Contact Us

Business

Lucky Cement Profit Falls 20 Percent On Higher Coal Costs
Business

Lucky Cement Profit Falls 20 Percent On Higher Coal Costs

/

Lucky Cement is expected to report a 20 percent year-on-year decline in unconsolidated profit for the first quarter of fiscal year 2026-27, as rising coal prices put pressure on margins despite continued growth in sales. The company’s net sales are projected to increase 16 percent year-on-year to approximately PKR 39.2 billion, supported by an improvement in domestic dispatches. However, weak export volumes and higher production costs are expected to limit the benefit of revenue growth. Higher Coal Prices Weigh on Cement Margins Lucky Cement’s cost of sales is estimated to have increased 20 percent year-on-year during the quarter, primarily due to higher imported coal prices. The faster increase in costs compared with sales is expected to constrain profitability. Gross profit is projected to grow by only 9 percent, indicating continued pressure on the company’s margins. The trend highlights the challenges facing cement manufacturers as higher input costs limit their ability to convert rising revenues into stronger earnings. Unconsolidated Profit Expected to Fall to PKR 11.65 Billion Lucky Cement’s unconsolidated profit after tax is estimated at PKR 11.65 billion for 1QFY27, down 20 percent from the corresponding period last year. Earnings per share (EPS) are projected at PKR 8.0, compared with PKR 10.0 in the same quarter of the previous fiscal year. Lower finance costs and a modest increase in other income are expected to provide some support. However, these improvements are unlikely to fully offset higher operating costs and the anticipated impact of taxation or other expenses. The projected earnings decline suggests that cost management will remain critical to protecting profitability amid volatile commodity prices. Quarter-on-Quarter Earnings Show Improvement Despite the expected annual decline, Lucky Cement’s unconsolidated profit is projected to increase approximately 18 percent quarter-on-quarter. Higher sales and dividend income from Lucky Electric Power are expected to contribute to the sequential improvement. This indicates that earnings performance may differ depending on the comparison period and contributions from associated businesses. At the consolidated level, the outlook is comparatively stronger. Consolidated EPS is projected at PKR 16.0, slightly higher than the PKR 15.0 recorded a year earlier. Contributions from subsidiaries are expected to support consolidated earnings, highlighting the importance of Lucky Cement’s broader business portfolio in its overall financial performance. Cement Demand Recovers Amid Export Challenges Pakistan’s cement sector has shown signs of a demand revival, supported by budgetary measures and housing-related initiatives. Improving domestic dispatches have provided some support to manufacturers, including Lucky Cement. However, the industry continues to face pressure from elevated coal prices, which increase production costs and restrict margin expansion. Export performance remains another challenge. North-based cement exports stayed at zero amid the border situation with Afghanistan, limiting opportunities for manufacturers to benefit from external demand. The combination of improving domestic demand and persistent cost pressures leaves the sector facing a mixed operating environment as the new fiscal year progresses. Coal Prices and Domestic Demand to Shape Outlook Lucky Cement remains a company of interest for some sector analysts because of its operational scale and earnings contributions from subsidiaries. Nevertheless, its near-term profitability remains sensitive to movements in coal prices, domestic cement demand and export conditions. A sustained improvement in domestic dispatches could support revenue growth, but stronger earnings will also depend on whether input costs moderate sufficiently to improve margins. For investors, the upcoming quarterly results will provide a clearer indication of how effectively the company is managing cost pressures while benefiting from domestic demand and subsidiary income.

Karachi Despite Generating 67% Revenue, Suffers From Crumbling Infrastructure, Water Shortages, Rampant Street Crime, KCCI
Business

Karachi Despite Generating 67% Revenue, Suffers From Crumbling Infrastructure, Water Shortages, Rampant Street Crime, KCCI

