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Karachi Port Tariff Increase Frozen, Business Community to Get Rs500 Million Relief

Web Desk / June 19, 2026

Federal Minister for Maritime Affairs Muhammad Junaid Anwar has announced that the proposed 5 percent increase in tariffs at Karachi Port will not be implemented during the 2026-27 fiscal year, providing significant relief to importers and exporters. The decision is expected to save the business community more than Rs500 million and is aimed at supporting trade and economic activity across the country. Government Freezes Proposed Tariff Hike According to details, the Ministry of Maritime Affairs has decided to freeze the planned increase in Karachi Port Trust (KPT) tariffs for the upcoming financial year. Maritime Affairs Minister Muhammad Junaid Anwar said the measure was intended to ease the financial burden on traders and industrialists while encouraging greater economic activity. He noted that the decision aligns with Prime Minister Shehbaz Sharif’s Blue Economy vision, which focuses on strengthening Pakistan’s maritime sector and facilitating businesses. Relief for Importers and Exporters The minister said the tariff freeze would provide relief exceeding Rs500 million to importers and exporters. He explained that maintaining existing tariff levels would help reduce operational costs and improve the ease of doing business. According to Junaid Anwar, lower port-related expenses could support industries dependent on imports and exports and contribute to enhancing Pakistan’s competitiveness in international markets. Move Aimed at Boosting Trade The minister said the government’s objective was to promote exports, expand trade and stimulate economic growth through practical measures. He added that freezing Karachi Port Trust tariffs would help maintain stability in port charges and encourage increased trade activity. “Reducing operational costs for traders and industrialists is essential for creating a more conducive business environment,” he said. Government Reaffirms Pro-Business Policies Junaid Anwar reiterated the government’s commitment to supporting the business community through further incentives and facilitation measures. He said authorities were continuing efforts to introduce policies that would encourage sustainable economic growth and strengthen Pakistan’s maritime and logistics sectors. The minister added that the government remained focused on implementing business-friendly initiatives aimed at enhancing trade and attracting investment.

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Sindh Budget 2026-27: Development Spending Slashed by 23.7%, Says PRAC

Web Desk / June 18, 2026

Karachi, June 17, 2026 – The Policy Research and Advisory Council (PRAC) has expressed serious concern over the Sindh Government’s Budget for Fiscal Year 2026-27, warning that a deteriorating fiscal position, substantial cuts in development spending, and continued underfunding of Karachi and local governments threaten to undermine the province’s long-term growth, competitiveness, and service delivery capacity. PRAC Chairman Mohammad Younus Dagha noted that while the budget contains several welcome measures, including the decision not to impose new taxes, the overall fiscal strategy raises important concerns regarding sustainability, development priorities, and fiscal decentralisation. He appreciated the allocation of PKR 16.7 billion for Thar Coal infrastructure and the release of upfront provincial equity for the PKR 90 billion Thar-to-Port Qasim Railway Project, describing the project as strategically important for supplying the country’s industrial base with lower-cost domestic energy. However, he cautioned that the Federal Government’s allocation of only PKR 2 billion against its committed PKR 45 billion share continues to pose a significant risk to timely project completion. Despite some positive initiatives, the Council observed that the budget reflects limited willingness to mobilise underutilised provincial revenue bases, particularly agricultural income tax, despite repeated commitments to strengthen provincial fiscal autonomy. This continued dependence on federal transfers leaves Sindh vulnerable to future fiscal shocks and revenue uncertainties at the federal level. PRAC’s most serious concerns relate to the scale of reductions in development expenditure. Total development spending is budgeted to decline by 23.7%, falling from PKR 944 billion to PKR 720.4 billion. The Provincial Annual Development Programme has been reduced by 12.5%, while the District Annual Development Programme has been cut by a staggering 62.5%, from PKR 40 billion to only PKR 15 billion. The Council also noted that Karachi continues to receive development allocations well below a reasonable population-based benchmark. Given the city’s contribution to national and provincial economic activity, the persistent shortfall in development spending raises concerns about the sustainability of infrastructure, transport networks, and public services required to support future growth. Chairman PRAC further expressed concern regarding the continued treatment of the Sindh Infrastructure Development Cess (SIDC) as general provincial revenue rather than a dedicated source of infrastructure financing. The cess is projected to generate approximately PKR 140 billion during FY2026-27, yet these resources continue to be absorbed into the general budget rather than reinvested in the logistics, transport, and infrastructure systems that generate them. The Council warned that this practice deprives Karachi and other economic centres of critical infrastructure investment needed to sustain economic activity and improve competitiveness. On local governance, PRAC highlighted a further decline in fiscal support to local governments. Transfers to local bodies have fallen from PKR 166 billion to PKR 155 billion, reducing local governments’ share of provincial revenues from 6.3% to 5.1%. This decline comes despite growing demands for municipal services, urban management, water supply, sanitation, and local infrastructure development. The Council noted that the situation is compounded by the continued absence of a functional Provincial Finance Commission (PFC) since FY2008-09 and the longstanding non-disbursement of local governments’ constitutionally mandated one-sixth share of GST transfers since FY2010. PRAC concluded that while Budget 2026-27 appropriately avoids additional taxation and contains several targeted initiatives, the overall fiscal framework reflects troubling trends in development prioritisation, revenue mobilisation, and local government financing. The Council urged the Sindh Government to accelerate structural reforms, including the operationalisation of a functional Provincial Finance Commission, the ring-fencing of the Sindh Infrastructure Development Cess for Karachi’s infrastructure investment, and stronger efforts to broaden provincial revenue sources, particularly agricultural income taxation.

