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Rising Costs Threaten GSP+ Edge; SAI Chief Urges Policy Stability, Value Addition

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SITE Association of Industry (SAI) President Abdul Hadi has urged the government to reduce industrial production costs, maintain consistent policies and expand international market access, warning that rising input expenses and changing global trade arrangements are weakening Pakistan’s export competitiveness. In a statement on the country’s industrial outlook, he said Pakistan’s textile sector, which accounts for around 60% of national export earnings, faces growing pressure from high operating costs and intensifying competition. Sustained export growth, he stressed, requires investment in modern technology, higher productivity and a transition towards value-added manufacturing. Textile Exports Grow Amid Rising Production Costs According to figures cited by the association, Pakistan’s textile and apparel exports reached $18 billion in FY26, contributing approximately 8.5% to gross domestic product (GDP) and providing employment to nearly 40% of the industrial workforce. Exports increased 5.26% year-on-year to $5.026 billion in the first quarter of FY27. However, Abdul Hadi cautioned that rising production costs and competition from regional exporters could threaten the sector’s growth momentum. He said Pakistan remained heavily dependent on relatively low-value-added products, including yarn, fabric and basic home textiles. This dependence limits the industry’s ability to capture higher returns from international markets. The SAI president called for greater investment in technical textiles, branded apparel and other higher-margin products to strengthen Pakistan’s participation in global supply chains. Declining Cotton Production Adds to Industry Pressures Abdul Hadi also highlighted declining domestic cotton production as a major concern for textile manufacturers. Lower local availability has increased the industry’s reliance on imported raw materials, exposing producers to additional costs. According to the figures provided, Pakistan’s cotton import bill increased 54.9% in FY25, adding to the financial pressure on manufacturers. He stressed the need to improve domestic cotton production and strengthen coordination between the agricultural and industrial sectors. A reliable supply of quality cotton at competitive prices, he said, would help reduce input costs and support the long-term sustainability of textile manufacturing. Changing Trade Arrangements Threaten Pakistan’s GSP+ Advantage The SAI chief warned that evolving international trade agreements and changes in preferential market access could place Pakistani exporters at a competitive disadvantage. Preferential access to the European Union and the United Kingdom has supported Pakistan’s textile and apparel exports. However, improved market access for competing countries could weaken Pakistan’s relative position in key export destinations. Abdul Hadi described Pakistan’s Generalised Scheme of Preferences Plus (GSP+) status with the European Union as an important pillar of its export performance. The arrangement provides preferential, including duty-free, access for eligible Pakistani products to the European market. He cautioned that trade agreements involving India and the European Union could intensify competition for Pakistani exporters if competing suppliers receive improved access to the same markets. He urged the government to strengthen trade diplomacy, pursue new export destinations and take practical measures to reduce the cost of doing business rather than relying indefinitely on existing trade preferences. Policy Stability and Affordable Energy Key to Export Growth Abdul Hadi emphasised that consistent industrial policies, reliable infrastructure, affordable energy and an investment-friendly business environment are essential to expanding manufacturing capacity and export earnings. He called on federal and provincial governments to work closely with industrial associations to remove structural bottlenecks, improve industrial efficiency and encourage investment in modern production facilities. According to the SAI president, unpredictable policies and high operating expenses can discourage investment and limit manufacturers’ ability to compete with regional producers. He said a clear, long-term industrial strategy should prioritise policy continuity, value addition, productivity improvements and market diversification. Value Addition Needed to Strengthen Pakistan’s Export Base The SAI president said Pakistan must move beyond low-value-added textile production to capture greater value from its manufacturing capabilities. Investment in technology, improved product quality and the development of higher-margin product categories would be important to achieving this transition. He stressed that stronger domestic raw-material production, competitive energy costs and wider access to international markets would help protect the textile sector’s export position. A coordinated approach involving policymakers, industrial associations, manufacturers and the agricultural sector, he added, is necessary to strengthen foreign exchange earnings, support employment and realise Pakistan’s broader industrial potential.

Habib Bank Limited Reports Sharp Decline in Provisions for Third Quarter
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Habib Bank Limited Reports Sharp Decline in Provisions for Third Quarter

