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Groundbreaking Ceremony Held for Pakistan’s Tallest Building in Karachi

Press Release / July 26, 2026

KARACHI (July 25, 2016): Burj Quaid (Private) Limited has officially performed the groundbreaking ceremony for Pakistan’s tallest building, located in DHA City Karachi. This state-of-the-art development features twin towers designed to offer a comprehensive residential, commercial, and recreational lifestyle, fully aligned with the premium standards of DHA City. The complex will house a world-class shopping mall, a five-star hotel, luxury residences, and a modern Business & Communication Hub. A prestigious ceremony was hosted at the DHA Karachi Golf Club to formally announce the 941-foot-tall landmark. Approved by the Civil Aviation Authority (CAA), the 82-story project will hold the title of Pakistan’s tallest building upon completion. Construction work is set to commence shortly, with a target completion timeframe of six years. Economic Impact and Job Opportunities Symbol of National Progress: This project is far more than a skyscraper—it represents an emerging Pakistan, renewed national confidence, and a new era of investment. It aims to connect Pakistan with the global business community, paving the way for new trade partnerships and economic stability. Employment Generation: The development will create thousands of direct and indirect jobs across construction, retail, hospitality, and allied industries. Furthermore, it is expected to boost local and foreign direct investment, unlocking new avenues for international business. Connectivity and Future Vision The recently operationalized Shahrah-e-Bhutto has significantly reduced travel time from Clifton to DHA City Karachi, greatly boosting its investment appeal. The arrival of such an iconic project into the smart, sustainable, and future-oriented ecosystem of DHA City Karachi is a highly welcome milestone.

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Pakistan Railways Hits Record Rs115bn Revenue; Ml-1, Thar Link Called Vital For Growth

Web Desk / July 25, 2026

Record Financial Turnaround Pakistan Railways has recorded its highest-ever annual revenue of Rs115.157 billion in financial year 2025-26, marking a 24% rise from the previous year, while the minister for railways underlined that ML-1, ML-3 and the Thar coal connectivity projects remain critical for the organisation’s sustained growth. Briefing the federal cabinet, Minister for Railways Hanif Abbasi said the state-run entity would continue modernising infrastructure, strengthening regional connectivity, improving passenger and freight services, and accelerating digital transformation. Prime Minister Shehbaz Sharif expressed satisfaction over the financial turnaround and asked the minister to share details with the cabinet. Revenue rose to Rs115,157 million in FY26 from Rs92,728 million in FY25 and Rs80,732 million in FY24, reflecting a 42% increase over two years. Freight earnings reached Rs40,783 million, passenger earnings stood at Rs50,590 million, and sundry earnings climbed to Rs16,401 million. Income from property and land jumped from Rs5,022 million to Rs11,956 million, driven by better commercial use of railway assets. The cumulative operating surplus improved sharply from 1% in FY24 to 4% in FY25 and further to 15% in FY26. Abbasi attributed the gains to a focused strategy covering financial sustainability, stronger governance, public-private partnerships and digitalisation of processes. These reforms, he said, had restored commercial viability, improved operational efficiency and modernised service delivery. Key Projects For Future Growth The minister told the meeting that the implementation of ML-1, ML-3 and Thar coal rail link projects is essential for the long-term growth of Pakistan Railways. The cabinet appreciated the efforts of the railways minister and his team under the prime minister’s guidance. Officials noted that the broad-based growth across freight, passenger and commercial streams signals a more stable financial base for the organisation. Continued progress on the major infrastructure projects will be needed to lock in these gains and expand the railways’ role in trade facilitation and regional integration. The minister reaffirmed the resolve to build on the recent improvements and raise the contribution of Pakistan Railways to national economic growth. Key Messages from the Report:

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SBP Appoints 10 Primary Dealers For FY2026-27 As Govt Relies On Domestic Borrowing