Federal Finance Minister Muhammad Aurangzeb Launches Government of Pakistan Treasury Bills JazzCash

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Federal Finance Minister Muhammad Aurangzeb Launches Government Of Pakistan Treasury Bills On JazzCash

Web Desk / June 18, 2026

ISLAMABAD – June 17, 2026: JazzCash and Mobilink Bank, in collaboration with the Ministry of Finance and the State Bank of Pakistan, launched Government of Pakistan Treasury Bills on the JazzCash app at an event held at JazzCash headquarters in Islamabad. For the first time, Pakistanis can invest in government-backed securities directly from a digital wallet, a development that extends formal investment access well beyond the country’s approximately 1.4 million existing public market participants. The launch represents a significant step in democratizing access to sovereign investment products and advancing Pakistan’s financial inclusion agenda through digital channels. The initiative was announced in the presence of Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue; Khurram Schehzad, Adviser to the Finance Minister; Omer M. Khan, Adviser on Debt Management, Finance Division; Aamir Ibrahim, Chairman JazzCash and Mobilink Bank; Murtaza Ali, CEO JazzCash; Haaris Mahmood Chaudhary, CEO Mobilink Bank; and senior representatives from the Ministry of Finance and the State Bank of Pakistan. Muhammad Aurangzeb, Federal Minister for Finance and Revenue, said, “Under the Prime Minister’s vision for an digital economy, the Government is working to deepen Pakistan’s financial markets, mobilise domestic savings and expand citizens’ participation in the formal economy. A stronger economy requires more Pakistanis to have access to regulated financial assets beyond conventional savings products. By enabling investment in Government securities, starting with Treasury Bills (T-Bills) from as little as Rs. 5,000 through a trusted digital platform such as JazzCash, this initiative translates that broader vision into practical access for citizens while helping build a wider and more diversified domestic investor base.” Speaking at the event, Murtaza Ali, CEO JazzCash, said, “JazzCash is a key partner of the Ministry of Finance and the State Bank of Pakistan in advancing the Prime Minister’s vision for a cashless economy. Inclusion cannot stop at payments. It must also give people access to trusted tools that help them save, invest and build financial resilience. With T-Bills on the JazzCash app, we are bringing a secure, government-backed investment product into an everyday mobile wallet experience, allowing customers to participate in formal financial markets through a journey that is simple, secure and intuitive.” Customers can access the product through the Banking & Finance section of the JazzCash app, review available T-Bills and complete their investment digitally. Before confirmation, the app displays key details including the purchase price, expected profit, applicable yield, maturity value and tax treatment. At maturity, the proceeds, net of applicable taxes, are credited directly to the customer’s JazzCash account. Access to Government of Pakistan T-Bills is now live on JazzCash app. The product initially offers 3-month T-Bills, with longer tenors planned for later phases. Eligible customers with a verified JazzCash account and an active Mobilink Bank deposit account can invest digitally, with Mobilink Bank acting as the regulated custodian and trustee. JazzCash, working in coordination with the State Bank of Pakistan and the Ministry of Finance, aims to reach one million active investors through Government Treasury Bills and future investment instruments.

