debt becomes more expensive in rupee terms whenever the Pakistani currency depreciates. Foreign exchange reserves have also strengthened considerably. State Bank of Pakistan reserves reportedly increased more than six times from 2.9 billion dollars in mid FY23 to 18.4 billion dollars in FY26. Import coverage consequently improved from roughly 2.4 weeks to nearly three months. That improvement provides Pakistan with a stronger external buffer, although reserve adequacy remains critical because the country continues to face substantial external financing and import requirements. Pakistan Debt Growth Shifts Toward Domestic Borrowing The composition of public debt has changed as well. Foreign debt accounted for approximately 31 percent of total public debt in FY26, compared with 37 percent to 38 percent during FY19 to FY23. Pakistan’s domestic and foreign debt mix now stands at roughly 69 to 31, indicating a greater reliance on domestic financing and comparatively lower exposure to foreign currency risk. The government also reportedly retired Rs4.72 trillion in debt before maturity. At the same time, the average maturity of domestic debt increased from approximately 2.8 years to more than 3.8 years. Longer maturities can reduce refinancing pressure because the government does not need to roll over large amounts of debt as frequently. This is particularly important for Pakistan, where refinancing requirements have historically placed enormous pressure on public finances. Debt Servicing Costs Show Major Improvement Perhaps the most striking development is the reported reduction in interest expenses. Pakistan’s interest expense declined from approximately Rs8.9 trillion to Rs6.9 trillion, representing a reduction of nearly Rs2 trillion in one year. Interest payments as a share of combined federal and provincial revenues also fell sharply from 61 percent in FY24 to 35 percent in FY26. This improvement could provide the government with greater fiscal space for development spending and essential public services. However, the sustainability of this trend will depend heavily on interest rates, borrowing requirements and the government’s ability to maintain primary fiscal surpluses. Pakistan has reportedly recorded three consecutive primary surpluses, while tax revenues grew by 11 percent in FY26 compared with Pakistan debt growth of 7.7 percent. Market Access Returns but Risks Remain Pakistan has also returned to international capital markets after a four year gap through Eurobond and Panda Bond issuances. The Panda Bond reportedly attracted demand equal to around five times the amount offered, highlighting renewed investor interest in Pakistan’s credit story. S&P also upgraded Pakistan’s sovereign rating to B with a Stable outlook, described by Schehzad as the country’s strongest S&P sovereign rating in around nine years. These developments suggest that Pakistan’s financial position has improved from the severe stress witnessed during the country’s recent balance of payments crisis. Yet the biggest test is whether these gains can survive without repeated external assistance. Slower Pakistan debt growth, stronger reserves and lower debt servicing costs are encouraging, but they do not eliminate structural weaknesses such as a narrow tax base, high government borrowing needs and vulnerability to external shocks. The latest figures therefore represent an important improvement, but not the end of Pakistan’s debt crisis. The real measure of success will be whether the government can convert temporary stabilization into long term fiscal discipline, stronger exports and sustainable economic growth.

PSX Extends Bullish Run as KSE-100 Surges Over 1,100 Points
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PSX Extends Bullish Run as KSE-100 Surges Over 1,100 Points

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Pakistan’s equity market continued its strong upward run as the Pakistan Stock Exchange (PSX) attracted fresh buying interest, pushing the benchmark KSE-100 Index higher by more than 1,100 points. The latest rally reflects improving investor confidence and renewed appetite for equities after a period of uncertainty. The move also highlights how quickly market sentiment can improve when concerns surrounding regional tensions and Pakistan’s economic outlook begin to ease. KSE-100 Index Gains Momentum The KSE-100 Index maintained a positive trajectory during the trading session, with buying activity strengthening across major index-heavy stocks. The benchmark remained firmly in positive territory as investors continued to take positions in leading companies. The latest advance adds to the broader recovery witnessed at the PSX in recent months. Earlier in May, the KSE-100 had also gained nearly 1,100 points as easing US-Iran tensions helped restore confidence in risk assets. The continued upward movement suggests that investors are increasingly willing to look beyond short-term volatility and focus on improving domestic fundamentals. Investor Confidence Supports Market Rally One of the key factors behind the market’s strength has been improving sentiment among local investors. Expectations of greater economic stability, relatively attractive equity valuations and optimism surrounding corporate earnings have encouraged fresh buying. The PSX has also benefited from periods of reduced geopolitical pressure. In June, the KSE-100 posted several strong sessions as easing concerns in the Middle East triggered broad-based buying in heavyweight sectors. On June 25, for example, the index gained 1,878 points and moved close to the 180,000-point level. This shows that geopolitical developments remain an important driver for Pakistan’s equity market, particularly because changes in global oil prices and regional stability can directly affect the country’s external account and investor sentiment. Blue-Chip Stocks Remain in Focus Large-cap companies continue to play an important role in determining the direction of the KSE-100. Banking, energy, fertilizer and other major sectors carry significant weight in the benchmark, meaning strong buying in these areas can quickly lift the overall index. Recent market sessions have demonstrated this trend, with heavyweight stocks such as banks and energy companies contributing substantially to index gains. For investors, this also means that the headline index movement does not necessarily represent equal gains across the market. While major index constituents may attract strong institutional buying, smaller stocks can experience very different price movements. Broader Market Outlook The latest rally strengthens the bullish narrative surrounding the PSX, but investors are likely to remain cautious about the risks that could interrupt the recovery. International oil prices, developments in the Middle East, domestic interest rates, inflation and Pakistan’s external financing position will remain important factors for the market. Any major deterioration in these areas could trigger profit-taking after the recent gains. At the same time, continued improvement in macroeconomic indicators and stronger corporate earnings could provide additional support to equities. The PSX has already demonstrated considerable resilience during 2026. Business Recorder data shows that the KSE-100 ended FY2026 with a gain of about 44%, underlining the scale of the market’s broader recovery. What the Rally Means for Investors The latest increase in the KSE-100 highlights the strong risk appetite currently present in Pakistan’s equity market. However, a sharp rise in the index should not automatically be interpreted as a signal that every listed stock is undervalued or that prices will continue moving higher without interruption. Investors will likely be watching whether buying interest remains broad-based and whether corporate earnings and economic fundamentals can justify the market’s elevated levels. For long-term investors, the key question is therefore not simply how many points the KSE-100 gains in a single session, but whether the underlying economic and corporate improvements can sustain the broader bullish trend. PSX Momentum Remains Strong The Pakistan Stock Exchange’s latest performance reinforces the view that investor sentiment has turned considerably more positive compared with earlier periods of heightened uncertainty. With the KSE-100 continuing to attract buying interest, the market could remain on investors’ radar in the coming sessions. However, geopolitical developments and domestic economic indicators will continue to determine whether the current rally develops into a sustained upward trend or faces another period of volatility. Investors should therefore focus on company fundamentals, earnings prospects and broader economic conditions rather than relying solely on short-term index movements.

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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