Web Desk / July 25, 2026

The SBP Primary Dealers for fiscal year 2026-27 have been announced, with the State Bank of Pakistan (SBP) appointing 10 financial institutions and two Special Purpose Primary Dealers (SPDs) to facilitate the government’s domestic borrowing programme. The appointments underscore the critical role commercial banks and financial institutions play in financing Pakistan’s fiscal deficit through the domestic debt market. According to a notification issued by the central bank on Thursday, United Bank Limited (UBL), National Bank of Pakistan (NBP) and Bank Alfalah emerged as the top three performing Primary Dealers during FY2025-26 based on their overall performance in the government securities market. The appointments come at a time when the federal government continues to rely heavily on domestic borrowing to meet its financing requirements, making Primary Dealers essential participants in the issuance, distribution and trading of government debt instruments. SBP Names 10 Primary Dealers After evaluating applications submitted under the Primary Dealer System Rules, the SBP selected the following institutions as Primary Dealers (PDs) for FY2026-27: In addition, the Central Depository Company of Pakistan Limited (CDC) and the National Clearing Company of Pakistan Limited (NCCPL) have been appointed as Special Purpose Primary Dealers (SPDs) for the new fiscal year. The SBP said the appointments were made after assessing applications against the eligibility criteria outlined in the Primary Dealer System Rules. UBL, NBP And Bank Alfalah Lead Performance Rankings The central bank recognised UBL, NBP, and Bank Alfalah as the best-performing Primary Dealers during FY2025-26. According to the notification, these three institutions achieved the highest overall performance among participating dealers in supporting the government’s domestic debt programme. The SBP added that detailed performance rankings of the remaining Primary Dealers and Special Purpose Primary Dealers will be communicated individually to the respective institutions. Key Role In Government Borrowing Primary Dealers play a central role in Pakistan’s financial system by acting as intermediaries between the government and investors in the domestic debt market. They participate in auctions conducted by the State Bank of Pakistan for Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), enabling the government to raise funds for budgetary financing. Beyond participating in auctions, Primary Dealers also help distribute government securities among banks, financial institutions and other investors while supporting liquidity in the secondary market. Their active participation contributes to efficient price discovery and ensures that government securities remain tradable after issuance. Supporting Pakistan’s Debt Market The government’s growing reliance on domestic borrowing has increased the importance of the SBP Primary Dealers system. As Pakistan finances a significant portion of its fiscal deficit through Treasury Bills and long-term Pakistan Investment Bonds, Primary Dealers serve as the backbone of the domestic debt market. By purchasing government securities during auctions and facilitating their subsequent trading, these institutions help maintain liquidity and investor confidence in the market. Financial analysts note that an efficient Primary Dealer network strengthens the government’s ability to secure financing at competitive market rates while ensuring the smooth functioning of Pakistan’s debt market. Selection Made Under SBP Rules The appointments were made under the Primary Dealer System Rules issued through DMMD Circular No. 07, dated April 12, 2021. Earlier this year, the SBP invited applications for the appointment of Primary Dealers (PDs), Prospective Primary Dealers (PPDs) and Special Purpose Primary Dealers (SPDs) for FY2026-27 through a circular issued on May 7, 2026. Following a comprehensive evaluation process, the central bank finalised the appointments based on prescribed eligibility requirements and performance criteria. Broad Representation Across Financial Sector The latest list of Primary Dealers reflects broad participation from Pakistan’s banking and financial services industry. The selected institutions include large commercial banks, an investment company, an international bank operating in Pakistan, and two major financial market infrastructure organisations. The inclusion of the Central Depository Company (CDC) and the National Clearing Company of Pakistan Limited (NCCPL) as Special Purpose Primary Dealers highlights the growing importance of financial market infrastructure in supporting the government’s debt management framework. Why Primary Dealers Matter Primary Dealers perform several important functions in Pakistan’s government securities market. They participate directly in government debt auctions, ensuring sufficient demand for Treasury Bills and Pakistan Investment Bonds. They also facilitate the distribution of these securities to institutional investors and support trading in the secondary market, helping maintain market liquidity. Their role is particularly significant at a time when the government continues to depend on domestic borrowing as a major source of budget financing. An active and competitive network of SBP Primary Dealers enables the government to mobilise funds efficiently while promoting transparency, liquidity and stability in Pakistan’s domestic debt market.

