Business Archives - Page 3 of 51

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

Web Desk / October 8, 2026

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.

Business

Container Detentions Threaten Heavy Losses for Industry & Transporters, KATI

Web Desk / October 7, 2026

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.

Business

Pak, Germany Discuss Expanding Trade, Investment; German Firms Invited to FoodAg 2026

Web Desk / October 7, 2026

Pakistan and Germany have discussed measures to expand bilateral trade, investment and business-to-business cooperation, with Federal Minister for Commerce Jam Kamal Khan inviting German companies to explore investment opportunities in Pakistan and participate in the upcoming FoodAg 2026 exhibition in Karachi. The discussions took place on October 6 during a meeting between Jam Kamal Khan and German Ambassador to Pakistan Ina Lepel at the Ministry of Commerce. Rana Isaan Afzal, Coordinator to the Prime Minister on Commerce and Industries, Secretary Commerce Jawad Paul and senior ministry officials also attended. Pakistan Reaffirms Commitment to GSP Plus Jam Kamal Khan appreciated Germany’s longstanding economic cooperation with Pakistan and its constructive role in connection with the European Union’s GSP Plus scheme. The Commerce Minister reaffirmed Pakistan’s commitment to meeting its international obligations and strengthening coordination between federal ministries and provincial governments. Ambassador Ina Lepel acknowledged Pakistan’s legislative progress and developments in areas relevant to GSP Plus. She said the progress reflected Pakistan’s efforts toward reforms and stronger institutional mechanisms. At the same time, she emphasized that legislative measures need to be translated into effective implementation, measurable outcomes and tangible improvements for citizens. Germany Highlights Trade and Investment Opportunities The German Ambassador welcomed Pakistan’s structured approach toward its next GSP Plus application and encouraged continued coordination between federal and provincial authorities and other stakeholders. She highlighted the importance of sustained engagement, transparent reporting and timely follow-up in maintaining momentum and strengthening confidence among international partners. Germany also identified potential opportunities for greater cooperation in agriculture, food processing, technology, manufacturing and renewable energy. Both sides emphasized stronger interaction between the private sectors of Pakistan and Germany as a means of converting bilateral economic engagement into practical commercial partnerships. Pakistan Raises Basmati Rice GI Issue During the meeting, Rana Isaan Afzal raised Pakistan’s concerns regarding the Geographical Indication (GI) status of Basmati rice. He briefed the German Ambassador on Pakistan’s position concerning India’s GI application before the European Commission, as well as Pakistan’s own application for protection of Basmati rice. Afzal outlined the legal, historical and commercial grounds supporting Pakistan’s position and emphasized the importance of protecting the interests of Pakistani Basmati growers, producers and exporters. Ambassador Lepel stressed the importance of appropriate legal and institutional mechanisms to protect producers, farmers and exporters. She noted that effective protection of geographical indications can strengthen the recognition of agricultural products in international markets, support rural livelihoods and increase the value of agricultural exports. German Companies Invited to FoodAg 2026 Jam Kamal Khan invited Ambassador Lepel and German companies to participate in FoodAg 2026, scheduled to take place in Karachi in November. The Minister highlighted potential areas of collaboration and investment including agricultural machinery, food processing, livestock breeding, animal nutrition, testing facilities and value-added agricultural products. He said greater cooperation with German companies could help Pakistan improve agricultural productivity, strengthen quality and export standards, and generate larger exportable surpluses. The FoodAg exhibition is expected to provide German businesses with an opportunity to engage directly with Pakistani companies, identify investment opportunities and develop partnerships across agriculture and food value chains. Focus on Technology, Training and Sustainable Agriculture Ambassador Lepel welcomed the invitation and said German participation in FoodAg could help translate bilateral engagement into practical business and institutional cooperation. She identified modern agricultural technology, quality assurance, vocational training, research and development, and sustainable production practices as areas with potential for stronger collaboration. The discussions also covered preparations for a delegation of Pakistani businesspeople to attend a major animal husbandry trade fair in Germany. According to Ambassador Lepel, such exchanges could facilitate knowledge transfer, strengthen commercial relationships and help identify new opportunities in livestock and related industries. Pakistan Invited to Asia-Pacific German Business Conference The German side also invited Federal Minister Jam Kamal Khan to attend the 19th Asia-Pacific Conference of German Business. The conference is scheduled for October 29–31, 2026, in Seoul, Republic of Korea, and will bring together government and business leaders to discuss trade, investment, economic partnerships and resilient supply chains. Jam Kamal Khan welcomed the invitation and expressed interest in exploring Pakistan’s participation. The series of engagements reflects efforts by Pakistan and Germany to broaden economic cooperation beyond traditional trade and toward investment, technology transfer, agricultural value addition, private-sector partnerships and stronger business-to-business linkages.

