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Govt Cuts Mark-Up on Development Loans to 11.89% for FY2025-26
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Govt Cuts Mark-Up on Development Loans to 11.89% for FY2025-26

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The federal government has reduced the mark-up rate on development loans and advances to provincial governments, public sector entities and other government institutions by nearly six percentage points for the fiscal year 2025-26, following a sharp decline in the State Bank of Pakistan’s policy rate. According to a notification issued by the Ministry of Finance (MoF) on Friday, the mark-up rate has been fixed at 11.89% for the fiscal year ending June 30, 2026, compared with 17.74% in 2024-25 and 17.84% in 2023-24. The reduction comes after the State Bank lowered its benchmark policy rate from a peak of 22% to 11.5%, significantly reducing the government’s borrowing costs. Lower Policy Rate Drives Reduction The revised mark-up reflects the government’s annual adjustment based on its own debt servicing costs, which are linked to yields on Pakistan Investment Bonds (PIBs) and Treasury Bills (T-bills). Although the latest reduction amounts to 5.85 percentage points compared with the previous fiscal year, the current rate remains around 15.4% higher than the 10.30% charged in 2020-21. The notification also confirmed that the same 11.89% annual mark-up will apply to government loans and advances provided for house building and vehicle purchases during FY2025-26. Loans Cover Provinces, SOEs and Public Institutions The mark-up applies to Cash Development Loans (CDLs) extended by the federal government to: Provincial governments.Azad Jammu and Kashmir (AJK).Gilgit-Baltistan.Local government bodies.State-owned enterprises (SOEs).Autonomous organisations.Public sector financial institutions.Non-financial public sector institutions.Commercial departments of the federal government. These loans are provided to finance development projects, infrastructure schemes and social sector programmes across the country. The federal government also extends foreign re-lent loans obtained from international development partners to eligible public sector institutions. Major Source of Federal Revenue Interest earned on these loans has become an increasingly important source of federal government revenue over the past decade. According to official figures, the government collected approximately Rs164 billion in mark-up on development loans and cash advances during 2025-26, when the applicable rate stood at 17.74%. In the previous fiscal year, the federal government earned around Rs245 billion through mark-up charges at a rate of 17.84%. Of that amount: Rs95.45 billion was collected from provincial governments.Approximately Rs155 billion came from state-owned enterprises and other public sector entities. The decline in the mark-up rate is expected to reduce borrowing costs for provinces and public institutions, although it may also lower federal revenue generated from interest income. Rates Have Increased Significantly Over the Decade Despite this year’s reduction, the mark-up charged on federal development loans remains substantially higher than historical levels. The rate stood at 6.54% in 2016-17, meaning it increased by nearly 175% over the following years as Pakistan experienced high inflation and elevated interest rates. It reached more than 17% during the past two fiscal years after the State Bank aggressively tightened monetary policy to curb inflation and stabilise the economy. With inflation easing and interest rates declining, the government has now adjusted lending rates accordingly. Government Borrows Cheaply, Lends at Higher Rates The federal government generally secures long-term development financing from international lenders at relatively low interest rates, often around 2%, before extending those funds to provinces and public sector institutions through cash development loans at significantly higher mark-up rates. The Ministry of Finance said the applicable mark-up is determined under the terms of each loan agreement but is reviewed annually in line with the government’s own borrowing costs in domestic financial markets. The revised rate for FY2025-26 is expected to provide some financial relief to provincial governments, local bodies and state-owned entities undertaking development projects while aligning federal lending rates with the broader easing cycle in Pakistan’s monetary policy.

Pakistan To Establish First Center For Industrial Innovation And AI At NUTECH
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Pakistan To Establish First Center For Industrial Innovation And AI At NUTECH

