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Punjab, Sindh Refuse Costly Imported Wheat As Centre Pushes Ahead With 1 Million-Tonne Plan
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Punjab, Sindh Refuse Costly Imported Wheat As Centre Pushes Ahead With 1 Million-Tonne Plan

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Punjab and Sindh have declined to procure imported wheat despite the federal government’s decision to bring in one million metric tonnes to address rising prices and strengthen strategic reserves. The two provinces are instead seeking additional supplies from federal stocks after falling significantly short of their local wheat procurement targets. Punjab Reverses Its Wheat Import Commitment Punjab had initially committed to purchasing one million tonnes of imported wheat but later reduced its requirement to 800,000 tonnes. During a meeting chaired by National Food Security Minister Rana Tanveer Hussain, the Punjab representative stated that the province no longer required imported wheat. The minister directed that the position be formally recorded so the province could not later hold the federal government responsible for any shortage or price increase. Punjab has already received 800,000 tonnes from federal PASSCO stocks, but 533,000 tonnes of that allocation are still awaiting collection. The province also procured only 500,000 tonnes directly from farmers against a target of three million tonnes. Sindh Also Shows Reluctance To Accept Imports Sindh had previously requested 720,000 tonnes of wheat, including 500,000 tonnes from imports. However, during a steering committee meeting chaired by Deputy Prime Minister Ishaq Dar, the province also expressed reluctance to take the imported grain. Khyber Pakhtunkhwa, meanwhile, maintained its demand for 200,000 tonnes of imported wheat along with another 200,000 tonnes from local stocks. A KP representative criticised Punjab’s change in position, arguing that the province had earlier reported a shortage that contributed to higher prices and affected the availability of wheat in other provinces. Federal Government Maintains 1 Million-Tonne Import Plan Despite the provincial reservations, the federal steering committee reaffirmed its decision to import one million tonnes of wheat. The government says the imports are necessary to meet domestic requirements, ease price pressures and maintain adequate strategic reserves. Officials noted that existing federal stocks are insufficient to satisfy the demands of all provinces. Consequently, even if some provinces prefer locally procured wheat, the federal government intends to proceed with imports to safeguard national reserves. Flour Prices Rise Sharply The wheat supply dispute comes as consumers face a substantial increase in flour prices. According to the Pakistan Bureau of Statistics, the price of wheat flour has risen 77.5 percent year-on-year to Rs132.50 per kilogram from Rs75. The sharp increase has intensified pressure on the government to ensure adequate wheat availability and prevent further escalation in food prices. Government Finalises Wheat Supply Mechanism Under the proposed arrangement, the federal government has allocated one million tonnes of PASSCO wheat stocks among the provinces on a proportional basis. Punjab is set to receive the largest allocation, followed by Sindh, Khyber Pakhtunkhwa and Balochistan. A draft tripartite agreement identifies the Ministry of National Food Security as the coordinating authority without financial liability. The Trading Corporation of Pakistan will handle the import process without assuming financial liability, while the provinces will be responsible for providing payment security and firm commitments. Imported wheat will be supplied at Rs4,150 per 40 kilograms, which is Rs650 higher than the farmer support price. Any decision regarding duty exemptions will be taken by Prime Minister Shehbaz Sharif. Procurement Shortfalls Fuel Wheat Crisis Provincial procurement performance has emerged as a major concern behind the current wheat situation. Punjab’s purchase of only 500,000 tonnes against a target of three million tonnes has left the province heavily dependent on federal reserves. The reluctance of Punjab and Sindh to accept imported wheat further complicates the federal government’s effort to manage supplies and stabilise prices. Officials have stressed that the provinces must provide written positions specifying whether they accept or reject imported wheat before the government proceeds with the next stage of the arrangement. Wheat Import Decision Faces Provincial Resistance The federal government now faces the challenge of balancing provincial preferences with the need to maintain national wheat reserves. While Punjab and Sindh are reluctant to procure costly imported wheat, the Centre maintains that imports are necessary because domestic procurement has fallen short of targets and federal reserves alone cannot meet future requirements. The outcome will depend on how quickly provinces finalise their wheat requirements and whether the federal import programme can ease supply pressures without placing additional financial strain on provincial governments.

