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NBP Funds and HBL Asset See August AUM Declines
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NBP Funds and HBL Asset See August AUM Declines

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Pakistan’s mutual fund industry added assets in August 2026, but two well-known asset management houses moved in the opposite direction. NBP Funds reported a 1.8 percent drop in total assets under management, from PKR 598.1 billion in July to PKR 587.4 billion in August. HBL Asset recorded a smaller 0.4 percent decline, with AUMs easing from PKR 346.2 billion to PKR 344.6 billion. Those two declines stand out because the wider industry continued to grow. Industry Assets Still Moved Higher Total mutual fund AUMs rose 1.9 percent month on month, from PKR 4,572 billion to PKR 4,659 billion. That is a solid gain on a large base and shows that money continued to flow into Pakistan’s asset management industry even as a few fund houses lost ground. Al Meezan IML remained the largest house, with AUMs at PKR 724.2 billion after a 1.6 percent increase. UBL Funds, Alfalah AML, ABL AMC and JSIL were among the stronger gainers. The headline story for August 2026 mutual funds is still growth. The secondary story is that growth was uneven across Pakistan asset management companies. What Changed at NBP Funds NBP Funds is one of the bigger platforms in the market. A 1.8 percent decline is not a collapse, but it is noticeable.Total AUMs fell by a little over PKR 10 billion in a single month, taking NBP Funds AUM to PKR 587.4 billion. The equity sleeve did not explain the decline. NBP’s equity AUMs actually rose 2.6 percent, from PKR 87.4 billion to PKR 89.7 billion.That split matters. When total assets fall while equity assets rise, the pressure is usually coming from income, money market or other non-equity products. Investors may have redeemed from cash-like funds, shifted to other fund houses, or simply taken money off the table. Without fund-level flow data, the exact mix is hard to pin down. The direction, though, is clear: the overall NBP Funds AUM book got smaller. HBL Asset’s Softer Move HBL Asset’s decline was far milder. A 0.4 percent dip on PKR 346 billion is a small move in absolute terms.HBL Asset AUMs fell from PKR 346.2 billion to PKR 344.6 billion in August.Equity AUMs at HBL Asset rose 4.7 percent, from PKR 28.8 billion to PKR 30.2 billion. Again, equity did not drag the total down. The softness came from elsewhere in the product mix.For a house of this size, a fraction-of-a-percent change can reflect routine redemptions rather than a sudden loss of confidence. Still, in a month when the industry added almost PKR 87 billion, even a small decline looks different. HBL Asset also remains well behind the top three on total scale. Ranking and momentum both matter to distributors and institutional allocators. Other Houses That Lost Ground NBP Funds and HBL Asset were not the only names in the red.Lucky Invest. Ltd saw the sharpest fall, with AUMs down 8.4 percent to PKR 109.8 billion. 786 Investments Ltd declined 4.1 percent, though from a much smaller base of about PKR 2 billion.Lakson Invest. Ltd edged down 0.6 percent to PKR 58.6 billion. Those three, together with NBP Funds and HBL Asset, were the main exceptions in an otherwise positive month.JSIL jumped 10 percent. Alfalah AML rose 8.1 percent. ABL AMC added 6.7 percent. Gains at the top and middle of the table more than offset the handful of declines, keeping mutual fund AUM Pakistan on an upward path. Equity Assets Grew, but the Mix Thinned Slightly Total equity AUMs increased 0.9 percent to PKR 682 billion from PKR 675 billion. That is slower than the 1.9 percent rise in overall assets.As a result, equity as a share of industry AUM slipped from 14.8 percent to 14.6 percent, a drop of 0.1 percentage points. A few houses cut their equity books. Alfalah AML’s equity AUMs fell 4.7 percent. ABL AMC was down 1.8 percent. NIT declined 1.3 percent. Others added risk. PAK-QATAR AMC’s equity AUMs jumped 24 percent, albeit from a small base. BMA Invest. rose 27.7 percent on an even smaller book.The industry still leans heavily on money market and income products. Shariah-compliant money market funds accounted for about 23 percent of assets. Conventional money market funds were around 22 percent. Income and Shariah-compliant income each held about 18 percent. Conventional equity was near 9 percent, with Shariah-compliant equity around 6 percent. That mix helps explain why total AUMs can rise even when equity markets are mixed, and why a fund house can lose total assets while its equity sleeve grows. Why These Two Declines Still Matter NBP Funds and HBL Asset are not fringe names. They sit in the upper tier by size. When large platforms shrink even modestly, distributors notice. So do consultants who track fund house market share month by month.A one-month drop does not define a franchise. Flows reverse. Markets recover. Product calendars change.But the August data makes one point clear: industry growth is not automatic for every house. NBP Funds’ 1.8 percent decline is the more meaningful of the two because of both the percentage and the rupee amount.HBL Asset’s 0.4 percent move is smaller, yet it still ran against the industry tide.Investors reading these figures should look past the headline AUM number. The split between equity and non-equity assets often tells the real story. In both cases, equity books held up better than the overall totals. That suggests the August softness was more about cash and income products than about a sudden exit from stocks. What to Watch Next September figures will show whether these declines were a pause or the start of a trend. Three things are worth watching. First, whether NBP Funds stabilises above PKR 580 billion. Second, whether HBL Asset holds the PKR 344 billion area. Third, whether equity’s share of industry AUM keeps drifting lower or snaps back.The industry is still large and still growing. PKR 4.66 trillion in mutual fund assets is a serious pool of savings.It is also a competitive pool. A few houses can lose assets in a