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Habib Bank Limited (HBL) recorded a significant improvement in its provisions during the third quarter of calendar year 2026, reporting a net reversal of PKR 1.238 billion in September compared with a provision charge of PKR 994 million in the preceding quarter. The favourable movement in provisions supported the bank’s profitability, with profit before tax rising 6.6% quarter-on-quarter to PKR 41.948 billion. Profit after tax increased 6.5% sequentially to PKR 19.575 billion, reflecting continued earnings growth despite moderate changes in core income. HBL Provisions Reverse After Earlier Charges HBL’s consolidated provisions declined substantially, moving from a charge in the June quarter to a net reversal in September. On a year-on-year basis, provisions fell 138.9% from a charge of PKR 3.182 billion recorded in the same quarter last year. For the first nine months of 2026, total provisions amounted to PKR 4.089 billion, down 50.7% from PKR 8.297 billion in the corresponding period of 2025. The reversal contributed to the bank’s improved quarterly earnings. Profit before tax increased 14% year-on-year to PKR 41.948 billion, while profit after tax rose 15.6% to PKR 19.575 billion. The lower provision expense may reflect improved asset quality, recoveries or the reversal of previously recognised charges. However, further details would be needed to determine the precise factors behind the movement. Earnings and Dividend Payouts Remain Firm HBL reported earnings per share of PKR 13.33 for the third quarter and declared a cash dividend of PKR 6.00 per share. For the nine-month period, earnings per share increased to PKR 36.84 from PKR 34.97 a year earlier. Cumulative dividends reached PKR 18.00 per share, compared with PKR 14.00 in the same period last year. The increase in cumulative earnings and dividend distributions highlights the bank’s continued capacity to generate profits and return capital to shareholders. Interest and Non-Interest Income Support Performance Net interest income rose 0.7% year-on-year to PKR 70.140 billion in the third quarter of 2026. Non-interest income increased 12% over the same period, while total income grew 3.5%. Non-markup expenses increased 4.8% year-on-year, and the cost-to-income ratio stood at 57.7%. Net interest income accounted for 72.9% of total income, underlining its importance to the bank’s overall revenue base. The figures indicate that earnings growth was supported by higher non-interest income and lower provisions, while relatively modest growth in net interest income and rising expenses remained important considerations. Asset Quality and Investor Returns in Focus The substantial decline in provisions is a key development in HBL’s third-quarter results. Sustaining lower provisioning levels could support future profitability, although the trend will depend on the performance of the bank’s loan portfolio, recoveries and broader credit conditions. The bank’s effective tax rate stood at 53.3% for the quarter. Its reported price-to-book ratio was 0.85 times, while its trailing 12-month dividend yield stood at 8.2%. Investors will continue to monitor HBL’s asset quality, income growth, operating costs and provisioning requirements in coming quarters to assess whether the improvement in earnings can be sustained.

McCormick and Unilever Foods Plan $66 Billion Merger
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McCormick and Unilever Foods Plan $66 Billion Merger

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McCormick & Company and Unilever are pursuing a proposed $66 billion combination involving Unilever’s Foods business, a transaction that would reshape the global food and flavour industry. Rothschild & Co acted as joint-lead financial adviser to McCormick on the proposed deal. The combination is intended to bring complementary food brands, seasoning products and flavour expertise under a single corporate structure, creating a business with approximately $20 billion in annual revenue. The proposed transaction would significantly expand McCormick’s scale and strengthen its position in global food markets. $66 Billion Transaction to Combine Food Businesses The proposed deal carries a total enterprise value of $66 billion, including $44.8 billion attributed to Unilever’s Foods business. Under the proposed ownership structure, Unilever shareholders would hold approximately 65% of the combined company, while existing McCormick shareholders would own the remaining 35%. The arrangement would bring the businesses together under a new ownership structure, combining McCormick’s expertise in spices and seasonings with Unilever’s food brands and operations. The resulting company would have a broader international presence and a larger revenue base. Reverse Morris Trust Structure at the Centre of Deal The transaction is structured as a Reverse Morris Trust (RMT), a corporate arrangement commonly used to separate a business from its parent company and combine it with another company. Depending on the transaction structure and compliance with applicable legal and regulatory requirements, this approach can offer tax advantages. The proposed combination would be notable for its scale, representing the largest Reverse Morris Trust transaction involving a European company, according to the transaction details provided. For Unilever, the structure offers a route to separate its Foods business while combining it with McCormick under a revised ownership arrangement. For McCormick, the deal provides an opportunity to expand its portfolio, increase its global reach and strengthen its position across the food and flavour categories. Any intended tax benefits would remain subject to the transaction meeting the relevant legal and regulatory conditions. Rothschild & Co, Citi and Global Advisory Teams Rothschild & Co and Citi served as advisers to McCormick, while Goldman Sachs, Morgan Stanley and PwC advised Unilever. The involvement of these financial institutions and professional services firms reflects the complexity of structuring a large cross-border corporate combination involving business separation, valuation and ownership arrangements. Rothschild & Co’s role as joint-lead financial adviser places it among the key advisers supporting McCormick through the proposed transaction. Combined Company to Generate Around $20 Billion in Revenue The proposed combination would create a global food business with approximately $20 billion in annual revenue, bringing together established brands and expertise in flavours, spices, seasonings and other food products. For McCormick, the transaction represents a potential expansion in scale and market reach. For Unilever, it provides a pathway to separate its Foods operations through a structured corporate transaction. The proposed deal’s final impact will depend on the completion of the transaction and the successful integration of the businesses. If completed as planned, the combination would establish a larger global player in the food and flavour industry.