Business

PSX Makes Strong Comeback Of Around 2,600 Points

Web Desk / October 6, 2026

The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, with the KSE-100 Index gaining 2,593 points, or 1.56 percent day on day, to close at 168,460 and reclaim the 168,000 level. The rebound followed the previous session’s sharp sell-off, with easing international oil prices and improved oil flows from the Middle East helping restore investor sentiment. According to Ali Najib, Deputy Head of Trading at Arif Habib Ltd, the improvement in global oil-market conditions provided support to the domestic equities market. KSE-100 Rebounds After Sharp Sell-Off The latest gain marked a significant recovery after the index came under heavy selling pressure in the previous session. Lower international oil prices and easing concerns over Middle East supply flows helped reduce some of the pressure on investor sentiment. Despite the recovery, market participants remain attentive to geopolitical developments and movements in global energy prices, which continue to influence the direction of the local market. Major Stocks Drive Index Recovery Several heavyweight stocks made substantial contributions to the KSE-100’s gains. ENGROH, UBL, HUBC, HBL, OGDC, MARI, FFC, PPL, NBP and MEBL collectively contributed 1,493 points to the index. The broad participation from major companies helped the benchmark regain the 168,000 level and strengthened the day’s overall recovery. Trading Activity Remains Stable Market activity remained relatively stable, with 430 million shares changing hands during the session. The total traded value stood at PKR 20.1 billion. CNERGY emerged as the volume leader, with 55 million shares traded, reflecting continued investor activity in selected high-volume stocks. Oil and Gas Production Declines On the sectoral front, oil production declined 6.4 percent week on week to 63.7 thousand barrels per day (bopd). The decline was primarily attributed to lower flows from northern oil fields. Gas production also fell 1.4 percent week on week to 2,999 million cubic feet per day (mmcfd), mainly due to reduced output from Mari, Sui and Sharf fields. The production data remain relevant for investors tracking the earnings outlook of Pakistan’s exploration and production companies. SAZEW Sales Rise 22% in First Quarter On the corporate front, Sazgar Engineering Works Limited (SAZEW) reported a 22 percent year-on-year increase in total sales during the first quarter of FY27, reaching 10,872 units. The growth was driven by a 45 percent year-on-year increase in three-wheeler sales. However, four-wheeler sales declined 12 percent year on year, partially offsetting the stronger performance in the three-wheeler segment. Oil Prices and Geopolitical Risks Remain Key Drivers The outlook for the KSE-100 remains closely tied to developments in international oil markets and geopolitical conditions. The index could maintain its recovery momentum if oil prices remain subdued and concerns over Middle East supply disruptions continue to ease. At the same time, geopolitical uncertainty and elevated market volatility could keep investors cautious. 170,000 Level Emerges as Key Psychological Mark Near-term market direction is expected to remain sensitive to oil prices, foreign investor flows and institutional participation. The 170,000 level has emerged as an important psychological threshold for the KSE-100 following its recovery to 168,460. Investors are likely to monitor whether improving sentiment can sustain the latest rebound while keeping a close watch on external risks and energy-market developments.