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Wafi Energy Reappoints Ghassan Al Amoudi as Chairperson, CEO

Web Desk / June 17, 2026

Karachi, June 17, 2026: Wafi Energy Pakistan Limited (WEPL), formerly Shell Pakistan Limited, has reaffirmed its leadership team while reporting strong financial growth. The company’s Board of Directors has reappointed Ghassan Al Almoudi as Chairperson for a further three-year term effective June 16, 2026. The board also approved the reappointment of Zubair Shaikh as Chief Executive Officer for the same tenure, ensuring continuity in the company’s governance and strategic direction. Alongside the leadership announcements, WEPL reported a profit after tax of Rs2.16 billion, marking a 148% increase from Rs873 million recorded in the corresponding period last year. The company also announced the appointment of Waheed A. Shaikh and Habib Haider to its Board of Directors. Both bring extensive experience in Pakistan’s downstream petroleum sector, with expertise spanning energy operations, retail fuels, corporate relations, strategic planning, and business transformation. WEPL is a publicly listed company majority-owned by Wafi Energy Holding Limited, based in Abu Dhabi, United Arab Emirates.

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Hyderabad Faced Hours Long Power Outage: Re-energized 220kV Hala Road Grid Station After Fire

Web Desk / June 16, 2026

Lahore, 16 June 2026: The spokesperson of the National Grid Company of Pakistan (NGC) has stated that power supply to all areas of Hyderabad affected by this morning’s fire incident at NGC’s 220kV Grid Station, Hala Road Hyderabad, has been fully restored by 12:15 p.m. today. NGC Spokesperson said that after fire eruption, the affected 250 MVA Autotransformer (T-1) was promptly isolated, and the station was successfully re-energized through alternate arrangements. The other two 220/132kV power transformers and 132kV busbars have been charged and the HESCO distribution network is now operating normally. The spokesperson stated that the incident occurred at 6:05 a.m., when Autotransformer (T-1) at the Hala Road Grid Station suddenly caught fire, temporarily disrupting power supply to some parts of Hyderabad. NGC Hyderabad region management immediately mobilized and directed field crews to respond. Working in close coordination with local firefighting departments and emergency rescue services, NGC teams successfully brought the fire under control. The affected transformer was safely isolated to prevent any further risk to personnel, equipment, or the power system. The spokesperson added that NGC management has directed a comprehensive investigation to determine the cause of the fire.

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PTA Urges Families to Transfer SIMs Registered in Names of Deceased Persons

Web Desk / June 16, 2026

The Pakistan Telecommunication Authority (PTA) has advised citizens to transfer or block SIM cards registered in the names of deceased persons. The authority said timely action can help prevent misuse and ensure the lawful continuation of mobile services. PTA issued the advisory as part of its efforts to strengthen digital security and protect users from fraudulent activities. The regulator urged family members to complete the process through the prescribed Change of Ownership (COO) procedure. Legal Heirs Can Claim Ownership According to the PTA, only eligible legal heirs can obtain ownership of SIMs registered in the name of a deceased person. The authority said blood relatives and spouses are entitled to apply for the transfer. The regulator stressed that outdated ownership records can expose users to security risks. Therefore, families should either transfer the SIM to a legal heir or request its blocking. PTA noted that prompt action would help maintain accurate subscriber records and discourage the illegal use of mobile connections. Families Must Visit Customer Service Centers PTA said family members can complete the process by visiting the nearest customer service center or authorized franchise of their respective mobile operator. The authority encouraged people to avoid delays and ensure that SIM ownership records remain updated. It added that a transparent process would facilitate the lawful continuation of services. Mobile operators across Pakistan have established mechanisms to process requests and verify the identity of applicants before approving ownership changes. Four Documents Are Required PTA outlined the documents required for the transfer of ownership. Applicants must provide: The authority said these documents would help verify the relationship between the deceased subscriber and the claimant. Verification would also ensure that only authorized family members receive ownership rights. PTA added that proper documentation plays a key role in maintaining the integrity of Pakistan’s telecom system. Timely Transfer Can Prevent Fraud The telecom regulator warned that SIMs registered in the names of deceased persons can become vulnerable to misuse if families fail to update ownership records. According to PTA, criminals may exploit inactive or unattended mobile connections for illegal purposes. The authority said timely transfer or blocking of such SIMs can reduce the risk of fraud and unauthorized activities. Officials emphasized that responsible digital practices are necessary to create a secure telecommunications environment. They said public cooperation remains essential to protect consumers and maintain trust in digital services. PTA Promotes Safe Digital Connections PTA said the initiative forms part of its broader campaign to promote safe, secure and responsible digital communications. The regulator urged citizens to remain vigilant and ensure that all mobile connections are registered under active and legitimate users. PTA also advised the public to seek information from official channels and contact their respective telecom operators for assistance. For additional guidance, users can reach the PTA Digital Assistant through WhatsApp at 0315-0055055 or follow the authority’s official social media platforms. The authority reiterated that keeping subscriber information updated is essential for protecting digital identities and preventing the misuse of telecommunication services. As Pakistan’s digital ecosystem continues to expand, regulators are increasingly focusing on measures that enhance transparency and security. PTA said public awareness and timely compliance with ownership rules will help create a safer and more responsible digital environment for everyone.

