Breaking News Archives - Page 4 of 21

Millat Tractors Earnings Slip As Gross Margins Contract Sharply

Web Desk / September 17, 2026

Millat Tractors Limited closed 4QFY26 with a sharp sequential drop in earnings. Profit after tax came in at PKR 1.80 billion, or EPS of PKR 4.52, down 42% from PKR 3.12 billion in the previous quarter. Volumes were not the weak link. The company sold more machines and lifted revenue. Profit still fell because margins gave way. Sales Grew While Gross Margin Compressed Net sales stood at PKR 18.19 billion, up 50% year on year and 6% quarter on quarter. Unit sales reached 5,784 tractors, against 4,578 in 3QFY26 and 4,062 a year earlier. Gross profit declined 28% sequentially to PKR 4.60 billion. Gross margin contracted by 12 percentage points to 25%. That squeeze drove most of the drop in quarterly profit. Other Lines Could Not Rescue The Print Distribution and marketing costs were flat versus the third quarter. Administration expenses eased slightly. Other income rose from a low base, and finance costs were 49% lower than last year. Profit before tax still fell 31% quarter on quarter to PKR 3.37 billion. A higher effective tax rate then left profit after tax down 42%. Full-Year Results Remain In Growth Territory For FY26, net sales rose 22% to PKR 63.76 billion. Annual profit after tax increased 23% to PKR 7.84 billion, equal to EPS of PKR 19.65. A cash dividend of PKR 11 per share was declared for the quarter. Cumulative dividends for the year total PKR 21 per share, below PKR 30 in FY25. Why The Sequential Drop Matters Higher deliveries show demand is still there. The margin reset is the story of this quarter. Pricing, mix, and input costs will decide whether 25% gross margin was a blip. Year-on-year growth and a cash payout keep the annual picture intact. This print is still defined by the 42% quarter-on-quarter decline in profit after tax.

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PTA Orders PTML, operator of Ufone, To Halt ONIC Operations

Web Desk / September 16, 2026

The Pakistan Telecommunication Authority (PTA) has directed Pak Telecom Mobile Limited (PTML), the operator of Ufone, to immediately halt ONIC operations in their existing form over non-compliance with the regulatory framework for Mobile Virtual Network Operators (MVNOs). The decision could affect ONIC’s new customer acquisition and service expansion, although existing subscribers have been given time to transition. PTA Flags MVNO Compliance Issues According to the regulatory decision, the PTA determined that ONIC’s operational and commercial structure goes beyond a conventional branding arrangement and falls within the MVNO framework. While PTML owns the ONIC brand and retains its network, spectrum and numbering resources, the service operates through separate systems and customer-facing arrangements. These include customised packages, dedicated digital platforms, separate customer relationship management and billing systems, and distinct customer-care functions. New Sales And Activations To Stop PTML has been directed to discontinue ONIC’s operations in its current form, including new sales, activations, subscriptions and the issuance of SIMs and eSIMs. The order also covers the marketing and customer-acquisition activities associated with the service. The regulator’s position means PTML may need to restructure ONIC under its existing mobile network operator licence or obtain the relevant MVNO authorisation to continue with its present model. Existing Customers Given Three Months To avoid an abrupt disruption for subscribers, the PTA has allowed PTML three months from the receipt of the order to migrate or transfer existing ONIC customers to PTML. The transition period is intended to protect users while the company addresses the regulatory concerns surrounding the service. For ONIC customers, the immediate priority will be clarity on how their numbers, packages, balances and service arrangements will be handled during the migration process. Regulatory Questions For Digital Telecom Services The decision highlights the regulatory challenges emerging as telecom operators introduce digital-first brands with separate platforms, customer journeys and commercial structures. For PTML, the next step will be to determine whether ONIC can be brought within the scope of its existing licence or whether a separate MVNO licence is required. The case also underscores the importance of regulatory clarity for digital telecom services, particularly where branding, network ownership and operational independence overlap.

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Oil Surges Above $107 Amid Saudi Pipeline Closure and Shipping Attacks