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Pakistan has taken a major step toward advancing industrial technology and digital transformation with the signing of a Memorandum of Understanding (MoU) to establish the country’s first Center for Industrial Innovation and AI (CIINAI). The initiative aims to integrate artificial intelligence, advanced manufacturing technologies, applied research and technical training under a single platform to improve industrial productivity and strengthen Pakistan’s global competitiveness. Landmark Initiative for Industrial Development Speaking at the signing ceremony, Special Assistant to the Prime Minister Haroon Akhtar Khan described the establishment of the Center for Industrial Innovation and AI as a historic milestone for Pakistan’s industrial sector. He said the government is committed to strengthening partnerships between industry, universities and research organisations to accelerate innovation, enhance manufacturing capabilities and promote sustainable industrial growth. According to the statement, the new centre will serve as a national hub for industrial innovation by bringing together modern technologies, research expertise and workforce development initiatives under one roof. Centre to Be Established at Korangi Creek Industrial Park The Center for Industrial Innovation and AI (CIINAI) will be established by the Pakistan Industrial Development Corporation (PIDC) at its Korangi Creek Industrial Park in Karachi. The facility will function as a common resource centre for industries, offering advanced technological services and specialised training programmes to manufacturers and industrial enterprises. Officials said the centre will support businesses by providing industrial artificial intelligence solutions, advanced manufacturing technologies, research and development (R&D) services, and technical capacity-building programmes. The project is expected to help local industries adopt modern production methods, improve operational efficiency and enhance product quality in line with international standards. Focus on AI and Advanced Manufacturing A key objective of the Center for Industrial Innovation and AI is to promote the integration of artificial intelligence into Pakistan’s manufacturing sector. The centre will facilitate the use of AI-driven technologies to optimise production processes, improve quality control, reduce operational costs and increase industrial efficiency. In addition to AI applications, the facility will support research in advanced manufacturing technologies, helping industries embrace automation, digitalisation and smart manufacturing practices. Experts believe that adopting these technologies can significantly improve productivity while enabling Pakistani manufacturers to compete more effectively in international markets. Strengthening Industry-Academia Collaboration The initiative also seeks to strengthen collaboration between higher education institutions and the industrial sector. Through the partnership, NUTECH and NED University will contribute academic expertise, research capabilities and technical knowledge to develop practical industrial solutions. The collaboration will encourage applied research that directly addresses the technological needs of local industries while providing students and researchers with opportunities to work on real-world industrial challenges. Officials said closer cooperation between universities and industry is essential for developing a skilled workforce capable of supporting Pakistan’s industrial modernisation agenda. Training and Research Opportunities Besides research and technology development, the centre will offer specialised technical training programmes aimed at enhancing workforce skills. These programmes are expected to help engineers, technicians and industrial professionals gain expertise in artificial intelligence, automation, advanced manufacturing systems and other emerging technologies. The centre will also support innovation by providing businesses with access to modern equipment, research facilities and expert guidance to develop new products and improve manufacturing processes. Officials believe these initiatives will contribute to higher productivity, greater innovation and increased industrial competitiveness. MoU Signed by Three Institutions The Memorandum of Understanding was signed by PIDC Chief Executive Officer Rizwan Ahmed Bhatti, NUTECH Registrar Brigadier Salman Zafar (Retired) and NED University Vice Chancellor Professor Dr Muhammad Tufail. The agreement formalises cooperation among the three institutions for the establishment and operation of the Center for Industrial Innovation and AI, which is expected to become a key platform for promoting technological advancement and industrial innovation in Pakistan. The initiative reflects the government’s broader strategy to encourage digital transformation, strengthen research and development, and build a technology-driven industrial ecosystem capable of supporting long-term economic growth. Key Messages from the Report:

SBP Foreign Exchange Reserves Rise To $17.26bn Despite Dip In Pakistan's Total Reserves
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SBP Foreign Exchange Reserves Rise To $17.26bn Despite Dip In Pakistan’s Total Reserves

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SBP Foreign Exchange Reserves Increase While Overall Reserves Edge Lower Pakistan’s SBP Foreign Exchange Reserves posted a modest increase during the week ended July 17, offering some support to the country’s external sector despite a slight decline in overall liquid foreign exchange reserves. According to the State Bank of Pakistan (SBP), its foreign exchange holdings rose by $33 million to $17.26 billion, while reserves held by commercial banks declined, resulting in a small drop in Pakistan’s total reserves. The latest figures show that the SBP’s foreign exchange reserves increased to $17.2586 billion. However, Pakistan’s total liquid foreign exchange reserves slipped by $5.9 million to $22.6696 billion, mainly due to lower foreign currency holdings maintained by commercial banks. Analysts said the data indicates that the central bank continues to maintain a stable reserve position, although the decline in commercial bank reserves outweighed the improvement recorded by the SBP. Commercial Banks’ Foreign Exchange Reserves Decline According to data compiled by brokerage firm Arif Habib Limited, commercial banks’ net foreign exchange reserves fell by $38.7 million during the reporting week, bringing their total holdings down to approximately $5.411 billion. The reduction in commercial bank reserves offset the increase in the SBP’s holdings, leading to the slight decline in Pakistan’s total liquid foreign exchange reserves. Based on the latest figures, Pakistan’s reserves are sufficient to cover around 2.54 months of imports, remaining below the level generally considered comfortable for long-term external stability. The SBP’s breakdown shows that, as of July 17, the central bank held nearly $17.3 billion, while commercial banks accounted for roughly $5.4 billion, taking the country’s total foreign exchange reserves to $22.7 billion. Bangladesh’s Foreign Exchange Reserves Cross $36 Billion The latest regional data also highlighted an improvement in Bangladesh’s external position. According to Bangladesh Bank, the country’s gross foreign exchange reserves increased to $36.10 billion after receiving a $320 million disbursement from a bilateral development partner. The increase marks Bangladesh’s highest reserve level since October 2022 and reflects continued efforts by South Asian economies to strengthen their external buffers amid ongoing global economic uncertainty. Pakistani Rupee Remains Stable Against the US Dollar Meanwhile, the Pakistani rupee remained largely stable in the interbank market. The local currency closed at Rs277.90 per US dollar, improving marginally by one paisa from the previous day’s closing level of Rs277.91. Currency markets remained relatively calm despite renewed geopolitical tensions in the Middle East. Globally, the US Dollar Index eased 0.06% to 101.05, as investors continued to monitor geopolitical developments and expectations surrounding US monetary policy. Gold Prices Decline After Recent Rally Gold prices in Pakistan fell sharply after international bullion markets witnessed a correction. According to the All Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola declined by Rs1,800 to Rs432,036, while the price of 10 grams fell by Rs1,543 to Rs370,401. Silver prices also weakened, with the price per tola dropping Rs33 to Rs6,370. The decline followed a sharp increase in domestic gold prices a day earlier, highlighting continued volatility in global precious metals markets. Rising Oil Prices Weigh on Gold Markets Internationally, spot gold declined by around 2% to approximately $4,047.26 per ounce, while US gold futures for August delivery dropped 2.5% to nearly $4,050 per ounce. Market participants attributed the weakness to rising crude oil prices and expectations that persistent inflation could encourage the US Federal Reserve to maintain a tighter monetary policy stance. Meanwhile, Brent crude oil climbed to around $100 per barrel amid escalating tensions in the Middle East and concerns over disruptions to global energy supplies following attacks on Saudi oil tankers in the Red Sea. Higher oil prices have renewed fears of sustained inflation, prompting investors to reassess expectations for future US interest rate decisions. Analysts Say Oil Prices Remain the Key Risk Interactive Commodities Director Adnan Agar said higher crude oil prices were the primary factor behind the recent decline in gold prices. He noted that international gold briefly touched $4,042 per ounce before recovering slightly to around $4,050, after reaching a recent high near $4,150. According to Agar, if geopolitical tensions continue pushing oil prices higher, gold prices may remain under pressure. He also warned that instability in the Middle East, including developments involving Yemen, could further disrupt global energy markets. Economists believe sustained increases in crude oil prices could raise Pakistan’s import bill, fuel domestic inflation, and place additional pressure on the country’s external account. While SBP Foreign Exchange Reserves recorded a modest weekly increase, analysts expect Pakistan’s external sector to remain closely tied to movements in global oil prices, geopolitical developments, capital flows, and future monetary policy decisions by major central banks.