MCB Bank Delivers Strong Nine-Month Performance, Supported by Robust Earnings Growth and Balance Sheet Expansion
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MCB Bank Delivers Strong Nine-Month Performance, Supported by Robust Earnings Growth and Balance Sheet Expansion

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MCB Bank Limited reported a profit after tax (PAT) of Rs41.4 billion for the nine months ended September 30, 2026, with earnings per share (EPS) reaching Rs34.95. The bank’s performance was supported by deposit mobilisation, growth in non-markup income and expansion across key business segments. The bank’s Board of Directors, chaired by Mian Mohammad Mansha, approved the financial results and declared a third interim cash dividend of Rs9 per share, taking the cumulative dividend for 2026 to Rs27 per share. On a consolidated basis, MCB Bank recorded profit before tax of Rs92.7 billion and profit after tax of Rs44.3 billion. The bank reported a return on assets of 1.62% and a return on equity of 22.21%, reflecting its earnings capacity and deployment of financial resources. MCB Bank Reports Growth in Income and Fee-Based Revenue MCB Bank’s total income increased 7% year-on-year to Rs144.3 billion during the nine-month period. Net markup income rose to Rs114.8 billion from Rs108.8 billion in the corresponding period last year, supported by balance sheet expansion and lower deposit costs. The bank’s average current account concentration improved to 53.45%, compared with 51.28% in the same period of 2025. This strengthened its low-cost funding base and helped offset the impact of declining yields amid a lower average policy rate of 11.07%, compared with 11.56% a year earlier. Non-markup income grew 14% to Rs29.6 billion from Rs26 billion. Fee and commission income increased 26% to Rs17.6 billion, driven by digital banking activity, higher transaction volumes and greater customer engagement. Card-related income increased by Rs704 million, while commission income from guarantees and consumer finance fees rose by Rs162 million and Rs153 million, respectively. Foreign exchange income contributed Rs5.945 billion, dividend income Rs2.735 billion and gains on securities Rs2.893 billion. Operating expenses increased 10% year-on-year as the bank continued investing in technology, human capital and brand development. Despite higher expenditure, MCB maintained a cost-to-income ratio of 38.61%. Balance Sheet Expands to Rs3.6 Trillion MCB Bank’s total assets increased by Rs336 billion, or 10%, to Rs3.6 trillion at September 30, 2026, from Rs3.25 trillion at the end of 2025. The investment portfolio expanded by Rs211 billion, or 10.8%, to Rs2.16 trillion, while gross advances reached Rs819 billion. Consumer financing recorded growth of Rs17 billion, or 34%. The bank’s advances grew 11% during the nine-month period, compared with industry growth of 3%. As a result, its advances market share increased to 4.92% from 4.59% at the end of 2025. Asset quality also showed improvement. Non-performing loans declined by Rs710 million to Rs49.05 billion from Rs49.76 billion at year-end 2025. The infection ratio stood at 5.99%, while the coverage ratio improved to 93.53%, reflecting continued monitoring of credit exposures and a focus on risk management. Deposit Mobilisation Strengthens Market Position MCB Bank recorded strong deposit growth during the first nine months of 2026, with total deposits increasing by Rs447 billion to Rs2.71 trillion from Rs2.26 trillion at the end of 2025. The bank reported deposit growth of 22.2%, exceeding industry growth of 9.1%. Its deposit market share increased by 65 basis points to 6.03%. Current deposits rose by Rs181 billion, or 15%, to Rs1.4 trillion, strengthening the bank’s low-cost funding base and supporting its overall financial performance. Remittance Inflows Support Pakistan’s External Sector MCB Bank maintained a market share of approximately 10% in Pakistan’s home remittance market, processing $3.276 billion in remittance inflows during the nine-month period. Through its branch network and expanding digital channels, the bank continued supporting the State Bank of Pakistan’s financial inclusion and formal remittance initiatives. These services contribute to formal foreign exchange inflows and support economic activity across the country. Capital and Liquidity Ratios Remain Strong MCB Bank reported a capital adequacy ratio (CAR) of 18.99% and a Common Equity Tier-1 (CET1) ratio of 14.80%, both above minimum regulatory requirements. Its liquidity position remained robust, with a Liquidity Coverage Ratio (LCR) of 236.29% and a Net Stable Funding Ratio (NSFR) of 167.73%. These indicators reflect the bank’s capacity to meet financial obligations and maintain operational resilience. The Pakistan Credit Rating Agency (PACRA) reaffirmed MCB Bank’s long-term credit rating at AAA and short-term rating at A1+ in its notification dated June 23, 2026. With more than 1,700 branches on a consolidated basis, MCB Bank continues to maintain a substantial presence in Pakistan’s banking sector and remains among the leading banking stocks listed on the Pakistan Stock Exchange. MCB Bank Focuses on Sustainable Growth Looking ahead, MCB Bank aims to build on its capital strength, liquidity buffers, expanding deposit base and diversified revenue streams. Its priorities include strengthening customer relationships, expanding digital capabilities, improving operational efficiency and maintaining disciplined risk management. The bank’s nine-month results highlight the contribution of deposit mobilisation, fee-based income and balance sheet growth to its performance, while continued investment in technology and services is intended to support long-term competitiveness and shareholder returns.