Web Desk / September 14, 2026

Oil Prices Jump Above $107 Global oil prices climbed more than 2% on Monday as fresh attacks on Saudi Arabia and commercial vessels in the Gulf added to supply concerns following the shutdown of a key Saudi oil pipeline. Brent crude futures rose $2.90, or 2.77%, to $107.51 a barrel as of 2313 GMT. US West Texas Intermediate (WTI) futures increased $2.27, or 2.27%, to $102.32 a barrel. Prices had initially gained more than 3% at the start of trading, reflecting growing fears that the conflict could cause further disruption to global oil flows. Saudi East-West Pipeline Shutdown Raises Supply Risks Saudi Arabia’s East-West oil pipeline was shut on Friday after a drone strike originating in Iraq. The pipeline is particularly important because it allows Saudi Arabia to reroute crude exports while avoiding the Strait of Hormuz. Its shutdown therefore removes an important alternative route at a time when shipping through the Gulf is already under pressure. The disruption threatens as much as 4% of global oil supply, according to the report. Houthi Attacks Add Pressure on Saudi Energy Flows The latest oil-price surge also followed new Houthi attacks on Saudi Arabia. Saudi state media released footage showing damage to homes and a mosque in the southern Jazan province following what it described as a Houthi attack. The Houthis also said they had targeted a Saudi military base in a neighbouring province. The escalation is adding another layer of risk for the world’s largest oil exporter, particularly if attacks begin affecting energy infrastructure or transportation routes more directly. Strait of Hormuz Comes Under Renewed Pressure Shipping risks have also increased around the Strait of Hormuz, one of the world’s most important oil transit routes. The British maritime security agency UKMTO said a vessel in the Strait was hit by a projectile, causing a fire and forcing the crew to evacuate. Iran separately said one person was killed and four crew members were wounded aboard an Iranian commercial vessel struck off its coast. The developments have raised concerns that shipping disruptions could spread beyond individual incidents and further restrict the movement of crude and petroleum products. Bab el-Mandeb Adds Another Supply Risk The risk is not limited to the Gulf. Iran-aligned Houthis reached the strategic island of Perim on Friday, raising concerns over the Bab el-Mandeb Strait, another important oil transit route. The route has carried around 4% to 5% of global oil supply in recent months, meaning prolonged disruption could add further pressure to already strained global energy markets. Oil Has Gained 8% in a Week The latest disruptions pushed oil prices about 8% higher over the week and took Brent above $100 for the first time since July. The market is now pricing a larger geopolitical risk premium as traders assess the potential duration of pipeline outages, shipping disruptions and attacks on regional infrastructure. IG market analyst Tony Sycamore warned that crude could continue moving higher toward the $119.48 high recorded in early March if diplomatic efforts fail to produce an operational agreement or the Saudi East-West pipeline is not restored quickly. Hormuz Meeting Postponed Diplomatic efforts have also suffered a setback. Omani Foreign Minister Badr Albusaidi said on Sunday that a planned Monday meeting between Gulf countries and Iran to discuss the Strait of Hormuz had been postponed. No formal peace talks have taken place since an interim agreement reached in June collapsed after several weeks, leaving markets with limited visibility on when the wider conflict could ease. Global Supply Outlook Remains Fragile The combination of the Saudi pipeline shutdown, attacks on shipping and rising risks around both Hormuz and Bab el-Mandeb has created a more fragile outlook for global oil supplies. For markets, the key questions are now whether Saudi Arabia can restore its alternative export route quickly, whether shipping through the region remains disrupted and whether diplomatic efforts can prevent further escalation. Until there is greater clarity on those fronts, crude prices are likely to remain highly sensitive to every new attack or disruption.

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Government Approves Rs2,000 Monthly Relief for Motorcyclists as Fuel Prices Surge

Web Desk / September 13, 2026

Government Approves Three-Month Motorcyclist Relief The government has approved a monthly relief payment for motorcyclists as rising petrol and diesel prices put increasing pressure on household budgets. Prime Minister Shehbaz Sharif has approved a scheme providing around Rs2,000 per month to eligible motorcyclists. The relief will initially run for three months, with officials indicating that it could be extended if funds are available and tensions in the Middle East do not ease. The move comes after a sharp increase in domestic fuel prices and growing public pressure for the government to provide relief to consumers. Petrol and Diesel Prices Reach New Highs Petrol is currently selling at around Rs376 per litre, while diesel has reached close to Rs403 per litre. Petrol prices increased by Rs30 per litre this week, while diesel prices rose by Rs25 per litre. The government continues to collect a substantial petroleum levy from fuel consumers. Petrol carries a levy of Rs106 per litre, equivalent to roughly 28% of its current retail price. Diesel is subject to a Rs101-per-litre tax. The sharp increases have intensified concerns about the impact of fuel costs on commuters, particularly motorcyclists who rely on two-wheelers for daily travel and work. Fuel Levy Faces Growing Public Pressure The petroleum levy has also become a focus of political and public criticism. Jamaat-e-Islami has announced a long march to Islamabad on September 20, with a reduction in the petroleum levy among its key demands. The pressure comes as households face higher transportation costs and businesses absorb increased expenses linked to fuel and logistics. How the Rs2,000 Relief Scheme Will Work The Ministry of Information Technology is developing the payment mechanism for the scheme. IT Minister Shaza Fatima Khawaja said details of the system are being finalised to ensure that the relief reaches eligible people in accordance with the prime minister’s directions. The Rs2,000 monthly figure was also used in an earlier relief scheme. However, the final payment amount remains subject to the prime minister’s decision. The government has yet to disclose all operational details, including the final eligibility criteria and disbursement process. Why the Government Did Not Cut the Petroleum Levy The decision to provide targeted relief instead of reducing the petroleum levy reflects a broader disagreement within the government over how to manage the impact of higher fuel prices. Some cabinet ministers had proposed cutting the petroleum levy and suggested that the Rs430 billion contingency budget could be used to cover any resulting revenue shortfall. The finance ministry opposed the proposal, arguing that a reduction in the levy could create risks for Pakistan’s IMF programme. The debate highlights the government’s competing priorities: protecting consumers from rising fuel costs while maintaining revenue targets and commitments under the IMF programme. Rs2,000 Relief Offers Limited Purchasing Power At current petrol prices, Rs2,000 buys only around five litres of petrol. For a motorcycle user travelling regularly for work, the amount may provide some short-term assistance but is unlikely to fully offset the impact of the latest price increases. The scheme also leaves out other groups facing higher transportation costs, including small-car owners and people who depend on buses, vans and other forms of public transport. The limited size of the payment means the government is offering targeted support rather than addressing the broader increase in fuel costs. Contingency Funds Add Another Layer to the Debate The government’s decision also comes amid questions over the use of contingency funds. Last year, Rs113 billion from a similar contingency pool reportedly went unused. At the same time, additional petroleum levy collections accumulated as consumers continued to face higher pump prices. This has strengthened calls for a closer look at whether available fiscal resources could be used to provide broader relief. For the finance ministry, however, maintaining petroleum revenue remains important for meeting fiscal and IMF-related targets. Bigger Question Over Fuel Taxes Remains The Rs2,000 monthly payment could provide temporary relief for motorcyclists, but it does not resolve the underlying issue of high fuel taxation. With petrol near Rs376 per litre and diesel approaching Rs403, the cost of transportation is likely to remain a major concern for households and businesses. The government’s immediate response is therefore focused on targeted cash support rather than reducing the petroleum levy. Whether fuel taxes should ultimately be lowered — and how any resulting revenue gap would be financed — remains the larger unanswered question.

