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Sugar Mills Seek Approval to Export 600,000 Tons of Sugar, Target $575 Million in Foreign Exchange
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Sugar Mills Seek Approval to Export 600,000 Tons of Sugar, Target $575 Million in Foreign Exchange

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The Pakistan Sugar Mills Association (PSMA) has urged the federal government to approve the export of an additional 600,000 metric tons of sugar, arguing that Pakistan has ample surplus stocks to meet domestic demand while generating an estimated $575 million in foreign exchange through exports. In a letter addressed to the Federal Minister for National Food Security, the association requested immediate approval for the proposed exports, stating that the government had previously assured the industry that surplus sugar would be allowed for export but the commitment has yet to be implemented. Sugar Mills Cite Large Surplus Stocks According to the PSMA, Pakistan ended the current crushing season with 7.967 million metric tons of sugar stocks. The association said that after accounting for domestic consumption, the country still has a surplus of approximately 1.181 million metric tons, leaving sufficient inventories to facilitate exports without disrupting local supply. The industry believes that exporting a portion of the surplus would help balance the domestic market while maintaining adequate sugar availability for consumers throughout the year. Industry Seeks 600,000-Ton Export Approval The association requested the government to approve the remaining 550,000 metric tons of sugar exports that were previously proposed and authorize an additional quantity, bringing the total export request to 600,000 metric tons. According to the PSMA, allowing these exports would generate around $575 million in foreign exchange, providing much-needed support to Pakistan’s external account at a time when the country continues efforts to strengthen its foreign exchange reserves. The association maintained that exporting surplus sugar would not compromise domestic food security, given the significant carryover stocks currently available. Strong Sugarcane Crop Expected Next Season The sugar industry also highlighted encouraging prospects for the upcoming crushing season. According to the PSMA, improved and timely payments to sugarcane growers have encouraged farmers to cultivate higher-quality sugarcane varieties, which is expected to boost production. The association projects that Pakistan’s sugar production could reach around 8 million metric tons during the next crushing season, further increasing the country’s exportable surplus. The industry believes the expected rise in production will strengthen domestic supply while creating additional opportunities to expand agricultural exports. Sugar Mills Say Prices Are Below Production Cost The association argued that current domestic sugar prices have fallen below the industry’s production costs, placing financial pressure on sugar mills. According to the PSMA, continued low prices have affected the financial sustainability of the sector and reduced liquidity available to mills. The industry believes that allowing exports would help stabilize domestic prices, improve cash flows, and enable mills to make timely payments to sugarcane farmers. The association added that stronger financial conditions for sugar mills would ultimately benefit growers by ensuring prompt procurement and settlement of sugarcane payments. Government to Review Export Request The request comes as the government continues to balance domestic food security concerns with opportunities to increase exports and earn foreign exchange. Authorities have traditionally adopted a cautious approach toward sugar exports to avoid shortages and prevent sharp increases in retail prices. The federal government is expected to review the industry’s proposal before making a final decision on whether to permit the additional sugar exports. If approved, the move could support Pakistan’s export earnings, ease surplus inventories, and provide financial relief to both sugar mills and sugarcane farmers ahead of the next crushing season.

NCCPL Removes Pioneer Cement, PREMA and SLGL from MTS List After Quarterly Review
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NCCPL Removes Pioneer Cement, PREMA and SLGL from MTS List After Quarterly Review