EU Ambassador Briefs Pakistan Textile Council Leadership on GSP+ Process; PTC Commits to Sustained Engagement with Government
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EU Ambassador Briefs Pakistan Textile Council Leadership on GSP+ Process; PTC Commits to Sustained Engagement with Government

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The European Union Ambassador to Pakistan, H.E. Raimundas Karoblis, met with the leadership of the Pakistan Textile Council (PTC) in Karachi on October 21, 2026, to discuss Pakistan’s position under the EU’s Generalised Scheme of Preferences Plus (GSP+), preparations for the next phase of the arrangement and the importance of textile and apparel exports to bilateral trade. The meeting focused on the EU’s expectations for continued preferential market access, the implementation of Pakistan’s existing international commitments and the potential implications of emerging European trade regulations. PTC reaffirmed its commitment to working with the government and the EU to support the GSP+ process and protect the competitiveness of Pakistan’s export sector. The PTC delegation was led by Chairman Fawad Anwar and included Vice Chairman Anees Khawaja, Gul Ahmed CEO Zaki Bashir, Alkaram Towels CEO Kashif Chawla, Naveena Group CEO Asif Riaz and representatives of other textile and apparel businesses. The EU Ambassador was accompanied by officials from the EU Delegation to Pakistan. EU Highlights Key Requirements for Pakistan’s GSP+ Status During the meeting, Karoblis highlighted the importance of the EU market for Pakistan’s exports, noting that textiles and clothing account for approximately 70% to 76% of Pakistan’s exports to the European Union, according to the EU’s GSP+ assessment. The current GSP+ arrangement has been in place for more than a decade, providing preferential access that is particularly important for Pakistan’s textile and apparel exporters. Referring to the EU’s assessment of Pakistan covering 2023–2025, published on July 16, 2026, the ambassador emphasised that progress on human rights and the rule of law would be essential to securing benefits under the new GSP+ scheme. He clarified that the European Union was not introducing new standards. Rather, Pakistan is expected to demonstrate effective implementation of commitments it has already undertaken under relevant United Nations conventions. EU Calls for Measurable Reforms and Effective Implementation Karoblis said the European Commission would undertake enhanced engagement with the Government of Pakistan as the next phase of the GSP+ process advances. The immediate priority would be to demonstrate short-term improvements in areas of major concern, followed by a credible action plan containing specific measures, implementation timelines and measurable performance indicators. The new framework places greater emphasis on the practical implementation of commitments rather than simply ratifying conventions or adopting legislation. The ambassador acknowledged the Pakistani government’s stated willingness to cooperate at the highest level. He also stressed that sustained coordination would be required across ministries and at the working level to translate commitments into measurable outcomes. PTC Highlights the Economic Importance of GSP+ PTC Chairman Fawad Anwar said the council’s member companies were predominantly value-added exporters with significant exposure to the European Union market. He stressed that the continuation of GSP+ was critical not only for Pakistan’s textile and apparel exports but also for employment, tax contributions and the wider network of businesses and livelihoods connected to the sector. Anwar also warned that the EU-India Free Trade Agreement could create additional competitive pressure for Pakistani exporters, even if Pakistan retains its GSP+ status. The agreement’s potential implications for relative market access and export competitiveness make it important for Pakistan to assess how changes in trade arrangements could affect its position in the European market. Textile Leaders Call for Sector-Specific Assessment PTC Vice Chairman Anees Khawaja noted that the EU assessment recognised progress across four clusters covering human rights, labour, the environment and governance. He invited the EU ambassador to visit Multan to observe how GSP+ has contributed to livelihoods and economic opportunities in smaller Pakistani cities. Gul Ahmed CEO Zaki Bashir urged that conditions within Pakistan’s textile and apparel export sector be assessed separately from broader national-level findings. He argued that the concerns highlighted in the assessment were national findings rather than sector-specific evaluations. PTC leadership welcomed the government’s stated commitment to the GSP+ process and its readiness to engage with the European Union at the highest level. The council also identified a time-bound implementation plan as an immediate priority and offered the textile and apparel industry’s support. PTC Shares Industry Practices and Raises Regulatory Concerns During the discussions, PTC members presented examples of practices already being implemented in export-oriented manufacturing facilities. These included certified industrial facilities, female workforce participation exceeding 70% at certain sites and established worker committees. PTC CEO Muhammad Hasan Shafqaat highlighted the need for greater clarity and proportionate implementation of emerging EU regulatory requirements, particularly the Digital Product Passport and supply chain due diligence obligations. He noted that these requirements could extend transparency and traceability obligations across entire supply chains, potentially reaching back to the farm level. For Pakistan’s textile sector, the expanding scope of supply chain requirements makes regulatory clarity and industry preparedness increasingly important to maintaining access to European buyers. PTC Outlines Four Commitments to Support the GSP+ Process Following the meeting, PTC reaffirmed its commitment to sustained policy engagement, technical assistance and coordination with the government and the European Union. The council outlined four areas of action. 1. Engagement with the Federal Government PTC will raise the meeting’s outcomes and industry recommendations with the Prime Minister’s Office, the Ministry of Foreign Affairs and the Ministry of Commerce. The engagement will aim to ensure that the textile and apparel sector’s concerns and recommendations are considered in the government’s approach to the GSP+ process. 2. Support for Government Coordination The council will support government coordination, including through a dedicated senior focal point for the GSP+ process. PTC has offered industry expertise, technical assistance and engagement with relevant consultants to support coordination and implementation. 3. Industry Input to the GSP+ Reapplication Committee PTC Chairman Fawad Anwar, who is a member of the government-constituted committee reviewing the GSP+ reapplication process, will contribute the textile and apparel industry’s perspectives and recommendations to its deliberations. The council’s participation is intended to ensure that the sector’s export exposure, employment contribution and operational requirements are considered during policy discussions. 4. Assessment of the EU-India Free Trade Agreement At the request of the Ministry of Foreign Affairs, PTC is preparing