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Pakistan SPI Inflation Rises 0.91% as Tomato and Fuel Prices Push Up Cost of Living

Web Desk / July 24, 2026

Pakistan SPI Inflation Climbs on Higher Food and Energy Costs Pakistan’s SPI inflation increased by 0.91% during the week ending July 23, 2026, as sharp increases in tomato and fuel prices added further pressure on household budgets, according to the latest figures released by the Pakistan Bureau of Statistics (PBS). On a year-on-year (YoY) basis, the Sensitive Price Indicator (SPI) rose 9.66%, reflecting continued inflationary pressures across food, energy and essential consumer goods. The SPI is a weekly inflation gauge that tracks the prices of 51 essential commodities across 50 markets in 17 cities, providing policymakers with an early indication of changes in the cost of living. Tomato and Fuel Prices Lead Weekly SPI Inflation The biggest contributor to this week’s increase was the sharp rise in tomato prices, which surged 39.92% compared with the previous week. Fuel prices also recorded significant increases following recent adjustments in petroleum prices. Major Weekly Price Increases Higher fuel costs have also increased transportation and distribution expenses, contributing to price pressures across several food categories. Some Essential Commodities Became Cheaper Despite the overall increase in inflation, a number of essential food items recorded weekly price declines. Weekly Price Decreases These declines helped offset part of the increase caused by vegetables and petroleum products but were not enough to prevent overall weekly inflation from rising. Prices Increased for Nearly Half of Essential Items According to PBS data, price movements remained mixed across the basket of 51 commodities monitored under the SPI. Weekly Breakdown The data indicates that inflationary pressure remains broad-based, although price stability continued for a significant portion of essential goods. Annual SPI Inflation Remains Elevated Compared with the same week last year, SPI inflation increased 9.66%, driven largely by higher food, fuel and utility costs. Biggest Annual Price Increases Seasonal supply shortages continued to drive tomato prices sharply higher, while fuel and electricity costs added to transportation and production expenses. Several Commodities Were Cheaper Than a Year Ago Not all items recorded annual increases. Several staples were less expensive compared with the corresponding week of last year. Largest Annual Price Declines While these declines provided some relief, they were outweighed by substantial increases in vegetables, fuel and utility-related items. Urea and Cement Prices Continue to Increase PBS also reported higher prices for key agricultural and construction inputs during the week. The average price of Sona Urea increased to Rs4,655 per 50-kilogram bag, up 0.38% from the previous week and 5.44% higher than a year earlier. Meanwhile, the average price of cement rose to Rs1,536 per 50-kilogram bag, representing a 0.95% weekly increase and a 9.21% annual rise. Higher input costs may place additional pressure on farming, construction activity and broader inflation in the coming months. SPI Inflation Remains a Key Economic Indicator The Sensitive Price Indicator (SPI) remains one of Pakistan’s most closely watched measures of short-term inflation, offering timely insights into changes in food, fuel and household commodity prices. The latest figures suggest that rising petroleum prices and seasonal food supply constraints continue to drive inflationary pressures. Policymakers will be closely monitoring future SPI readings as they assess inflation trends and consider measures to support price stability while protecting household purchasing power.

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Pakistan Petroleum Dealers Strike Called Off After Government Assurance as 15-Day Deadline Begins