Business

Government Plans Closure Of 111 Inefficient National Savings Centres

Web Desk / October 5, 2026

The federal government has identified 111 National Savings centres as inefficient and financially unsustainable, with plans to either close them or merge them with nearby branches that remain operational. The move is aimed at reducing the cost of maintaining a large branch network and improving the efficiency of the Central Directorate of National Savings (CDNS). Under a notification issued by National Savings, the number of centres could fall from 374 to 263 if the proposed closures and mergers go ahead. 111 National Savings Centres Marked For Rationalisation The government has introduced an operational cost benchmark to assess the financial performance of National Savings centres. Under the benchmark, operational expenditure should not exceed Rs2,500 for every Rs1 million held in deposits. Centres that fail to meet this threshold have been classified as inefficient and placed under review. The 111 identified centres have been directed to prepare practical plans aimed at improving their financial position. These plans can focus on reducing operating costs or increasing business and deposits to improve the viability of individual centres. Centres Can Improve Performance To Avoid Closure Closure will not necessarily be automatic for every centre included in the list. The affected branches can demonstrate that they have a viable path toward financial sustainability. Management may also explore ways to increase deposits and attract additional business before a final decision is taken. The new approach effectively links the continued operation of each centre to measurable financial performance. Relocation And Merger Options Remain Available Relocation is another option available for centres that are struggling to generate sufficient business at their existing locations. A weak centre could potentially be shifted to an area where demand for savings and investment products is stronger. Where relocation is considered, regional directorates have been asked to submit business and relocation plans within 15 days. The restructuring could therefore involve a combination of closures, mergers and relocations rather than the immediate shutdown of all 111 centres. Staff Deployment To Be Reviewed The proposed rationalisation will also affect the deployment of employees working at the centres under review. Where a centre is closed, management will be required to prepare a list of all employees posted there. The information will include their residential locations as well as their preferred locations for future postings. The exercise is intended to help management identify alternative placements for staff affected by the branch closures. Why National Savings Centres Matter The Central Directorate of National Savings is a state-owned savings institution operating as an attached department of the Finance Division under the Ministry of Finance. It mobilises funds from individual savers and channels those resources to the government as non-bank financing, helping fund the fiscal deficit. The network therefore plays an important role in connecting retail savers with government-backed savings instruments. Smaller Cities Could Feel The Impact While reducing the number of branches could help lower operational costs, the restructuring could also affect access to National Savings products in smaller towns and less densely served areas. Customers using prize bonds, savings certificates and pensioner accounts may have to travel farther if their local centre is closed without a nearby alternative. The impact will depend on how the government implements the proposed closures, mergers and relocations and whether replacement branches can accommodate customers from affected centres. Government Balances Cost Reduction With Access The proposed reduction from 374 to 263 centres represents a significant restructuring of the National Savings branch network. For the government, the objective is to reduce the cost of maintaining centres that do not generate sufficient business while improving the overall efficiency of the institution. For customers, the key issue will be whether the revised network continues to provide convenient access to savings schemes, particularly outside major urban centres. The final outcome will depend on the viability plans submitted by the affected centres and the decisions taken on closure, merger or relocation.

Business

Nestle Whitener Sample Declared Unsafe

Web Desk / October 4, 2026

India’s food regulator has called a sample of Nestle India’s low-fat dairy whitener unsafe and substandard after tests on a pack taken from a New Delhi hotel. The Food Safety and Standards Authority of India said the sample was drawn from Bharat Hotels Ltd, which runs The Lalit at Connaught Place. A food analyst’s report found the product non-compliant under the Food Safety and Standards Act, 2006. The hotel has been told to stop selling the identified product at once. A copy of the laboratory report was given to the operator, and a notice has been issued. The hotel was also offered a chance to appeal within the period set by the law. The full report has not been made public. What the Test Flagged FSSAI described the sample as both unsafe and substandard. That label goes beyond a paperwork slip and signals a breach of food safety rules. The regulator has not listed every parameter that failed. Nestle India has pointed to phosphorus as the point of dispute. Company Says the Reading Is Misread Nestle India said the whitener is safe to drink and meets the rules that apply to it. A spokesperson said the lab set total phosphorus against the limit for added phosphorus, without separating the phosphorus that milk already carries. Phosphorus occurs naturally in milk, and therefore in milk-based products. The company said it is speaking with the authorities and has shared data on this whitener and similar products to show that natural share. The regulator had not immediately answered that explanation. A Second Nestle Sample in Two Months The finding comes weeks after the regulator said a Nestle baby food sample was substandard and that legal action was under way. Nestle said then that its products were fully compliant with the rules. India is one of the company’s largest growth markets, so a single hotel sample is being watched beyond the premises where it was taken. For now, the sale stop covers the identified product at the hotel. The regulator’s public note did not announce a batch-wide recall.