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PSX says Pakistan Still Needs the IMF Programme

Web Desk / September 12, 2026

Pakistan’s stock market had a strong year. The index climbed, listings returned, and new investors entered the market in record numbers. Yet the Pakistan Stock Exchange (PSX) annual report for 2026 carries a quieter warning: the recovery still depends on Pakistan remaining on the IMF programme and continuing fiscal and structural reforms. “Continued adherence to the IMF programme and implementation of fiscal and structural reforms will therefore remain critical to maintaining investor confidence,” the report noted. Without that discipline, the market rally could prove less of a turning point and more of a temporary pause. The Year Stability Was Tested The PSX report describes FY26 as a year in which Pakistan’s hard-won economic stability was tested. Floods hit during the first quarter, energy prices increased, and large external payments came due. Inflation, which had previously eased, rose again to an average of 7.05 percent. The State Bank raised the policy rate by 100 basis points to 11.50 percent in April 2026, marking its first increase since 2023. Despite these pressures, GDP growth reached 3.70 percent, the current account remained close to balance, and foreign exchange reserves surpassed the June target. These results did not occur in isolation. They came while the IMF programme remained the framework for economic policy. What the Market Actually Did The KSE-100 Index ended FY26 at 180,302 points, representing a 43.5 percent increase in rupee terms. Market capitalisation climbed to PKR 20.20 trillion, equivalent to around 16.1 percent of GDP, while average daily traded value reached a record level. Eleven companies listed on the Main Board, making FY26 the strongest year for IPOs in two decades. The number of unique investors also jumped 48 percent to 583,052. PSX further modernised the market by shifting settlement to T+1 and reintroducing cash-settled futures. However, the market remains relatively shallow. At around 16 percent of GDP, its size is still limited, while trading fees continue to account for a major share of PSX’s own revenue. A bull market built on a thin capital-market base is not necessarily the same as durable capital formation. The External Account Is Not Settled Pakistan’s trade deficit widened to USD 33.65 billion during the year. Remittances of USD 41.59 billion and services exports of around USD 10 billion absorbed much of the pressure. While these inflows provide important support, they also highlight Pakistan’s continued dependence on external sources of foreign exchange. Foreign exchange reserves covered only about three months of imports, while significant external repayments remain due. Pakistan also improved access to international financing through a Eurobond and its first Panda Bond. However, these instruments do not replace the need for a completed IMF programme. The directors’ report remains cautious about FY27, pointing to geopolitics, oil prices, inflation, external financing and the pace of structural reforms as key factors shaping growth. Oil, Weather and Politics Can Undo the Gains Higher oil prices could increase Pakistan’s import bill, accelerate inflation and place renewed pressure on the external account. Regional tensions, particularly in the Middle East, could also weaken foreign investor sentiment just as improved liquidity supported the market during the previous year. Uncertain weather conditions have been identified as another growth risk for FY27. Pakistan had already experienced significant flooding during the first quarter of FY26. These risks are not minor footnotes. They represent the same external and domestic pressures that have repeatedly disrupted previous economic recoveries when policy discipline weakened. This explains why the PSX report repeatedly highlights the IMF reviews completed in May 2026 and stresses the importance of continued adherence to the programme. Reform Is Incomplete, Not Optional Pakistan made progress on privatisation during FY26. First Women Bank and PIA changed hands, while power distribution companies remain next in line. Sovereign credit ratings also improved from distressed levels. While this represents progress, the reform process is far from complete. PSX itself continues to work on deepening the capital market, where potential issuers often face barriers to listing. Debt listing fees have remained high, regulatory requirements are considered heavy, and public access to the GEM Board remains a proposal. A dedicated Shariah trading counter is also awaiting approval, while single-stock options are planned for FY27. A sustainability index remains at the concept-paper stage. These market-development initiatives can only deliver meaningful results if the broader macroeconomic foundation remains stable. That foundation continues to depend heavily on the IMF programme. Climate and Energy Are Now Market Risks Pakistan remains among the world’s most climate-vulnerable countries, making environmental risks increasingly relevant to financial markets. The PSX identifies several physical risks in Karachi, including flooding, extreme heat, earthquakes, cyclones and an unstable electricity grid. Market continuity also depends on the reliability of brokers, clearing and custody infrastructure, as well as electricity supply. The Exchange recorded a sharp decline in Scope 1 emissions, but total emissions changed only marginally because purchased electricity continues to dominate its footprint. Climate-finance capacity within Pakistan’s listed market is still developing, while ESG considerations are often treated as compliance requirements rather than broader risk-management tools. That gap could become increasingly costly if climate and energy shocks continue to test the limited buffers that economic reforms are attempting to rebuild. Governance Inside the Exchange Is Uneven Too FY26 also brought a leadership shock after the former chairperson died in December 2025. An independent-director position remained vacant pending regulatory clearance until after the end of the financial year. Four of the ten directors also lacked the prescribed training certificate. Auditors raised another longstanding concern: internal compliance functions should not be placed within the same office responsible for policing the market. Combining these responsibilities creates a potential self-review problem and highlights that institutional strengthening remains an unfinished process. The issues do not erase the PSX’s achievements during FY26. They do, however, reinforce the broader message that Pakistan’s institutions, like its economy, remain in the middle of a repair process. What Staying on the IMF Programme Actually Means Remaining on the IMF programme is not simply about securing disbursements. It means maintaining the primary surplus, sustaining