Overseas Workers Send $7.3 Billion in Two Months
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Overseas Workers Send $7.3 Billion in Two Months

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Overseas Pakistanis sent $7.3 billion in July and August, giving Pakistan’s new fiscal year a strong start for workers’ remittances. That is 14.7 percent more than the $6.4 billion received in the same two months last year. The early burst follows a record $41.6 billion in FY26 and suggests the new fiscal year is starting faster, rather than fading after a peak. A Strong Start, Not a One-Off Month The State Bank of Pakistan said August inflows were $3.7 billion. That was 16.5 percent higher than a year earlier and 0.7 percent above July. July itself had already risen 13 percent year on year to $3.63 billion. Two solid months in a row matter more than a single spike when assessing the direction of Pakistan workers remittances FY27. August was not the highest month on record. That remains May’s $4.25 billion Eid surge. June then slipped to $3.47 billion. What has changed is the floor. A $3.5 to $3.7 billion month now looks normal. At August’s pace, a full year would come in close to $44 billion. Market forecasts have already moved up toward $43.7 billion, while officials have talked about a $44 billion target. Where the Money Came From Saudi Arabia was still the largest source of Pakistan remittances in August, sending $873.5 million. That was 19 percent higher than August last year. It was also 4 percent lower than July’s $914 million. The UAE followed with $749.8 million, up 17 percent from a year earlier and 2 percent from July. Together, Saudi Arabia and the UAE supplied about $1.62 billion, or roughly 44 percent of the month’s total. The United States sent $308.9 million, up 16 percent year on year but 2 percent below July. Britain Is Growing Faster Than the Gulf The volume of workers remittances still sits in the Gulf, but the growth story is shifting. Inflows from the United Kingdom rose 22 percent year on year to $563.7 million. July had already jumped 23 percent from Britain. Among the four big corridors, the UK is now the fastest-growing source of remittances to Pakistan. That does not replace Saudi Arabia or the UAE. It does, however, make Pakistan’s remittance pipeline a little less one-dimensional. The State Stopped Paying. The Money Kept Coming The rise in Pakistan remittances is sharper because official incentives have been switched off. At the start of FY27, the telegraphic-transfer rebate and the Sohni Dharti rewards ended. Banks are still topping up about Rs2 a dollar from their own books, but that is a thinner cushion than the old public schemes. Two months of double-digit growth are therefore the first real test of whether formal remittance channels can hold without a government cheque attached. So far, the numbers suggest they can. This Is Still Household Money Pakistan’s workers remittances have more than doubled since FY17. They hit $41.6 billion in FY26, up 8.6 percent from $38.3 billion the year before. Goods exports have not kept that pace. The inflow now does work a stronger export base would normally do. It helps pay for imports, supports reserves and steadies the external account. Most of it does not build factories. Around nine-tenths is spent on food, rent, school fees and daily costs. That supports families, but it also means a $3.7 billion month is mainly a consumption story. The Risk Sits in Two Countries The same concentration that steadies Pakistan’s external accounts is also the main vulnerability. Saudi Arabia and the UAE still dominate Pakistan remittances. A slower Gulf labour market or a sharper regional shock would hit the two largest remittance pipes at once. Britain and the United States are growing, but they are not large enough yet to offset a Gulf dip. FY26 showed how much money can move through banks after the hawala crackdown, a steadier rupee and a larger workforce abroad. FY27 will show whether that system keeps growing after the incentive schemes were turned off. The first sixty days say it can. They also say Pakistan’s most reliable source of dollars is still its people, not its export basket. Another Record Year Is Within Reach If July and August set the tone, another record year for overseas Pakistanis and Pakistan remittances is within reach. The harder question is how long $3.7 billion a month from overseas workers can stand in for a stronger economy at home. For now, the early FY27 figures point to resilient formal channels, strong inflows from the Gulf and accelerating growth from the UK. The next few months will determine whether this is simply a strong opening or the beginning of another record year for workers remittances FY27.