/

KCCI and BMG Demand Urgent Action on Karachi’s Civic Crisis KARACHI: Businessmen Group (BMG) Chairman Zubair Motiwala has called for an urgent, coordinated effort to address Karachi’s worsening civic and economic challenges, questioning why the country’s economic powerhouse continues to struggle with deteriorating infrastructure, water shortages, unreliable utilities, poor sewerage and rampant street crime despite contributing approximately 67% of federal revenue and 54% of national exports. Addressing a high-level meeting attended by trade and industrial association leaders, Motiwala demanded time-bound action, institutional accountability and measurable results. He stressed that Karachi needed practical solutions rather than repeated assurances. He warned that unreliable electricity and gas supplies, inadequate infrastructure and low industrial capacity utilisation were increasing production costs and weakening business competitiveness. Among his key demands were the early completion of the K-IV water project, a fully operational Safe City system, development of a Karachi Bypass to potentially divert 70% of heavy traffic away from the city, mandatory road-restoration guarantees, independent engineering audits, a business-friendly tax regime, transparent electricity billing, automatic consumer compensation for service failures, regionally competitive gas prices, digital land records and faster tax refunds. Motiwala proposed identifying five immediate priorities, assigning responsibility to relevant institutions and establishing clear deadlines and performance indicators. He also called for a unified platform representing Karachi’s trade and industrial associations to pursue corrective action collectively. Business Community Calls for a Unified Karachi Reform Agenda BMG Vice Chairman Anjum Nisar urged trade and industrial bodies to move beyond highlighting problems and develop a joint, actionable plan. He proposed producing a documentary showing Karachi’s ground realities, including alleged corruption, extortion, excessive taxation and deteriorating infrastructure. Nisar called for permanent solutions to water shortages, completion of K-IV and a practical fiscal model that provides local governments with adequate resources. He also recommended joint pre-budget consultations by the Karachi Chamber of Commerce and Industry (KCCI) and trade associations to develop common proposals. He emphasised coordinated representation before federal and provincial authorities, consistent follow-up and, if negotiations failed, collective protest to secure Karachi’s rights. BMG Vice Chairman Jawed Bilwani similarly urged business leaders to unite behind three or four decisive priorities. He called for urgent implementation of the Safe City project, stronger action against street crime and land grabbing, protection of public land, and transparent documentation and allocation of Karachi’s revenues to meet its civic and infrastructure needs. Bilwani also questioned repeated road excavation and reconstruction, alleged resale of public land, missing manhole covers and encroachments along the Lyari and Malir riverbeds. He warned that poor oversight and encroachments could worsen urban flooding risks. He proposed stronger business community oversight of public works contracts to prevent waste of taxpayers’ money and ensure construction quality. He also advocated a coordinated response to serious attacks on traders, including the possibility of a citywide shutdown if a trader was killed. KCCI Seeks Greater Representation in Government Institutions BMG Vice Chairman Mian Abrar Ahmed called for permanent, direct representation of the Karachi Chamber in key government bodies and public-sector institutions responsible for the city’s infrastructure, utilities and economic development. He identified the Sindh Assembly, Karachi Metropolitan Corporation (KMC) and K-IV project as important forums where business community participation could improve decision-making. Ahmed argued that Karachi’s substantial contribution to national revenue was not reflected in its influence over decisions affecting the city. He also highlighted corruption and bribery as persistent obstacles to business operations, maintaining that occasional consultations could not substitute for a formal role in policymaking. Backing a KCCI resolution passed on September 30, he said institutional representation would improve transparency, strengthen accountability and allow business leaders to communicate local challenges directly to policymakers. BMG Vice Chairman Tariq Yousuf also identified corruption and networks facilitating illegal activities as major contributors to Karachi’s deteriorating civic conditions. He questioned how public roads could be occupied by commercial establishments, traffic violations tolerated and illegal electricity connections maintained. Yousuf said the public ultimately paid the price through congestion, inconvenience and unequal access to essential services, including water, gas and electricity. He called for decisive action against the unlawful occupation of public spaces and misuse of civic resources. KCCI Proposes Committees and a Time-Bound Action Plan KCCI President Talat Mahmood proposed forming a representative committee of Karachi’s trade and industrial associations to prepare an actionable reform agenda within 15 days. He recommended issue-specific subcommittees, comprehensive terms of reference, regular progress reports and a united press conference involving industrialists, traders and small businesses to press federal and provincial governments for concrete action. Mahmood also called for a dedicated anti-corruption initiative to investigate complaints involving public offices, including the Sub-Registrar’s Office and Sindh Building Control Authority. He cited allegations of substantial unofficial payments despite prescribed official fees. He stressed that the approximately 91% electoral support received by BMG should translate into tangible results through unity, clear responsibilities and sustained engagement. Concluding the meeting, Mahmood proposed five committees comprising nominees from all participating trade and industrial associations. The committees would be required to finalise actionable recommendations and comprehensive terms of reference within 15 days, followed by regular progress reviews in coordination with KCCI and town associations. Leader of the Pakistan Cloth Merchants Association Ahmed Chinoy supported a more structured implementation framework. He proposed a 100-day action plan under a KCCI-led Implementation Committee, with priorities and responsibilities established within the first 15 days, engagement with government departments and firm commitments by day 30, and systematic monitoring from day 31 to day 90. Former KCCI President Iftikhar Ahmed Vohra also urged trade and industrial associations to adopt a joint resolution outlining shared priorities, practical measures and a coordinated strategy. KATI Highlights Sewerage, Pollution and Revenue Transparency Deputy Patron-in-Chief of the Korangi Association of Trade & Industry (KATI) Zubair Chhaya called for a coordinated, non-political campaign focused on implementation and accountability. He advocated establishing a dedicated authority to manage Karachi’s fragmented sewerage system, accelerating the Safe City project, coordinating road and utility works, digitising land records and taking action against encroachments, illegal parking and corruption. Chhaya warned that untreated municipal and industrial wastewater