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Official Notice Nudges Reported Thatta Cement and Fauji Foundation Split of PC Hotels

Web Desk / September 11, 2026

Thatta Cement Confirms In-Principle Understanding Thatta Cement Company Limited has formally informed the Pakistan Stock Exchange that it has reached an in-principle understanding regarding the proposed restructuring of Pakistan Services Limited. The disclosure, dated September 10, 2026 and signed by Chief Executive Officer Kamran Munir Ansari, was issued under clause 5.6.1 of the PSX Regulations and Section 96 of the Securities Act 2015. The company said the understanding remains subject to the finalisation of definitive agreement(s). Once completed, those agreements will be communicated to the Exchange. The notice, however, does not disclose the proposed structure, specific assets, commercial terms or the identity of any other party involved in the discussions. Filing Confirms Talks, Not a Hotel-by-Hotel Split Pakistan Services Limited is the listed owner and operator of the Pearl Continental hotel chain. It also franchises the Pearl Continental brand and operates a smaller budget hotel in Lahore. Thatta Cement’s disclosure confirms that discussions have moved beyond market speculation toward a formal understanding. It does not, however, confirm that individual Pearl Continental hotels have been allocated to different parties. This distinction is important because Pakistan Services itself had told the Exchange days earlier that it had not received information regarding the reported arrangement and had not been informed by any shareholder. As a result, reports about specific hotel transfers should still be treated as unconfirmed until definitive agreements are formally disclosed. How the Pakistan Services Ownership Dispute Started The current dispute goes back to July 2025, when two sizeable blocks of voting shares in Pakistan Services changed hands within a short period. AKD Group Holdings, along with a related entity, acquired approximately 27.95% of Pakistan Services at Rs700 per share. The transaction was valued at more than Rs6.36 billion. Around the same time, Dawood Jan Muhammad acquired roughly 28% of the voting shares at a similar price. Together, the two holdings represented close to 56% of voting control. The Hashwani Group, which had taken control of Pakistan Services in 1985, challenged the transactions and subsequently described them as a hostile takeover. The dispute eventually moved into litigation. Thatta Cement Enters the Dispute Thatta Cement became directly involved in October 2025 when it purchased 9,107,800 voting shares of Pakistan Services, representing approximately 28% of the company, at Rs710 per share. The transaction was worth roughly Rs6.45 billion to Rs6.47 billion. The shares were acquired from Dawood Jan Muhammad, whose holding fell to zero following the transaction. Thatta Cement subsequently sought fresh elections for the Pakistan Services board. The Islamabad High Court later suspended notices for those elections. The court also restricted the sale or transfer of the disputed shares and barred the new shareholders from interfering in the company’s day-to-day management. In February 2026, Pakistan Services deferred its director elections in accordance with the court’s directions, leaving the existing shareholding and board structure in place. Reported Settlement Plan Remains Unconfirmed Over the past week, market reports have pointed to a possible out-of-court settlement involving a memorandum of understanding. According to the reported outline, PC Karachi and PC Rawalpindi could go to Thatta Cement, while PC Lahore, PC Bhurban and PC Muzaffarabad could be transferred to Fauji Foundation. PC Peshawar does not appear in that reported arrangement because it has already been sold separately to Serena Hotels. However, none of these reported transfers has been completed, and Thatta Cement’s latest PSX filing does not confirm the hotel-by-hotel allocation. The reported settlement, therefore, remains a developing story rather than a completed transaction. What a Final Deal Could Mean If a restructuring agreement is ultimately completed, it could bring an end to a year-long dispute over control of Pakistan Services and its valuable hotel assets. Several important issues would still need to be resolved, including valuations, transaction structure, regulatory approvals and the legal status of the disputed shareholding. The court’s directions will also remain relevant until any settlement receives the necessary legal clearance. Investors Await Definitive Agreements For shareholders, the next meaningful development will be the definitive agreements referred to in Thatta Cement’s PSX notice. Until those documents are filed, Pakistan Services remains the owner and operator of the Pearl Continental hotel chain, while the court-imposed status quo concerning management continues to apply. The stock’s recent movement also highlights the sensitivity surrounding the dispute. Shares fell from a 52-week high of Rs1,635 to around Rs799 during the ownership battle before recovering to approximately Rs830. Thatta Cement’s latest disclosure is significant because it provides the first official confirmation that a restructuring path is being discussed. But it does not yet confirm the reported split of Pearl Continental hotels between Thatta Cement and Fauji Foundation. The definitive agreements will determine whether the reported settlement becomes a completed transaction.