Indus Motor Gross Margins Slip Despite Stronger Sales
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Indus Motor Gross Margins Slip Despite Stronger Sales

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Indus Motor Company is expected to report a decline in gross margin for the September 2026 quarter despite stronger vehicle sales, as a higher share of lower-margin Yaris models weighs on profitability, according to Insight Securities. The company’s gross margin is projected to fall to 12.9% in the first quarter of FY27, compared with 17.1% in the same period last year. Although higher sales volumes are expected to support revenue growth, the shift in product mix is likely to limit earnings gains. Revenue is forecast to increase 21% year-on-year to approximately Rs74.9 billion, while unit sales are expected to rise around 34%. However, profit after tax is projected at Rs6.8 billion, translating into earnings per share (EPS) of Rs87.1, representing a modest 2% increase from a year earlier. Higher Sales Volumes Fail to Offset Margin Pressure Indus Motor’s projected performance highlights the challenge of converting stronger vehicle demand into proportionate profit growth. The increase in sales volumes is expected to support the company’s top line, but the greater contribution from Yaris models is anticipated to put pressure on overall gross margins. As a result, revenue growth is likely to outpace earnings growth during the quarter. The projected decline in gross margin from 17.1% to 12.9% indicates that the company may generate lower gross profit relative to revenue despite selling more vehicles. Passenger Car Demand Supports Sales Growth Pakistan’s passenger car market has shown signs of recovery, supported by improving economic conditions and lower interest rates. Industry-wide passenger car sales increased 43% year-on-year during the first quarter of FY27, providing a favourable backdrop for Indus Motor’s volume growth. However, demand trends across vehicle categories have remained uneven. Jeeps and pickups experienced weaker offtake as buyers awaited greater clarity on the next automobile policy. Tractor sales, meanwhile, recovered from a low base. These differences suggest that the recovery in the automotive sector is not uniform across all vehicle segments. Higher Other Income Provides Earnings Support Indus Motor’s other income is projected to rise 37% year-on-year to approximately Rs3.9 billion, supported by higher cash balances. The increase in other income is expected to cushion the impact of weaker gross margins and help sustain earnings growth during the quarter. On a sequential basis, profit after tax is forecast to increase 12% compared with the June quarter, indicating an improvement in quarterly earnings despite the year-on-year pressure on margins. The company is also expected to announce a cash dividend of Rs52 per share alongside its results. Indus Motor Earnings Contrast With Broader Auto Sector Trend Across the broader automobile companies covered in the sector analysis, combined profit is expected to decline by approximately 7% year-on-year. The anticipated decline is mainly attributed to weaker results at Sazgar, where vehicle volumes and margins came under pressure following the expiry of tax incentives. Against this backdrop, Indus Motor’s projected 2% annual earnings growth represents a relatively stable performance. Stronger sales, higher other income and an expected sequential improvement in profit are likely to provide support, although the decline in gross margins remains a key concern. The company’s results will therefore highlight the balance between recovering vehicle demand, product mix and profitability in Pakistan’s automotive industry.