Business

PSX Loses 2,610 Points This Week Amid Global Oil, Iran Risks

Web Desk / October 3, 2026

The Pakistan Stock Exchange (PSX) remained under pressure during the outgoing week as renewed uncertainty surrounding the US-Iran conflict and elevated global oil prices weighed on investor sentiment. The benchmark KSE-100 Index declined by 2,610 points, or 1.5% week-on-week, to close at 168,155 points. Market activity also weakened during the week, with average daily traded volume (ADTV) falling 45% WoW to 647 million shares. Global Oil Prices Keep Pressure on Market International energy prices remained elevated for much of the week, with oil touching $105.3 per barrel. Supply-chain concerns and China’s suspension of oil product exports outweighed the recovery in Gulf crude flows, keeping energy prices under pressure. Brent crude later declined to $99.5 per barrel toward the end of the week as the United States increased pressure on European countries to release diesel stocks. The movement in international oil prices remained an important factor for Pakistan’s equity market given the potential implications for the country’s import bill, inflation and corporate profitability. Domestic Fuel Prices Show Mixed Movement Domestic fuel prices also moved in different directions during the week. High-speed diesel (HSD) declined by Rs12.8 per litre, or 3.1% WoW, to Rs399 per litre. Meanwhile, motor spirit (MS) increased by Rs1.4 per litre, or 0.35% WoW, to Rs391 per litre. The contrasting movements came as international energy markets remained volatile. Inflation Slows to 10.3% On the macroeconomic front, Pakistan’s inflation rate eased to 10.3% year-on-year in September 2026 from 11.2% in August. The decline was attributed to disinflationary pressure from food prices. However, the country’s trade deficit widened by 6% YoY in September to $3.6 billion, highlighting continued pressure on the external account. IMF Review Remains Key Economic Development The International Monetary Fund (IMF) formally began policy discussions in Islamabad for Pakistan’s fourth review under the Extended Fund Facility (EFF) and the third review under the Resilience and Sustainability Facility (RSF). The reviews are linked to potential combined disbursements of $1.2 billion. The IMF discussions are being closely monitored by investors because progress on the programme could influence expectations around Pakistan’s external financing position, fiscal reforms and broader macroeconomic stability. FBR Revenue Exceeds IMF Target The Federal Board of Revenue (FBR) collected Rs3.1 trillion during the first quarter of FY27. According to the research note, the collection exceeded the IMF-agreed target by Rs13 billion. The revenue performance comes as the government continues to focus on improving tax mobilisation and meeting fiscal commitments under the IMF programme. SBP Raises Rs853 Billion Through T-Bill Auction On the monetary side, the State Bank of Pakistan (SBP) raised Rs853 billion through a Treasury bill auction. Cut-off yields increased by 61 basis points for three-month papers, 75 basis points for six-month papers and 45 basis points for 12-month papers. The movement in yields reflects changing conditions in Pakistan’s fixed-income market and remains relevant for investors assessing monetary and liquidity conditions. Other Major Developments During the Week Several other developments also shaped market sentiment during the week. The Finance Minister discussed potential US Export-Import Bank financing for Boeing aircraft, refinery upgrades and the Reko Diq project. Meanwhile, SBP foreign exchange reserves stood at $21.4 billion as of September 25, increasing by $39 million WoW. The central bank’s net foreign exchange interventions stood at $841 million in June 2026, while purchases during FY26 reached $8.1 billion. The government also raised Rs46 billion through fixed-rate Hybrid Sukuk and Rs72 billion through variable-rate Hybrid Sukuk. In the energy sector, the government plans to procure at least 25 to 26 LNG cargoes to meet winter gas demand. Sector Performance Remains Mixed Sector-wise, Vanaspati and Allied Industries recorded the strongest weekly performance, gaining 10.7%. Synthetic and Rayon stocks increased 2.9%, while Modarabas gained 2.3%. On the other hand, the Power sector declined 2.1%, followed by Investment Companies and Paper and Board, which each fell 1.9%. The mixed sector performance reflected differing sensitivities to oil prices, interest rates, domestic demand and broader macroeconomic conditions. Companies and Individuals Lead Buying Investor flows also showed divergent positioning during the week. Companies and individuals were the largest net buyers, recording net purchases of $5.2 million and $4.5 million, respectively. Mutual funds recorded the largest net selling at $6.1 million, while brokers recorded net selling of $2.3 million. Top Performing and Lagging Stocks Among individual companies, SSOM was the strongest performer, gaining 13.6% WoW. BML increased 4.1%, while ATRL rose 3.8%. The biggest declines were recorded by PSEL, which fell 12.0%, followed by FHAM with a 10.9% decline and NPL with a 9.4% decline. Market Outlook and Valuation The research note expects market conditions to improve alongside strengthening economic indicators, while identifying the upcoming IMF review as an important near-term catalyst. It also points to the possibility that a US-Iran agreement could ease international oil prices from currently elevated levels. The note says the market is trading at a forward price-to-earnings ratio of 7.2x. The research house forecasts the KSE-100 Index at 263,800 points by December 2026. The projection is a research-house forecast rather than an established outcome, and its realisation would depend on developments including the IMF review, global oil prices, domestic economic conditions, liquidity and geopolitical risks. The research note’s listed preferred stocks include OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS. Key Factors to Watch Investors will continue to monitor several factors in the coming weeks, including: These factors are likely to remain important in determining market sentiment as Pakistan moves through the second quarter of FY27.