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The National Clearing Company of Pakistan Limited (NCCPL) has announced significant changes to the list of securities eligible for Pakistan’s Margin Trading System (MTS), removing Pioneer Cement Limited (PIOC), At-Tahur Limited (PREMA), and Secure Logistics-Trax Group Limited (SLGL) following its latest quarterly review. The revised MTS and Margin Eligible Securities (MES) lists will come into effect from July 30, 2026, while the removal of the three securities from the MTS framework will be effective from August 17, 2026. The quarterly review was conducted under the provisions of the NCCPL Regulations 2015, with the mandatory 15-day advance notice provided to market participants. Clearing members have been advised to adjust their trading positions and collateral holdings before the revised framework becomes operational. HMB, NCPL and NPL Added to MTS List As part of the quarterly review, NCCPL has added three companies to the list of securities eligible for the Margin Trading System. The newly included securities are Habib Metropolitan Bank Limited (HMB), Nishat Chunian Power Limited (NCPL), and Nishat Power Limited (NPL). All three securities will be eligible for margin trading with a contract duration of 60 days. Following the latest revision, a total of 70 securities now qualify for MTS and MT(R) transaction margins. NCCPL also retained 12 securities under the applicable relaxation criteria despite those companies not fully meeting the standard eligibility benchmarks. The majority of eligible securities continue to carry a 60-day contract period. However, Crescent Star Insurance Limited (CSIL) and TPL REIT Fund I (TPLRF1) will remain eligible only for 30-day contracts, with TPLRF1 also subject to additional restrictions regarding its use as collateral for margin trading transactions. Pioneer Cement, PREMA and SLGL to Exit MTS Three securities will cease to qualify for the Margin Trading System from August 17, 2026. According to NCCPL, Pioneer Cement Limited (PIOC) no longer satisfies the free-float requirement, which requires companies to maintain either more than 25% free float of issued capital or at least 40 million free float shares. Meanwhile, At-Tahur Limited (PREMA) and Secure Logistics-Trax Group Limited (SLGL) failed to meet the required 22nd percentile benchmark, even after the application of available regulatory relaxations. Market participants with leveraged positions in these securities have been advised to unwind their exposures before the effective removal date. The review reflects NCCPL’s objective of ensuring that only sufficiently liquid and actively traded securities remain eligible for leveraged trading facilities. Margin Eligible Securities List Also Updated Alongside the MTS review, NCCPL has also updated the list of Margin Eligible Securities (MES) accepted as collateral by clearing members. Four securities have been added to the collateral framework under Category B: At the same time, 12 securities have been removed from the MES lists. NCCPL stated that the primary reasons for their exclusion include impact costs exceeding 2% or failure to rank among the top 200 securities under the prescribed eligibility criteria. Clearing members have been instructed to ensure that all pledged collateral complies with the revised lists before July 30, 2026, to avoid valuation or settlement issues. Category Changes Announced The quarterly review also introduced several category changes within the collateral framework. Crescent Steel and Allied Products Limited (CSAP) has been upgraded from Category B to Category A after its market impact cost declined below the required threshold of 1%, indicating improved market liquidity. Meanwhile, the following securities have been downgraded from Category A to Category B after recording higher impact costs: These adjustments reflect changes in trading liquidity and market activity observed during the review period. ETFs, Money Market Funds and Bank Guarantees Remain Eligible NCCPL has continued to accept nine Exchange Traded Funds (ETFs) as eligible collateral for clearing and settlement purposes. The eligible ETFs include conventional, sector-specific, and Shariah-compliant investment products, providing clearing members with diversified collateral options. In addition, 26 open-end money market and Islamic money market funds will continue to qualify as acceptable collateral. The updated framework also retains 22 commercial banks approved to issue Bank Guarantees that may be used as collateral, with most institutions maintaining AAA long-term credit ratings assigned by VIS Credit Rating Company and PACRA. Strengthening Market Stability NCCPL’s quarterly review forms an important part of Pakistan’s capital market risk management framework by ensuring that securities eligible for leveraged trading continue to meet prescribed standards relating to liquidity, free float, and market activity. Regular reviews of both the Margin Trading System and Margin Eligible Securities framework help strengthen market integrity, improve risk management, and maintain confidence among investors, brokers, and clearing members. With the revised lists taking effect later this month, market participants are expected to adjust their leveraged positions and collateral arrangements to remain compliant with NCCPL regulations.

DIB Pakistan Partners with Pakistan Mortgage Refinance Company to Expand Affordable Shariah-Compliant Housing Finance
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DIB Pakistan Partners with Pakistan Mortgage Refinance Company to Expand Affordable Shariah-Compliant Housing Finance