Used Car Imports Promote Competition, Break Monopolies, Expand Trade: Mian Shoaib
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Used Car Imports Promote Competition, Break Monopolies, Expand Trade: Mian Shoaib

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Chairman All Pakistan Car Dealers & Importers Association (APCDIA) Mian Shoaib Ahmed has called for an end to policies that favour a limited number of automobile assemblers, arguing that regulated commercial imports of used vehicles could increase competition, expand consumer choice and create new business opportunities. Leading an APCDIA delegation during a visit to the Karachi Chamber of Commerce & Industry (KCCI), Mian Shoaib said prolonged protection for local assemblers had not delivered the desired improvements in vehicle quality, localisation and export performance. He called for a transparent and competitive automotive market that encourages manufacturers to improve product quality, safety standards and efficiency. APCDIA Calls for Fair Competition in the Automobile Market Mian Shoaib welcomed progress towards the commercial import of used vehicles and appreciated KCCI’s support, including its correspondence with the Prime Minister and relevant government officials. He said implementation had been delayed despite an earlier notification. However, the association was moving towards importing vehicles commercially under its own business name through formal banking channels and in compliance with applicable inspection, quality and regulatory requirements. According to Mian Shoaib, regulated imports would introduce greater competition and give consumers access to a wider range of vehicles. He argued that local manufacturers should compete through product quality and efficiency rather than rely on restrictive policies. Pakistan Car and Machinery Zones Could Attract $400 Million Investment Highlighting Pakistan’s potential to become a regional hub for automotive and machinery trading, Mian Shoaib discussed the proposed Pakistan Car and Machinery Zones project. The initiative aims to bring used vehicles and machinery into Pakistan for refurbishment, value addition and re-export to international markets. Drawing a comparison with Dubai’s established transit-trade model, he said Pakistan could use its strategic location, skilled workforce and competitive labour costs to develop a similar export-oriented ecosystem in Karachi. The proposed project could also generate business for domestic auto-parts manufacturers, vendors and supporting industries. Mian Shoaib expressed optimism that the initiative was approaching its final stages, with an ambition to attract approximately $400 million in foreign direct investment (FDI). BMG Supports Regulated Used-Car Imports Chairman Businessmen Group (BMG) Zubair Motiwala, who joined the meeting via Zoom, strongly supported the regulated commercial import of used vehicles. He said the policy could provide consumers with better-quality cars at affordable prices, generate additional government revenue, conserve foreign exchange and introduce competition into the domestic automobile market. Motiwala cautioned that the automobile manufacturing lobby was influential and well-resourced, making it important for car dealers to present strong, evidence-based arguments in support of their position. He also raised concerns about the durability, performance and standards of certain locally assembled vehicles. Used Cars Serve a Different Consumer Segment Motiwala maintained that the used-car market serves consumers who cannot afford expensive new vehicles and should have access to affordable alternatives. He argued that used-car imports would not necessarily undermine domestic automobile manufacturing because the two markets cater to different customer segments. He also highlighted the employment of thousands of people in car dealerships and related businesses, urging the government to consider the wider economic implications of its policy decisions. According to Motiwala, the potential benefits of regulated imports include employment generation, foreign-exchange savings and increased government revenue. He assured the delegation that KCCI would continue to raise the association’s legitimate concerns with the relevant authorities. KCCI Reaffirms Support for Commercial Imports Speaking at the meeting, KCCI President Talat Mahmood reaffirmed the Chamber’s commitment to supporting APCDIA in addressing concerns surrounding the commercial import of used vehicles. He stressed the need for continued engagement with the government to ensure effective implementation of the notified policy and facilitate legitimate business activities. Talat Mahmood also invited the delegation to submit its recommendations to KCCI’s Executive Committee. This would help the Chamber better understand the sector’s concerns and determine appropriate measures to support the business community. He further emphasised the importance of keeping businesses informed about initiatives that could generate investment opportunities and strengthen commercial activity, reiterating KCCI’s willingness to remain engaged with the association.