Bank Makramah Walks Away From Consortium Equity Plan
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Bank Makramah Walks Away From Consortium Equity Plan

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Bank Makramah Limited has informed the market that the expression of interest submitted in June by a DM Holdings-led consortium is “no longer being pursued.” The bank’s latest communication also refers investors back to an August board decision under which its existing sponsor, Nasser Abdulla Hussain Lootah, may inject a further Rs10 billion, subject to corporate and regulatory approvals. While the announcement is straightforward, it leaves several important questions unanswered about the consortium proposal, the bank’s capital position and its future ownership structure. A Three-Month Courtship Ends Without a Reason On June 11, 2026, Bank Makramah disclosed that the consortium had expressed a firm intention to acquire a significant stake in the bank. Such a transaction could have triggered takeover requirements and potentially resulted in a public offer. The consortium was led by DM Holdings, a newly established Karachi-based vehicle, and had reportedly indicated a willingness to commit substantial capital to the bank. Around three months later, Bank Makramah has confirmed that the proposal is no longer being pursued. However, its latest communication does not explain why the discussions ended. There is no indication of whether the decision followed a valuation disagreement, due-diligence concerns, regulatory considerations or unsuccessful negotiations. For investors, that absence of detail is significant. Markets can assess a rejected transaction when the terms and reasons are known, but an unexplained withdrawal leaves considerable uncertainty. Sponsor’s Rs10 Billion Plan Keeps Ownership Structure Intact The bank’s board approved Nasser Abdulla Hussain Lootah’s proposed Rs10 billion capital injection on August 18. Under the proposed structure, the funds would initially be received as an advance against share subscription and subsequently converted into shares through an issuance other than a rights issue, subject to the necessary approvals. The structure would allow the existing sponsor to strengthen the bank’s capital without fundamentally changing its ownership arrangement. Lootah has remained the dominant shareholder since acquiring an interest in the former Summit Bank in April 2023. By contrast, a consortium transaction could have brought a new major shareholder into the bank and raised questions around regulatory fitness and propriety, takeover requirements, public-offer mechanics and future control of the institution. The sponsor-led plan is therefore simpler from an ownership perspective. However, it also means existing shareholders could face further dilution depending on the final terms of the share issuance. Stronger Capital Does Not Automatically Mean a Turnaround Bank Makramah has spent the past several years working through significant financial and operational challenges. The bank underwent a court-backed merger with Global Haly Development Limited and has also pursued recoveries from legacy non-performing loans while receiving additional sponsor support. These measures have helped the bank bring its minimum capital and capital-adequacy position back above regulatory thresholds. However, the underlying business remains under pressure. At the end of 2025, total capital to risk-weighted assets was only slightly above the 11.5 percent regulatory floor, leaving limited room for further deterioration. The pressure continued into 2026. During the first half of the year, Bank Makramah recorded a net loss of approximately Rs4.7 billion, compared with a profit during the same period a year earlier. Net mark-up expenses increased significantly, while non-mark-up income declined. Deposits have also been falling, while the bank continues to carry a high level of infected loans. Fresh Equity Cannot Solve Every Operating Problem The proposed Rs10 billion injection could provide much-needed support to Bank Makramah’s capital position. However, fresh equity alone does not resolve the wider operational challenges facing the bank. Additional capital can strengthen regulatory ratios, but it does not automatically improve margins, recover troubled assets, rebuild deposits or restore profitability. For a sustainable turnaround, the bank will also need to improve its core earnings, strengthen asset quality and rebuild customer confidence. This makes the distinction between recapitalisation and a genuine business turnaround particularly important for investors assessing Bank Makramah’s next phase. Minority Shareholders Face Further Dilution The proposed issuance other than a rights issue is particularly relevant for minority shareholders. Unlike a rights issue, such an arrangement does not give existing shareholders the same first opportunity to participate in the new share issuance. Depending on the final terms, a private allotment to the existing sponsor could therefore increase ownership concentration while diluting outside investors. Bank Makramah already has a highly concentrated ownership structure. The latest development makes transparency around the proposed Rs10 billion transaction increasingly important for minority shareholders. Four Questions Investors Should Be Asking The September 10 communication leaves several questions open. Investors will want to know why the DM Holdings-led consortium proposal ended, what valuation or price will be used for the proposed Rs10 billion conversion, when the funds will actually be received by the bank and how the State Bank of Pakistan will treat the advance before the shares are formally issued. These details could materially affect how investors assess the transaction and its impact on Bank Makramah’s capital position. Until greater clarity emerges, the latest development appears less like a new ownership story and more like another stage in the bank’s long-running recapitalisation effort. Bank Makramah’s Next Move Will Matter Bank Makramah has secured a potential source of additional sponsor capital, but the end of the consortium proposal removes the possibility of a new strategic investor for now. The Rs10 billion plan could strengthen the bank’s balance sheet, yet investors will ultimately judge the move by whether it translates into stronger earnings, better asset quality and a more sustainable deposit base. For minority shareholders, the terms of the proposed issuance and the explanation behind the consortium’s withdrawal will be just as important as the headline capital injection.