Web Desk / July 23, 2026

Pakistan has avoided a nationwide fuel supply disruption after the Pakistan Petroleum Dealers Strike was called off following successful negotiations between the federal government and the Pakistan Petroleum Dealers Association (PPDA). The decision has brought immediate relief to consumers, transport operators, businesses, and industries that were preparing for a 24-hour closure of petrol pumps across the country. While the strike has been withdrawn for now, petroleum dealers have warned that the dispute remains unresolved. They have given the government 15 days to fulfill its commitments, cautioning that failure to address their demands could trigger another nationwide protest. Pakistan Petroleum Dealers Strike Called Off After Emergency Negotiations The Pakistan Petroleum Dealers Association had earlier announced that fuel stations nationwide would remain closed from 6:00 a.m. Thursday to 6:00 a.m. Friday, raising concerns over fuel shortages, panic buying, and disruptions to transportation and commercial activities. However, emergency talks held in Islamabad resulted in a breakthrough, prompting the association to withdraw the strike. PPDA Vice Chairman Tariq Hassan said the decision was made after the government assured petroleum dealers that their concerns would be addressed within the next 15 days. According to the association, officials pledged to work on resolving several long-standing issues affecting fuel retailers. Petroleum Dealers Oppose Daily Fuel Price Mechanism Although the immediate crisis has been averted, petroleum dealers continue to oppose the government’s proposed daily fuel price adjustment mechanism. During a press conference in Karachi before the negotiations, PPDA leaders, including Chief Adviser Malik Khudabakhsh, Vice Chairman Tariq Hassan, Sindh President Haji Amir Khan, Saeed Khan, and Anwar Kamal, argued that daily price revisions would create uncertainty for fuel retailers and complicate business operations. The association has instead called for retaining the existing monthly fuel price review system, saying it provides greater stability for both dealers and consumers. Dealers Demand Higher Margins and Policy Reforms A key issue raised during the talks was the dealer margin, which petroleum dealers say has remained unchanged despite rising inflation and increasing operational costs. The PPDA is demanding that dealer commissions be increased to 8 percent, arguing that the current margin is no longer sufficient to sustain fuel retail businesses after nearly two years without revision. The association also called for reforms in fuel allocation policies implemented by oil marketing companies and stressed the importance of ensuring uninterrupted petroleum supplies across the country. Digital Payment Charges Among Key Concerns Another major demand relates to digital payment costs. Petroleum dealers have requested permission to recover bank and point-of-sale (POS) transaction charges from customers who pay using debit or credit cards. They argue that absorbing these banking charges has become an additional financial burden for fuel retailers. The association believes revising this policy would help improve the financial viability of petrol pumps while supporting the continued expansion of digital payment systems. Government Given 15 Days to Deliver Although the strike has been suspended, the PPDA has made it clear that the government’s assurances must now be backed by practical action. The association has warned that if meaningful progress is not achieved within the agreed 15-day period, it will review its options, including the possibility of announcing another nationwide strike. Why the Issue Matters Pakistan’s petroleum retail sector is a vital part of the country’s economy, with fuel availability directly affecting transportation, logistics, manufacturing, agriculture, and daily commuting. While the immediate threat of a nationwide shutdown has been avoided, the negotiations have highlighted broader concerns over fuel pricing policies, dealer profitability, and supply chain management. The coming weeks will determine whether the government can implement the promised reforms and prevent further disruptions to Pakistan’s fuel distribution network.

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UBL Profit Rises 33% In First Half As Deposits Reach Record Rs6.1 Trillion

Web Desk / July 22, 2026

UBL Reports Strong Earnings Growth In First Half Of 2026 United Bank Limited (UBL) posted a strong financial performance during the first half of 2026, reporting a 33 percent year-on-year increase in consolidated profit after tax as customer deposits climbed to an all-time high of Rs6.1 trillion. The results highlight the bank’s continued balance sheet expansion despite a challenging interest rate environment. UBL reported a consolidated profit after tax of Rs85.9 billion for the six-month period ended June 30, 2026, translating into earnings per share (EPS) of Rs34.30. During the second quarter alone, the bank earned Rs37.5 billion, with EPS of Rs14.97, representing a 31 percent increase compared with the same period last year, although quarterly earnings declined from the previous quarter. Deposits Climb To Historic High One of the biggest highlights of the financial results was the sharp increase in customer deposits. UBL’s deposits surged to a record Rs6.1 trillion, reflecting a 43 percent increase compared with the same period last year and a 13 percent rise over the previous quarter. The strong deposit growth reinforces the bank’s funding base and strengthens its liquidity position in an increasingly competitive banking sector. Net Interest Income Remains Resilient Despite lower interest rates and gains realized from its investment portfolio, UBL maintained stable earnings from its core banking operations. Net interest income (NII) for the second quarter stood at Rs90.3 billion, marginally lower than the previous year and quarter. However, for the first six months of 2026, NII increased 8 percent year-on-year to Rs189.7 billion, demonstrating resilience in the bank’s core income generation. Higher Operating Expenses Reflect Expansion Strategy Operating expenses increased during the reporting period as the bank continued investing in business growth. UBL’s operating costs rose 35 percent year-on-year and 19 percent quarter-on-quarter to Rs48.4 billion. The increase was primarily attributed to branch network expansion and higher marketing expenditures aimed at attracting new deposits and strengthening customer acquisition. The bank’s cost-to-income ratio stood at 40 percent during the second quarter, compared with 33 percent in the same quarter last year. For the first half of 2026, the ratio was reported at 34 percent. Tax Rate Remains Stable UBL’s effective tax rate remained unchanged at 52 percent during the second quarter of 2026. Despite higher taxation, the bank delivered strong profitability, supported by balance sheet growth, improved deposits, and steady income generation across its operations. Strong Deposit Growth Supports Future Expansion The latest financial results underline UBL’s continued growth momentum, with record deposits providing a stronger foundation for future lending and business expansion. While higher operating costs affected efficiency during the quarter, the bank’s robust earnings growth and expanding deposit base position it well to navigate changing market conditions and pursue further growth opportunities in Pakistan’s banking sector.