Maple Leaf Cement Faces Fuel and Royalty Pressure
Business

Maple Leaf Cement Faces Fuel and Royalty Pressure

/

Maple Leaf Cement Factory Limited (MLCF) closed FY26 with higher sales and a modest increase in profit, but rising fuel prices, royalty-related uncertainty and higher taxation are creating fresh challenges for the company. Management’s latest briefing highlighted growing pressure on energy costs, delays in its Novacare hospital project and continued efforts to improve operational efficiency across its businesses. With coal prices rising and supply disruptions affecting fuel markets, the company’s ability to control production costs will remain important to its performance in the coming financial year. Rising Coal and Pet Coke Prices Pressure Production Costs Coal prices have climbed to approximately PKR 62,000–63,000 per ton, while pet coke and imported coal have also become more expensive, partly because of supply disruptions linked to the conflict in the Middle East. Maple Leaf Cement’s fuel mix during FY26 included Darra coal, which accounted for approximately 40% of consumption. Biomass and pet coke together represented around 47%, while alternative fuel costs were approximately PKR 18,500 per ton. The company’s diversified fuel mix helps it manage its dependence on individual energy sources. However, rising prices across conventional fuels could still increase manufacturing expenses and place pressure on margins. Restrictions on explosives used in mining have also slowed operations and pushed Darra coal prices higher. Maple Leaf Cement currently holds approximately four months of inventory, providing a temporary buffer against supply disruptions and further price increases. The inventory position offers some near-term protection, but prolonged disruption could expose the company to higher replenishment costs. Captive Power Advantage Could Narrow Energy sourcing remains a key factor in Maple Leaf Cement’s cost structure. Captive coal-based power costs approximately PKR 22 per unit, compared with grid electricity prices of around PKR 35–39 per unit. This difference gives the company a cost advantage by allowing it to generate electricity internally at a lower estimated rate than purchasing it from the grid. However, sustained increases in coal prices could narrow the gap between captive generation and grid electricity. If fuel costs continue rising, the economics of captive power could weaken, potentially increasing the company’s reliance on grid electricity. The outlook will depend on the trajectory of coal prices, fuel availability and the relative cost of alternative energy sources. Maintaining an efficient fuel mix and controlling procurement expenses will therefore remain important to protecting operating margins. Royalty Calculation Change Reverses PKR 1.5 Billion in Provisions Maple Leaf Cement has recorded a reversal of approximately PKR 1.5 billion in earlier royalty provisions following a change in the method used to calculate royalty liabilities. However, the underlying case remains unresolved. Management expects greater clarity after one or two additional hearings. The reversal affects previously recognised provisions, but the continuing legal uncertainty means the final financial implications remain subject to the outcome of the case. Royalty-related developments will therefore remain an important factor for investors monitoring the company’s financial position and potential future obligations. Higher Taxes Weigh on Power Dividend Income Maple Leaf Cement is also facing a change in the tax treatment of dividends received from Maple Leaf Power following the withdrawal of a tax incentive. The company received PKR 6.4 billion in dividends during 2025, which were subsequently taxed. This contributed to an increase in the effective tax rate to 40.5% in the fourth quarter. For the full financial year, the effective tax rate reached 37.5%, compared with 29.7% previously. The change increases the tax burden associated with dividend income and could affect the attractiveness of this source of earnings. Management indicated that Maple Leaf Power may stop paying dividends following the withdrawal of the incentive. Any reduction in future dividend income would be relevant to the group’s earnings mix, particularly as its core cement operations face rising fuel and power costs. Novacare Hospital Project Delayed Until 2027 Maple Leaf Cement’s Novacare hospital project is running approximately three to six months behind schedule because of shipment disruptions linked to the conflict in the Middle East. Civil construction work is continuing, while completion is now expected in calendar year 2027. The company has acquired approximately 100 kanals of land in Lahore and plans to establish at least three hospitals as part of the broader project. The delay illustrates how international supply-chain disruptions can affect projects beyond the energy sector, including the delivery of materials and equipment needed for construction and healthcare infrastructure. Although work continues, the revised timeline means the project will take longer to reach completion than previously anticipated. Cement Industry Growth Expected at 7–7.5% Management expects Pakistan’s cement industry to grow by approximately 7–7.5%, providing a potentially supportive demand environment for manufacturers. However, the benefits of stronger industry demand may be constrained by higher input costs. Cement producers must balance sales growth against fuel inflation, electricity expenses and other operating costs to protect profitability. Maple Leaf Cement is pursuing cost-reduction measures to limit these pressures, including initiatives at Pioneer Cement. Variable costs at Pioneer Cement are expected to decline by approximately PKR 70 per ton over the next two to three months, according to management. If achieved, these savings could help improve operating efficiency. Their overall impact will depend on implementation and whether reductions in production costs can offset increases in fuel and energy expenses. Cost Management Remains Central to FY27 Outlook Maple Leaf Cement enters FY27 with opportunities from expected industry growth but also faces several operational and financial uncertainties. The main factors shaping its outlook include: While higher sales and modest profit growth provided support in FY26, Maple Leaf Cement’s future performance will depend increasingly on its ability to manage fuel procurement, maintain an economical power mix and deliver planned cost savings. The company’s four-month fuel inventory offers some protection against immediate supply pressures, but sustained increases in coal prices could erode its captive-power advantage and place further pressure on margins.