Brent Oil Prices Stay Above $100 as Middle East Tensions Heighten Global Supply Concerns
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Brent Oil Prices Stay Above $100 as Middle East Tensions Heighten Global Supply Concerns

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Brent Oil Prices Extend Rally Above $100 Per Barrel Brent oil prices remained above the $100-per-barrel mark on Friday, extending a four-week rally as escalating geopolitical tensions in the Middle East continued to fuel concerns over global crude oil supplies. Investors closely monitored developments in the Red Sea, the Strait of Hormuz, and the wider Gulf region, where rising military tensions have increased fears of prolonged disruptions to some of the world’s most critical energy shipping routes. Brent crude futures rose 37 cents (0.37%) to $101.06 per barrel after surging 7% in the previous trading session. The benchmark climbed above the $100 level for the first time since May and was on track for a 14.6% weekly gain, its strongest weekly performance in months. Meanwhile, West Texas Intermediate (WTI) crude traded at $91.20 per barrel, remaining largely unchanged during Friday’s session while heading for an 11.8% weekly gain. Middle East Tensions Continue to Support Brent Oil Prices The latest rise in Brent oil prices followed reports that Yemen’s Iran-backed Houthi movement attacked two Saudi oil tankers in the Red Sea. The incident intensified concerns about the security of global energy shipments through one of the world’s busiest maritime trade routes, raising fears that further escalation could significantly disrupt crude oil exports. Market analysts believe the risks to global supply are now greater than at any point since the regional conflict intensified. According to analysts at ING, simultaneous threats to oil flows through both the Strait of Hormuz and the Red Sea have created an unusually high level of uncertainty for global energy markets. Strait of Hormuz Traffic Falls Sharply The Strait of Hormuz, through which a substantial share of global crude exports passes each day, remains at the center of market attention. Ship-tracking data from Kpler showed that only one oil tanker crossed the strategic waterway on Thursday—the lowest daily traffic recorded since May 7. The sharp decline highlights the growing impact of regional instability on maritime trade and reinforces concerns over tighter global oil supplies. Red Sea Shipping Risks Increase Attention has also shifted to the Bab el-Mandeb Strait, another critical shipping route connecting the Red Sea with the Indian Ocean. As the world’s second-most important oil transit corridor after the Strait of Hormuz, any prolonged disruption to traffic through Bab el-Mandeb could further tighten crude supplies and place additional upward pressure on oil prices. Earlier this week, the Houthis announced a naval blockade targeting Saudi Arabia, stating that vessels linked to Saudi oil exports could face attacks. Saudi Arabia has already begun rerouting part of its crude exports through pipeline networks to reduce dependence on the Strait of Hormuz following earlier restrictions on shipping through the waterway. US-Iran Tensions Add to Market Uncertainty Reports suggest Iran has encouraged Houthi forces to block access to the Bab el-Mandeb Strait if the United States continues military operations targeting Iranian infrastructure. The latest escalation follows the collapse of a temporary truce between Washington and Tehran approximately two weeks ago, increasing concerns that the conflict could spread across the wider region. US President Donald Trump warned that Washington would hold Iran responsible for any future attacks carried out by groups aligned with Tehran, adding another layer of geopolitical uncertainty to energy markets. Kazakhstan Supply Disruptions Add Further Pressure Beyond the Middle East, oil markets are also facing supply concerns from Central Asia. Kazakhstan’s Energy Ministry confirmed that several oil producers temporarily reduced output after suspected Ukrainian drone attacks forced the closure of the country’s primary Black Sea oil export terminal. The Caspian Pipeline Consortium (CPC), which transports approximately 2% of global daily crude production, suspended oil loadings after attacks on tankers operating near the terminal. Industry sources reported that crude deliveries through the pipeline were temporarily halted, while production at Kazakhstan’s largest oil field was reduced by more than half. These disruptions have added further pressure to an already tight global oil market. Outlook for Brent Oil Prices Energy analysts believe the combination of escalating military conflict, shipping disruptions, and production cuts is creating one of the most uncertain environments for global oil markets in recent years. If tensions continue to rise or critical shipping lanes remain disrupted, Brent oil prices could remain above $100 per barrel or move even higher as traders continue to price in increasing risks to global energy supplies.