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Commission fines AliExpress €550 million for breaching the Digital Services Act

Web Desk / July 21, 2026

European Commission Imposes €550 Million Fine on AliExpress The European Commission has fined AliExpress €550 million for violating its obligations under the Digital Services Act (DSA) by failing to properly assess and reduce the risks associated with the sale of illegal, unsafe, and counterfeit products on its e-commerce platform. The Commission has also ordered AliExpress to take corrective measures to comply with the DSA and strengthen consumer protection across the European Union. Failure to Diligently Assess Risks The Commission found that AliExpress failed to adequately assess the risks linked to the dissemination of illegal, unsafe, and counterfeit products on its platform in several key areas. The company did not properly evaluate whether it had sufficient staff to review potentially illegal listings and significantly overestimated the effectiveness of its systems for detecting and removing unlawful products. As a result, it failed to account for the imbalance between the number of human moderators and their workload. The investigation also found that AliExpress did not sufficiently assess how its recommender and advertising systems contributed to the spread of illegal products. Testing conducted by the Commission showed that many illegal items continued to be recommended or advertised to consumers before they were removed. In addition, AliExpress relied on only one quantitative indicator to measure the effectiveness of its moderation efforts. The Commission concluded that this metric did not accurately measure whether illegal products were being prevented from appearing or reappearing on the platform. Independent testing further showed that a significant number of illegal products remained available despite the platform’s moderation efforts. Failure to Mitigate Identified Systemic Risks The Commission also determined that AliExpress failed to implement effective measures to reduce the risks associated with illegal products. Its product detection system did not function effectively, allowing counterfeit goods, unsafe toys, dangerous cosmetics, and other illegal products to remain on the platform for several weeks even after being identified. The investigation further found that AliExpress did not properly enforce its penalty policy against traders repeatedly selling illegal products. Many sellers continued operating despite previous enforcement actions. Product Compliance Checks Were Easily Circumvented The Commission found that AliExpress’ product compliance checks could be bypassed through product miscategorisation. According to the findings, the company assigned insufficient staff to verify whether products had been placed in the correct categories. As a result, dishonest sellers intentionally listed products under incorrect categories with less stringent compliance requirements, allowing non-compliant products to be published without proper review. Counterfeit Product Controls Found Ineffective Counterfeit products were identified as another major concern during the investigation. The Commission concluded that AliExpress’ mandatory brand authorisation system, designed to prevent counterfeit sales, was ineffective and lacked adequate staffing. This allowed traders to bypass the verification process and publish counterfeit products that were only removed after complaints or later reviews. The Commission noted that counterfeit products not only pose risks to consumers but also undermine legitimate businesses that invest in product design, safety testing, quality assurance, and innovation. Fine Based on Serious and Prolonged Breaches The €550 million fine was calculated based on the nature, severity, and duration of the violations, which continued until at least June 2025, when the Commission issued its preliminary findings. The Commission stated that AliExpress’ failure to conduct proper risk assessments and effectively mitigate systemic risks represented serious violations of the Digital Services Act. However, it also considered mitigating factors, including the relatively recent implementation of the DSA, when determining the final penalty. AliExpress Given Deadline to Comply AliExpress has until 20 October 2026 to submit a detailed action plan outlining how it will address the identified shortcomings. The European Board for Digital Services will review the plan within one month of submission before providing its opinion. The European Commission will then issue its final decision and establish a deadline for implementing the required measures. Failure to comply with the Commission’s decision could result in additional periodic financial penalties. Background of the Investigation The European Commission launched formal proceedings against AliExpress on 14 March 2024 to assess possible violations of the Digital Services Act relating to risk management, content moderation, trader traceability, advertising transparency, recommender systems, complaint handling, and researcher access to platform data. On 18 June 2025, the Commission accepted a series of commitments offered by AliExpress addressing several areas of concern, including advertising transparency, recommender systems, and notice-and-action mechanisms. However, the commitments did not resolve concerns regarding the assessment and mitigation of systemic risks linked to illegal products. The final non-compliance decision was based on AliExpress’ 2023 and 2024 risk assessment reports, additional information provided by the company, responses to formal information requests, submissions from third parties, and the Commission’s own investigative findings.