Atlas Battery Slips Into Loss as Chinese Lithium Imports and Price War Squeeze AGS Brand
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Atlas Battery Slips Into Loss as Chinese Lithium Imports and Price War Squeeze AGS Brand

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Atlas Battery slips into loss as Chinese lithium and a price war squeeze AGS Atlas Battery Turns 60 With a Difficult FY26 Atlas Battery Limited reaches its 60th year at a difficult point in its history. Instead of celebrating a stronger bottom line, Pakistan’s well-known AGS battery brand ended FY26 with a loss as competition intensified and cheaper alternatives reshaped the market. The company recorded battery sales of Rs34.9 billion during FY26, slightly below Rs35.2 billion a year earlier. The bigger pressure came from pricing rather than volumes. Gross margin fell from 11.3 percent to 8.5 percent, while the company posted a net loss of Rs371 million after tax compared with a profit of Rs91 million in the previous year. Loss per share stood at Rs10.59. Atlas Battery’s share price, which reached Rs319 in July 2025, ended the financial year near Rs219. Growing Auto Market Fails to Lift Margins Pakistan’s automotive market provided a stronger demand environment during FY26. Local car sales increased by around 39 percent, while motorcycle and three-wheeler sales climbed nearly 30 percent as vehicle assembly recovered. For Atlas Battery, however, stronger original equipment manufacturer (OEM) demand was only part of the story. The replacement market remained cautious as consumers faced tight household budgets. Buyers increasingly preferred smaller, cheaper and maintenance-free batteries, putting additional pressure on established manufacturers. At the same time, competitors adopted aggressive discounting strategies and widened price gaps. Excess industry capacity further strengthened customers’ bargaining power. The organised battery sector still accounts for roughly 70 percent of the domestic market, with the remainder made up of unorganised trade and imports. Atlas says it avoided chasing unsustainable volumes. While that may protect long-term positioning, the strategy came at a significant short-term cost. Chinese Lithium Batteries Create a New Threat The most important competitive challenge is no longer limited to other lead-acid battery manufacturers. Competitively priced Chinese lithium batteries are increasingly being used as alternatives to conventional heavy-duty lead-acid batteries, particularly in UPS, solar-storage and certain automotive applications. The shift is particularly significant because Pakistan’s rapid adoption of solar power should theoretically create stronger demand for battery storage. Instead, it has also created a new market for lower-cost lithium products. Atlas identifies lithium and other emerging battery chemistries as a medium- to long-term transition risk. If the company does not adapt, demand for traditional SLI lead-acid batteries could gradually decline. The competitive pressure is also affecting consumer perceptions. Imported and locally available alternatives are increasingly seen by buyers as comparable in quality, reducing the premium historically associated with established brands. Japanese Partnership Faces a New Market Reality Atlas Battery continues to benefit from its long-standing technical relationship with GS Yuasa of Japan. GS Yuasa remains a 15 percent shareholder, while Shirazi Investments holds 58.86 percent of Atlas Battery. However, strong ownership and technical credentials are becoming less effective as differentiators when consumers increasingly focus on price. The challenge for AGS is therefore not simply maintaining product quality. It is convincing customers that the additional value of an established brand justifies a premium over cheaper alternatives. Rising Costs Crush Gross Profit Atlas Battery’s cost pressures intensified during FY26. Cost of sales increased 2.3 percent to Rs32.0 billion, consuming 91.5 percent of revenue compared with 88.7 percent a year earlier. Geopolitical disruptions during the final quarter contributed to higher raw-material costs. Around 47 percent of Atlas’s lead requirements are sourced internationally, exposing the company directly to global lead prices and exchange-rate movements. The company estimates that a 5 percent movement in the US dollar can significantly affect lead costs. As costs increased while pricing remained under pressure, gross profit fell 25 percent to Rs2.96 billion. Operating profit was almost halved to Rs994 million. Lower Interest Rates Provide Limited Relief There was some relief on the financing side. Atlas Battery’s finance cost declined to Rs919 million as interest rates eased and working-capital management improved. However, the reduction was insufficient to offset the deterioration in operating profitability. Profit before tax stood at only Rs75 million. Tax expenses of Rs445 million, largely reflecting minimum-tax requirements, ultimately pushed the company into a statutory net loss. The situation also highlights the competitive disadvantage faced by documented manufacturers that remain within the formal tax system while competing against informal trade and grey-market imports. Exports Offer a Small Bright Spot Exports were among the few positive developments during the year. Atlas Battery’s export shipments increased 18.2 percent to Rs721 million, equivalent to approximately $2.57 million. Afghanistan and Yemen remained the primary destinations. However, external disruptions quickly complicated the export picture. The suspension of Afghan trade affected shipments, while conflict in the Middle East reduced the availability of vessels capable of carrying dangerous goods and increased freight costs. Atlas continued exporting despite these challenges, but international sales remained too small to compensate for broader domestic pressures. Management Bets on Brand Over Price Management’s response remains centred on product quality, customer service and the company’s established “Atlas Way” rather than entering an aggressive race to the bottom. The company introduced new sealed maintenance-free batteries featuring double-lid designs. Motorcycle batteries also benefited from stronger OEM production and continued to support margins. Atlas is simultaneously investing in operational efficiency. Solar capacity at its Karachi plant increased from 510 kW to 610 kW, while water-recycling initiatives saved around 37.5 million US gallons. The company also continued dealer development and training across its network of 275 outlets. Competitive Pressure Remains Intense Despite these initiatives, Atlas Battery’s own assessment points to a challenging competitive environment. Customers have considerable bargaining power, substitutes represent an increasing threat, lead suppliers remain relatively concentrated and competition across the industry is intense. Chinese manufacturers could potentially establish local production capacity under CPEC or as trade policies evolve, increasing competitive pressure further. At the same time, the solar-storage market is expanding, creating an attractive opportunity but also encouraging more low-cost suppliers to enter the segment. Taxes Add to the Cost Burden Atlas Battery contributed Rs8.2 billion to the national exchequer during FY26, equivalent to around 24 percent