Consumers Reject Proposed Rs34bn Power Tariff Burden Amid Rising Costs
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Consumers Reject Proposed Rs34bn Power Tariff Burden Amid Rising Costs

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Consumer representatives have protested against a proposed Rs34 billion additional power tariff burden arising from higher capacity charges, lower electricity sales, loadshedding and increasing solar penetration. The proposed adjustment could raise electricity tariffs by around Rs1.35 per unit for three months, prompting industrial consumers to demand an immediate review of the government’s incremental tariff package. The issue was raised during a public hearing conducted by the National Electric Power Regulatory Authority (Nepra) on Wednesday to examine quarterly tariff adjustments (QTA) sought by power distribution companies (Discos). Industrial consumers argued that the proposed adjustments could effectively place an additional burden of around Rs2 per unit on consumers, further increasing electricity costs for businesses and households already facing high energy prices. Discos Seek Higher Quarterly Tariff Adjustments During the hearing, several distribution companies reported declining electricity sales. Most major Discos recorded around a 5% decline in electricity sales, raising concerns among Nepra officials about the reasons behind the reduction. Nepra Member Maqsood Anwar Khan questioned whether excessive loadshedding was contributing to the decline, particularly in areas where consumers have relatively low losses and strong payment records. He specifically asked whether power outages were also occurring in areas populated by consumers who regularly pay their electricity bills. Representatives of Faisalabad Electric Supply Company (Fesco) confirmed that loadshedding was taking place even in low-loss areas with high-paying consumers. The development raised concerns about the relationship between lower electricity sales and increasing capacity payments. When electricity consumption declines while fixed capacity-related costs remain payable, the cost burden can increase on the units sold to consumers. Islamabad Electric Supply Company (Iesco), meanwhile, sought an increase of around Rs1.83 per unit in its quarterly tariff for the September-November period, primarily due to higher capacity charges. Hazara Electric also requested an additional QTA of around Rs1.65 per unit. Nepra Questions Impact of Industrial Tariff Package The hearing also focused on the government’s incremental tariff package for industrial consumers. Under the package, industrial consumers are supplied electricity at around Rs22.98 per unit, compared with an average tariff of approximately Rs40 per unit. Maqsood Anwar Khan said he had raised concerns about the sustainability of the package since its introduction. He questioned whether the reduced industrial tariff could create additional financial pressure elsewhere in the power sector, particularly as distribution companies face declining sales and rising capacity-related costs. However, Khan also challenged the argument that increasing solar penetration was damaging the power sector. He said solar generation was helping reduce system losses and lowering the need for expensive imported fuel. According to him, without the contribution of solar power, the country could have faced greater loadshedding during the recent regional conflict or higher tariff adjustments because of increased fuel costs. Industrial Consumers Demand Review Nepra Member Amina Ahmed said the higher QTA impact arising from electricity consumption during the April-June period had become unavoidable. However, she said the situation made an urgent review of the incremental industrial tariff package necessary. The Power Division’s tariff team also confirmed that a review case had already been submitted to Nepra. Naveed Qaiser, head of the Power Division’s tariff team, rejected the suggestion that the industrial tariff package had damaged the power sector. He maintained that industrial electricity consumption had generally improved. Industrial representatives, however, challenged this assessment. Representatives from the Karachi Chamber of Commerce, Korangi Association of Trade and Industry and other business groups argued that the improvement in grid-based industrial electricity consumption was largely linked to the shift of industries away from captive power generation. They attributed the shift to the government’s decision to impose a punitive levy on captive natural gas consumption under measures associated with the International Monetary Fund programme. According to industrial representatives, this policy encouraged industries to move towards grid electricity rather than demonstrating a broad-based recovery in industrial power demand. Additional Rs14bn Demand Under Review The Power Division also clarified the composition of the additional tariff claims submitted by distribution companies. Qaiser said power companies had initially sought around Rs23 billion in additional quarterly tariff adjustments. Another Rs14 billion was subsequently sought by Sukkur Electric Power Company (Sepco) on account of bilateral electricity trading involving new captive power plants at Naudero, Dawood and Shikarpur. However, the Power Division official said the actual additional impact over the quarter was expected to be around Rs17 billion to Rs18 billion. Nepra Member Amina Ahmed indicated that the Rs14 billion claimed by Sepco might not ultimately form part of the quarterly tariff adjustment. She said the amount would need to be examined separately before any decision was taken. Higher Capacity Charges Raise Consumer Concerns The proposed adjustment highlights the continuing challenge faced by Pakistan’s power sector as electricity sales decline while fixed capacity-related obligations remain high. Consumer representatives fear that passing these costs on to electricity users could further increase the cost of doing business and put additional pressure on household budgets. Industrial consumers have already been facing high electricity tariffs, rising production costs and increased competition in domestic and international markets. The latest hearing also brought the relationship between solar adoption, loadshedding and power-sector finances into sharper focus. With more consumers installing rooftop solar systems, grid electricity demand has declined in certain periods. At the same time, distribution companies continue to face fixed capacity payments and other sectoral costs. Nepra is now expected to examine the QTA claims, the proposed incremental tariff package and the separate Sepco demand before determining the final adjustment. The regulator’s decision will determine how much of the proposed burden is ultimately passed on to consumers during the September-November period.