MG HS Hybrid+ Pakistan Local Production Begins as MG Expands Hybrid Vehicle Manufacturing
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MG HS Hybrid+ Pakistan Local Production Begins as MG Expands Hybrid Vehicle Manufacturing

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MG HS Hybrid+ Pakistan Enters Local Production Pakistan’s automotive industry has reached another significant milestone as MG HS Hybrid+ Pakistan officially enters local production, marking a major step in the country’s transition toward hybrid mobility and advanced vehicle manufacturing. The move reflects MG’s growing confidence in Pakistan’s manufacturing capabilities while providing consumers with greater access to locally assembled hybrid SUVs featuring modern technology, improved fuel efficiency, and premium driving comfort. Since entering the Pakistani market, MG has positioned itself as a premium automotive brand by combining contemporary design, intelligent features, and a strong ownership experience. The local assembly of the MG HS Hybrid+ and MG Super Hybrid models further reinforces that strategy by blending global engineering with domestic manufacturing. Why MG HS Hybrid+ Pakistan Is Important for the Auto Industry The local production of the MG HS Hybrid+ Pakistan is expected to benefit both consumers and Pakistan’s automotive sector. Manufacturing vehicles locally can: With fuel prices remaining unpredictable, hybrid vehicles are becoming an increasingly attractive option for consumers seeking better fuel economy without sacrificing performance, comfort, or modern features. The initiative also reflects the changing preferences of Pakistani buyers, who are increasingly considering hybrid and environmentally friendly vehicles alongside conventional petrol-powered models. Premium Hybrid Technology Meets Everyday Practicality MG has built its reputation by introducing vehicles equipped with advanced technologies that remain practical for daily driving. The locally assembled MG HS Hybrid+ and MG Super Hybrid are designed to deliver: Rather than focusing solely on luxury, MG aims to offer a balanced ownership experience that combines innovation, reliability, and everyday usability. This customer-focused approach has helped the company establish itself as a competitive player in Pakistan’s growing SUV market. Local Manufacturing Supports Pakistan’s Industrial Growth The expansion of local vehicle assembly is expected to contribute significantly to Pakistan’s automotive industry. Industry experts believe increased localization can: MG’s investment demonstrates long-term confidence in Pakistan’s industrial potential while supporting the government’s broader objectives of promoting manufacturing and adopting cleaner transportation technologies. As competition among global automotive brands intensifies, local production is becoming an increasingly important strategy for improving affordability, reducing delivery times, and strengthening after-sales support. MG Continues Its Customer-Focused Strategy Since launching operations in Pakistan, MG has consistently emphasized customer satisfaction through premium products, innovative technology, and reliable after-sales services. The locally assembled MG HS Hybrid+ and MG Super Hybrid further reinforce the company’s commitment to delivering: The company continues to position itself as a future-ready automotive brand focused on innovation, sustainability, and customer trust. Hybrid Vehicles Gain Momentum in Pakistan Growing awareness of fuel efficiency and environmental sustainability is gradually transforming Pakistan’s automotive market. Consumers are increasingly considering hybrid vehicles because they offer: As hybrid adoption accelerates, manufacturers investing in local production are expected to play a leading role in shaping Pakistan’s next generation of mobility. Outlook for MG HS Hybrid+ Pakistan The start of local production for the MG HS Hybrid+ Pakistan marks another important step in the evolution of Pakistan’s automobile industry. By combining local manufacturing with advanced hybrid technology, MG is strengthening its position in the country’s rapidly growing hybrid SUV segment while contributing to industrial development, technology transfer, and sustainable mobility. As consumer demand for fuel-efficient and environmentally conscious vehicles continues to rise, locally assembled hybrid models are expected to play an increasingly important role in Pakistan’s automotive future.

Pakistan FDI Falls to $1.64 Billion in FY26 as Foreign Investment Slows
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Pakistan FDI Falls to $1.64 Billion in FY26 as Foreign Investment Slows