Export Tax and Regulatory Shifts Highlighted as Primary Risks to Lucky’s Profitability: Report
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Export Tax and Regulatory Shifts Highlighted as Primary Risks to Lucky’s Profitability: Report

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Strong FY26 Performance Despite Policy Uncertainty Lucky Cement Limited delivered a strong financial performance in FY26, but its annual report identifies unpredictable government policy as a strategic risk that could affect future profitability. The company considers the likelihood and potential impact of this risk to be low. However, it specifically highlights export-related taxation and regulatory changes as factors that could influence earnings and overseas market competitiveness. Lucky says it addresses these issues through the All Pakistan Cement Manufacturers Association (APCMA) and the Pakistan Business Council, while continuing to monitor regulatory developments. Group Revenue Rises to Rs645.9 Billion Lucky Cement’s group gross revenue increased 14.6 percent to Rs645.9 billion during FY26. Consolidated net profit reached Rs96.5 billion, while earnings per share rose 15.7 percent to Rs60.78. The standalone business performed even more strongly, with after-tax profit increasing 40.9 percent to Rs46.6 billion. Standalone profit before tax rose 28.7 percent to Rs60.9 billion. The results reflect a year of solid growth, even as the company faced changes in export markets and broader cost pressures. Domestic Cement Sales Outperform Industry Domestic cement volumes increased 10.1 percent to 6.5 million tons, exceeding the industry’s 9.3 percent growth. Lucky’s local market share edged up to 15.7 percent from 15.6 percent. Exports, however, moved in the opposite direction. Export volumes declined 8.2 percent to 3.1 million tons following the closure of the Afghan border and the company’s decision to prioritise margins over tonnage. Total company dispatches still increased 3.5 percent to 9.6 million tons, although Lucky’s overall industry share fell to 19.0 percent from 19.7 percent because of the lower export volumes. Margin Improvement Supports Profit Growth Lucky’s standalone gross margin improved to 37.5 percent from 34.3 percent a year earlier. Dividend income from subsidiaries and associates also increased to Rs15.8 billion from Rs12.7 billion. The improvement demonstrates that the company was able to protect profitability despite lower export volumes and a challenging operating environment. However, the annual report makes clear that future tax, duty and regulatory decisions could alter the economics of both domestic and export operations. Why Government Policy Remains a Risk Lucky’s formal risk assessment gives unpredictable government policy a low likelihood and low impact rating, but the underlying disclosure is more cautious. The company notes that unpredictable shifts in government policies can disrupt planning and operations. Its mitigation strategy includes advocacy through APCMA and the Pakistan Business Council, along with continuous monitoring of regulatory developments and competitor activity. The approach suggests that policy risk is considered manageable rather than irrelevant. Export Taxes Could Change Market Competitiveness The company’s SWOT analysis is more direct about the potential impact of trade policy. Changes in taxation, particularly export-related taxes and regulatory frameworks, could affect profitability and the attractiveness of overseas markets. Export competitiveness is also influenced by freight rates, energy costs and regional cement prices. Even a change in taxation on cement bags or clinker can alter the economics of an export route. FY26 provided a practical example of how external policy developments can affect the business. Industry exports declined 2.2 percent, while Lucky’s northern export flows were affected by the Afghan border closure. The company responded by reducing lower-margin cargo and shifting greater emphasis toward domestic sales. In other words, policy did not derail the business, but it changed the sales mix. Energy Costs and Industry Overcapacity Add Pressure Government policy is only one part of the risk picture. Lucky considers changes in the competitive environment a high-likelihood risk. If demand weakens while domestic and international supply remains elevated, cement prices, volumes and margins could come under pressure. Industry overcapacity remains a significant concern. Energy costs are another important variable. Coal prices, fuel levies, carbon-related regulations and logistics expenses can directly affect kiln economics and export competitiveness. Renewable Energy Helps Manage Costs Lucky has continued investing in infrastructure aimed at reducing its exposure to energy costs. The company has 103.1 MW of renewable energy capacity, meeting around 55 percent of its power requirements. Its initiatives also include waste-heat recovery systems, batteries and UC3 technology across all four Karachi production lines. A further 15 MW solar addition is planned. These investments are designed to improve efficiency and provide greater protection against volatility in conventional energy costs. Litigation Adds Another Layer of Risk Litigation is also identified as a high-likelihood risk, although the company rates its potential impact as medium. Taxation, contracts and regulatory matters can result in legal disputes, and the annual report includes disclosures relating to ongoing cases. This means regulatory risk can extend beyond changes to government rules. The interpretation and enforcement of those rules can also affect the company. Diversification Provides a Strategic Cushion Lucky Cement is continuing to expand and diversify its business while managing risks in the cement sector. In Iraq, its 0.65 million-ton grinding mill at Samawah commenced commercial operations. In the Democratic Republic of Congo, Nyumba Ya Akiba plans to increase integrated production capacity from 1.31 million tons to 2.91 million tons annually, with work scheduled to begin in the first quarter of FY27. National Resources now holds five leases in Balochistan, including copper-gold assets, with a maiden resource estimate expected as the next major step. Wider Group Businesses Continue to Grow Other businesses within the group also contributed to its broader growth strategy. Lucky Motor’s volumes increased 43 percent, while Lucky Core’s animal health and pharmaceutical businesses recorded growth. Lucky Electric is also progressing efforts to increase its use of Thar coal. This diversification gives the group additional sources of earnings beyond its core cement operations and provides some resilience against individual sector-specific shocks. Dividend and Financial Strength The board has recommended a final cash dividend of Rs5.00 per share. The company’s annual general meeting is scheduled for September 25, 2026. Lucky’s consolidated contribution to the national exchequer reached Rs175.7 billion, while foreign exchange generated by the group was reported at $133 million. Reserves increased 23.5 percent to Rs213.7 billion, and the company’s long-term credit rating remained at AA+. FY27 Outlook Depends on More Than Demand