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DIB Pakistan Signs PKR 6 Billion Musharakah Facility with PMRC KARACHI: DIB Pakistan has signed a PKR 6 billion Musharakah financing facility with Pakistan Mortgage Refinance Company Limited (PMRC) to expand access to affordable Shariah-compliant housing finance and promote sustainable homeownership across Pakistan. The partnership is aimed at increasing the availability of Islamic housing finance while supporting the Government of Pakistan’s broader objective of addressing the country’s housing shortage and improving financial inclusion through Islamic banking. Partnership to Boost Islamic Housing Finance The financing agreement enables DIB Pakistan to strengthen its housing finance portfolio by leveraging long-term liquidity provided by PMRC. The collaboration is expected to make home financing more accessible and affordable for individuals seeking Shariah-compliant mortgage solutions. By expanding the availability of Islamic home financing products, the initiative seeks to encourage greater homeownership while contributing to the growth of Pakistan’s housing finance market. DIB Pakistan Reaffirms Commitment to Customers Speaking at the signing ceremony, Muhammad Ali Gulfaraz, Chief Executive Officer of DIB Pakistan, said the partnership reflects the bank’s commitment to delivering innovative and customer-focused financial solutions. “DIB Pakistan remains committed to providing innovative, customer-centric financial solutions that create lasting value for our communities. Our collaboration with PMRC represents an important step in strengthening our housing finance portfolio and expanding access to affordable home financing.” He added that the agreement reinforces the bank’s focus on supporting sustainable growth in Pakistan’s Islamic banking sector. PMRC to Provide Long-Term Liquidity Commenting on the collaboration, Raheel Qamar Ahmad, Chief Executive Officer of PMRC, said the company continues to play a key role in expanding Pakistan’s housing finance market by providing long-term liquidity to financial institutions. “PMRC’s mission is to expand Pakistan’s housing finance market by providing long-term liquidity to financial institutions. Our collaboration with DIB Pakistan is promising for a larger number of Pakistanis looking for affordable, Shariah-compliant housing finance. We look forward to increased home ownership.” He noted that partnerships with financial institutions are essential to improving access to affordable housing finance across the country. Supporting Sustainable Homeownership The PKR 6 billion Musharakah facility is expected to help DIB Pakistan extend more Islamic home financing to eligible customers, supporting individuals and families seeking affordable homeownership opportunities. The agreement also aligns with ongoing efforts to strengthen Pakistan’s Islamic finance ecosystem and promote sustainable economic development through increased access to housing finance. The signing ceremony was attended by senior representatives from both DIB Pakistan and PMRC, underscoring the strategic importance of the collaboration for the country’s housing finance sector. Strengthening Pakistan’s Housing Finance Market The partnership between DIB Pakistan and PMRC represents another step toward expanding the availability of Shariah-compliant housing finance in Pakistan. By combining long-term refinancing support with Islamic banking solutions, the initiative aims to improve financial inclusion, increase homeownership, and contribute to the development of a more sustainable housing finance market.

National Tariff Policy 2025-30 Sparks Debate Over Future of Pakistan's Auto Industry
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National Tariff Policy 2025-30 Sparks Debate Over Future of Pakistan’s Auto Industry