Fauji Fertilizer Set To Earn Most As Prices Rise
Business

Fauji Fertilizer Set To Earn Most As Prices Rise

/

Fauji Fertilizer Company Limited (FFC) is expected to remain Pakistan’s leading fertilizer sector profit earner in the third quarter of 2026, as higher realized urea and di-ammonium phosphate (DAP) prices support margins despite weaker sales volumes. Market estimates project FFC’s unconsolidated earnings at Rs14.88 per share, up 12% year-on-year, while consolidated earnings are expected to reach Rs16.12 per share. By comparison, Engro Fertilizers is projected to report earnings of Rs6.45 per share. The expected results indicate that stronger selling prices and dividend income are helping FFC maintain its earnings lead, even as lower fertilizer offtakes weigh on sales volumes across the industry. Higher Fertilizer Prices Support FFC Margins FFC’s expected earnings performance is being driven more by pricing than by higher sales volumes. The company’s urea offtake declined 9% year-on-year to 756,000 tons, while DAP sales fell 22% to 198,000 tons. Despite the decline in volumes, FFC’s gross margin is projected to improve to 32.22% in the third quarter, compared with 30.82% in the same period last year. The improvement reflects firmer realized selling prices and the absence of discounts, which have helped support profitability amid softer demand. FFC’s revenue is estimated at Rs124.1 billion, down 2% year-on-year but up 19% from the preceding quarter. The quarterly increase suggests an improvement in sales performance compared with the previous three-month period, even as revenue remains slightly below the year-earlier level. Dividend income of approximately Rs4.5 billion, primarily from investments in the energy, banking and cement sectors, is also expected to contribute to earnings. FFC Maintains a Clear Lead in Absolute Profit FFC’s projected earnings remain significantly higher than those of Engro Fertilizers in absolute terms. With approximately 1.44 billion shares outstanding, FFC’s expected unconsolidated earnings of Rs14.88 per share imply profit of around Rs21 billion for the quarter. Engro Fertilizers, meanwhile, is expected to earn approximately Rs8.6 billion, based on projected earnings of Rs6.45 per share and an implied share count of roughly 1.33 billion. FFC is also expected to announce a cash dividend of Rs11.50 per share, compared with an anticipated Rs6 per share payout by Engro Fertilizers. FFC’s payout ratio is estimated at around 77%. These projections reinforce FFC’s position as the sector’s largest expected profit contributor, supported by its earnings base, investment income and anticipated shareholder distribution. Phosphoric Acid Prices Weigh on Quarterly Earnings Despite the expected year-on-year improvement, FFC’s third-quarter performance is not projected to strengthen across every measure. Profit is expected to decline 12% compared with the previous quarter, as a 29% increase in phosphoric acid prices puts pressure on DAP margins. The increase in raw material costs illustrates the risks facing fertilizer producers even when selling prices remain relatively supportive. Higher input expenses can reduce profitability if they cannot be fully passed on to customers. For FFC, the expected quarterly decline suggests that improved selling prices and dividend income may not completely offset pressure in the DAP business. Engro Fertilizers Records Faster Earnings Growth Engro Fertilizers is expected to deliver stronger earnings growth rates in the third quarter, although its projected profit remains below FFC’s. The company’s earnings are forecast to increase 48% year-on-year and more than double from the preceding quarter. The expected improvement is supported by urea offtake of 711,000 tons, up 21% year-on-year. Engro’s revenue is estimated at Rs76.4 billion, representing an increase of 40%, while its gross margin is projected at 34.5%. The higher expected gross margin reflects a comparatively strong operating performance during the quarter. However, Engro’s projected earnings of Rs6.45 per share remain well below FFC’s unconsolidated estimate of Rs14.88 per share. The comparison highlights the distinction between growth rates and absolute profitability: Engro is expected to record faster earnings growth, while FFC retains a substantial lead in projected profit. Fertilizer Sector Earnings Expected to Rise 20% Across the fertilizer sector, aggregate earnings are expected to increase 20% year-on-year in the third quarter of 2026. Sector turnover is projected at Rs200.5 billion, up 10%, while the gross margin is expected to improve to 33.09%, compared with 31.35% in the same period last year. However, industry sales volumes remain mixed. Total urea offtake increased by only 2% to 1.9 million tons, while DAP offtake fell 20% to 272,000 tons. Higher DAP prices appear to have cooled demand, limiting sales volumes despite stronger pricing across parts of the industry. The figures suggest that the sector’s expected earnings growth is being supported by improved pricing and margins rather than a broad-based increase in fertilizer consumption. Fertilizer Industry Outlook Hinges on Pricing and Demand The third-quarter estimates point to a sector in which pricing power and cost management are becoming increasingly important to profitability. FFC is expected to retain its earnings lead through stronger realized prices, investment income and a comparatively large profit base. Engro Fertilizers, meanwhile, is projected to post faster growth as its urea offtake recovers. At the industry level, the decline in DAP demand remains a concern, particularly as higher input costs can place pressure on margins. The 29% quarterly increase in phosphoric acid prices is a key example of how cost pressures can affect individual product segments. Overall, the expected third-quarter results indicate that fertilizer producers able to sustain selling prices and protect margins may outperform competitors even without substantial volume growth.

Businessmen Call for Stronger Economic Integration Among Islamic Countries
Business

Businessmen Call for Stronger Economic Integration Among Islamic Countries

/

The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has called for stronger economic integration among Islamic countries through expanded trade, investment, joint ventures, tourism and business connectivity. Qurat-ul-Ain, Vice President of FPCCI, said the combined economic potential of 57 Muslim countries presents significant opportunities for employment, investment and sustainable development. Addressing the FPCCI Islamic Economy Summit with Diplomats, which she presided over, she urged Islamic countries to move beyond traditional bilateral trade and build stronger economic partnerships through business-to-business linkages, investment cooperation, technology exchange and improved connectivity. Held under the theme “Promoting Islamic Economic Integration through Bilateral and Multilateral Cooperation for Community Development,” the summit brought together consuls general, commercial counsellors, diplomatic representatives, business leaders, financial institutions, academics and other stakeholders. TDAP Highlights Opportunities for Intra-OIC Trade Chief Guest Faiz Ahmed, Chief Executive of the Trade Development Authority of Pakistan (TDAP), reaffirmed the government’s support for efforts to strengthen economic cooperation among Muslim countries. He said Pakistan needed to expand its economic relationships with Muslim countries and improve trade and business connectivity with Organisation of Islamic Cooperation (OIC) member states. He also emphasised the importance of creating an enabling environment for trade, investment and private-sector collaboration. Referring to intra-OIC trade, Ahmed said trade among OIC member countries reached approximately US$1 trillion in 2024, compared with US$884 billion in 2023. Intra-OIC trade accounted for around 20.36% of the member countries’ total foreign trade in 2024, while the organisation has set a target of 25%. The figures underline the potential for expanding commercial relationships among member states and increasing the contribution of trade within the Islamic economic bloc. Pakistan Urged to Expand Halal Product Exports Dr. Mirza Ikhtiar Baig, MNA, highlighted Pakistan’s potential to become a major exporter of halal food, meat, pharmaceuticals, cosmetics and other halal-certified products to Muslim markets. He said Pakistan’s established textile and garment industry could increase exports to Islamic countries through competitive pricing, stronger branding, value addition and compliance with international and halal standards. Baig also identified opportunities in rice, fruits, vegetables, seafood, meat, livestock and processed food, particularly in Gulf markets. Pharmaceuticals and healthcare products could provide further opportunities in developing Muslim economies. He stressed that better international certifications, regulatory compliance and product branding would be essential for Pakistani businesses seeking to capture a greater share of these markets. Islamic Chamber Calls for Stronger Economic Connectivity Sheikh Yousef Hassan Khalawi, Secretary General of the Islamic Chamber of Commerce and Development (ICCD), emphasised the importance of economic connectivity and tourism in strengthening relationships among Islamic countries. He called for innovative approaches and stronger institutional and private-sector cooperation to turn the economic potential of Muslim countries into practical commercial opportunities. The discussion highlighted the need to develop business relationships that extend beyond conventional trade arrangements and support investment partnerships, tourism and cross-border economic activity. Islamic Finance Seen as a Driver of Investment Ahmed El Wakil, Vice President of ICCD and President of Bank Al Baraka, highlighted the role of Islamic financial institutions in facilitating trade, investment and economic partnerships among Muslim countries. He stressed the importance of developing financial mechanisms capable of supporting businesses and cross-border investment. Muhammad Irfan Ahmed, Head of Shariah Compliance at BankIslami, discussed the growing importance of Shariah-compliant financial instruments in supporting trade, investment, small and medium-sized enterprises (SMEs) and productive sectors of the economy. Prof. Dr. Irum Saba of the Institute of Business Administration (IBA) shared perspectives on Islamic finance, financial inclusion, research and human capital development. She emphasised the need to strengthen knowledge and skills to support a modern Islamic economic ecosystem. Together, these discussions underscored the potential role of Islamic finance in mobilising capital, widening access to financial services and supporting productive investment across member countries. Pakistan’s OIC Representative Stresses Institutional Cooperation Ambassador Fawad Sher, Permanent Representative of Pakistan to the OIC, and Irfan Soomro, Director General at the Ministry of Foreign Affairs, highlighted the complementary resources, markets, investment opportunities and human capital available across Islamic countries. They stressed that stronger institutional mechanisms were needed to connect these strengths and convert economic opportunities into measurable outcomes. Potential areas for cooperation included trade facilitation, investment, Islamic finance, agriculture, food security, tourism, technology, education and business mobility. Improved coordination across these areas could help businesses identify partners, access new markets and develop commercial relationships across participating countries. Joint Ventures and Regional Value Chains in Focus The summit included diplomatic representatives from Afghanistan, Azerbaijan, Bangladesh, Oman, Maldives, Iran, Indonesia, Côte d’Ivoire, Malaysia, Thailand, Mauritius, Türkiye, the UAE, Sri Lanka, Uzbekistan and Jordan. Participants emphasised the importance of developing joint ventures and regional value chains across sectors with opportunities for cross-border collaboration. These sectors included: The discussions highlighted the potential for closer cooperation between businesses, chambers of commerce, financial institutions and government agencies to develop regional supply chains and investment partnerships. FPCCI Calls for Practical Trade and Investment Initiatives FPCCI reiterated its commitment to providing a platform for government institutions, diplomatic missions, chambers of commerce, financial institutions, academia and private-sector stakeholders to identify commercial opportunities and develop follow-up mechanisms. The summit concluded with a call to translate dialogue into concrete trade and investment initiatives, business linkages and joint ventures. Participants emphasised that stronger private-sector participation, improved institutional cooperation and practical mechanisms for cross-border engagement would be important to building a more integrated Islamic economic partnership. The discussions placed trade expansion, halal exports, Islamic finance, tourism and regional value chains at the centre of efforts to deepen economic relationships among Muslim countries and unlock opportunities for businesses across OIC markets.