Atlas Stock Market Fund earns Rs12.95bn in FY26, offers nil dividend
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Atlas Stock Market Fund Earns Rs 12.95b in FY26, Offers Nil Dividend

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Atlas Asset Management Announces FY26 Fund Results Atlas Asset Management Limited announced financial results for 15 mutual funds for the year and periods ended June 30, 2026, with no cash distribution declared for any of the schemes. The board of the asset management company met at 11am at Federation House, Clifton, where it approved the accounts of its conventional and Shariah-compliant money-market, income, equity and sector funds. The company informed the Pakistan Stock Exchange that the payout for all listed funds was nil. Atlas Stock Market Fund Leads Performance Atlas Stock Market Fund delivered the strongest performance among the funds, recording net income of Rs12.95 billion in FY26 compared with Rs10.75 billion a year earlier. The fund’s earnings were supported by dividend income of Rs1.97 billion, realised gains of Rs6.37 billion and unrealised appreciation of Rs6.16 billion. Despite the substantial earnings generated during the year, the fund did not declare a cash dividend. Atlas Islamic Stock Fund Profit Declines Atlas Islamic Stock Fund reported net income of Rs3.24 billion during the year, compared with Rs3.74 billion in the previous year. The decline came despite continued earnings from its Shariah-compliant equity portfolio, highlighting a softer performance compared with the conventional Atlas Stock Market Fund. Money Market Funds Deliver Stronger Returns Fixed-income and money-market schemes also posted mixed but generally improved results. Atlas Money Market Fund increased its profit to Rs5.36 billion from Rs4.52 billion a year earlier. Atlas Liquid Fund also recorded stronger earnings, with profit rising to Rs1.28 billion from Rs812 million. Meanwhile, Atlas Islamic Money Market Fund earned Rs1.24 billion, compared with Rs875 million in the previous year. Sovereign and Income Funds See Decline Not all fixed-income schemes reported growth. Atlas Sovereign Fund’s profit fell sharply to Rs237 million from Rs1.96 billion a year earlier. Atlas Income Fund also recorded a decline, with profit decreasing to Rs907 million from Rs1.44 billion. The contrasting performance reflects differences in portfolio composition and market conditions across the company’s fixed-income offerings. New Atlas Funds Post Maiden Results Several newer schemes reported their first or short-period financial results following their launch during FY26. Atlas Dividend Yield Fund, launched in February, earned Rs35.5 million. Atlas Financial Sector Fund recorded profit of Rs23.6 million. Two funds launched from April 1 also reported positive results. Atlas Islamic Energy Fund earned Rs21.4 million, while Atlas Islamic Building Materials Fund posted profit of Rs60.1 million. Atlas Islamic Fund of Funds Reports Rs250m Profit Atlas Islamic Fund of Funds recorded a combined profit of Rs250 million across its aggressive, moderate and conservative plans. This compared with combined profit of Rs279 million in the previous year. The results underline the broad range of investment strategies available across Atlas Asset Management’s conventional and Shariah-compliant fund portfolio. Strong Earnings But No Cash Distribution The FY26 results show a mixed performance across Atlas Asset Management’s funds, with equity and several money-market schemes generating substantial earnings while some income-oriented funds recorded lower profits. The most notable result came from Atlas Stock Market Fund, which generated Rs12.95 billion in net income. However, despite the strong earnings, the company declared no cash distribution across the 15 listed schemes.