Breaking News, Business

Khaadi Plans Up To Rs8.3 Billion Share Sale Next Month

Web Desk / October 3, 2026

Khaadi Pakistan Ltd. is preparing for an initial public offering (IPO) next month, with plans to raise between Rs6.2 billion and Rs8.3 billion to finance the expansion of its retail network. The fashion retailer intends to use the proceeds primarily for opening new outlets, keeping the proposed capital raise focused on expanding its existing clothing and retail business. Khaadi Moves Toward Pakistan’s Capital Market Khaadi is a subsidiary of Weaves Corp., the parent company in which the International Finance Corporation (IFC), a member of the World Bank Group, holds a minority stake. Pakistan remains Khaadi’s primary market, while the company also operates retail stores in the United Arab Emirates, the United Kingdom and the United States. The proposed listing would therefore give investors exposure to a Pakistani fashion retailer with operations extending beyond the domestic market. Arif Habib Ltd. is serving as the financial adviser for the proposed transaction. Khaadi’s Position in the Consumer Market Khaadi has established itself as a prominent name in Pakistan’s fashion and retail sector. In May 2024, the company was named Retail Brand of the Year at the Hum Style Awards, adding to its profile within the consumer market. The proposed IPO would provide a different test for the brand, as the company moves toward public investors and the requirements of Pakistan’s capital markets. Why the Khaadi IPO Timing Matters The proposed offering comes during a period of increased activity in Pakistan’s IPO market. In June, the Pakistan Stock Exchange said 13 new listings had generated an average return of 47%, which it linked to improving investor confidence. Previous market returns, however, do not determine the eventual valuation or pricing of Khaadi’s offering. The proposed transaction will ultimately be assessed on factors including valuation, financial performance, growth prospects and investor demand. If the offering reaches the upper end of the proposed range, the Rs8.3 billion raise would rank among the larger private-sector fundraising transactions discussed on the exchange this year. Proceeds to Fund Retail Outlet Expansion The primary stated purpose of the IPO proceeds is store expansion. The company is expected to provide greater detail on how the funds will be allocated, including spending on new locations, larger outlets and working capital requirements. Investors will also examine the structure of the offering to determine how much represents fresh capital being raised by the company and whether any portion involves shares being sold by existing shareholders. IFC Stake Adds Another Investor Consideration The presence of IFC as a minority investor in Khaadi’s parent company adds another element for prospective investors to consider. Details surrounding the IFC’s position following the proposed listing will be relevant as the transaction progresses, particularly whether the institution retains its investment or uses the listing as part of an exit strategy. No final conclusion can be drawn on this point until the offering structure and relevant transaction documents are disclosed. IPO Size and Timetable Could Change The proposed Khaadi IPO remains at the planning stage, meaning the final size, price and timetable could change before the book-building process begins. The eventual offer price will be determined through the formal IPO process and investor demand rather than the company’s brand recognition alone. For consumers, the proposed listing is unlikely to immediately alter Khaadi’s retail operations. For Pakistan’s capital market, however, the transaction would introduce a fashion-focused retail business to public investors, adding another consumer-sector name to an exchange traditionally dominated by larger financial, industrial and energy companies. What Investors May Watch As the Khaadi IPO moves forward, investors are likely to focus on several aspects of the offering, including: The final prospectus and formal listing documents will provide greater clarity on these issues once the transaction moves into the public offering stage.