TPL Insurance Renamed JazzSure After Jazz Takes Control
Business

TPL Insurance Renamed JazzSure After Jazz Takes Control

/

TPL Insurance Limited has formally changed its name to JazzSure Insurance Limited after the Securities and Exchange Commission of Pakistan (SECP) issued a certificate of incorporation on change of name on October 7, 2026. The company has also approached the Pakistan Stock Exchange (PSX) to update its security name and replace its existing trading symbol, TPLI, with JAZZSURE. The ticker change remains subject to exchange approval. Jazz International Holding Owns 76.33% Stake The name change follows the completion of a controlling-stake acquisition by Jazz International Holding Limited on July 13, 2026. The company is a subsidiary of VEON Ltd, a global digital operator. Jazz International Holding Limited now owns 76.33% of the issued share capital of the insurance company, giving it a controlling stake. Shareholders approved the proposed name change at an extraordinary general meeting held on October 2, 2026, resolving to replace TPL Insurance Limited with JazzSure Insurance Limited. The company’s disclosure to the exchange on October 7 also referred to earlier correspondence dated October 2 and October 5. SECP Issues Certificate for Name Change The SECP issued the certificate in Karachi under Section 13 of the Companies Act, 2017, formally confirming the change from TPL Insurance Limited to JazzSure Insurance Limited. The certificate confirms that the company remains duly incorporated under its new name. Its Corporate Unique Identification Number, 0028772, remains unchanged. Registrar Sidney Custodio Pereira signed the certificate on October 7, 2026. The fee paid for the certificate was Rs6,331. Former Name Must Remain Visible for 90 Days Under the certificate’s requirements, the company must continue displaying its former name alongside the new name for 90 days from the date of issuance. This requirement applies at every office and to the documents and notices covered by Section 22 of the Companies Act, 2017. The transition period allows the company to reflect its new legal identity while retaining a reference to its former name in the specified corporate communications. JazzSure Requests PSX Ticker Change In a letter dated October 8, Nadia Hussain, company secretary and head of legal, requested the PSX general manager to approve the security name change and the replacement of TPLI with JAZZSURE. The request was submitted on behalf of JazzSure Insurance Limited, formerly TPL Insurance Limited, with the earlier correspondence and SECP certificate attached. The company also asked the exchange to inform TRE Certificate holders. A copy of the material-information notice was sent to the SECP’s Public Offering and Regulated Persons Department. Legal Name Changed, Trading Symbol Pending The SECP certificate has formalised the company’s new legal name, but the stock-exchange symbol change remains subject to PSX approval. Once approved and implemented by the exchange, the new symbol will replace TPLI in the relevant trading and market records. The development marks a formal corporate identity change following Jazz International Holding Limited’s acquisition of a controlling stake in the insurance company.