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15% WHT Tax Hits Doctors, Lawyers and other Independent Professionals

Web Desk / September 10, 2026

If you invoice clients in your own name, the latest Federal Board of Revenue (FBR) clarification could directly affect your cash flow. The FBR has confirmed that a 15 percent withholding tax applies to independent professional services from 1 July 2026. The clarification was issued through the Board’s budget explanatory circular covering withholding tax rates for services and certain debt securities. The rate applies to professionals including doctors, lawyers, architects, accountants, and software engineers or developers who work independently. Since the tax is deducted at source, professionals receive their fees after the withholding amount has been deducted, while the tax is deposited with the authorities. Who Comes Under the 15% WHT Rate? The rule focuses on professionals who provide services in their personal capacity rather than through a larger firm or business structure. A consultant doctor billing a hospital, a lawyer handling a private brief, or a freelance software developer building an application for a company could fall within this category. The wording used by the circular — “working independently” — is particularly important because the tax treatment can differ depending on how the service provider operates. For example, a software house providing IT or IT-enabled services remains on a lower 4 percent withholding tax track for filers. However, an individual developer working independently can be treated as an independent professional and face the 15 percent rate. Accountants, architects and lawyers operating private practices should therefore review their classification and determine whether the higher rate applies to their income. For non-filers, the impact is considerably greater. The rate doubles to 30 percent on the gross invoice for this category. This makes remaining on the Active Taxpayers List more than a compliance preference. For independent professionals, it can have a direct impact on monthly cash flow. What Has Changed for Other Service Categories? The same circular has revised several other withholding tax rates under Division III of Part III of the First Schedule. Specified services listed in sub-paragraph (i) of paragraph (2) have moved from 6 percent to 7 percent. This category covers a range of commonly used business services, including transport, freight, courier, hotels, security, warehousing and other listed services. Terminal and port operating services provided to companies now attract withholding tax at 12 percent of the gross amount payable. Services that do not fall within the specified categories are subject to a 14 percent rate. The changes effectively narrow the differences between several service categories while placing independently practising professionals in a higher tax band. Advertising services provided to electronic and print media remain subject to the significantly lower 1.5 percent rate for filers. Therefore, the 15 percent figure should not be interpreted as a blanket withholding tax on all services. It specifically targets independent professional services under the relevant tax provisions. Debt Securities Also Face a Higher Withholding Tax The changes announced through the circular extend beyond professional services. Withholding tax under Section 151A, which applies at the time of disposal of certain debt securities, has increased from 15 percent to 20 percent. The tax is calculated on the gross amount of capital gain in accordance with Division IIIAA of Part III of the First Schedule. Investors dealing in qualifying debt securities will consequently see a higher deduction when they dispose of these instruments. Banks and other withholding agents are expected to apply the revised rate to qualifying transactions. Anyone holding debt securities should review how their capital gain is calculated and ensure they do not rely on the previous 15 percent rate. What Does the 15% WHT Mean in Daily Practice? Withholding tax is generally an advance collection of tax rather than the final tax liability. The amount deducted should be reflected in the taxpayer’s FBR deduction history and can generally be adjusted when the annual income tax return is filed. The immediate impact, however, is on cash flow. For a small medical practice, law office, consultancy or freelance professional, losing 15 percent of an invoice at the point of payment can have a significant effect on monthly receipts. Clients classified as prescribed persons — including companies, many exporters and other designated withholding agents — are required to deduct tax when making qualifying payments. If the payer fails to deduct the required tax, the compliance issue can initially fall on the payer. However, an incorrect deduction can create complications for both the professional and the client when accounts and tax returns are reconciled. Invoice descriptions may therefore become increasingly important. Professionals should clearly describe the service being provided so that the payer can determine the appropriate provision and withholding rate. A vague description such as “professional services” may create uncertainty over which category applies. How Professionals Can Manage the New WHT Rules The first step is to establish whether the individual genuinely falls within the independent professional category or whether the income qualifies under another listed service or IT-enabled service provision. That classification can make a major difference. Depending on the applicable category, the withholding rate could be 4 percent or 15 percent. Professionals should also ensure that they remain on the Active Taxpayers List because the non-filer rate in this category can reach 30 percent. Maintaining proper documentation is equally important. Withholding certificates should be collected from clients and matched against the deductions appearing on the FBR portal before the end of the tax year. This can help identify missing withholding credits and reduce the risk of paying tax twice or failing to claim an available adjustment. Professionals who also invest in debt securities should keep investment-related tax records separate from their professional income records because the 20 percent withholding rate on qualifying debt-security gains is governed by a separate provision. Why the July 1, 2026 Date Matters The circular represents clarification of the budget-related tax changes rather than a proposal for a future change. The revised rates apply from 1 July 2026. Independent professionals who have continued invoicing under older withholding tax rates since the start of the new tax year should therefore review