Business

PTML Partners With Myco To Bring Exclusive EPL Discounts To Ufone And Telenor Customers

Press Release / October 2, 2026

Islamabad, October 02, 2026: Leading telecom and digital services provider, Pakistan Telecommunication Company Limited (PTML), through its brands Ufone and Telenor, has partnered with myco, the fastest-growing streaming OTT platform in South Asia and the MENA region, to bring exclusive discounted access to English Premier League (EPL) packages for its customers. The arrangement makes premium football entertainment more accessible to fans across Pakistan. Under the three-month promotional offer, Ufone and Telenor customers will receive an exclusive 55% discount on all myco EPL packages during the first month. The offer will continue into the second and third months, with customers eligible for 15% off the Monthly Pass, 30% off the Quarterly Pass, and 50% off the Seasonal Pass. The partnership reflects PTML’s continued focus on expanding its digital lifestyle proposition beyond traditional connectivity by bringing customers greater value through relevant entertainment and digital experiences. By collaborating with a leading digital content platform such as myco, PTML is creating differentiated entertainment opportunities tailored to the interests of its diverse customer base. Commenting on the partnership, Syed Atif Raza, Chief Commercial Officer, PTML said, “At PTML, we are committed to enriching the everyday experiences of our customers by extending value beyond connectivity. Football enjoys an immense following across Pakistan, and this partnership with myco enables us to bring one of the world’s most celebrated sporting competitions closer to our customers through exclusive and affordable access. By combining the reach of Ufone and Telenor with myco’s premium streaming platform, we are delivering relevant entertainment experiences that resonate with our customers’ passions while reinforcing our commitment to providing innovative digital lifestyle offerings.” Umair Masoom Usmani, Founder and Group CEO, myco said “Football has an incredible ability to bring people together, and through this partnership with PTML, we are making the Premier League more accessible for millions of passionate fans across Pakistan. By combining myco’s premium streaming experience with Ufone and Telenor’s extensive reach, we are offering audiences meaningful value and a simpler way to enjoy the sport they love.” The English Premier League is one of the world’s most-watched sporting competitions that have a massive following in Pakistan. Eligible customers can access the exclusive myco offer through PTML’s digital platforms, including the My Telenor and UPTCL apps, and will be redirected to the relevant myco journey to avail the discounted packages. The promotional offer will be available for three months exclusively for eligible Ufone and Telenor customers.