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Brent Crude Climbs Above $90 as Middle East Conflict Raises Global Oil Supply Concerns

Web Desk / July 20, 2026

Brent crude oil prices climbed above $90 per barrel on Monday after escalating military tensions between the United States and Iran triggered fresh concerns over global energy supplies. The sharp rise reflects growing fears that prolonged conflict in the Middle East could disrupt crude exports from one of the world’s most important oil-producing regions. Brent crude futures gained more than 2%, reaching their highest level in over a month, while US West Texas Intermediate (WTI) crude also posted strong gains. The latest rally follows another week of significant increases, driven by uncertainty surrounding oil shipments through the Strait of Hormuz, a strategic maritime route that carries a substantial share of the world’s seaborne oil trade. Brent Crude Climbs Above $90 as Hormuz Supply Risks Intensify Market sentiment has become increasingly cautious after both Washington and Tehran expanded military operations in recent days. Reports of reduced tanker traffic through the Strait of Hormuz have heightened worries about possible supply disruptions, prompting traders to factor geopolitical risks into oil prices. Although there has been no complete interruption in exports, the decline in shipping activity has been enough to push crude prices higher and increase volatility across global energy markets. Energy Markets Remain Highly Sensitive Energy analysts believe the oil market remains highly sensitive to developments in the Middle East. Any further escalation or prolonged disruption to shipping routes could tighten global crude supplies and place additional upward pressure on prices. Some experts also note that global oil inventories remain relatively low, making energy markets more vulnerable to unexpected supply shocks and geopolitical events. Higher Oil Prices Could Fuel Inflation Rising crude oil prices could have far-reaching economic consequences. Countries that rely heavily on imported fuel may face higher energy import costs, while consumers around the world could experience increased prices for petrol, diesel, transportation, and manufactured goods. Economists also warn that sustained strength in oil prices may add to global inflationary pressures, complicating monetary policy decisions for central banks. Investors Closely Watch Middle East Developments Investors are now closely monitoring geopolitical developments and shipping activity across the Gulf region for signs of either escalation or de-escalation. While easing tensions could stabilize oil markets, continued military operations are expected to keep crude prices volatile and maintain uncertainty over global energy supplies in the days ahead.

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Escalation in US-Iran Conflict: American Strikes Target Iranian Defences After Jordan Incident

Web Desk / July 19, 2026

The US Central Command (CENTCOM) has concluded its eighth consecutive night of airstrikes on Iran, targeting military coastal surveillance and air defence facilities. The operation follows an Iranian attack that reportedly killed two US military personnel in Jordan, with one additional service member still missing. US Strikes Aim to Degrade Iranian Military Capabilities The strikes, ordered by President Donald Trump, began at 6:00 p.m. on Saturday. According to US officials, the operation is intended to further weaken Iran’s ability to threaten commercial shipping in the Strait of Hormuz and to respond to the attack attributed to Iran-backed forces that resulted in US military casualties in Jordan. CENTCOM stated that the operation successfully struck key Iranian military facilities involved in coastal surveillance and air defence. The latest action represents another escalation after the collapse of an interim ceasefire last week. Iranian Response and Regional Tensions Intensify Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for strikes targeting US assets across Kuwait, Bahrain, and Jordan, including radar installations and military aircraft. Iranian commanders warned that any further US military action would be met with what they described as a “devastating response.” Explosions were reported near Sirik, Shadegan, and Qeshm Island. Iranian state media said there were no major casualties in some affected areas, although emergency response teams were deployed. Kuwait reported intercepting missiles and drones, with injuries among emergency responders. Diplomatic Fallout Grows Supreme Leader Ayatollah Mojtaba Khamenei criticized the United States, describing its commitments as unreliable. Iran’s Foreign Ministry accused Washington of attempting to assert control over the strategically important Strait of Hormuz. The US Defence Secretary reiterated Washington’s determination following the deaths of American service members. According to US officials, total US military fatalities in the conflict have now reached 16, while more than 420 personnel have been wounded. Regional and International Concerns Mount Broader security alerts have been issued across the Gulf region, including in Saudi Arabia, as tensions continue to rise. The European Union and Gulf states have called on Iran to avoid actions that disrupt maritime navigation through the Strait of Hormuz, one of the world’s most critical energy shipping routes. Former US defence officials have noted that the recent shift toward targeting inland military infrastructure appears aimed at isolating Iran’s coastal defence network while limiting broader regional escalation. Strait of Hormuz Remains at the Centre of the Crisis The continuing confrontation has heightened concerns over regional stability and global energy security, with the Strait of Hormuz remaining the focal point of military and diplomatic tensions. Analysts warn that any prolonged disruption to shipping through the strategic waterway could significantly impact global oil markets, increase freight costs, and place additional pressure on energy-importing economies worldwide.