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Brent Nears $100 After Iran and Houthi Attacks

Web Desk / September 9, 2026

Brent Nears $100 After Iran and Houthi Attacks Oil Prices Rise for Fourth Straight Session Oil prices climbed for a fourth consecutive session on Wednesday as renewed attacks across the Gulf heightened concerns over potential disruptions to global energy supplies. Brent crude futures rose 1.4% to $99.33 a barrel in early trading, moving closer to the key $100 psychological threshold. US West Texas Intermediate (WTI) also gained 1.4% to $94.34 a barrel. Oil prices have risen by roughly a quarter since early August as hopes for a lasting ceasefire have weakened and the six-month-old conflict has once again expanded across the region. Iran Attacks Disrupt Fujairah Oil Loadings Iran renewed attacks on the United Arab Emirates, disrupting oil loadings at Fujairah following a third strike in four days. Fujairah is a major regional storage and bunkering hub located outside the Strait of Hormuz. Any sustained disruption at the port could quickly intensify concerns about the availability of crude and refined products in international markets. Traders are closely monitoring whether loading restrictions continue and whether additional tankers remain off the water. Houthi Strikes Add to Saudi Energy Risks The latest escalation has also increased pressure on Saudi Arabia after Iranian-backed Houthis in Yemen struck several Saudi cities, potentially drawing the key US ally deeper into the conflict. US forces have reportedly targeted multiple Iranian oil tankers, while Iran has targeted a US base in Jordan. The widening confrontation has raised fears that additional energy infrastructure and shipping routes could become exposed. Saudi Arabia has already diverted some exports away from the Strait of Hormuz, providing an alternative route for part of its shipments. However, sustained attacks on Saudi energy facilities could make that workaround increasingly difficult to maintain. Oil Market Risk Premium Continues to Build Analysts at ING said the latest developments suggest peace talks remain distant, meaning markets are likely to continue pricing a substantial geopolitical risk premium into crude. OCBC analysts similarly warned that attacks on Saudi energy infrastructure and the disruption or loss of Iranian tankers could increase the possibility of another prolonged supply shock. Shipping lanes and regional energy plants were already under pressure before this week’s escalation. Further disruptions could therefore have a wider impact on supply expectations and transportation costs. Brent’s $100 Threshold Comes Into Focus With Brent approaching $100 a barrel, traders are now watching whether prices can break above the psychological level. A sustained move above $100 could signal that markets are assigning a significantly higher probability to prolonged supply disruptions. Some financial institutions have already warned that crude could spike further if attacks on shipping intensify. For now, the market reaction remains heavily driven by geopolitical risk. Each new strike is effectively adding another layer of uncertainty and insurance premium to global oil prices.