Direct Europe Shipping Service Restored to Facilitate Exporters
Business

Direct Europe Shipping Service Restored to Facilitate Exporters

/

Direct shipping connectivity between Karachi and major European ports has been restored, offering relief to Pakistani exporters dealing with longer transit times and rising freight costs caused by disruptions to international shipping routes. Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced on October 8, 2026, that Mediterranean Shipping Company (MSC) had reinstated its PREMIUM IPAK service following demand from exporters for a dedicated and direct shipping link to Europe. MSC Restores Weekly Karachi-Europe Shipping Link Under the restored service, MSC will make a weekly call at Karachi Gateway Terminal International (KGTI), connecting Karachi with several major European destinations. The service will connect Pakistan with Colombo and then key European ports including Felixstowe, Rotterdam, Hamburg, Bremerhaven, Antwerp, Le Havre and London Gateway. The reinstatement is expected to provide exporters with additional options for planning shipments and accessing important European markets. Textile Exporters Face Higher Shipping Costs The restored Europe service comes as Pakistani exporters, particularly textile businesses, have faced higher logistics costs and longer delivery times due to changes in international shipping routes. Junaid Anwar Chaudhry said textile exporters had recently highlighted difficulties arising from shipping disruptions, particularly those associated with the situation in the Red Sea. According to the Minister, exporters reported that longer vessel journeys were increasing transportation costs and delivery times for shipments bound for European and US markets. These additional costs and delays have put pressure on the competitiveness of Pakistani exporters by increasing the overall cost and uncertainty associated with international trade. Government Engages Shipping Lines Over Connectivity The Maritime Affairs Ministry has been engaging shipping lines and other relevant stakeholders to address concerns raised by the export sector. The government aims to improve maritime connectivity, reduce logistical bottlenecks and facilitate the movement of Pakistani goods to international markets. Junaid Anwar Chaudhry emphasized that reliable and predictable shipping connectivity is important for export-oriented industries and the wider trade sector. He said the government would continue working to ensure that Pakistan’s maritime infrastructure and services better support international trade. Restored Service Provides Greater Export Planning Options The Minister welcomed MSC’s decision to reinstate the PREMIUM IPAK service, noting that the weekly Karachi call would provide exporters with a more direct connection to major European markets. Improved access to European ports could help businesses plan shipments with greater certainty while offering additional flexibility in managing international supply chains. The service covers major commercial destinations across Europe, including the UK, Netherlands, Germany, Belgium and France. Shipping Disruptions Continue to Affect Global Trade Despite the restoration of the service, the government cautioned that the development does not resolve the broader challenges affecting international shipping routes. Disruptions to established maritime routes continue to influence global trade, shipping schedules and logistics costs. The Ministry of Maritime Affairs said it would continue coordinating with shipping companies and exporters to address connectivity challenges and strengthen Pakistan’s position in international trade. Government Focuses on Maritime Logistics Efficiency Junaid Anwar Chaudhry said the government remained committed to improving port and shipping services and developing a more efficient maritime logistics system. The objective is to support exporters, reduce logistical constraints and enhance Pakistan’s trade competitiveness. The Minister also appreciated the efforts of Karachi Port Trust (KPT) Chairman Rear Admiral (retd) Shahid Ahmed and the management of Karachi Gateway Terminal Limited (KGTL) in restoring the shipping connection between Karachi and major European markets. KPT Seeks Further Improvements in Logistics System KPT Chairman Rear Admiral (retd) Shahid Ahmed said measures were being taken to further improve the efficiency of Pakistan’s maritime logistics system. He said the restored shipping connection would strengthen access from Karachi to key European markets and facilitate Pakistani exporters. The restoration of the weekly service provides another shipping option for businesses while broader efforts continue to address international route disruptions and improve the efficiency of Pakistan’s export logistics network.

Pakistan, UK Explore Investment Partnership to Advance Trade and Business
Business