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Petrol, Diesel Prices Hiked Up to Rs31 as Daily Review Begins Amid Hormuz Crisis

Web Desk / July 18, 2026

The government on Friday raised petrol and diesel prices by up to Rs31 per litre in line with global oil price fluctuations. The new rates took effect on July 18, 2026, under the newly introduced daily price review mechanism. Daily Price Review Introduced The switch to daily oil price reviews marks a significant policy shift. Previously, the government moved from fortnightly to weekly reviews following the initial wave of Iran-US tensions. The latest move is aimed at allowing domestic fuel prices to respond more quickly to changes in international oil markets while reducing the risk of supply disruptions. Impact of Strait of Hormuz Closure Fresh escalation between Iran and the United States has led to the closure of the Strait of Hormuz. The disruption of this critical global energy chokepoint threatens oil supplies to international markets, including Pakistan. Rising geopolitical tensions have pushed crude oil prices higher, prompting the government to revise domestic petroleum prices under the new daily pricing framework. New Ex-Depot Prices High-Speed Diesel (HSD) price increased by Rs31.05 per litre, rising from Rs323.30 to Rs354.35 per litre. Petrol registered a comparatively smaller increase of Rs5.44 per litre, moving from Rs310.71 to Rs316.15 per litre. Petroleum Levy Details The government continues to charge a Rs70.82 per litre petroleum levy on retail High-Speed Diesel and Rs79.46 per litre on direct sales, in addition to a Rs5 Climate Support Levy (CSL). For petrol, the petroleum levy remains Rs80 per litre, along with a Rs5 CSL at retail outlets. Officials stated that the revised prices will apply only for July 18, 2026, with rates to be reassessed under the new daily review mechanism. Second Consecutive Fuel Price Increase This marks the second recent adjustment in petroleum prices. Last Friday, fuel prices were increased by up to Rs13.80 per litre under the weekly pricing mechanism. International oil prices surged again following renewed Iran-US tensions. Earlier optimism stemming from a temporary ceasefire had briefly eased domestic fuel prices before the latest escalation reversed the trend. Economic Impact of Higher Fuel Prices High-Speed Diesel is widely used by Pakistan’s transport and agriculture sectors. The sharp increase is expected to raise transportation costs, increase agricultural input expenses, and add to inflationary pressures across the economy. Petrol demand has also risen in Punjab following restrictions on the use of indigenous gas, meaning motorists and motorcycle users are likely to face higher transportation costs. Kerosene oil continues to serve remote northern regions where LPG availability remains limited, while the Pakistan Army remains among its major institutional users. Light diesel oil supports various industrial operations, while the furnace oil levy remains at Rs77 per litre, plus the Rs5 Climate Support Levy. Daily Pricing Aims to Prevent Fuel Shortages The introduction of the daily oil pricing mechanism is expected to make it more difficult for petroleum dealers to engage in speculative hoarding during periods of rapid international price movements. The government says the system will improve alignment with global oil benchmarks, discourage artificial shortages, and ensure more timely price adjustments. Economists, however, warn that if elevated crude oil prices persist due to continued disruptions in the Strait of Hormuz, Pakistan could face additional pressure on its import bill and foreign exchange reserves. Policymakers may need to carefully balance fiscal sustainability with measures aimed at protecting consumers from prolonged inflation.

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