Despite High Collections, OGDC's Rs595bn Remains Locked in Circular Debt
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Despite High Collections, OGDC’s Rs595bn Remains Locked in Circular Debt

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Collection Ratio Crosses 100% in 4QFY26 Oil and Gas Development Company (OGDC) recovered more than it billed on gas during the last quarter of FY26, but nearly Rs595 billion remains tied up in trade debts on the company’s books. According to Optimus Capital, OGDC’s gas sales collection ratio reached 106% in 4QFY26, while outstanding trade debts declined 3% year-on-year to Rs594.8 billion. The collection ratio above 100% indicates that OGDC collected current gas bills as well as a portion of previously outstanding arrears. While this represents an improvement in cash recovery, it has not materially resolved the company’s overall receivables overhang. Trade Debt Buildup Shows Some Improvement Optimus Capital’s analysis shows that the buildup in trade debts relative to gas sales turned negative in June 2026 after rising sharply in March. Both trade-debt changes and lease receivables contracted during the latest quarter, reversing some of the buildup recorded earlier in the year. However, the overall stock of trade debts remains close to Rs600 billion. The scale of the receivables means the improvement in quarterly collections has yet to translate into a meaningful resolution of OGDC’s long-standing liquidity overhang. Sui Companies Remain Major Source of Dues A significant portion of OGDC’s overdue receivables is linked to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), within the broader inter-corporate circular debt chain. Company filings earlier in FY26 showed overdue circular-debt receivables of more than Rs530 billion, with the majority owed by the two Sui companies. The government has also deferred the application of expected-credit-loss rules on certain government-linked dues until the end of 2026. These receivables continue to be treated as recoverable because the state has assumed responsibility for the obligations. However, an assumption of responsibility does not immediately translate into cash. Until the dues are settled, OGDC effectively continues to finance the gas utilities through its balance sheet. Pakistan’s Gas Circular Debt Remains a Major Challenge The wider gas-sector circular debt remains substantial, with the stock estimated at around Rs3.6 trillion when the late-payment surcharge is included. Plans to clear approximately Rs1.5 trillion through measures including additional dividends from state-owned enterprises, a petroleum levy and reductions in LNG cargoes have been presented to the cabinet and discussed with the International Monetary Fund. Despite these efforts, there has yet to be a decisive reduction in OGDC’s Rs594.8 billion trade-debt position. SNGPL continues to carry significant receivables and surcharge obligations, highlighting why improvements in producer collections can occur without producing a comparable reduction in the accumulated stock of unpaid dues. Strong FY26 Profit Supports Record Dividend OGDC reported a 43% increase in FY26 profit to Rs242 billion and recommended a record dividend of Rs17 per share. Improved recoveries and tariff adjustments contributed to stronger cash generation and helped support the proposed payout. However, the stronger earnings and dividend do not mean the legacy receivable has been eliminated. Receivables Continue to Tie Up OGDC’s Balance Sheet The nearly Rs595 billion locked in trade debts represents funds that cannot be freely deployed by OGDC for new drilling, faster field development or potentially higher shareholder distributions. For investors, the distinction between cash-flow improvement and balance-sheet cleanup remains important. The 106% collection ratio is a positive development because it indicates that OGDC is recovering current dues along with portions of older arrears. Yet the Rs594.8 billion trade-debt stock shows that the underlying circular-debt problem remains unresolved. Circular Debt Resolution Remains Key for Investors OGDC’s FY26 performance demonstrates that stronger collections can improve cash generation and support shareholder payouts even while substantial receivables remain outstanding. The bigger question is whether government plans to address Pakistan’s circular debt will ultimately translate into actual cash settlements for producers. Until that happens, OGDC’s 106% collection ratio should be viewed as a quarterly improvement rather than a complete solution to the company’s long-standing receivables problem.