Aurangzeb Sees Economic Upside for FY27 After Iran War Ends

Web Desk / June 16, 2026

Finance Minister Muhammad Aurangzeb has expressed optimism about Pakistan’s economic outlook for fiscal year 2026-27 following the end of the Iran war, but said it is too early to revise the budget unveiled just days ago. In an interview with Reuters, the finance minister said the government had been assessing the possible economic consequences if the conflict had continued. However, he noted that damage to energy infrastructure would continue to affect supply chains for some time. Conflict Pushed Inflation Back Into Double Digits Aurangzeb said Pakistan had been closely monitoring the second- and third-order effects of the conflict.“We were looking at how we manage the second, third-order impact in case this conflict continues,” he said. He added that attacks on energy infrastructure disrupted supply chains and that restoring normal conditions would take time. The conflict had pushed inflation back into double digits, reversing the downward trend witnessed in recent months. Finance Minister Sees Upside to FY27 Projections Despite the challenges, Aurangzeb said he saw positive prospects for the coming fiscal year.“I do see upsides in what we have projected for next year,” he said. However, he emphasized that revising the budget at this stage would be premature. Pakistan’s federal budget for FY27, presented in Parliament last week, targets economic growth of 4 percent and inflation of 8.2 percent. The budget also increased defense spending by 18 percent to Rs3 trillion while aiming to maintain the country’s $7 billion International Monetary Fund (IMF) program through higher tax revenues. Pakistan May Shift Toward Commercial Borrowing The finance minister said Islamabad is considering commercial borrowing during FY27 to alter the country’s creditor profile without increasing external debt. He said the government wants to replace part of its bilateral borrowing with commercial financing. “Ideally what we want to do is to see if we can replace some of the bilateral through commercial,” Aurangzeb said. He stressed that Pakistan does not intend to increase the overall size of its external debt. Last month, Pakistan repaid $3.4 billion in deposits owed to the United Arab Emirates. At the same time, the country secured financing from commercial banks in the UAE, reflecting the government’s efforts to diversify its sources of funding. Plans for Panda Bonds and Eurobonds Aurangzeb said Pakistan intends to pursue several debt instruments to access international markets. These include Panda Bonds, Eurobonds, US dollar-denominated bonds and the country’s first rupee-linked, dollar-settled bonds. He said the size of these issues has yet to be finalized. The government believes broader access to capital markets could help improve debt management and strengthen investor confidence. Defense Export Potential Still Uncertain Interest in Pakistan’s defense industry has increased following last year’s conflict with India. The country’s fighter jets, drones and missile systems have attracted attention from potential international buyers after gaining combat experience. However, Aurangzeb said it remains too early to estimate how much the defense sector could contribute to exports. He avoided making projections regarding future defense-related revenues. Government to Regulate Crypto Before Taxing It Aurangzeb also highlighted Pakistan’s efforts to formalize the digital asset sector. The government has recently signed agreements with Binance and World Liberty Financial as part of its broader strategy to develop the sector. He said authorities would first establish regulations governing cryptocurrencies, tokenization and digital asset exchanges before imposing taxes. According to the finance minister, taxation would follow once the sector becomes properly formalized. The move reflects the government’s efforts to create a regulated framework that encourages innovation while ensuring compliance and transparency.