JS Momentum Factor ETF Posts Worst Monthly Start In Years
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JS Momentum Factor ETF Posts Worst Monthly Start In Years

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JS Momentum Factor ETF (JSMFETF) opened the new financial year with a sharp decline, falling 9.09 percent in July 2026. Steepest July Loss In Recent History The drop marked the fund’s weakest July performance in the available data. It compared with a 0.57 percent fall in July of the previous year and strong gains in earlier periods. The benchmark JS Momentum Factor Index slipped 9.03 percent over the same month. The tracking difference stood at a narrow minus 0.06 percentage points. Net asset value stood at Rs9.79 at the end of July, while net assets were recorded at Rs1.38 billion. Heavy Sector Bets Amplified Pressure Cement stocks dominated the portfolio at 46.38 percent of equity holdings. Oil and gas marketing companies accounted for another 23.68 percent. Top positions included D.G. Khan Cement at 20.20 percent and Maple Leaf Cement at 19.26 percent. Sui Northern and Sui Southern Gas together made up nearly 24 percent. Momentum strategies can struggle when market leadership rotates sharply. July’s broader market volatility, driven by geopolitical tensions, put additional pressure on high-momentum stocks and contributed to the ETF’s weak performance. The fund, launched in January 2022, carries a high-risk profile. Its since-inception return remains strongly positive at more than 250 percent, although it has trailed the benchmark by roughly 10 percentage points. Investors should note that past performance does not guarantee future results. The ETF continues to rebalance monthly based on price momentum scores.

18 Major Companies Which Announce Strong Dividend Payouts On PSX
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18 Major Companies Which Announce Strong Dividend Payouts On PSX

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Several Pakistan Stock Exchange (PSX) listed companies have announced significant cash dividends in recent corporate filings, highlighting strong profitability across key sectors including banking, cement, consumer goods and energy. Banks And Cement Lead High Payouts Lucky Cement Limited announced a final cash dividend of 250 percent, equivalent to Rs5 per share. The company’s books will close on August 18, 2026. MCB Bank Limited declared a 90 percent interim dividend, while Meezan Bank Limited announced an 80 percent interim payout. Both banks will close their books on August 19. Habib Bank Limited approved a 60 percent interim dividend, with its books closing on August 17. Faysal Bank and Bank Alfalah also declared interim dividends of 15 percent and 30 percent respectively. Consumer And Energy Firms Join The List Pakistan Tobacco Company Limited announced a substantial 350 percent interim dividend, while Colgate-Palmolive (Pakistan) Limited declared a final dividend of 350 percent. Lucky Core Industries Limited approved a final payout of 262.5 percent, while Mari Energies Limited declared a final dividend of 187 percent. Bestway Cement Limited announced a 100 percent final dividend. Other notable announcements include Gadoon Textile Mills at 50 percent and Crescent Steel at 35 percent. These payouts reflect improved earnings across sectors including cement, banking and consumer goods. Investors holding shares before the respective book closure dates will be entitled to the announced dividends, subject to the applicable corporate action requirements. Investors Watch Dividend Dates Market participants continue to monitor upcoming book closures and payment timelines closely, as dividend announcements can influence investor sentiment and trading activity on the PSX. The strong payouts also highlight the importance of corporate earnings and cash-generation capacity when assessing dividend-paying companies.