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Pakistan’s foreign direct investment (FDI) declined sharply during fiscal year 2025-26, reflecting weaker investor confidence and rising capital outflows despite ongoing economic reforms. Fresh data released by the State Bank of Pakistan (SBP) shows that annual FDI dropped significantly compared with the previous fiscal year, while foreign divestment increased, underscoring the challenges facing the country’s investment climate. The latest figures suggest that although Pakistan continues to attract investment into selected sectors, international investors remain cautious amid economic uncertainty and global market volatility. Pakistan FDI Declines by One-Third in FY26 According to SBP data, Pakistan received $1.64 billion in foreign direct investment during FY26, compared with $2.48 billion in the previous fiscal year. The decline of nearly one-third highlights a slowdown in long-term foreign capital inflows at a time when Pakistan is seeking overseas investment to support economic growth, industrial development, and job creation. The figures indicate that foreign investors have become more selective, delaying or scaling back investment decisions despite efforts to improve the country’s business environment. June FDI Drops to Just $13.5 Million Investment activity weakened further in June 2026, when Pakistan recorded only $13.5 million in net foreign direct investment, compared with $210 million in the same month last year. Although gross investment inflows totaled $294.4 million during June, the increase in capital withdrawals significantly reduced the overall net inflow. Foreign investment outflows surged to $280.9 million, an increase of more than 168 percent year-on-year, leaving only a marginal net gain for the month. The sharp rise in outflows suggests that several foreign investors chose to repatriate funds or reduce their exposure to Pakistan. Portfolio Investment Remains Under Pressure Portfolio investment continued to reflect cautious investor sentiment. During June 2026, foreign investors recorded an equity portfolio outflow of $28.7 million. While this was lower than the $42.9 million outflow recorded in June 2025, it indicates that international investors remain hesitant about Pakistan’s financial markets. Portfolio flows are generally viewed as an important indicator of investor confidence because they respond quickly to economic and political developments. Foreign Private Investment Turns Negative One of the most notable developments during June was the reversal in foreign private investment. Instead of generating fresh inflows, foreign private investment registered a negative $15.2 million, compared with a positive $167.1 million during the same month last year. Foreign public investment also remained weak, recording an equity outflow of $11.8 million. Combined, these movements resulted in total foreign divestment of $27 million during June 2026, reversing the $184.2 million net investment recorded in June 2025. Rising Divestment Highlights Investor Concerns The broader fiscal year trend also points to growing caution among international investors. Total foreign divestment during FY26 reached $450.6 million, compared with $1.75 billion in net foreign investment during the previous fiscal year. The increase in capital outflows reflects ongoing concerns over global economic conditions, domestic financial challenges, exchange rate risks, and investor assessments of Pakistan’s economic outlook. For Pakistan, sustaining higher levels of foreign direct investment remains essential for strengthening foreign exchange reserves, supporting exports, creating employment, and driving long-term economic growth. The latest SBP figures underscore the importance of maintaining macroeconomic stability, implementing structural reforms, and improving the ease of doing business to rebuild investor confidence. Outlook for Foreign Investment While Pakistan continues to attract foreign investment in selected industries, the latest data highlights the need for stronger policy consistency and a more predictable investment environment. If investor confidence improves through continued reforms and economic stability, the country could regain momentum in attracting long-term foreign capital. However, sustained capital outflows and weak FDI could pose additional challenges for Pakistan’s economic recovery and future growth prospects.

Pakistan Daily Petrol Prices: Why Fuel Prices Are Now Changing Every Working Day
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Pakistan Daily Petrol Prices: Why Fuel Prices Are Now Changing Every Working Day