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Service Long March Tyres Makes History with Pakistan’s Largest-Ever IPO

Web Desk / June 16, 2026

Karachi, June 15, 2026: In a historic achievement for Pakistan’s Industrial and Manufacturing sector, Service Long March Tyres Limited (“SLM”) has successfully completed its Initial Public Offering (“IPO”), receiving an overwhelming response from investors during both the Book Building and General Public subscription phases. SLM, Pakistan’s largest Truck and Bus Radial (“TBR”) tyre manufacturer listed on the Pakistan Stock Exchange (“PSX”), has established new benchmarks in the country’s capital markets, reflecting exceptional investor confidence and unprecedented participation. The IPO attracted approximately 35,565 applications across the Book Building and Retail segments, marking the highest investor participation in the history of Pakistan’s IPO market. The transaction raised PKR 7.78 billion, making it the largest IPO ever undertaken in Pakistan. The Book Building portion, initially comprising 292,303,528 ordinary shares, was fully subscribed within just five seconds and was oversubscribed by 16.7 times. The Retail portion, comprising 97,434,510 ordinary shares, was oversubscribed by 7.6 times and attracted approximately 33,190 applications from investors nationwide. Owing to the strong demand from retail investors, a 5% reallocation of shares was made from the Book Building portion to the Retail portion in accordance with the applicable regulations. The overwhelming response underscores the increasing depth, maturity, and growing participation of investors in Pakistan’s equity capital markets. The offering comprised a total of 389,738,038 ordinary shares, representing 5% of SLM’s post-IPO paid-up capital. The IPO floor price was set at PKR 14.25 per share. Following robust demand during the Book Building process, the strike price was successfully discovered at PKR 19.95 per share. Consequently, the transaction size increased to PKR 7.78 billion from PKR 5.55 billion at the floor price. The SLM IPO witnessed participation from a diverse range of institutional and individual investors, including commercial banks, mutual funds, development finance institutions, insurance companies, investment banks, pension and employees’ funds, brokerage houses, high-net-worth individuals, foreign investors, and retail investors, highlighting broad-based confidence in SLM’s business fundamentals, growth prospects, and the future of Pakistan’s manufacturing sector. An important highlight of the occasion was the participation of Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, Government of Pakistan, who attended the Gong Ceremony held to commemorate the successful listing of Service Long March Tyres Limited on the Pakistan Stock Exchange. Addressing the ceremony, the Finance Minister acknowledged the significance of the transaction for Pakistan’s capital markets and manufacturing sector, and emphasized the importance of encouraging greater private sector participation in the capital market to support economic growth, industrial development, and investment mobilization in the country. Arif Habib Limited acted as the Lead Manager and Book Runner to the Issue and played a pivotal role in the successful execution of the transaction. Mr. Muhammad Aurangzeb, Honorable Federal Minister for Finance & Revenue, remarked: “The budget presented last week sets a clear direction towards sustainable, export-led growth. The listing of SLM is a proud milestone, built during the peak of COVID with Chinese expertise and investment, and now on track to achieve USD 100 million in exports next year. With 11 IPOs this fiscal year, investor confidence is ringing loudly from PSX. Service Long March is already among the most profitable tyre companies globally, proving that Pakistan can deliver industrial growth with an export-led model. I have personally followed this project since its inception, and I am proud to see it reach this stage. This IPO is a strong vote of confidence in Pakistan’s economy and its future trajectory, and I encourage the leadership of Long March to bring more ventures from Liaoning and Chaoyang to Pakistan, where the Government stands ready to support and facilitate further investment.” At the listing ceremony, Mr. Farrukh H. Sabzwari, Managing Director & CEO of PSX stated: “Today’s Gong Ceremony is a landmark occasion for Pakistan’s capital market. This listing comes at a time when Pakistan has just presented a positive federal budget, offering relief to the salaried class, reducing super-taxes, and introducing incentives for housing and business. These measures, alongside today’s IPO, will boost investor sentiment and strengthen the market outlook. Despite global challenges, our markets remain resilient, with PSX touching PKR 21 trillion market capitalization, average daily trading value PKR 57 million and the third highest number of IPOs in 25 years — with double-digit listings last seen in FY05, FY06 & FY07. This fiscal year alone, we have recorded more than 563,000 unique investor numbers (UINs), with Millennials and Gen Z driving participation through investor awareness sessions and education initiatives. The IPO of SLM is record-breaking, raising billions and attracting both institutional and retail investors. The Book Building tranche was oversubscribed multiple times, while retail participation was overwhelming, with 33,190 applications received nationwide. This demonstrates not only investor confidence in SLM’s fundamentals but also the resilience of Pakistan’s equity markets. Transparency, timely disclosures, and strong governance will ensure continued investor trust and sustained performance. We are proud that Pakistan’s capital markets remain among the best-performing frontier markets globally, with returns of 8.13% in USD terms since inception, and ranking among the top markets over the past one, three and five years. Our fundamentals remain strong, and our focus is clear: expanding the investor base and encouraging more listings through platforms such as IPO roundtables and other awareness initiatives.” Mr. Ali Farid Khwaja, SECP Commissioner added: “This is a special day for Pakistan as we celebrate both the success of CPEC and the listing of SLM. The IPO set records in demand and subscription, reflecting strong investor confidence. SECP is committed to enabling more companies to list and supporting PSX’s ambitious target of expanding the investor base fivefold to 2.5 million investors in the coming years. We congratulate SLM and its Chinese partners on this achievement, and assure our continued support for Pakistan’s capital market growth. The collaboration between regulators, PSX, and market participants is what makes such milestones possible, and we look forward to more listings that strengthen our financial ecosystem. Today’s ceremony is a reminder of how Pakistan’s capital markets can serve as a bridge for industrial growth and international cooperation.” Mr.