Pakistan, UK Explore Investment Partnership to Advance Trade and Business

/

Pakistan and the United Kingdom have discussed ways to expand bilateral trade and investment cooperation across key sectors, with both sides seeking concrete outcomes through the next bilateral Trade Dialogue. The discussions took place on October 7 during a meeting between Federal Minister for Commerce Jam Kamal Khan and British High Commissioner to Pakistan Jane Marriott at the Ministry of Commerce. Secretary Commerce Jawad Paul and senior officials from the ministry also attended the meeting. Pakistan, UK Consider Long-Term Investment Partnership The British side outlined the possibility of developing a long-term, non-legally binding investment partnership, supported at the ministerial level. The proposed framework could provide a structured platform for cooperation in mutually agreed sectors, including regulatory reforms, trade facilitation, education and workforce skills, and investment financing. Both sides discussed the need to translate bilateral engagement into practical proposals that can support businesses and encourage investment between the two countries. Livestock Identified as Key Investment Opportunity Jam Kamal Khan highlighted livestock as an important area for Pakistan-UK cooperation, noting the Prime Minister’s interest in strengthening the sector. The Minister emphasized opportunities to improve animal productivity, increase value addition and expand meat exports. British expertise, technology and investment could support Pakistan in developing modern livestock practices and strengthening commercial linkages across the sector. The British High Commissioner stressed that food safety and regulatory requirements should be incorporated into sector development to help Pakistani producers gain greater access to the UK and other international markets. The meeting also reviewed ongoing cooperation through the healthcare and life sciences working group. Pakistan Seeks Stronger Global Branding The Commerce Minister emphasized the need to improve the international branding of Pakistani products and help local businesses establish stronger positions in overseas markets. The discussions covered opportunities to promote Pakistani pink salt, olive oil, food products, textiles and surgical instruments through improved quality assurance, value addition and more effective marketing. Both sides recognized that Pakistani businesses could capture greater value by developing their own brands rather than primarily supplying products to international markets under foreign brands. Opportunities for Pakistani food companies and restaurant brands to expand their presence in the United Kingdom were also discussed. Aviation Cooperation and PIA Fleet Modernisation Aviation emerged as another significant area of potential cooperation. The British side briefed the Commerce Minister on engagement involving Airbus and Rolls-Royce, including potential aircraft and engine arrangements for Pakistan International Airlines (PIA) and possible export credit support. Aircraft leasing was also discussed as a potential way to address PIA’s immediate fleet requirements while longer-term procurement options are considered. Jam Kamal Khan highlighted PIA’s direct international routes as an important commercial advantage and stressed the importance of improving service standards, reliability and fleet modernisation to rebuild passenger confidence. Tariff Reforms and Investment Climate The British High Commissioner acknowledged Pakistan’s ongoing economic reform efforts, including work on regulatory and tax reforms. Jam Kamal Khan highlighted tariff rationalisation as an important component of improving competitiveness, expanding access to industrial inputs and encouraging investment. The discussions reflected a broader focus on improving the business environment and reducing barriers that could restrict trade and investment flows. Pakistan, UK Explore Islamic Finance Cooperation The two sides also discussed cooperation in Islamic finance. The talks included opportunities to strengthen financial connections with the Pakistani diaspora in the United Kingdom and explore mechanisms that could support greater financial and investment linkages. Islamic finance represents another potential area for expanding commercial cooperation between the two countries. UK Expertise Sought for Pakistan’s Minerals Sector Minerals were also identified as an area with significant potential for bilateral cooperation. Jam Kamal Khan emphasized Pakistan’s need for experienced technical partners, professional exploration services and joint ventures to strengthen domestic capabilities in the minerals sector. The British side identified potential opportunities for UK companies to provide legal, financial, insurance and other professional services supporting minerals-related activities. The UK side also expressed interest in facilitating business participation in Pakistan’s planned minerals conference. Pakistan’s 80th Anniversary to Provide Business Platform Looking ahead to Pakistan’s 80th anniversary in 2027, both sides discussed using the milestone to showcase Pakistani products, investment opportunities and areas of bilateral cooperation. A series of business, educational and cultural engagements could provide additional platforms for strengthening people-to-people and commercial ties between Pakistan and the UK. Next Trade Dialogue to Focus on Practical Outcomes The meeting concluded with an emphasis on continued coordination and the development of practical proposals ahead of the next bilateral Trade Dialogue. The priority areas discussed—including livestock, healthcare and life sciences, IT, agriculture, financial services, aviation, minerals, Islamic finance and product branding—could provide a broader base for Pakistan-UK trade and investment cooperation. Both sides indicated a focus on converting ongoing discussions into concrete initiatives that can support businesses, investment and bilateral economic engagement.

**Pharma Profit Surge After Deregulation: GSK Tops With Rs10.41b**
Business

Pharma Profit Surge After Deregulation: GSK Tops With Rs10.41b

/

Pakistan’s listed pharmaceutical sector posted a strong earnings performance in FY26, with GlaxoSmithKline Pakistan emerging as the most profitable company after reporting a profit after tax of Rs10.41 billion. GSK’s annual profit increased 15 per cent from the previous year, while its sales and gross profit also recorded healthy growth. The company’s performance came as the wider listed pharmaceutical sector benefited from higher product prices and lower financing costs. GSK Leads Listed Pharma Companies GlaxoSmithKline Pakistan recorded net sales of Rs67.1 billion in FY26, representing a 7 per cent year-on-year increase. Gross profit rose 24 per cent to Rs25.6 billion, while profit before tax increased 20 per cent to Rs17.6 billion. With a profit after tax of Rs10.41 billion, GSK recorded the highest earnings among listed pharmaceutical companies during the year. Listed Pharma Sector Profit Rises 28% The combined profit of Pakistan’s listed pharmaceutical companies increased 28 per cent to Rs42.2 billion in FY26. Sector net sales rose 10 per cent to Rs377.9 billion from Rs342.6 billion in FY25. The earnings improvement was driven largely by higher prices and a reduction in finance costs. The increase in sales did not necessarily reflect a broad-based recovery in volumes, with price-led growth accounting for much of the sector’s revenue expansion. Fourth-quarter sector sales reached Rs88.9 billion, up 3 per cent year-on-year but down 3 per cent compared with the preceding quarter. Abbott Laboratories contributed 20 per cent of annual sector sales, followed by GlaxoSmithKline with 18 per cent, Haleon with 11 per cent and Searle with 10 per cent. Pharmaceutical Gross Margins Reach Record High The sector’s annual gross margin increased to 42.8 per cent in FY26 from 38.9 per cent a year earlier, marking an all-time high. The fourth-quarter gross margin also stood at 42.8 per cent, compared with 40.4 per cent during the same period of FY25. AGP, Highnoon Laboratories and Searle recorded the highest gross margins among the companies, at 60.4 per cent, 56.1 per cent and 52.0 per cent, respectively. Inventories across the listed pharmaceutical sector averaged around 60 days. Earnings Growth Has Limited Impact on Market Value Despite the strong improvement in earnings, the increase was only modestly reflected in pharmaceutical sector valuations. Excluding Searle, full-year earnings still increased 22 per cent. However, fourth-quarter earnings declined 2 per cent year-on-year and 26 per cent quarter-on-quarter, largely following Searle’s quarterly loss. Excluding Searle, quarterly sector profit stood at Rs9.3 billion, up 6 per cent year-on-year but down 4 per cent from the previous quarter. The sector’s market value, excluding Searle and Liven Pharma, increased only 0.4 per cent during the year. Including Searle, the increase was 2.3 per cent as of June 30, 2026. The combined market value of listed pharmaceutical companies stood near Rs464 billion as of October 5. Finance Costs Decline Despite Higher Operating Expenses Selling and distribution expenses increased 21 per cent to Rs69.5 billion during FY26, putting pressure on operating costs. However, the sector benefited from a sharp decline in financing expenses. Finance costs fell 42 per cent to Rs3.6 billion, supported by relatively stable interest rates and lower debt levels. Other income increased marginally by 2 per cent to Rs6.5 billion for the full year. The contribution increased more significantly during the fourth quarter, supported by a larger contribution from Hoechst Pakistan. The effective tax rate increased to 42.5 per cent from 39.8 per cent and reached 50.4 per cent in the fourth quarter. Abbott and Haleon Also Post Strong Earnings Following GSK, Abbott Laboratories reported profit of Rs8.56 billion, representing a 29 per cent increase. Haleon Pakistan posted profit of Rs6.60 billion, up 16 per cent year-on-year, while Hoechst Pakistan’s earnings increased 58 per cent to Rs3.76 billion. Highnoon Laboratories and AGP recorded profits of Rs4.18 billion and Rs4.21 billion, respectively. Otsuka’s profit also increased sharply, although the rise came from a relatively small base. Searle, Citi Pharma and Macter Face Earnings Pressure Not all pharmaceutical companies benefited from the sector-wide earnings improvement. Searle’s full-year profit fell to Rs535 million, representing a 139 per cent decline, following its loss during the fourth quarter. Citi Pharma and Macter also reported lower earnings during the year. Searle’s performance had a notable impact on the sector’s quarterly results, contributing to the decline in overall fourth-quarter earnings. Pharma Volumes Expected to Recover in 2027 Despite the strong price-led performance in FY26, the sector’s outlook remains linked to a recovery in volumes. Pharmaceutical volumes are expected to improve from the first half of 2027, supported by the low base established during 2026 and companies expanding and diversifying their product portfolios. The combination of stronger volumes, broader product offerings and continued cost management could provide additional support to pharmaceutical earnings, although the sector will continue to face pressure from taxation, operating expenses and changing market conditions.