Portugal-Pakistan Trade Ties: Ambassador Calls For Joint Ventures, Investment & Stronger Business Partnerships
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Portugal-Pakistan Trade Ties: Ambassador Calls For Joint Ventures, Investment & Stronger Business Partnerships

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Portugal’s Ambassador to Pakistan, Paulo Domingues, has called for stronger trade, investment and business partnerships between the two countries, urging companies to move beyond longstanding diplomatic ties and pursue practical commercial opportunities. Addressing a meeting at the Karachi Chamber of Commerce & Industry (KCCI), the ambassador highlighted significant untapped potential in bilateral economic relations, noting that trade between Portugal and Pakistan remains below the level their complementary economies could support. He stressed the need for direct engagement between businesses, greater market awareness and joint ventures to expand bilateral commerce and establish sustainable partnerships. Ambassador Sees Untapped Potential in Bilateral Trade Ambassador Domingues said relations between Portugal and Pakistan were friendly and improving, but commercial ties had yet to reach their potential. He noted that Portuguese businesses had not fully explored Pakistan’s market, partly because of limited awareness of available opportunities. Meanwhile, Pakistani businesses have increasingly shown interest in Portugal, with business missions visiting the country to assess commercial prospects. The ambassador said stronger interaction between the two business communities would be essential to translating diplomatic goodwill into measurable economic outcomes. He encouraged more Portuguese entrepreneurs and companies to visit Pakistan and explore opportunities for trade, sourcing and investment. Renewable Energy, Technology and Agriculture Among Key Sectors The ambassador identified several areas with potential for cooperation, including trade and industry, renewable energy, technology, agriculture, fruit cultivation and innovation. He said the Portuguese Embassy could facilitate connections between companies seeking buyers, suppliers, distributors and reliable long-term commercial partners. Highlighting Portugal’s clean-energy experience, Domingues noted that approximately 70% of the country’s electricity generation came from renewable sources. This experience could create opportunities for knowledge-sharing, technology cooperation and investment partnerships to support Pakistan’s energy transition. Agriculture and fruit cultivation were also identified as potential areas for collaboration, alongside technology and industrial development. Portugal’s Foreign Minister to Visit Pakistan in November The ambassador announced that Portugal’s Minister for Foreign Affairs would visit Pakistan on November 22 and 23, during which a business forum would be organised in Islamabad. The event is expected to bring together representatives from the foreign ministries, trade and investment agencies of both countries, along with a delegation of Portuguese companies. Discussions will focus on identifying concrete opportunities for trade, investment and joint projects. Domingues encouraged KCCI to participate actively and mobilise Pakistani business leaders and entrepreneurs for engagement with the visiting delegation. He said the chamber’s extensive business network could help identify relevant companies, prioritise sectors and ensure that the forum addressed the practical commercial interests of both countries. KCCI Calls for Diversified Exports and Stronger Business Links Welcoming the ambassador, KCCI President Talat Mahmood called for a coordinated effort to significantly expand Pakistan’s trade with Portugal. He said bilateral commerce remained well below its potential and urged both sides to create new opportunities for exporters, investors and businesses. Mahmood emphasised the importance of stronger business-to-business connections, improved access for Pakistani exporters to the Portuguese market and diversification beyond the traditional concentration in textile products. He said KCCI and the Portuguese Embassy could serve as bridges between the two business communities by facilitating direct engagement, sharing market intelligence and helping companies identify reliable commercial partners. Market Access and Long-Term Partnerships in Focus The KCCI president also urged the ambassador to guide Pakistani businesses on Portugal’s market requirements, product standards, distribution channels and potential buyers. At the same time, he encouraged Portuguese companies to explore sourcing opportunities in Pakistan. He stressed that expanding bilateral commerce should involve more than increasing existing exports. Diversifying traded products, identifying new sectors and establishing sustainable commercial relationships would be important to generating long-term economic benefits. The meeting highlighted the role of business chambers and diplomatic missions in connecting companies, improving market information and turning prospective opportunities into actual investment and trade. With the planned November business forum approaching, both sides have an opportunity to advance discussions towards practical partnerships and a broader economic relationship.

Pakistan to Borrow $5.6B from Islamic Development Bank for Infrastructure, Trade, Polio Eradication
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Pakistan to Borrow $5.6B from Islamic Development Bank for Infrastructure, Trade, Polio Eradication