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Pakistan Energy Crisis Deepens as Rising Fuel Prices Push Shift Towards Solar and Electric Vehicles

Web Desk / June 15, 2026

Pakistan is once again facing the economic consequences of rising global energy prices as tensions around the Strait of Hormuz increase concerns about inflation and energy security. The latest increase in petroleum prices has added pressure on households and businesses. According to the Pakistan Bureau of Statistics (PBS), headline inflation reached 11.7% year-on-year in May 2026, marking the highest level since June 2024. For millions of Pakistanis, expensive fuel means higher costs for almost everything. “When petrol becomes expensive, everything becomes expensive,” said Jabbar Khan, a father of nine. He recalled that a decade ago, his family could buy monthly groceries for Rs12,000 to Rs15,000. Today, even spending up to Rs20,000 only fills a single shopping bag. Rising Fuel Costs Affect Daily Life The impact of higher fuel prices has spread beyond transportation. Research by the Pakistan Institute of Development Economics (PIDE) shows that expensive fuel raises transportation and distribution costs. As a result, businesses increase prices, pushing up the cost of food, consumer goods and essential services. Many families are struggling to cope. Saleem Abdullah said earning enough money for basic meals has become increasingly difficult. Transportation expenses now consume a larger share of his daily income. Similarly, Islamabad-based painter Musa Khan, who earns around Rs25,000 a month, said he faces difficult choices every month. “I don’t know whether to pay the electricity bill, the gas bill, or manage household expenses,” he said. Heavy Dependence on Imported Energy Creates Risks Analysts believe Pakistan’s dependence on imported fuel remains one of its biggest economic vulnerabilities. Muhammad Faran Khan, Associate Director at KTrade Securities, said around 80% to 85% of Pakistan’s energy imports come from Gulf countries and pass through the Strait of Hormuz. He noted that higher oil prices have increased the country’s import bill and put additional pressure on foreign exchange reserves. At the same time, rising transportation, food and housing costs have reduced the purchasing power of ordinary citizens. Pakistan’s domestic oil and gas production has declined over the years. The country also faces challenges such as circular debt, inadequate fuel reserves and inefficiencies in the energy sector. Experts say these structural weaknesses continue to expose Pakistan to external shocks. Solar Power Emerges as a Popular Alternative As fuel and electricity costs rise, more consumers are turning to renewable energy. Pakistan has become one of the fastest-growing solar markets in the world. Falling prices of solar equipment, particularly Chinese-made photovoltaic panels, have encouraged households and businesses to install rooftop systems. According to the Institute for Energy Economics and Financial Analysis (IEEFA), rooftop solar now contributes nearly one-quarter of Pakistan’s electricity supply. Experts believe expanding solar, wind and hydropower generation can reduce the country’s dependence on imported fuels. Aslam Shah, who spends a large part of his income on transport and utility bills, sees solar energy as a practical solution. “Solar feels like a better solution because it becomes your own source of power,” he said. Business owners are also embracing renewable energy. Faizan Obaid, an event planner in Islamabad, said transportation and electricity have become major operating costs. “Solar clearly looks like a much more reasonable option,” he said. Electric Vehicles Gain Popularity The search for alternatives is also transforming Pakistan’s automobile sector. Muhammad Aurangzeb, an Islamabad-based auto electrician, recently converted a Suzuki Mehran into a fully electric vehicle capable of travelling more than 220 kilometres on a single charge. “With petrol becoming so expensive, EVs are now the only practical alternative for many people,” he said. Mechanic Shakeel Ahmad, who has more than 20 years of experience, said customer preferences have changed significantly. “People are now moving away from large-engine vehicles and searching for EVs and hybrid cars,” he said. China Cooperation Could Accelerate Transition Analysts believe growing cooperation with China could help Pakistan speed up its transition towards electric mobility. Chinese automakers and battery manufacturers are increasing their presence in Pakistan through assembly projects and technology partnerships. Experts say local manufacturing could lower prices, create jobs and strengthen the country’s automotive industry. Muhammad Faran Khan said even limited transfer of Chinese manufacturing capacity could provide major economic benefits. Energy Security Becomes a Household Priority The latest fuel-price surge highlights how global events continue to affect Pakistan’s economy and daily life. As inflation rises and imported energy becomes more expensive, many Pakistanis are taking energy security into their own hands. From rooftop solar systems to electric vehicles, ordinary citizens are increasingly looking for ways to reduce dependence on costly imported fuels and protect themselves from future energy shocks.