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Atlas Battery Slips Into Loss as Chinese Lithium Imports and Price War Squeeze AGS Brand

Web Desk / September 9, 2026

Atlas Battery slips into loss as Chinese lithium and a price war squeeze AGS Atlas Battery Turns 60 With a Difficult FY26 Atlas Battery Limited reaches its 60th year at a difficult point in its history. Instead of celebrating a stronger bottom line, Pakistan’s well-known AGS battery brand ended FY26 with a loss as competition intensified and cheaper alternatives reshaped the market. The company recorded battery sales of Rs34.9 billion during FY26, slightly below Rs35.2 billion a year earlier. The bigger pressure came from pricing rather than volumes. Gross margin fell from 11.3 percent to 8.5 percent, while the company posted a net loss of Rs371 million after tax compared with a profit of Rs91 million in the previous year. Loss per share stood at Rs10.59. Atlas Battery’s share price, which reached Rs319 in July 2025, ended the financial year near Rs219. Growing Auto Market Fails to Lift Margins Pakistan’s automotive market provided a stronger demand environment during FY26. Local car sales increased by around 39 percent, while motorcycle and three-wheeler sales climbed nearly 30 percent as vehicle assembly recovered. For Atlas Battery, however, stronger original equipment manufacturer (OEM) demand was only part of the story. The replacement market remained cautious as consumers faced tight household budgets. Buyers increasingly preferred smaller, cheaper and maintenance-free batteries, putting additional pressure on established manufacturers. At the same time, competitors adopted aggressive discounting strategies and widened price gaps. Excess industry capacity further strengthened customers’ bargaining power. The organised battery sector still accounts for roughly 70 percent of the domestic market, with the remainder made up of unorganised trade and imports. Atlas says it avoided chasing unsustainable volumes. While that may protect long-term positioning, the strategy came at a significant short-term cost. Chinese Lithium Batteries Create a New Threat The most important competitive challenge is no longer limited to other lead-acid battery manufacturers. Competitively priced Chinese lithium batteries are increasingly being used as alternatives to conventional heavy-duty lead-acid batteries, particularly in UPS, solar-storage and certain automotive applications. The shift is particularly significant because Pakistan’s rapid adoption of solar power should theoretically create stronger demand for battery storage. Instead, it has also created a new market for lower-cost lithium products. Atlas identifies lithium and other emerging battery chemistries as a medium- to long-term transition risk. If the company does not adapt, demand for traditional SLI lead-acid batteries could gradually decline. The competitive pressure is also affecting consumer perceptions. Imported and locally available alternatives are increasingly seen by buyers as comparable in quality, reducing the premium historically associated with established brands. Japanese Partnership Faces a New Market Reality Atlas Battery continues to benefit from its long-standing technical relationship with GS Yuasa of Japan. GS Yuasa remains a 15 percent shareholder, while Shirazi Investments holds 58.86 percent of Atlas Battery. However, strong ownership and technical credentials are becoming less effective as differentiators when consumers increasingly focus on price. The challenge for AGS is therefore not simply maintaining product quality. It is convincing customers that the additional value of an established brand justifies a premium over cheaper alternatives. Rising Costs Crush Gross Profit Atlas Battery’s cost pressures intensified during FY26. Cost of sales increased 2.3 percent to Rs32.0 billion, consuming 91.5 percent of revenue compared with 88.7 percent a year earlier. Geopolitical disruptions during the final quarter contributed to higher raw-material costs. Around 47 percent of Atlas’s lead requirements are sourced internationally, exposing the company directly to global lead prices and exchange-rate movements. The company estimates that a 5 percent movement in the US dollar can significantly affect lead costs. As costs increased while pricing remained under pressure, gross profit fell 25 percent to Rs2.96 billion. Operating profit was almost halved to Rs994 million. Lower Interest Rates Provide Limited Relief There was some relief on the financing side. Atlas Battery’s finance cost declined to Rs919 million as interest rates eased and working-capital management improved. However, the reduction was insufficient to offset the deterioration in operating profitability. Profit before tax stood at only Rs75 million. Tax expenses of Rs445 million, largely reflecting minimum-tax requirements, ultimately pushed the company into a statutory net loss. The situation also highlights the competitive disadvantage faced by documented manufacturers that remain within the formal tax system while competing against informal trade and grey-market imports. Exports Offer a Small Bright Spot Exports were among the few positive developments during the year. Atlas Battery’s export shipments increased 18.2 percent to Rs721 million, equivalent to approximately $2.57 million. Afghanistan and Yemen remained the primary destinations. However, external disruptions quickly complicated the export picture. The suspension of Afghan trade affected shipments, while conflict in the Middle East reduced the availability of vessels capable of carrying dangerous goods and increased freight costs. Atlas continued exporting despite these challenges, but international sales remained too small to compensate for broader domestic pressures. Management Bets on Brand Over Price Management’s response remains centred on product quality, customer service and the company’s established “Atlas Way” rather than entering an aggressive race to the bottom. The company introduced new sealed maintenance-free batteries featuring double-lid designs. Motorcycle batteries also benefited from stronger OEM production and continued to support margins. Atlas is simultaneously investing in operational efficiency. Solar capacity at its Karachi plant increased from 510 kW to 610 kW, while water-recycling initiatives saved around 37.5 million US gallons. The company also continued dealer development and training across its network of 275 outlets. Competitive Pressure Remains Intense Despite these initiatives, Atlas Battery’s own assessment points to a challenging competitive environment. Customers have considerable bargaining power, substitutes represent an increasing threat, lead suppliers remain relatively concentrated and competition across the industry is intense. Chinese manufacturers could potentially establish local production capacity under CPEC or as trade policies evolve, increasing competitive pressure further. At the same time, the solar-storage market is expanding, creating an attractive opportunity but also encouraging more low-cost suppliers to enter the segment. Taxes Add to the Cost Burden Atlas Battery contributed Rs8.2 billion to the national exchequer during FY26, equivalent to around 24 percent