Hyundai Elantra Hybrid Price Surges To Rs11.4 Million After New 25% Sales Tax
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Hyundai Elantra Hybrid Price Surges To Rs11.4 Million After New 25% Sales Tax

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The Hyundai Elantra Hybrid Price in Pakistan has jumped sharply to Rs11.4 million, or Rs1.14 crore, after the government introduced a 25 percent sales tax under the FY2026-27 federal budget. Hyundai has increased the price of the Elantra Hybrid by Rs1.505 million, representing a 15.21 percent increase. The move places the hybrid sedan firmly into the premium vehicle segment and raises fresh questions about how new taxation measures will affect the affordability of fuel-efficient cars in Pakistan. The price increase is particularly significant because hybrid vehicles are generally promoted as a more economical alternative to conventional petrol-powered cars. With the new tax burden pushing prices higher, consumers could find that the initial cost advantage of choosing a hybrid has become increasingly difficult to justify. Hyundai Elantra Hybrid Price Takes A Major Hit From New Tax The latest increase reflects the wider impact of the 25 percent sales tax imposed under the new budget framework. While the government may view higher taxation as a way to increase revenue, the effect on consumers is considerably more complicated. For prospective Elantra Hybrid buyers, the additional Rs1.505 million means a substantially larger upfront financial commitment. At Rs11.4 million, the vehicle is no longer simply competing with other mid-range sedans. It is entering a price bracket where buyers may begin comparing it with larger vehicles and higher-end alternatives. This raises an important question for policymakers: if the government wants to encourage fuel efficiency and reduce dependence on conventional fuels, does making hybrid vehicles significantly more expensive send the wrong market signal? The contradiction is difficult to ignore. Hybrid technology can help consumers reduce fuel consumption, but higher taxes increase the initial cost of adopting that technology. Hyundai Hybrid Lineup Also Faces Price Shock The Elantra Hybrid is not the only Hyundai model affected. Prices across Hyundai’s hybrid lineup have also increased, with the Tucson and Santa Fe variants becoming more expensive. The biggest increase has been recorded for the Santa Fe Hybrid Signature AWD, which has received a Rs2.128 million price increase. Its new price stands at Rs16.123 million. The scale of these increases demonstrates that the budget’s tax changes are not an isolated issue for one model. Instead, they could reshape pricing across Pakistan’s hybrid vehicle market and potentially weaken consumer demand for more fuel-efficient vehicles. For automakers, the challenge will be balancing higher taxation and production costs against a market where consumers are already highly sensitive to vehicle prices, financing costs and household purchasing power.

FBR Hints At Further Tax Relief, Super Tax And Sales Tax Cuts Under Review
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FBR Hints At Further Tax Relief, Super Tax And Sales Tax Cuts Under Review