Container Detentions Threaten Heavy Losses for Industry & Transporters, KATI
Business

Container Detentions Threaten Heavy Losses for Industry & Transporters, KATI

/

The Korangi Association of Trade and Industry (KATI) has raised serious concerns over the seizure and detention of goods transport containers in Islamabad, warning that prolonged restrictions could cause significant financial losses for transporters, logistics companies, importers, exporters and industrial businesses. KATI President Sheikh Umer Rehan urged the government to take immediate measures to restore the smooth movement of commercial cargo and prevent further disruption to supply chains. Containers and Trucks Reportedly Held for Nearly 20 Days According to goods transporters, containers and trucks have been stopped at various locations for nearly 20 days. KATI said the prolonged detention has left freight vehicles idle and created substantial financial pressure across the transportation and logistics sector. The disruption could also affect the movement of imported and exported goods, industrial raw materials and essential commodities, potentially creating delays for businesses dependent on timely deliveries. Sheikh Umer Rehan said containers form an essential part of Pakistan’s trade and supply chain infrastructure. Restricting their movement therefore has consequences beyond the transport sector, affecting industry, trade and the wider market. Perishable Goods Face Additional Risks KATI warned that prolonged transportation delays could be particularly damaging for perishable products such as vegetables and fruits. If these goods remain stranded or cannot move through normal supply routes, businesses could face direct financial losses from spoilage. Supply disruptions could also contribute to higher prices for consumers. The association stressed that maintaining uninterrupted commercial transportation is important for protecting both businesses and the availability of essential commodities. KATI Calls for Immediate Restoration of Commercial Cargo Movement Sheikh Umer Rehan acknowledged that protests and political activities are constitutional and legal rights. However, he said such activities should not result in prolonged disruption to industry, trade, investment and employment. He called on the government to immediately stop the detention of containers being used for legitimate commercial purposes. Where restrictions are considered necessary because of security requirements, KATI proposed that alternative arrangements should be put in place to ensure the uninterrupted movement of commercial cargo. Proposal to Use Empty Containers from Yards KATI also proposed a mechanism involving shipping companies, terminal operators and logistics firms to reduce pressure on commercially active containers. Under the proposal, the administration could coordinate with relevant stakeholders to identify empty containers available at yards and obtain them against appropriate compensation. The association believes such an arrangement could help meet administrative or security-related requirements without disrupting containers already being used to transport commercial goods. Compensation Mechanism Sought for Transporters KATI also demanded a transparent mechanism to compensate truck and container owners for direct financial losses resulting from prolonged vehicle detention. Transport vehicles remaining idle for several days can generate losses through missed trips, operating costs and disruption to scheduled cargo movements. Sheikh Umer Rehan said owners should not bear the entire financial burden when commercial vehicles are prevented from operating because of administrative measures. Business Community Seeks Economic Continuity KATI emphasized that Pakistan’s economy needs continuity in business activity despite ongoing political and administrative challenges. The association said economic stability, higher exports, increased investment and uninterrupted industrial production require coordination among relevant institutions to minimize disruptions affecting businesses. Sheikh Umer Rehan stressed that the business community is not a party to political disputes but remains a key contributor to the national economy. He said the government has a responsibility to ensure that political and administrative challenges cause the minimum possible disruption to business continuity, industrial production and exports. Government Urged to Restore Supply Chains KATI expressed hope that the government would respond promptly to the concerns raised by the business community. The association called for immediate steps to restore supply chains, normalize commercial activity, ensure uninterrupted transportation of essential goods and establish compensation arrangements for transporters facing losses. For industries dependent on reliable logistics, resolving the container detention issue could help limit further disruptions to production, trade and the movement of goods across the country.

The Boardroom PK delivers trusted business news, analysis, and insights from Pakistan and beyond, keeping readers informed, inspired, and ahead in the evolving world of business and leadership.

Facebook Instagram X-twitter Linkedin Youtube
News
Categories
Company
  • Privacy Policy
  • Terms of Services
  • Sitemap
  • Contact Us

© 2025 theboardroom. All rights reserved.

Scroll to Top