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Pakistan’s fuel pricing system has entered a new phase as Pakistan Daily Petrol Prices are now being revised every working day instead of every fortnight. The new pricing framework introduced by the Oil and Gas Regulatory Authority (OGRA) allows petrol and diesel prices to reflect international market movements much faster, directly affecting motorists, businesses, transport operators, and industries across the country. Within days of the new mechanism taking effect, consumers witnessed consecutive increases in fuel prices, highlighting how closely domestic petroleum rates are now linked to fluctuations in global oil markets. Pakistan Daily Petrol Prices Replace the Fortnightly Pricing System For years, Pakistan reviewed petroleum prices every two weeks. During heightened volatility caused by the US-Iran conflict, the government temporarily shifted to weekly price revisions. The latest reform goes a step further by introducing daily ex-depot fuel prices on every working day. Under the new system, OGRA publishes revised petrol and diesel prices from Monday to Friday, while Friday’s rates remain applicable over the weekend. The objective is to make domestic fuel prices more responsive to international oil market trends instead of delaying adjustments until the next review cycle. Fuel Prices Rise Within Days of the New Mechanism The impact of the daily pricing formula became evident almost immediately. Motor Spirit (MS) petrol increased from Rs315.80 per litre on July 21 to Rs320.73 on July 22, before climbing further to Rs327.12 per litre on July 23. High-Speed Diesel (HSD) followed a similar trajectory, rising from Rs360.06 to Rs367.21, and then reaching Rs375.04 per litre over the same period. These back-to-back revisions demonstrate how domestic prices can now change rapidly in response to global market conditions. How Pakistan Daily Petrol Prices Are Calculated Many consumers believe petrol prices depend only on international crude oil prices. However, the calculation involves several cost components before fuel reaches retail filling stations. International Benchmark Prices The pricing process begins with the seven-working-day rolling average of Platts Arab Gulf benchmark prices. For July 23, the benchmark prices stood at: These benchmarks serve as the primary international reference for imported petroleum products. Freight and Import Costs Freight charges are then added to the benchmark prices. For petrol, freight is based on the weighted average transportation cost of Pakistan State Oil (PSO) imports over the previous seven working days. Diesel freight is calculated using Pakistan’s long-term supply arrangement with Kuwait Petroleum Corporation (KPC). Exchange Rate Conversion The Cost and Freight (C&F) value is converted into Pakistani rupees using the seven-day average exchange rate published by the State Bank of Pakistan (SBP). The calculation also applies the industry-standard conversion factor of 158.98 litres per barrel. Additional Charges Several other costs are incorporated before arriving at the import price, including: Banking and insurance expenses Marine insurance HDIP fees Port handling charges Ocean transportation losses or gains Exchange rate adjustments Customs duties After these calculations, the Ex-Refinery/Import Price on July 23 stood at: Government Taxes Continue to Influence Retail Fuel Prices The ex-refinery price represents only one portion of the final amount consumers pay at petrol pumps. Additional charges include: Inland Freight Equalization Margin (IFEM) This covers transportation costs across different regions of Pakistan. OMC and Dealer Margins Fixed margins are allocated to Oil Marketing Companies (OMCs) and petroleum dealers. Petroleum Levy The Petroleum Levy remained Rs80 per litre on July 23. Climate Support Levy An additional Rs5 per litre was charged under the Climate Support Levy. Sales Tax Sales Tax remained zero on both petrol and diesel. After incorporating these components, the retail ex-depot petrol price increased from approximately Rs242.12 per litre before taxes and levies to Rs327.12 per litre, excluding secondary transportation costs. New Import Rules Strengthen Supply Management The revised pricing framework also introduces stricter petroleum import regulations. For the FY2027, all High-Speed Diesel (HSD) imports will be handled exclusively by Pakistan State Oil (PSO). Motor Spirit (MS) imports will continue through multiple Oil Marketing Companies under OGRA’s Product Requirement Mechanism, with allocations based on market share. Companies failing to fulfill import commitments, delaying shipments, or failing to lift refinery allocations may face suspension from future import allocations for up to nine months. The objective is to improve supply discipline and reduce disruptions in the fuel market. Greater Transparency Through Daily Benchmark Publication One of the key features of the new system is improved transparency. OGRA now publishes the daily Platts Arab Gulf benchmark prices used in fuel calculations, allowing consumers, businesses, and industry participants to better understand how petroleum prices are determined. The same daily pricing methodology has also been extended to Superior Kerosene Oil (SKO) and Light Diesel Oil (LDO). What Pakistan Daily Petrol Prices Mean for Consumers The introduction of Pakistan Daily Petrol Prices marks one of the most significant reforms in the country’s petroleum pricing system. While the mechanism enhances transparency and aligns Pakistan more closely with international pricing practices, it also exposes consumers to more frequent fluctuations in fuel costs. Motorists, transport companies, manufacturers, logistics operators, and businesses will now need to monitor fuel prices more closely, as changes in global oil prices and exchange rates can influence domestic petrol and diesel prices within days rather than weeks. As international energy markets remain volatile, daily fuel price revisions are expected to become a permanent feature of Pakistan’s energy landscape.

