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Karachi, June 23: Select Technologies Limited’s Initial Public Offering book-building process was fully subscribed at Rs34 per share, above the floor price of PKR 28 per share. The Company offered 66.67 million ordinary shares, and the offering was oversubscribed by 3.2 times. This strong demand reflects investor confidence in both Pakistan’s expanding smart devices and consumer electronics manufacturing sector and the Company’s growth potential. Read More: https://theboardroompk.com/ogdc-poised-for-strong-recovery-with-baragzai-boost-and-sector-reforms/ Select Technologies Limited, a wholly owned subsidiary of Air Link Communication Limited, manufactures and assembles smartphones, smart TVs, air conditioners, and other consumer appliances in Pakistan. The Company plans to expand into higher-margin consumer technology and home appliance segments. Muzzaffar Hayat Piracha, Group CEO of Air Link Communication Limited, stated that the investor response demonstrates confidence in the Group’s long-term vision. “Select Technologies represents our commitment to building a stronger local manufacturing platform for smartphones, smart devices, and consumer electronics in Pakistan. The successful subscription of the book-building process is a vote of confidence in our strategy and our partnerships,” he said. Shahid Ali Habib, CEO of Arif Habib Limited, noted that the successful book-building indicates strong investor interest in fundamentally sound companies within high-growth sectors. “The strong response to Select Technologies’ IPO highlights investors’ confidence in Pakistan’s capital market and in companies that are contributing to import substitution, industrial growth, and local value addition. We are pleased to be associated with this transaction,” he said. The IPO proceeds will support the Company’s expansion plans and reinforce its position in Pakistan’s evolving consumer technology sector.

ISLAMABAD: The government is set to hand over PIA to its new owners by the end of the current month as all remaining codal formalities and documentation have been completed. Formalities Completed Ahead of Handover Prime Minister’s Adviser on Privatisation Muhammad Ali made the disclosure in an interview. He stated there is no hurdle left in the process. Certain issues between bidding and closing stages were resolved. These included NOCs for global contracts, aircraft loans and lease agreements. Permissions from lenders were necessary to transfer agreements to the new entity. Resolution of FBR-related issues also took considerable time and effort. Liabilities, Legal Framework and Tax Relief Addressed A number of liabilities are being transferred to the PIA Holding Company. This involved substantial effort from the concerned teams. The PIA Act of 1956 has been repealed except for the name retention clause. The law was approved by Parliament after initial introduction through an ordinance. During the transition period, PIA management consults with the bidders on decisions. The consortium led by Arif Habib Corporation holds 75 per cent stake. It acquired the stake for Rs135 billion in December 2025. Fauji Fertiliser Company joined the group subsequently. The deal structure has Rs10 billion as government equity component. Rs125 billion is committed for debt reduction and fleet modernisation. GST exemption on aircraft and spare parts has IMF approval. This ensures operations remain viable and competitive in the market. The Privatisation Commission backs extending similar concessions to other airlines. Such extension would need separate IMF clearance going forward. The adviser confirmed the target remains firm for month-end completion.

Karachi: Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), Sheikh Umer Rehan, has expressed serious concerns over the new sales tax mechanism introduced in the federal budget for ghee and cooking oil, warning that prices could rise by up to Rs10–15 per kilogram. He stated that the ghee and cooking oil industry is already operating under a heavy tax burden, but instead of providing relief, the government has further increased financial pressure on the sector through additional taxation measures. According to him, the budget has expanded the scope of the Third Schedule by shifting sales tax collection on ghee and cooking oil to a mechanism based on the Maximum Retail Price (MRP). He said this change will significantly increase the tax burden on the industry. Sheikh Umer Rehan warned that as a result, the prices of ghee and cooking oil are likely to increase by Rs10 to Rs15 per kilogram, which would directly impact consumers across the country. He added that PVMA had already urged the government prior to the budget to reduce taxes on the edible oil and ghee sector in order to provide relief to the public. However, instead of easing the burden, the new fiscal measures have further increased taxation on the industry. He cautioned that higher taxes will raise production costs, making it increasingly difficult to maintain price stability in the market. The PVMA chairman urged the government to review the proposed sales tax collection system and withdraw the changes related to the Third Schedule to protect both the industry and consumers from additional financial strain. He emphasized that ghee and cooking oil are essential daily-use commodities, and any additional taxation on them will contribute to inflation and further increase the financial difficulties of the common man.

The Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 11.5 percent in its meeting today. The Committee noted that global oil prices have eased following the recent positive geopolitical developments, yet they remain elevated as compared to pre-conflict levels. Nonetheless, as anticipated in the last MPC meeting, the impact of the conflict is now reflecting in recent economic indicators. Headline inflation rose to double digits in April and May, while core inflation also edged up. Moreover, economic activity is showing some signs of moderation, reflecting the impact of elevated prices, austerity measures and prevalent economic uncertainty. Meanwhile, the external account pressures remain moderate. While evaluating the impact of these unfolding developments and risks, the MPC observed that the macroeconomic outlook is broadly unchanged from its previous meeting. In this context, the MPC assessed that the current monetary policy stance remains appropriate to guide inflation towards the target range of 5 – 7 percent over the medium term. The Committee noted the following key developments since its last meeting. First, real GDP growth for FY26 is provisionally estimated at 3.7 percent by the PBS. Second, confidence of both consumers and businesses recovered marginally in the latest sentiment surveys, while their inflation expectations eased somewhat. Third, the successful completion of IMF reviews for EFF and RSF, coupled with ongoing purchases, increased SBP’s FX reserves to $17.2 billion as of June 5, 2026. Fourth, the government has estimated primary balance surplus for FY26 at 2.5 percent of GDP and is targeting a surplus of 2.0 percent of GDP for FY27. Lastly, the Middle East conflict has begun to impact macroeconomic conditions in many economies, and a rising number of central banks have started to raise their policy rates. The MPC noted that proactive macroeconomic management – underpinned by forward-looking monetary policy and consistent fiscal consolidation – has helped sustain ongoing macroeconomic stability despite the prolonged Middle East conflict. The MPC remains committed to achieving its objective of price stability and will closely monitor incoming data and evolving developments. The Committee also reiterated that it is imperative to accelerate structural reforms to strengthen the economy’s resilience to supply shocks, enhance productivity, and create the necessary conditions for higher and more sustainable economic growth. Real SectorAccording to the provisional PBS estimates, real GDP grew by 3.7 percent in FY26, up from 3.2 percent in FY25. The MPC observed that this outturn reflects the impact of Middle East conflict and austerity measures, as the pre-conflict growth momentum was notably higher. The growth in FY26 was primarily underpinned by the services and industry sectors, with meaningful contribution from agriculture. Large-scale manufacturing posted a strong growth of 6.5 percent during July-March FY26, though it is expected to moderate in Q4-FY26, as indicated by recent trends in some high-frequency indicators. Looking ahead, the MPC expects that spillover from the conflict may continue to moderate activity in both industry and services sectors in the coming months. This, along with subdued agriculture prospects – as indicated by initial information on the Kharif crops amidst challenging weather conditions – may weigh on the growth outlook for FY27. External SectorThe current account turned into a deficit of $0.3 billion in April, leading to a cumulative deficit of $0.2 billion during July-April FY26. This was mainly due to a widening of the trade deficit amidst the surge in energy imports in April, which more than offset the resilient workers’ remittances. The realization of sizable workers’ remittances during May is likely to contain the current account deficit in FY26 to the lower end of the earlier projected range, despite the challenging external environment. On the financing side, increase in official inflows provided critical support in meeting external obligations. These developments have facilitated ongoing FX purchases and buildup in SBP’s FX reserves, which are projected to reach $18 billion by end-June 2026. Notwithstanding some expected widening in the current account deficit in FY27, the MPC noted that the reserve buildup is expected to continue amidst FX purchases and timely realization of planned official inflows. Fiscal SectorAs per the July-March FY26 fiscal operations data, the fiscal consolidation efforts remained broadly on track, primarily driven by expenditure restraint. Revenue growth, however, moderated as compared to the same period last year. In this context, the FBR has revised its target to around Rs13 trillion for FY26. Despite this downward revision in revenues, the government expects to achieve a primary balance surplus of 2.5 percent of GDP by containing expenditures. For FY27, the government is targeting a primary balance surplus of 2.0 percent of GDP. In this regard, the MPC emphasized the importance of continuing with fiscal consolidation. The Committee also reiterated the need for timely implementation of structural reforms, particularly measures aimed at broadening the tax base and reforming PSEs. Money and CreditSince the last MPC meeting, broad money (M2) growth moderated to 14.3 percent y/y as of May 29, 2026, from 14.5 percent on April 10, 2026. This was entirely due to a deceleration in NDA growth, reflecting moderation in net budgetary borrowing from the banking system. Meanwhile, private sector credit grew by around 13 percent, with increase in working capital, fixed investment and consumer financing. At the same time, the improvement in the external position led to an acceleration in NFA growth. On the liability side, growth in currency in circulation rose, partly reflecting seasonal Eid-related cash withdrawals, resulting in an increase in the currency-to-deposit ratio. InflationHeadline inflation rose sharply from 7.3 percent in March to 10.9 percent y/y in April and 11.7 percent in May. Apart from the low base effect, the Middle East conflict has fueled inflation directly through the hike in domestic energy prices as well as indirectly through the rise in transportation and production costs. The latter has contributed to an increase in core inflation to 8.2 percent in April and 8.7 percent in May. Further, unanticipated surge in wheat and its product prices pushed up food inflation significantly during the last two months. The MPC assessed that