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Govt To Penalise Refineries That Miss Oct 1 Upgrade Deal Deadline

Web Desk / September 7, 2026

Government Tightens Brownfield Refinery Upgrade Rules The federal government will impose financial penalties on oil refineries that fail to sign Upgradation Agreements (UAs) with the Ministry of Energy’s Petroleum Division by October 1, 2026. The decision came as the Federal Cabinet ratified amendments to the Pakistan Oil Refining Policy for Upgradation of Existing Brownfield Refineries, 2023, incorporating directions issued by the Cabinet Committee on Energy (CCoE) on July 28, 2026. The revised framework is designed to accelerate refinery modernisation, increase production of Euro-V petrol and diesel, and reduce the output of furnace oil and other lower-value petroleum products. Signing Authority Shifted From OGRA to Petroleum Division Under the amended policy, refineries will now be required to sign their Upgradation Agreements directly with the Petroleum Division rather than the Oil and Gas Regulatory Authority (OGRA). The signing period has also been reduced from 60 days to 45 days. Policy implementation and monitoring responsibilities will similarly shift from OGRA to the Petroleum Division. Incremental incentives will be deposited into a Refinery Upgradation Account operated by the Petroleum Division instead of being maintained in escrow accounts with OGRA. Independent third-party consultants will be responsible for certifying progress on refinery upgrade projects. Plants that fall behind schedule or default on their commitments will not receive incentives until they address the relevant shortcomings. Government Uses HSD Duty as Compliance Incentive One of the strongest measures in the revised policy is linked to the deemed duty on high-speed diesel (HSD). Refineries that fail to sign their agreements by October 1, 2026, will be required to deposit the deemed duty above 5 percent on HSD into the Refinery Upgradation Account. The payment will be calculated from the later date of signing and must be completed by June 30, 2027. In contrast, refineries that sign their agreements by October 1 will see the deemed duty on HSD reduced to 2.5 percent. It will then fall to zero by November 15, 2026. The mechanism effectively gives refineries a financial incentive to complete the agreement process within the government’s revised deadline. Incentives Linked to Faster Project Completion The amended policy also introduces incentives for refineries that complete their projects ahead of schedule. If a refinery achieves commercial operation within three years, it can claim an additional incentive equivalent to 0.5 percent of the applicable capped limit for every year saved. The overall completion period has been set at five years, followed by a one-year cure period. However, using the cure period will result in a 1 percent reduction in the incentive. The government may allow another year beyond the cure period, but only where sufficient justification is provided. Licence Revocation Threat Added The revised policy also introduces a stronger regulatory consequence for prolonged delays. Refineries that fail to commission their upgraded units within the maximum 5+1-year outer limit could face revocation of their licences by the competent authority. The government has also stipulated that international arbitration will not be permitted without prior Cabinet approval. Officials said additional definitions would be incorporated into the policy to minimise ambiguity and ensure that all parties interpret its provisions consistently. Refinery Upgrades Could Save $1 Billion Annually The government expects the refinery modernisation programme to generate significant economic benefits. Upgraded plants are expected to increase domestic production of higher-value Euro-V fuels while reducing reliance on imported petroleum products. The government estimates that the upgrades could save around $1 billion annually in foreign exchange. The programme is also intended to attract fresh investment into Pakistan’s refining sector. The Cabinet was informed that Saudi Arabia has already expressed interest in the country’s refinery industry. Across the sector, the agreements are expected to unlock approximately $6 billion in investment. Five Operating Refineries Ready to Sign Agreements On August 26, 2026, Petroleum Minister Ali Pervaiz Malik met representatives of Pakistan’s five operating refineries — PARCO, PRL, NRL, Cnergyico and Attock Refinery. According to officials, all five refinery managements reiterated their readiness to sign agreements under the brownfield upgrade policy. The agreements were expected to be signed early next month. However, a senior executive from one refinery pointed out that the amended policy had not yet been formally notified. Once the revised policy is officially notified, refineries will have 45 days to sign their agreements with the Petroleum Division. Deadline Now Depends on Formal Notification The government is effectively using both the HSD duty mechanism and the potential loss of refinery licences to accelerate investment in cleaner and more efficient refining capacity. The success of the October 1 deadline will therefore depend not only on the readiness of the five operating refineries but also on how quickly the amended policy is formally notified. If implemented as planned, the revised framework could mark a major shift in Pakistan’s refinery modernisation drive, with cleaner fuels, higher-value production, lower import dependence and billions of dollars in potential investment at stake.