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The FBR tax relief measures could be expanded as the Federal Board of Revenue (FBR) indicated that the government is considering further reductions in the tax burden on businesses, including a possible complete withdrawal of super tax and a reduction in the sales tax rate. The development came during a meeting of the Sub-Committee of the Senate Standing Committee on Finance, where business representatives raised concerns over high input costs, expensive financing, elevated electricity tariffs and what they described as harassment by tax authorities. Business leaders warned that the difficult operating environment was discouraging investment and industrial activity, with several multinational companies reportedly scaling down or leaving Pakistan. FBR Considers Further Tax Relief For Businesses Hamid Ateeq Sarwar, Member FBR, told the committee that the government had already introduced several tax relief measures since 2025 and remained willing to provide additional relief to taxpayers. He said super tax was among the areas being reviewed for further reduction. The government was also examining options to lower the sales tax burden faced by businesses. According to the FBR official, the government had already absorbed a revenue impact of around Rs361 billion to facilitate businesses and encourage economic activity. He said the tax burden was being rationalised while taking into account Pakistan’s fiscal position and import requirements. The measures already introduced include tax relief for salaried individuals, a reduction in super tax and the complete removal of super tax for exporters. Sarwar also informed the committee that exporters’ facilitation committees had been established in Karachi, Lahore, Sialkot, Faisalabad, Islamabad and Multan to address taxation-related concerns. Business Community Warns Of Investment Decline Mian Zahid Hussain, Chairman of the Policy Advisory Board of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and Tariq Khan Jadoon, Vice President, highlighted the challenges facing businesses. They argued that high taxation, expensive financing, rising input costs and interactions with FBR field formations were making it increasingly difficult for companies to operate in Pakistan. They warned that continued pressure could encourage more businesses to shift their operations abroad. According to the business representatives, industries are currently operating at only around 40% to 45% of capacity, highlighting the pressure faced by manufacturers. Committee Convener Muhammad Talha Mahmood said the meeting was aimed at finding ways to stimulate economic activity and create a more favourable environment for businesses. He expressed concern that high energy costs and the existing tax structure were forcing companies to reduce their operations or leave the country. Business Leaders Seek Tax And Regulatory Reforms Zahid Hussain said national economic policy appeared to place excessive emphasis on revenue collection instead of economic growth. He called for reductions in advance and withholding taxes, rationalisation of customs duties and simpler audit procedures. He also urged authorities to review factory surveillance mechanisms and reduce compliance requirements that increase the cost of doing business. Tariq Khan Jadoon said Pakistan continued to have an advantage in terms of labour costs, but businesses were struggling with high electricity prices and regulatory challenges. He called for a broader tax base, arguing that the government should bring new sectors and businesses into the tax net rather than repeatedly increasing the burden on existing taxpayers. Business representatives also complained about the conduct of FBR field formations. They alleged that frequent notices, audits and enforcement actions had created uncertainty and made it difficult for taxpayers to plan their business activities. The committee stressed that excessive taxation could ultimately undermine government revenue by discouraging investment and shrinking the formal economy. Committee Seeks Investor Protection Framework Talha Mahmood also questioned the effectiveness of existing policies designed to attract foreign investment. He sought details regarding mechanisms for protecting investors and facilitating share transfers. The convener directed relevant authorities to provide the Sub-Committee with a comprehensive briefing on the existing investment framework. The committee also expressed concern over the absence of the Secretary Finance from the meeting. Mahmood directed the secretary to ensure attendance at the next meeting and warned that continued absence could result in the matter being referred to the Senate Privileges Committee. He said sustainable economic growth required business-friendly policies, transparent governance and competent officials capable of developing policies that encourage investment, industrialisation and entrepreneurship. FBR Working On Taxpayer Facilitation Measures FBR officials also briefed the committee on measures being developed to improve taxpayer facilitation. The Board is working on a mobile application for tax reimbursements and plans to designate specific facilitation days in major commercial centres. Talha Mahmood recommended that taxpayers who correct genuine errors in their returns should have their accounts restored within 24 to 48 hours. He also emphasised the importance of an efficient biometric verification system to make tax-related services easier for citizens and businesses. The committee further observed that early market closing hours were negatively affecting commercial activity and called for measures to support businesses. Goods Transport Strike Raises Economic Concerns The Sub-Committee also discussed the ongoing goods transport strike and its impact on economic activity. Talha Mahmood expressed concern over delays in resolving the dispute, warning that perishable goods could spoil while businesses faced significant losses because of container detention charges. He urged the government to immediately engage with transporters and other affected stakeholders to resolve their concerns and restore normal freight movement. The committee strongly recommended immediate dialogue to end the dispute and minimise further losses. The discussions highlighted the broader challenge facing Pakistan’s economy: balancing revenue collection with policies that allow businesses to remain competitive. While the FBR has indicated that further FBR tax relief is under consideration, business representatives are seeking deeper structural reforms covering taxation, energy costs, regulation and enforcement.