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Auto Industry Divided Over National Tariff Policy 2025-30 Pakistan’s proposed National Tariff Policy 2025-30 has triggered a heated debate within the country’s auto industry, with manufacturers warning that sweeping tariff reforms could weaken local manufacturing, reduce investment and threaten thousands of jobs. However, economists and trade experts argue that lowering tariffs could increase competition, improve efficiency and make vehicles more affordable for consumers. The federal government’s proposed tariff overhaul aims to simplify Pakistan’s import duty structure and gradually reduce protection for domestic industries. While supporters believe the reforms will encourage productivity and integrate Pakistan into global supply chains, local manufacturers fear the policy could undermine decades of investment in the country’s automotive sector. Industry representatives say Pakistan has spent more than 40 years developing a domestic automotive ecosystem that now includes vehicle assemblers and nearly 2,000 local auto parts manufacturers. They argue that reducing tariff protection without addressing other structural issues would put this ecosystem at risk. Manufacturers Say Taxes, Not Tariffs, Drive High Vehicle Prices Ishtiaq Hussain Siddiqi, Chief Executive of SM Engineering, said the country’s high vehicle prices are not primarily the result of tariff protection but rather the heavy tax burden imposed on the sector. He explained that the automotive industry remains one of Pakistan’s largest contributors to indirect taxes and is subject to multiple levies, including customs duty, additional customs duty, regulatory duty, federal excise duty, sales tax and high corporate taxes. According to Siddiqi, these cumulative taxes significantly increase vehicle prices and have kept Pakistan’s car ownership rate among the lowest in the region. He also challenged comparisons with India, which is often presented as an example of successful tariff liberalisation. Siddiqi noted that India still imposes import duties ranging from 60% to 100% on imported passenger vehicles, depending on engine size. Incentives are mainly provided for electric vehicles, but only when manufacturers commit to substantial local production. He added that India also protects its domestic industry through strict import licensing, mandatory Bureau of Indian Standards certification and the government’s “Make in India” programme, which promotes local manufacturing. According to Siddiqi, Indian policymakers describe these measures as a carefully sequenced industrial strategy rather than protectionism. He argued that Pakistan remains one of the few developing countries capable of manufacturing vehicles across the entire automotive value chain, including passenger cars, commercial vehicles, trucks, buses, tractors, motorcycles and three-wheelers. He warned that removing tariff protection without broader industrial reforms could sacrifice this manufacturing capability for only limited short-term reductions in vehicle prices. Industry Calls for Localisation and Tax Reforms Siddiqi recommended improving the enforcement of SRO 693, reducing the cascading tax burden and correcting the customs duty imbalance introduced through the Finance Act 2026. He said the current structure has created an anomaly where imported completely built-up (CBU) vehicles and some imported parts have become cheaper than completely knocked-down (CKD) kits used by local assemblers. Auto industry expert Mashood Ali Khan also expressed concern over the proposed National Tariff Policy 2025-30, saying the reforms are being influenced by both the federal government and the International Monetary Fund (IMF). He acknowledged that previous tariff policies introduced between 2016 and 2026 successfully attracted several new automotive companies into Pakistan. However, he said many of these new entrants failed to significantly increase local production despite receiving tariff incentives. According to Khan, new manufacturers concentrated on launching new vehicle models instead of investing in localisation and expanding Pakistan’s vendor industry. He said established manufacturers, commonly referred to as the “Big Three,” have maintained localisation levels of between 60% and 70%, helping sustain domestic parts manufacturers. In contrast, many newer Korean and Chinese brands have yet to develop a comparable local supplier network. Khan questioned whether lowering tariffs to around 15% would improve localisation when significantly higher tariff protection had already failed to encourage deeper local investment. He recommended introducing legally binding localisation targets for new manufacturers, setting measurable benchmarks for local parts development over the next five years and promoting investment in raw material production through business-to-business partnerships. He also urged policymakers to extend localisation efforts to trucks and buses, where increased imports are similarly affecting local parts manufacturers. Economists Support Greater Competition Meanwhile, IBA Assistant Professor and international trade specialist Aadil Nakhoda offered a different perspective. He agreed that Pakistan’s complicated tariff structure has increased vehicle prices but stressed that tariffs should not be confused with ordinary taxes. According to Nakhoda, customs duties and additional customs duties raise the value on which other taxes are calculated, making imported products even more expensive for consumers. He argued that this cascading effect contributes significantly to high vehicle prices in Pakistan. Comparing Pakistan with India, Nakhoda highlighted that India produces more than 4.4 million passenger vehicles annually and hosts dozens of original equipment manufacturers (OEMs) competing at large production scales. India’s automotive parts industry exports products worth more than $20 billion annually while investing heavily in research and development. Pakistan, by comparison, lacks major Tier-1 automotive suppliers and has limited investment in research, innovation and advanced manufacturing. Balancing Protection and Competitiveness Nakhoda argued that long-term tariff protection has largely sheltered an uncompetitive market rather than creating globally competitive manufacturers. He said Pakistan should focus on improving productivity, quality certification, manufacturing standards and non-tariff measures that would allow local companies to participate in international supply chains. He also pointed to India’s ongoing free trade agreements with the European Union and ASEAN countries as examples of how industrial competitiveness can be strengthened alongside gradual market liberalisation. Policy Debate to Shape the Future of Pakistan’s Auto Industry The debate surrounding the National Tariff Policy 2025-30 highlights the challenge facing policymakers as they seek to balance consumer affordability with industrial development. While manufacturers argue that continued protection and stronger localisation policies are necessary to safeguard investment and employment, economists contend that greater competition, improved productivity and integration into global value chains are essential for building a more competitive automotive industry. The government’s final tariff policy is expected to play a critical role in shaping the future

Federal Constitutional Court Declares Monal Restaurant’s Demolition Illegal
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Federal Constitutional Court Declares Monal Restaurant’s Demolition Illegal