Business

World Bank Proposes Export Finance Tools for Pakistan’s EXIM Bank

Web Desk / October 2, 2026

The World Bank has proposed export-finance products for the Export-Import Bank of Pakistan (EXIM Bank) to help support incremental trade flows and strengthen the country’s export financing capacity. The proposal was discussed during a meeting between Finance Minister Muhammad Aurangzeb and a World Bank delegation led by Country Director Bolormaa Amgaabazar. The meeting reviewed Pakistan’s economic reform partnership with the World Bank and the measures expected to move forward in the next phase. From Reform Plans to Measurable Results The discussions covered economic growth, employment, fiscal management, revenue mobilisation, capital markets, trade, investment and institutional reform. Finance Minister Muhammad Aurangzeb stressed the importance of moving from reform design toward implementation. The focus, according to the discussions, is on translating policy priorities into practical measures that can improve investment, create employment and strengthen the broader business environment. The World Bank’s proposed export-finance products for EXIM Bank form part of this wider effort to support new trade activity rather than simply refinance or recycle existing credit. World Bank Highlights Growth and Jobs Agenda The World Bank also presented a proposed growth and jobs operation for Pakistan. The planned measures include developing a clearer investment framework, reducing regulatory bottlenecks and expanding access to finance. The objective is to make it easier for businesses to invest, expand operations and generate employment. SME financing was a significant part of the discussion, with officials reviewing the Prime Minister’s Access to Finance initiative. Expanding Credit for SMEs The proposals include work on a unified insolvency framework, factoring legislation and regulatory measures designed to encourage greater participation by commercial lenders in financing small and medium-sized enterprises. Improving access to credit for SMEs is expected to support business expansion while helping broaden the contribution of smaller firms to investment and employment. Pharmaceuticals, Agriculture and Medical Products The World Bank also identified pharmaceuticals, medical products and agriculture among the sectors requiring policy attention. Proposals include faster seed registration and deregulation of selected commodities. Strengthening international accreditations was also discussed as a way to help Pakistani businesses access global procurement markets. These measures are intended to improve the ability of domestic producers to meet international standards and compete in overseas markets. Skills Development and Overseas Employment Skills development was another area discussed during the meeting. The proposals include strengthening the national vocational qualifications framework and expanding international recognition of Pakistani skills. The World Bank also discussed formal overseas migration pathways supported through digital platforms. Improved skills recognition could help Pakistani workers access international employment opportunities while strengthening the country’s broader human-capital base. National Tariff Policy and Auto Sector Under Review The meeting also reviewed Pakistan’s National Tariff Policy and ongoing tariff-related work, including measures concerning the automotive sector. The broader objective is to improve productivity and strengthen Pakistan’s integration into global value chains. Tariff reforms remain an important component of the country’s wider trade and industrial policy discussions, particularly as policymakers seek to balance domestic industry development with greater international competitiveness. Tax Reform and Revenue Mobilisation Fiscal discussions covered tax-policy capacity, the Medium-Term Revenue Strategy and revenue modelling. Officials also reviewed GST harmonisation, agricultural income taxation and more market-based approaches to provincial property valuation. The measures are part of broader efforts to strengthen revenue mobilisation and improve the effectiveness of Pakistan’s tax system. Capital Markets and Debt Management Capital-market development was also included in the discussions, particularly reforms being pursued through the Capital Markets Development Council. The agenda covered public-sector rightsizing, debt management and the development of domestic bond markets. Strengthening domestic capital markets could provide additional financing channels for businesses and the government while supporting deeper financial-market participation. Sovereign Credit Profile and Rating Gains The World Bank and Pakistani officials also reviewed analytical work concerning Pakistan’s sovereign credit profile and the potential path toward further improvements in credit ratings. The discussion placed sovereign credit developments within the broader reform agenda, alongside fiscal management, debt sustainability, capital-market development and institutional reforms. The proposed export-finance products for EXIM Bank therefore form part of a much wider reform programme covering trade, investment, SME financing, taxation, skills, tariffs and financial-market development.

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