Business

Karachi: South Korea’s Lotte Chemical announced Thursday the sale of a 75% stake in its Pakistani subsidiary to Dubai-based PTA Global Holding for 98 billion won ($68.94 million), marking a pivotal move in its portfolio overhaul. The transaction, detailed in a company filing, aligns with a government-backed initiative to rescue struggling petrochemical firms battered by weak global demand and oversupply pressures.Lotte Chemical Pakistan, the wholly owned arm until now, operates a Karachi-based facility churning out 500,000 tons of high-purity terephthalic acid (PTA) yearly—a key feedstock for polyester fibers, industrial yarns, and PET bottles essential to textiles and packaging industries. The divestiture allows Lotte to streamline operations and refocus on core strengths amid sector-wide headwinds, including volatile raw material costs and sluggish economic recovery in major markets.In a late Wednesday statement, the subsidiary confirmed Adnan Afridi’s appointment as its new chief executive officer, signaling a fresh chapter post-sale. Afridi, a seasoned industry veteran, vowed an “aggressive growth trajectory” via mergers and acquisitions to bolster diversification and operational scale. “We’re poised to leverage Pakistan’s strategic position in regional supply chains,” he emphasized, eyeing expansions in downstream value chains.

Islamabad/Karachi: Karachi Electric’s (K-Electric) Board of Directors is poised to launch a high-stakes search for a new Chief Executive Officer (CEO) at its 1,263rd meeting today, Thursday, sources revealed to Business Recorder. The session, convened at the behest of Pakistan government’s nominee directors, follows a failed November 5 gathering due to insufficient quorum. An internal agenda, accessed via sources, outlines urgent appointments: filling the Chief Financial Officer (CFO) and Chief Digital Officer (CDO) roles within a week, while kickstarting the CEO process immediately. The board will also tackle arbitration issues tied to the Multi-Year Tariff (MYT) under Pakistani law, alongside confirming minutes from the October 2025 1,260th meeting.Three Karachi-based energy sector veterans have been shortlisted for CEO, but the AsiaPak group—holding two board seats—has opted against nominating its own, pledging full backing to the government’s pick. “AsiaPak will support whoever the government deems best for K-Electric and Karachi’s advancement,” sources close to the group affirmed. This shift underscores a fragile alliance, with the government’s three votes pivotal alongside AsiaPak’s two, outnumbering the current CEO Moonis Alvi’s non-voting stance and other shareholders.The 10-member board, comprising three government reps, two from AsiaPak, Alvi, and three from Saudi Al-Jomaih, has been riven by divisions. A prior meeting flopped with only five attendees—three government and two AsiaPak—missing quorum. Tensions simmer between government nominees, Shehryar Chishti’s reps, and others, exacerbated by an FIR blocking a CDO candidate under company policy. Independent director Javed Kureishi reportedly spearheaded the reconvene, as Power Secretary Dr. Fakhr e Alam Irfan and Finance Secretary Imdadullah Bosal remain reticent.

Islamabad Skepticism abounded at the National Electric Power Regulatory Authority’s (Nepra) public hearing Tuesday, where business leaders lambasted the government’s incremental consumption package for industrial and agricultural users as convoluted, inequitable, and ineffective in reviving demand plagued by high costs and solar proliferation.The scheme, offering electricity at Rs22.98 per unit for excess usage beyond a December 2023-November 2024 baseline across time-of-use and non-ToU categories in DISCOs and K-Electric, is pitched as a three-year subsidy-neutral fix. Power Division officials hailed it as “wisdom from past lessons,” projecting a Rs1.16 trillion GDP infusion by spurring extra shifts and alleviating Rs1.7 trillion in capacity payments to idle plants—equivalent to Rs17 per unit.Yet, stakeholders like the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and All Pakistan Textile Mills Association (APTMA) dismissed it outright. FPCCI’s Rehan Jawed decried the one-year reference period as too rigid, urging a three-year extension, simplification of eligibility, and a slash to Rs16/unit to offset cross-subsidies. APTMA’s Syed Absar Ali forecasted paltry 15% uptake, excluding captive and wheeling consumers due to a steep 60% load factor, while textile rep Amir Sheikh demanded a flat 9 cents/unit and 40% threshold for export viability. Tanveer Barry warned of inevitable confusion and early demise.Amid solarisation’s ripple—6,000 MW net metering plus 12,000-13,000 MW off-grid shifts flattening daytime loads, slashing agricultural demand 40-50%, and extending peaks to mornings—officials refuted absolute declines, attributing them to shutdowns and tariffs. They stressed the package’s grid-stabilizing intent, with built-in reviews if marginal costs climb, though low-risk assurances rang hollow. Nepra’s technical member grilled on stakeholder buy-in, highlighting tariff uncertainty.As industries grapple with shutdowns, the hearing exposed a chasm: government’s optimism versus sector pleas for equitable revival. Revisions loom essential to avert deeper economic drag in Pakistan’s power-starved landscape.