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The Federal Constitutional Court has set aside the earlier judicial decision that led to the demolition of Monal Restaurant at Pir Sohawa, directing trial courts to independently determine the ownership dispute without being influenced by observations made in previous judgments. The ruling marks a significant development in the long-running Monal Restaurant demolition case, which has remained at the center of legal proceedings involving land ownership, environmental protection, and administrative jurisdiction in Islamabad’s Margalla Hills National Park. The Constitutional Court accepted appeals filed by the Capital Development Authority (CDA) and the Metropolitan Corporation Islamabad (MCI). It also vacated the stay order that had previously been in place, clearing the way for the pending ownership cases to proceed before the relevant trial courts. Trial Courts Directed to Decide Ownership Dispute Independently In its judgment, the Constitutional Court instructed the trial courts to decide the pending ownership cases independently and as expeditiously as possible. The bench emphasized that the courts must not be influenced by observations contained in earlier judicial decisions while deciding the merits of the dispute. The court further clarified that issues relating to the administration, regulation, and management of the land should be determined by the competent regulatory authorities rather than through judicial intervention. By separating the ownership dispute from administrative matters, the court sought to ensure that each issue is decided by the appropriate legal and regulatory forum. Justice Hassan Azhar Rizvi Raises Concerns Over Earlier Judgment During the hearing, Justice Hassan Azhar Rizvi observed that several important legal aspects had not been considered in the earlier Supreme Court judgment. He questioned both the filing of the original petition and the subsequent review petition, suggesting that certain matters included in the earlier ruling extended beyond the actual issues raised before the court. Justice Rizvi remarked that the previous judgment addressed issues that were not part of the pleadings presented by the parties. He stressed that the Constitutional Court would not issue an emotional judgment and would confine itself strictly to the legal questions argued before the bench. Court Urges Lawyers to Avoid Praising the Bench During the proceedings, senior lawyer Ahsan Bhoon praised the court. However, Justice Rizvi asked legal counsel not to commend the bench during hearings. He reiterated that judges are required to decide cases solely on the basis of arguments presented before the court and the available judicial record. Justice Rizvi also stated that the Constitutional Court’s judgment would avoid unnecessary commentary or narratives unrelated to the issues under consideration. According to him, after reviewing the earlier Supreme Court judgment, it appeared that several observations had gone beyond the scope of the actual court proceedings. Background of the Monal Restaurant Case Monal Restaurant began operations at Pir Sohawa in 2006 after obtaining a lease for land located within the scenic area overlooking Islamabad. The legal dispute intensified in January 2022 when the Islamabad High Court examined issues relating to commercial activities and land ownership inside the Margalla Hills National Park. The matter was later taken to the Supreme Court, which, in June 2024, ruled that commercial activities inside the national park were incompatible with environmental conservation objectives. The Supreme Court directed Monal Restaurant, La Montana, and other commercial establishments operating within the protected area to vacate the premises within three months. The court held that preserving the ecological integrity of the national park was of greater public importance than allowing commercial operations to continue. Restaurant Structures Demolished in 2024 Following the Supreme Court’s decision, review petitions challenging the judgment were dismissed. In October 2024, the Capital Development Authority informed the Supreme Court that the restaurant buildings had been demolished and that possession of the land had been restored to the authorities. The demolition of Monal Restaurant brought an end to one of Islamabad’s best-known dining destinations, which had attracted visitors for nearly two decades because of its panoramic views of the capital. CDA and MCI Challenge Earlier Decision The latest proceedings arose after the CDA and the Metropolitan Corporation Islamabad challenged aspects of the earlier judgment. The Islamabad local government argued that the previous ruling had deprived it of valuable lease and rental income. According to court proceedings, the Metropolitan Corporation Islamabad claimed that Monal Restaurant owed more than Rs63.9 million in lease-related payments. The Constitutional Court has now directed that these disputes be resolved independently by the competent trial courts without relying on conclusions drawn in earlier judicial observations. Decision Reopens Legal Questions While the Constitutional Court has set aside the earlier ruling relating to the ownership dispute, it has not restored commercial operations at the demolished restaurant. Instead, the judgment focuses on ensuring that the ownership issues are decided fairly, independently, and in accordance with the evidence presented before the trial courts. The ruling also reinforces the principle that administrative and regulatory matters should remain within the jurisdiction of the relevant government authorities. The Monal Restaurant demolition case is expected to continue before the trial courts, where the ownership dispute and related financial claims will now be examined afresh under the Constitutional Court’s directions.

PSX Closing Bell: Banking Stocks Push KSE-100 Higher Despite Global Uncertainty
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PSX Closing Bell: Banking Stocks Push KSE-100 Higher Despite Global Uncertainty