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Pakistan is set to pursue approximately US$5.6 billion in indicative financing from the Islamic Development Bank (IsDB) Group for infrastructure development, trade financing, private-sector investment and polio eradication under its Member Country Partnership Strategy (MCPS) for 2026–2030. Federal Minister for Economic Affairs Ahad Khan Cheema discussed the financing framework with IsDB Group Chairman Dr. Muhammad Sulaiman Al Jasser on the sidelines of the 2026 World Bank Group–IMF Annual Meetings in Bangkok on October 15. The minister stressed the need to convert the indicative financing commitment into a pipeline of well-prepared projects, supported by clear timelines for financing approvals, disbursements and implementation. IsDB Financing to Support Major Infrastructure Projects Cheema appreciated IsDB’s US$475 million financing for the M-6 Sukkur–Hyderabad Motorway, a major infrastructure project aimed at improving connectivity and supporting economic activity. He also highlighted the strategic importance of the ML-1 Railway Upgradation Project, which is expected to modernise Pakistan’s railway network, strengthen connectivity and improve economic competitiveness. The minister sought enhanced IsDB support for ML-1 and called for close coordination with the Asian Development Bank and other co-financiers to accelerate project preparation and implementation. He emphasised that timely financing decisions and effective coordination among development partners would be essential to advancing major infrastructure initiatives under the 2026–2030 partnership strategy. $100 Million Approved for Polio Eradication Pakistan also welcomed IsDB’s continued support for the country’s polio eradication programme, including the recent approval of US$100 million for Phase V. The funding is part of broader development cooperation aimed at supporting Pakistan’s public health priorities. Sustained financing and implementation will remain important as the country continues its efforts to eliminate polio. The discussions placed health financing alongside infrastructure development and trade as key areas of cooperation between Pakistan and the IsDB Group. Government Seeks Greater Trade and Private-Sector Financing Cheema called for a coordinated, whole-of-Group approach involving IsDB, the International Islamic Trade Finance Corporation (ITFC), the Islamic Corporation for the Development of the Private Sector (ICD), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), and the IsDB Institute. The proposed approach aims to expand financing opportunities across export finance, small and medium-sized enterprises (SMEs), infrastructure, public-private partnerships and the energy transition. The minister also highlighted that ITFC mobilised more than US$1 billion in trade financing for Pakistan during FY2025–26. He sought more competitive terms for future facilities, citing the country’s improving macroeconomic and credit profile. Greater access to trade finance and private capital could support exporters, businesses and investment projects, while coordinated financing arrangements could help mobilise resources across multiple sectors. IsDB Reaffirms Commitment to Pakistan’s Development Priorities Dr. Al Jasser commended the Government of Pakistan for its economic development vision and reaffirmed the IsDB Group’s commitment to supporting the country’s development priorities. The meeting also marked an opportunity to strengthen cooperation following Dr. Al Jasser’s re-election for a second five-year term as IsDB Group chairman. Cheema congratulated him on his re-election and expressed confidence in his leadership. Both sides reaffirmed their commitment to a strong, results-oriented partnership focused on transformational investments, effective project implementation and measurable development outcomes. The proposed US$5.6 billion financing envelope under MCPS 2026–2030 provides a framework for future cooperation. Actual financing will depend on project preparation, approvals and implementation arrangements.

Suzuki Alto Sales Fall 29% In September
Business

Suzuki Alto Sales Fall 29% In September

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Pakistan’s Suzuki Alto, one of the country’s leading small cars, recorded a sharp decline in September 2026 as monthly demand weakened across the automobile market. Sales fell 28.9% year-on-year to 3,354 units, compared with 4,718 units in September 2025. The decline was more pronounced on a monthly basis, with sales dropping 37.2% from 5,339 units in August, according to automobile industry data. Alto Sales Lose Momentum The September slowdown came as Pakistan Suzuki Motor Company (PSMC) reported total sales of 4,862 vehicles, down 46% year-on-year and 36% month-on-month. The Alto remained the company’s best-selling model, accounting for 3,354 units during the month. However, weaker demand for other Suzuki models also contributed to the decline in overall sales. The Swift recorded sales of 852 units, down 39% year-on-year, while Cultus sales plunged 68% to 138 units. Sales of the Every also fell 36% to 458 units. The figures indicate that the sales slowdown extended beyond the Alto, affecting several models in Suzuki’s local lineup. Toyota Models Outpace The Alto The Alto also trailed the combined Toyota Corolla, Yaris and Corolla Cross lineup in September. The three Toyota models recorded combined sales of 3,563 units, up 34% year-on-year. Their combined monthly sales exceeded the Alto’s total by 209 units, highlighting the competitive pressures facing individual models in Pakistan’s passenger car market. The contrasting performances also reflect differing sales trends across manufacturers, with Toyota’s combined lineup posting annual growth while the Alto experienced a decline. First-Quarter Performance Remains Strong Despite the September setback, the Alto recorded strong cumulative growth during the first quarter of fiscal year 2027. Sales reached 15,910 units during July–September, an increase of 42% from 11,238 units in the corresponding period last year. The quarterly performance suggests that the model retained substantial demand despite its weaker showing in September. However, the broader automobile market also faced pressure during the month. Industry sales of passenger cars, SUVs and light commercial vehicles fell 12.1% year-on-year to 15,104 units. Uncertainty surrounding the upcoming automobile policy and taxation of hybrid vehicles also weighed on market sentiment, adding to the challenges facing manufacturers and buyers. The coming months will show whether the Alto can recover its monthly sales momentum following a strong start to FY2027, while broader market performance will depend on demand conditions and clarity over upcoming policy changes.

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

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