Pakistan, Iran Reaffirm Security Cooperation As Asim Munir Meets Iranian Interior Minister
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Pakistan, Iran Reaffirm Security Cooperation As Asim Munir Meets Iranian Interior Minister

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Pakistan and Iran reaffirmed their commitment to strengthening bilateral security cooperation, enhancing border management and promoting regional peace as Iranian Interior Minister Eskandar Momeni held separate meetings with Chief of Defence Forces and Chief of the Army Staff Field Marshal Syed Asim Munir and Prime Minister Shehbaz Sharif during his official visit to Islamabad. According to the Inter-Services Public Relations (ISPR), Momeni met Field Marshal Asim Munir at the General Headquarters (GHQ) in Rawalpindi, where both sides discussed matters of mutual interest, regional and bilateral security, effective border management and continued cooperation between the two neighbouring countries. Pakistan And Iran Discuss Border Security And Regional Stability The military’s media wing said the discussions focused on maintaining peace along the shared border and strengthening coordination to address common security challenges. Both sides also reviewed mechanisms for enhancing cooperation aimed at promoting long-term regional stability. During the meeting, the visiting Iranian minister appreciated Pakistan’s consistent diplomatic efforts to ease tensions in the region. He acknowledged Islamabad’s role in encouraging dialogue, promoting de-escalation and supporting peaceful solutions to regional disputes. The ISPR said the meeting concluded with a reaffirmation of both countries’ commitment to maintaining close coordination and strengthening cooperative mechanisms to safeguard regional security while promoting mutual prosperity. Prime Minister Shehbaz Sharif Reiterates Support For Diplomacy Earlier in the day, Momeni also called on Prime Minister Shehbaz Sharif at the Prime Minister’s House, where discussions focused on the evolving security situation in the Middle East and expanding Pakistan-Iran relations. The prime minister expressed deep concern over the latest escalation in the Gulf and reiterated Pakistan’s readiness to play a constructive diplomatic role in reducing tensions between the United States and Iran. According to an official statement issued by the Prime Minister’s Office, Shehbaz Sharif urged all parties to exercise maximum restraint and avoid actions that could further destabilise the region. The premier reiterated Pakistan’s commitment to serving as an honest mediator and facilitator, stressing that Islamabad would continue supporting peaceful dialogue and diplomatic engagement to promote regional peace and stability. Senior members of the federal cabinet attended the meeting, including Deputy Prime Minister Mohammad Ishaq Dar, Interior Minister Syed Mohsin Raza Naqvi, Information Minister Attaullah Tarar, Minister of State for Interior Talal Chaudhry, Adviser to the Prime Minister Dr Syed Tauqir Shah, and other senior government officials. Iranian Minister Appreciates Pakistan’s Diplomatic Efforts Prime Minister Shehbaz welcomed the Iranian delegation and recalled his recent visit to Tehran to attend the funeral ceremony of the late Supreme Leader Ayatollah Sayyid Ali Khamenei. He conveyed his best wishes to Iran’s leadership, including President Dr Masoud Pezeshkian and the country’s Supreme Leader. Momeni thanked the prime minister for the warm reception extended to his delegation and conveyed greetings from the Iranian leadership. He said his visit aimed to strengthen bilateral cooperation and follow up on agreements reached during recent high-level engagements between the two countries. The Iranian minister also appreciated the diplomatic efforts of Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar and Field Marshal Asim Munir in facilitating dialogue that resulted in the Islamabad Memorandum of Understanding (MoU) between the United States and Iran earlier this year. He also thanked the prime minister for travelling to Tehran to attend the funeral of Iran’s late Supreme Leader. Momeni arrived in Islamabad on Monday night on an official visit and was received by Interior Minister Mohsin Naqvi. He is leading a high-level delegation comprising senior Iranian government officials. Before meeting the prime minister, the visiting minister was presented with a ceremonial police parade in Islamabad. He also visited the Pakistan Monument, where a Federal Constabulary contingent presented a guard of honour in his honour. Regional Developments Remain In Focus His visit comes at a time when Pakistan continues diplomatic efforts to preserve the Islamabad Memorandum of Understanding, which was signed last month in an attempt to end hostilities between the United States and Iran. However, the security situation has deteriorated again following renewed military exchanges. According to reports, the United States continued strikes inside Iran, while Tehran responded by targeting American radar and air defence installations in the Gulf. Iranian officials have accused Washington of violating the ceasefire agreement, while diplomatic contacts through international mediators reportedly remain ongoing. The regional conflict has also expanded, with Iran reimposing restrictions in the Strait of Hormuz, prompting countermeasures by the United States. Yemen’s Houthi movement has also announced a maritime embargo targeting Saudi Arabia, adding another dimension to the regional crisis. Pakistan And Iran Aim To Expand Bilateral Trade Beyond security and diplomacy, Pakistan and Iran are seeking to significantly expand economic cooperation. Speaking to Iranian media after arriving in Islamabad, Momeni said both countries are working toward increasing annual bilateral trade from approximately $3 billion to $10 billion. He stressed that achieving this target would require substantial improvements in cross-border transport infrastructure and logistics. According to remarks carried by Iran’s Mehr News Agency, Momeni said nearly 2,000 trucks or containers would need to cross the Pakistan-Iran border each day to support the proposed trade volume. At present, only about 20 percent of that transport capacity is being utilised. He said improving border infrastructure, facilitating trade, expanding transport connectivity and implementing agreements reached during President Masoud Pezeshkian’s recent visit would remain key priorities during discussions with Pakistani officials. Pakistan and Iran also continue discussions on enhancing connectivity between ports, strengthening border trade and reviving the long-delayed Iran-Pakistan gas pipeline, which both sides see as an important project for boosting regional energy cooperation. Longstanding Bilateral Relations Continue To Grow Sharing a 900-kilometre border, Pakistan and Iran maintain longstanding historical, cultural and economic ties. While their relationship has occasionally faced challenges due to cross-border militant activity and regional security concerns, both countries continue to emphasise dialogue, cooperation and stronger economic integration as the foundation for long-term regional stability.

Pakistan Appoints Global Banks To Lead Eurobond And Sukuk Programs
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Pakistan Appoints Global Banks To Lead Eurobond And Sukuk Programs