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The PSX Closing Bell delivered another encouraging session for investors as the Pakistan Stock Exchange ended Friday with solid gains, extending its upward momentum despite persistent geopolitical tensions in the Middle East. Strong buying in banking shares helped the benchmark KSE-100 Index remain firmly in positive territory throughout the trading day, highlighting growing confidence in Pakistan’s equity market. Although concerns surrounding the U.S.-Iran situation continue to influence global markets, relatively stable crude oil prices prevented panic selling and encouraged investors to selectively accumulate fundamentally strong stocks. The latest session reflects a market that is becoming increasingly resilient, with institutional investors showing confidence in sectors expected to benefit from improving economic conditions. PSX Closing Bell Shows Strong Momentum in the KSE-100 Index The PSX Closing Bell saw the benchmark KSE-100 Index settle at 182,241.77 points, gaining 982.10 points, or 0.54%, compared with the previous session. The market maintained positive momentum throughout the day, reaching an intraday high of 183,477.57 points, while the lowest level recorded was 181,880.54 points, indicating that buyers remained firmly in control during the session. The KSE-100 Index traded a total of 412.98 million shares, demonstrating healthy participation from investors. Out of the 100 companies included in the benchmark index, 68 stocks advanced, 31 declined, and one remained unchanged, reflecting broad-based buying across multiple sectors. Banking Sector Emerges as the Biggest Winner Commercial banks once again became the backbone of the market rally. The banking sector contributed nearly 572 points to the benchmark index, making it the single largest driver of Friday’s gains. Among individual stocks, Meezan Bank (MEBL) made the largest contribution to the index, followed by United Bank Limited (UBL), Habib Bank Limited (HBL), MCB Bank, and Askari Bank (AKBL). Their strong performance suggests that investors continue to favor financially stable institutions as expectations for economic recovery strengthen. The cement sector also delivered a meaningful boost to market performance, while oil and gas exploration companies, property-related stocks, and miscellaneous sectors added further support to the overall rally. Top Performing Stocks Capture Investor Attention Several companies posted impressive gains during the trading session. GHNI emerged among the strongest performers with a gain exceeding six percent, while SSOM, JVDC, LOTCHEM, and SHFA also recorded notable advances. On the other hand, some stocks experienced profit-taking pressure. MEHT suffered the sharpest decline of the session, followed by IBFL, SAZEW, HGFA, and SNGP, which limited the benchmark’s overall advance. Market activity remained concentrated in high-volume stocks. CNERGY attracted the highest investor interest by trading more than 151 million shares, followed by K-Electric (KEL), WorldCall Telecom (WTL), TSBL, PRL, LOTCHEM, SPSL, BLUEX, BAFL, and LSECL. Strong trading volumes indicate that liquidity remains healthy even as investors become more selective in their stock choices. Broader Market Performance Remains Positive The broader Pakistan Stock Exchange also reflected improving sentiment. The All-Share Index climbed 653.91 points to close at 110,583.67, confirming that gains were not limited to large-cap companies alone. Overall market volume reached 948.78 million shares, while the total value of traded shares stood at Rs38.41 billion. Trading activity was spread across 495 listed companies, with 292 stocks closing higher, 170 declining, and 33 remaining unchanged, demonstrating widespread participation from investors. What the PSX Closing Bell Means for Investors The latest PSX Closing Bell reinforces the view that investor confidence is gradually strengthening despite ongoing international uncertainties. Stable global oil prices, resilient banking stocks, and continued institutional buying have helped the Pakistan Stock Exchange maintain its upward trajectory. The KSE-100 Index has now gained approximately 1,940 points during the current fiscal year and has advanced 8,187 points, or nearly 4.7%, since the beginning of the calendar year. If macroeconomic indicators continue to improve and geopolitical risks remain contained, analysts believe the market could maintain its positive momentum in the coming weeks. Outlook For investors, Friday’s session highlighted a familiar trend: strong banking stocks continue to lead market recoveries, while broad participation across multiple sectors suggests confidence is slowly returning to Pakistan’s capital markets.

Pakistan Tariff Rationalisation Drives Duty-Free Imports Surge to 39% and Signals a New Era for Industry
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Pakistan Tariff Rationalisation Drives Duty-Free Imports Surge to 39% and Signals a New Era for Industry