Gas & Oil Pakistan Limited, in partnership with Aramco, inaugurated its 50th retail station on Srinagar Highway, Islamabad. The event gathered senior management and industry leaders to celebrate this milestone, reflecting the company’s growing commitment to Pakistan’s retail fuel sector. Beyond expanding its network, the Aramco new station contributes to the creation of employment opportunities, local skill development, and economic activity in the surrounding community. Each new outlet supports operational staff, customer service teams, and supply chain partners, reinforcing the broader socio-economic impact of the investment. Since launching its first station in Lahore in 2024, the global oil giant has steadily expanded to 50 locations nationwide. This growth demonstrates the company’s dedication to delivering modern fueling experiences while actively contributing to Pakistan’s economic development and providing both jobs and infrastructure that benefit local communities.

Karachi BankIslami has been recognized among the nation’s leading Islamic financial institutions, winning two major distinctions, “Best Bank of the Year 2024 (Mid-Sized Banks)” and “Best Islamic Bank (Runner-up)” at the 22nd CFA Society Pakistan Annual Excellence Awards. These accolades recognize BankIslami’s strong financial performance, strong governance standards, and its pioneering role in advancing Pakistan’s transition toward a Riba-free economy. The recognition reaffirms the Bank’s position as one of the country’s most progressive and purpose-driven Islamic financial institutions. The CFA Society awards are regarded as one of the most credible acknowledgments of excellence and governance in the country’s financial sector. Commenting on the achievement, Rizwan Ata, President & CEO of BankIslami, said: “At BankIslami, every initiative we undertake is guided by our mission of Saving Humanity from Riba. This recognition from the CFA Society is a testament to our unwavering commitment to ethical banking and our continued efforts to build a just, inclusive, and Shariah-compliant financial system for Pakistan.” This achievement adds to a remarkable year of success for BankIslami, with earlier recognition as Pakistan’s Best Islamic Bank from Euromoney, as well as local and international awards from Global Islamic Finance Awards (GIFA), Dragons of Asia, and the Pakistan Digital Awards, marking it as one of the most awarded Islamic banks in the country. With a network of 550+ branches across 210 cities, BankIslami continues to redefine Islamic banking through technology, innovation, and purpose. From launching Pakistan’s first fully digital Islamic banking solution, aik, to introducing accessible products for individuals, SMEs, and communities, the Bank remains at the forefront of transforming Pakistan’s financial future — one step closer to a truly Riba-free economy.

The Pakistan Stock Exchange (PSX) roared back to life on Friday, with the KSE-100 Index skyrocketing 4,899 points—or 3.13%—to close at 161,632, its fourth-highest single-day gain ever. The benchmark reclaimed the 160,000 mark after a week of heavy selling. The surge was sparked by optimism over a ceasefire between Pakistan and Afghanistan, mediated by Turkey and Qatar in Istanbul, easing geopolitical tensions, said Ali Najib of Arif Habib Ltd. “This revived investor confidence,” he noted. Banking giants like UBL, MCB, and HBL, alongside fertilizers (FFC) and cement (LUCK), drove 3,083 points of the rally. Volumes hit 951.3 million shares worth Rs42.2 billion, led by WorldCall Telecom. Weekly, the index dipped 1.02%, but analysts eye 165,000 if momentum holds, with support at 160,000.

ISLAMABADIn a series of coordinated intelligence-based enforcement actions, Pakistan Customs (Enforcement) under the Chief Collectorate of Customs (Enforcement), Islamabad, has successfully dismantled multiple networks engaged in the illicit trade of smuggled cigarettes and raw materials used in illegal cigarette manufacturing.Major recoveries were made in Lahore and Hyderabad with the total value of seized goods estimated at over Rs. 1.1 billion, according to press release issued by Federal Board of Revenue (FBR).Acting on credible intelligence, the Collectorate of Customs (Enforcement), Lahore, conducted a major intelligence-led operation exposing an organized network of illegal cigarette manufacturers operating under the guise of rice mills.Acting on a tip-off, Customs officers raided M/s Ayesha Rice Mills, Daska and recovered a massive consignment of acetate tow, cigarette paper, filter rods, aluminum foil, and adhesive materials – all essential inputs for the production of counterfeit and non-duty-paid cigarettes.During follow-up investigation, another premises, M/s Nazeer Rice Mills, Daska, located nearby, was identified as a potential storage site. A detailed search revealed that the facility had been hurriedly vacated following the earlier raid.Evidence recovered from the site confirmed that the smuggled materials had been relocated to warehouses near Sundar Industrial Estate, Lahore.