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Pakistan Gives Tax Concessions of Rs2.35 Trillion to Elite Equal to $8 Billion

Web Desk / June 12, 2026

ISLAMABAD: Pakistan’s cost of tax concessions and exemptions declined marginally by 3.3% to Rs2.35 trillion in the current fiscal year, mainly due to withdrawal of several sales tax exemptions and zero cost impact from bilateral free trade agreements, according to the Economic Survey 2026. The total tax expenditure stood at Rs2.43 trillion in the previous fiscal year, showing a net reduction of Rs82 billion. In dollar terms, however, the burden still equals around $8.5 billion, nearly matching the foreign inflows Pakistan received in recent bilateral support arrangements. Sales Tax Exemptions Remain Dominant Pressure Point Sales tax exemptions remained the single largest contributor to revenue losses, rising slightly to Rs1.27 trillion from Rs1.24 trillion last year. This category alone accounts for 54% of total tax expenditures, highlighting structural weaknesses in the indirect tax system. Within this segment, exemptions under the Sixth Schedule fell to Rs567 billion from Rs703 billion, reflecting IMF-linked withdrawal of zero-rating and exemptions on both local and imported goods. However, reduced tax rates under the Eighth Schedule surged sharply to Rs635 billion, up 70% year-on-year. The government is expected to further rationalise these reduced rates in the upcoming budget, with the IMF pushing for alignment toward the standard 18% sales tax regime and a possible increase of concessional slabs from 5% to 10%. Income Tax Reliefs Edge Higher, Customs Duties Fall Sharply Income tax exemptions rose to Rs580 billion from Rs545 billion, driven mainly by higher sectoral concessions and reduced tax rates, even as exemptions on allowances and credits showed mixed declines.Customs duty exemptions, however, fell significantly by 24% to Rs499 billion, reflecting withdrawal of concessions across key sectors including automobiles, oil and gas exploration, and CPEC-linked imports. Notably, free trade agreement-related exemptions dropped to zero from Rs61 billion, marking a structural shift in tariff policy under ongoing fiscal consolidation efforts. Despite the reduction, large exemptions under the Customs Act’s Fifth Schedule and sector-specific concessions continued to weigh heavily on revenue mobilisation.

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