FFC Organizes Farmer Incentive Program Prize Distribution Ceremony in Kasur
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FFC Organizes Farmer Incentive Program Prize Distribution Ceremony in Kasur

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FFC Celebrates Farmers Through Incentive Program Fauji Fertilizer Company (FFC) organized the Farmer Incentive Program Prize Distribution Ceremony 2026 on September 2 at Aiwan-e-Shah Jahan in Kasur. The event brought together around 100 farmers, dealers and representatives from the Agriculture Department to recognize the achievements of winning farmers. The ceremony highlighted FFC’s continued engagement with the farming community and its efforts to encourage farmers through incentive-based initiatives. Hassan Ali Zafar Distributes Prizes Among Winning Farmers Mr. Hassan Ali Zafar, Head of North Zone, attended the ceremony as the Chief Guest and distributed prizes among the winning farmers. His participation underscored the importance of recognizing farmers for their contribution to the agricultural sector and encouraging them to adopt practices that can support improved farm productivity. FFC Officials Address Participants Several senior FFC officials addressed the participants during the ceremony. Mr. Aftab Naseem, Head of NGN Lahore, Mr. Imran Sheikh, Head of Sales Region Lahore, and Mr. Tariq Javid, Head of Sona Agri Hub, Sheikhupura, shared their views with the farmers and other attendees. The proceedings of the event were conducted by Mr. Imran Ghafoor, Head of Sales District Kasur. Senior FFC and Agriculture Officials Attend Ceremony The ceremony was also attended by Madam Naveen Saeed, Head of Marketing; Mr. Imran Salamat, Head of Branding; Dr. Midrar Ul Haq, Head of NGN Territory Lahore; Mr. Hassan Ali Khan, Head of Sales District Lahore; Mr. Danish Ali Tariq and Mr. Muhammad Usman. Representatives from the Agriculture Department were also present, including District Director of Agriculture Extension Mr. Ejaz Ali Jathala. Strengthening Engagement With the Farming Community The Farmer Incentive Program Prize Distribution Ceremony provided an opportunity for FFC officials, farmers, dealers and agriculture representatives to come together and acknowledge the efforts of successful farmers. Such initiatives can help strengthen engagement between fertilizer companies and the farming community while creating greater awareness around agricultural productivity and farmer support.

Rs 12b Gadani Shipbreaking Yard Overhaul Begins
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Rs 12b Gadani Shipbreaking Yard Overhaul Begins

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Rs12 Billion Project Enters Construction Phase Work has begun on a Rs12 billion project aimed at modernizing Pakistan’s Gadani shipbreaking yard and upgrading its infrastructure to meet international safety and environmental standards. Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry announced the development while chairing a steering committee meeting in Islamabad to review progress on the overhaul. The project is intended to transform Gadani’s traditional shipbreaking operations into a more modern and environmentally responsible ship-recycling industry. Hospital, Labour Colony and School Under Construction Physical construction has started on several important facilities at the yard. These include a 30-bed hospital, a labour colony, a school and solar power infrastructure. The social infrastructure component is designed to improve basic services and living conditions for workers and communities associated with the shipbreaking industry. The minister said the objective is to establish a safer and more sustainable ship-recycling environment while improving the overall operational capacity of the yard. Industrial Infrastructure to Be Upgraded The modernization project covers a wide range of industrial and public infrastructure. Plans include 32 kilometres of internal roads, a public park, hazardous and industrial waste-treatment facilities, fire and rescue stations and dedicated water-treatment systems. These facilities are expected to address some of the key safety, environmental and operational challenges associated with ship recycling. The improvements could also strengthen Gadani’s role in Pakistan’s steel-scrap market, where shipbreaking remains an important source of raw material for the country’s wider industrial supply chain. Project Moves Into Procurement and Construction Project Director Saeed Ahmed Umrani told the steering committee that implementation has entered the active procurement and construction phase. The project is backed by a federal Public Sector Development Programme (PSDP) allocation of Rs780 million for the 2026-27 financial year. The latest progress indicates that the modernization plan has moved beyond the planning stage, with construction now underway on key components. Gadani to Align With International Ship-Recycling Standards A major objective of the overhaul is to bring Gadani shipbreaking yard in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. The convention sets international standards aimed at improving the safety and environmental performance of ship-recycling operations. Aligning the yard with these standards could help improve Pakistan’s position in the international ship-recycling industry while addressing concerns surrounding worker safety, hazardous materials and waste management. Safety and Environmental Compliance Take Centre Stage Shipbreaking involves complex industrial activities and can expose workers and surrounding areas to hazardous materials if appropriate safeguards are not in place. The inclusion of waste-treatment systems, fire and rescue facilities and water-treatment infrastructure indicates a broader effort to address these risks through dedicated facilities. The modernization is therefore not limited to improving the yard’s physical appearance or industrial capacity. It is also aimed at establishing stronger systems for workplace safety and environmental management. Government Pushes for Faster Implementation Minister Junaid Anwar Chaudhry directed project authorities to maintain momentum and ensure that the new infrastructure meets strict operational benchmarks. The government’s focus is to ensure that the project delivers a modern ship-recycling facility capable of operating according to internationally recognized safety and environmental requirements. For Gadani, the overhaul could mark a significant shift from conventional shipbreaking practices toward a more structured and sustainable industrial model.

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