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Pakistan has selected consortiums of leading international financial institutions to manage its Global Medium-Term Note (GMTN) and International Sukuk programs as part of its strategy to diversify external financing sources and strengthen long-term access to global capital markets. The Ministry of Finance announced the appointments on Tuesday following a competitive selection process. The mandates will remain in place for three years and are designed to support Pakistan’s future sovereign borrowing through conventional and Shariah-compliant debt instruments. The selected financial institutions will advise the government on international debt issuances, including Eurobonds, international sukuks, and Pakistani rupee-denominated, US dollar-settled bonds, providing Pakistan with greater flexibility to raise funds from global investors when required. Finance Minister Launches Strategic Partnership With Global Banks While on an official visit to Washington, D.C., Finance Minister Muhammad Aurangzeb held a virtual meeting with senior executives of the selected institutions to formally launch the strategic partnership and outline the government’s long-term financing strategy. Banks Selected For Eurobond And Sukuk Programs For future Eurobond issuances, the government appointed Standard Chartered Bank, Citibank, Deutsche Bank, Emirates NBD Capital, and MUFG Securities Asia Limited as its international banking partners. For International Sukuk transactions, Pakistan selected a consortium comprising Standard Chartered Bank, Dubai Islamic Bank PJSC, Citibank, Emirates NBD Capital, and Mashreq Bank PSC to structure and arrange future Shariah-compliant sovereign debt offerings. Meanwhile, Standard Chartered Bank, Citibank, and Deutsche Bank were appointed to support the issuance of Pakistani rupee-denominated, US dollar-settled bonds, an instrument aimed at attracting international investors while reducing foreign exchange risks associated with conventional external borrowing. Three-Year Mandate To Strengthen Capital Market Access According to the Ministry of Finance, the appointments are intended to establish a long-term financing platform rather than facilitate a single fundraising transaction. The framework will enable Pakistan to access international debt markets whenever financing requirements arise, subject to market conditions, regulatory approvals, and completion of the necessary documentation. Officials said the arrangement would provide continuity in Pakistan’s engagement with global investors and improve the efficiency of future sovereign debt issuances. The ministry noted that the inclusion of MUFG Securities Asia Limited and Mashreq Bank PSC broadens Pakistan’s relationships with international financial institutions and expands its outreach to a wider range of investors across Asia, the Middle East, Europe, and other global financial markets. The government believes this expanded network of financial partners will help strengthen Pakistan’s visibility among international investors and improve access to diversified sources of external financing. Government Sees Improving Investor Confidence According to the Finance Ministry, Pakistan’s improving macroeconomic environment has contributed to stronger investor confidence in recent months. Officials cited fiscal consolidation, rising foreign exchange reserves, improving debt sustainability indicators, and continued implementation of structural economic reforms as key factors supporting the country’s financial outlook. The ministry also highlighted the recent narrowing of Pakistan’s sovereign credit spreads, describing it as an indication that international investors are becoming more confident about the country’s economic stability and medium-term growth prospects. Through the new financing framework, the government aims to establish a more diversified, market-based borrowing strategy that broadens its investor base, lowers borrowing costs over time, and strengthens Pakistan’s long-term presence in international capital markets. The initiative also supports the government’s broader objective of reducing dependence on short-term financing while creating sustainable funding channels for future development and budgetary requirements. Finance Minister Discusses Refinery Investment With Honeywell In a separate engagement during his visit to Washington, Finance Minister Muhammad Aurangzeb met a delegation from Honeywell Technologies, led by Vice President and General Manager Barry Glickman, to discuss investment opportunities in Pakistan’s energy sector. The discussions focused on modernising and expanding Pakistan’s domestic refinery infrastructure through the adoption of Honeywell’s advanced refining technologies and engineering solutions. According to the Finance Ministry, both sides explored opportunities to upgrade existing refineries, improve operational efficiency, and increase domestic production of refined petroleum products. The meeting also covered potential financing options for refinery projects, including support from the U.S. Export-Import Bank (EXIM), the U.S. International Development Finance Corporation (DFC), export credit agencies, and international commercial banks. Muhammad Aurangzeb said modernising Pakistan’s refining sector would play an important role in increasing domestic refining capacity, reducing reliance on imported petroleum products, strengthening the country’s energy security, and supporting industrial development. Long-Term Financing And Energy Investment Strategy He added that investments in refinery infrastructure would contribute to long-term economic growth by improving energy efficiency, enhancing value addition within the petroleum sector, and creating new opportunities for private sector investment.

Xenith PR Partners With IoBM To Bridge Pakistan’s Corporate Communications Gap
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Xenith PR Partners With IoBM To Bridge Pakistan’s Corporate Communications Gap

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Pakistan’s corporate communications industry is set to receive a major boost as Xenith PR has entered into a strategic partnership with the Institute of Business Management (IoBM) to launch a three-month Certificate in Strategic Communications & Digital Media. The programme is designed to equip students and working professionals with practical, industry-focused skills needed to succeed in today’s rapidly evolving corporate environment. Xenith PR And IoBM Launch Industry-Focused Certification Program The certificate course builds on Xenith PR’s successful collaboration with Greenwich University last year, where the agency introduced a diploma programme aimed at providing professionals with practical communications expertise beyond traditional academic curricula. Through its new partnership with IoBM, Xenith PR aims to extend the same industry-driven learning experience to a wider group of students and professionals seeking careers in corporate communications, public relations, digital media, and brand management. Focus On Practical Corporate Communications Skills Speaking about the initiative, Raheel Nabi, Director and Chief Executive of Xenith PR, said the programme reflects the agency’s commitment to integrating real-world industry knowledge into academic learning. He stated that the partnership with IoBM is intended to bridge the gap between classroom education and boardroom execution by equipping participants with practical tools, techniques, and the agile mindset required to thrive in Pakistan’s evolving corporate landscape. The three-month certification programme will be delivered through six intensive modules based on Xenith PR’s three decades of experience in Corporate Communications. Curriculum Covers PR, Digital Media And AI Participants completing the programme will gain hands-on knowledge across key areas of strategic communications, including: According to Xenith PR, the curriculum has been designed to provide practical expertise that would typically require years of on-the-job experience, helping graduates become job-ready from the outset. IoBM Highlights Industry-Relevant Learning Speaking at the Memorandum of Understanding (MoU) signing ceremony, Nabhan Shah Karim, Head of the Department for Marketing & Communications at IoBM, emphasized the growing importance of specialised, skills-based education in corporate communications. He said that success in today’s communications industry depends on concise, practical, and cutting-edge learning programmes. Through the partnership, IoBM aims to help students begin building their careers while still in the classroom, preparing them for future leadership roles. Enrollment Opens In September 2026 The collaboration reflects the shared vision of Xenith PR and IoBM to modernize professional education by replacing traditional rote learning with practical, industry-oriented training. Enrollment for the Certificate in Strategic Communications & Digital Media will open on September 23, 2026, while classes are scheduled to begin later in September 2026 at IoBM’s Karachi campus.

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

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