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Pakistan Tariff Rationalisation is rapidly changing the country’s trade landscape, with official data revealing that nearly 40 percent of Pakistan’s imports entered the country without customs duties during the outgoing fiscal year (FY26). The development marks one of the most significant shifts in Pakistan’s import policy in recent years and highlights the government’s broader strategy to strengthen industrial growth, reduce production costs, and make local manufacturers more competitive in domestic and international markets. Pakistan Tariff Rationalisation Reshapes the Import Bill According to official data, Pakistan imported goods worth $68.99 billion during FY26. Out of this total, imports valued at $27.02 billion, representing 39.2 percent of the country’s overall import bill, entered Pakistan without attracting customs duties. Meanwhile, imports worth $41.97 billion, or 60.8 percent of the total import value, remained subject to customs duties. The figures demonstrate a clear policy direction by the government to reduce import costs for industrial raw materials and production inputs while continuing to collect revenue from other categories of imported goods. Pakistan Tariff Rationalisation Focuses on Industrial Competitiveness The government’s tariff reforms are designed to lower the cost of doing business by making essential industrial inputs more affordable. Manufacturers have long argued that high import duties on machinery, raw materials, and intermediate goods increase production costs and reduce Pakistan’s competitiveness in export markets. By expanding duty-free access for industrial imports, policymakers hope to encourage higher production, improve export performance, attract fresh investment, and create a more competitive manufacturing sector. Business analysts believe that lower import costs could also support industries facing rising global competition, allowing Pakistani products to compete more effectively on price and quality. Second Phase of Pakistan Tariff Rationalisation Begins The government has already launched the second phase of its ambitious Five-Year Tariff Reform Plan (2025-2030) through the FY27 federal budget. As part of the latest reforms, authorities have significantly reduced import-related duties across thousands of tariff categories. The government has cut Additional Customs Duty (ACD) on 3,149 tariff lines, providing relief to a wide range of industrial sectors. In addition, Regulatory Duty (RD) has been reduced to 20 percent on more than 1,900 tariff lines, further easing the financial burden on importers and manufacturers. These measures are intended to simplify Pakistan’s tariff structure while encouraging industrial expansion and long-term economic growth. What Pakistan Tariff Rationalisation Means for Businesses For Pakistan’s manufacturing and export sectors, the tariff reforms represent more than just lower import duties. They signal a broader economic strategy aimed at increasing industrial efficiency and improving the country’s investment climate. Lower duties on production inputs can help businesses reduce operational expenses, improve profit margins, and invest in expanding production capacity. Export-oriented industries, including textiles, engineering, pharmaceuticals, chemicals, and automotive manufacturing, are expected to benefit the most if cheaper imported inputs translate into lower production costs. However, economists caution that the success of Pakistan Tariff Rationalisation will ultimately depend on consistent policy implementation, stable exchange rates, reliable energy supplies, and continued reforms that support industrial productivity. Outlook Pakistan Tariff Rationalisation is emerging as one of the government’s most significant economic reform initiatives. With nearly two-fifths of imports now entering duty-free and further reductions in customs and regulatory duties underway, the country is attempting to build a more competitive industrial economy. Whether these reforms lead to stronger exports, increased investment, and sustainable economic growth will become clearer over the coming years, but the FY26 import data already suggests that Pakistan’s trade policy is entering a new phase focused on competitiveness rather than protectionism.

CDNS sets Rs1.5 trillion savings goal for FY2026-27
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CDNS sets Rs1.5 trillion savings goal for FY2026-27

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Riding on strong public confidence in government-backed savings schemes, the Central Directorate of National Savings (CDNS) has set an ambitious savings mobilisation target of Rs1.5 trillion for the fiscal year 2026-27, aiming to further strengthen the country’s savings culture and expand financial inclusion. CDNS Achieves FY2025-26 Savings Target The fresh target follows the successful achievement of CDNS’s annual savings mobilisation goal of Rs1.384 trillion during FY2025-26, underscoring growing investor confidence in secure and low-risk investment instruments offered by the government. According to official sources, CDNS mobilized Rs1.384 trillion between July 1, 2025, and June 30, 2026, fully achieving its annual target. The milestone reflects sustained public trust in National Savings products despite evolving economic conditions and increasing competition from other financial institutions. The official said the directorate remains committed to encouraging household savings, widening the investor base, and providing safe investment avenues that contribute to national resource mobilisation. They noted that the institution continues to play a vital role in supporting the government’s domestic borrowing programme while promoting long-term financial planning among citizens. Islamic Savings Products Remain a Key Focus As part of its strategy to diversify investment products, CDNS allocated Rs60 billion for Islamic savings instruments during FY2025-26. The initiative aims to expand access to Shariah-compliant investment opportunities and support the continued development of Pakistan’s growing Islamic finance industry. Senior officials recalled that in the preceding fiscal year, FY2024-25, the directorate had fixed an overall savings target of Rs1.65 trillion, including Rs170 billion earmarked for Islamic finance products, reflecting its commitment to broadening financial inclusion and offering diversified investment options. Strong Savings Mobilisation Over the Years The directorate has demonstrated consistent growth in savings mobilisation over the past several years. During FY2023-24, CDNS surpassed its annual target by collecting Rs1.742 trillion against a target of Rs1.7 trillion. It also successfully achieved its Rs1.6 trillion savings target in FY2022-23. Similarly, in FY2021-22, the organisation’s initial savings target of Rs1.3 trillion was revised upward to Rs1.4 trillion in view of improved market conditions and stronger-than-expected resource mobilisation. Reforms and Digital Transformation Drive Growth Officials attributed the directorate’s sustained performance to a combination of institutional reforms, improved operational efficiency, digital transformation, and customer-focused initiatives that have enhanced accessibility and service delivery across the National Savings network. CDNS Eyes Stronger Financial Inclusion in FY2026-27 Officials expressed optimism that the Rs1.5 trillion target for FY2026-27 would further reinforce the culture of savings, strengthen domestic resource mobilisation, and contribute to the country’s broader economic stability by encouraging greater public participation in secure and reliable investment schemes.

Pakistan Stock Exchange KSE-100 Ends Lower as Middle East Tensions Shake Investor Confidence
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Pakistan Stock Exchange KSE-100 Ends Lower as Middle East Tensions Shake Investor Confidence

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The Pakistan Stock Exchange KSE-100 ended Thursday’s trading session in negative territory as growing geopolitical uncertainty in the Middle East continued to dominate investor sentiment. Although the benchmark index staged a notable intraday recovery after suffering heavy losses earlier in the session, persistent concerns over the escalating U.S.-Iran conflict prevented the market from sustaining gains. The latest market performance reflects how international political developments are increasingly influencing Pakistan’s financial markets. Investors remained defensive as fears of prolonged regional instability, higher oil prices, and disruptions to global energy supplies outweighed positive buying activity in selected sectors. Pakistan Stock Exchange KSE-100 Faces Pressure from Geopolitical Risks Investor confidence remained fragile after Wednesday’s sharp market selloff, with market participants closely monitoring developments in the Middle East. Fresh military strikes carried out by the United States on Iranian targets, following attacks on commercial vessels near the Strait of Hormuz, heightened concerns about a wider regional conflict. The possibility of prolonged disruptions to one of the world’s most important oil shipping routes pushed crude oil prices higher, raising concerns about inflation, import costs, and economic stability for energy-importing countries such as Pakistan. These developments encouraged investors to adopt a cautious approach, resulting in reduced risk appetite across the stock market. By the close of trading, the Pakistan Stock Exchange KSE-100 Index settled at 181,259.67 points, declining by 369.69 points or 0.20 percent. During the session, the benchmark remained highly volatile, swinging nearly 2,900 points between its intraday high and low before recovering a significant portion of its earlier losses. Banking Stocks Drag the Pakistan Stock Exchange KSE-100 Lower Commercial banking stocks emerged as the primary reason behind the market’s decline. Major banking companies including Meezan Bank, MCB Bank, and Askari Bank recorded notable losses, collectively removing hundreds of index points from the benchmark. Oil and gas exploration companies also came under selling pressure as investors assessed the broader economic impact of rising geopolitical uncertainty. Investment companies, insurance firms, and automobile parts manufacturers further contributed to the negative performance. However, the market was not entirely without optimism. Automobile assemblers, refinery companies, fertilizer producers, textile manufacturers, and oil marketing companies attracted buying interest, helping the benchmark recover from its intraday low. Among individual performers, Ghani Glass delivered the strongest gain with a 10 percent increase, followed by Mehtab Industries, Cnergyico, Ghandhara Automobiles, and Honda Atlas Cars, all posting impressive advances during the session. Trading Activity Shows Investors Remain Selective Overall market activity slowed compared with the previous trading session, indicating that investors preferred to stay on the sidelines while monitoring international developments. Nearly one billion shares changed hands across the broader market, while trading value declined significantly from the previous session. Market breadth, however, remained relatively balanced as 263 companies closed higher, 203 declined, and 31 remained unchanged, suggesting that selective buying continued despite the overall cautious environment. Cnergyico remained the most actively traded stock by a considerable margin, recording trading volume of more than 211 million shares. LSE Capital, Pakistan Refinery, Pace Pakistan, K-Electric, WorldCall Telecom, First National Equities, Bank of Punjab, Thatta Cement, and Pak Elektron also featured among the day’s most actively traded companies, reflecting continued investor interest in energy, infrastructure, financial, and industrial sectors. Pakistan Stock Exchange KSE-100 Outlook Remains Positive Despite Short-Term Volatility Despite Thursday’s decline, the broader market trend remains positive. The Pakistan Stock Exchange KSE-100 has gained 958 points during the current fiscal year, representing an increase of 0.53 percent. On a calendar-year basis, the benchmark has advanced more than 7,200 points, delivering a gain of 4.14 percent. Market analysts believe that while geopolitical tensions are likely to keep volatility elevated in the near term, investor focus will gradually shift back toward corporate earnings, economic indicators, monetary policy expectations, and government reforms. Any easing in regional tensions could quickly improve investor confidence and support renewed buying across key sectors of the Pakistan Stock Exchange.

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