Japan Provides $2.2m For 17 Scholarships For Civil Servants Under JDS 2026
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Japan Provides $2.2m For 17 Scholarships For Civil Servants Under JDS 2026

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Japan has provided a JPY 350 million ($2.2 million) grant to Pakistan under the Human Resource Development Scholarship Program (JDS) 2026, supporting advanced education and capacity building for young federal civil servants. The agreement was signed on August 11, 2026, at the Ministry of Economic Affairs during a ceremonial exchange of notes and signing ceremony. Muhammad Humair Karim, Secretary of the Ministry of Economic Affairs, and Japan’s Ambassador to Pakistan Akamatsu Shuichi signed the Record of Discussions and Exchange of Notes. Under the latest grant, 16 scholarships will be offered for Master’s programmes and one scholarship for a PhD/Doctorate programme at universities in Japan. Japan Expands JDS Scholarship Support For Pakistan The JDS 2026 grant represents the ninth installment of the scholarship programme since its launch in Pakistan in 2018. Through the programme, the Government of Japan, with support from the Japan International Cooperation Agency (JICA), provides opportunities for young Federal Civil Service and Ex-Cadre officers to pursue higher education in Japan. The initiative is designed to strengthen the professional capacity of government officials and support Pakistan’s long-term human resource development. Eight batches have benefited from JDS scholarships since the programme began, with each batch comprising approximately 17 to 18 participants. Civil Servants To Receive Masters And PhD Scholarships The latest programme will provide 17 scholarships in total. Sixteen Pakistani civil servants will receive opportunities to pursue Master’s degrees, while one officer will undertake a PhD or Doctorate programme at a Japanese university. The scholarships are intended to enhance the knowledge and professional capabilities of young government officials who contribute to Pakistan’s socioeconomic development. Japan has also continued to invite Pakistani government officials to participate in short-term training programmes in Japan, further expanding opportunities for institutional and professional capacity building. Pakistan Appreciates Japan’s Continued Support Muhammad Humair Karim, Federal Secretary of the Ministry of Economic Affairs, expressed gratitude to the Government and people of Japan for their continued support. He also assured that the ministry would provide the necessary facilitation to further strengthen cooperation between Pakistan and Japan. The latest scholarship agreement reflects the broader cooperation between the two countries in human resource development and public-sector capacity building. Japan And JICA Reaffirm Bilateral Cooperation Japan’s Ambassador to Pakistan Akamatsu Shuichi and Yusuke Shinozaki, Chief Representative of JICA Pakistan, reaffirmed their commitment to working closely with the Government of Pakistan. Both officials highlighted their intention to further strengthen the friendly relations and bilateral cooperation between the two countries. The continuation of the JDS programme also provides Pakistan with an opportunity to develop a stronger pool of highly trained public-sector professionals. Japan’s JDS Programme Continues Human Resource Development With the ninth installment of the JDS programme now signed, Japan’s scholarship support continues to provide Pakistani civil servants with access to advanced academic and professional training. The latest $2.2 million grant will support 17 officers, including 16 Master’s students and one PhD/Doctorate scholar, while contributing to the broader objective of strengthening Pakistan’s public-sector human resources.

Pakistan Needs 6-7% Growth To Avert Crisis As Population Nears 400m By 2040
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Pakistan Needs 6-7% Growth To Avert Crisis As Population Nears 400m By 2040

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Current Growth Rate Falls Short Pakistan requires sustained real economic growth of 6 to 7 per cent annually to manage its rapidly expanding population and generate adequate jobs, infrastructure and public services, business leaders said on Monday. They cautioned that the existing growth trajectory remains inadequate for the country’s future needs. The population could approach 400 million by 2040. Without matching economic expansion, unemployment, poverty and pressure on education, healthcare and housing will intensify. Pakistan Industrial and Traders Associations Front founder Mian Shafqat Ali said the country must move from short-term economic management to a long-term growth strategy. This strategy should create productive employment for millions of young people entering the workforce. Pakistan cannot continue with low growth while its population keeps rising, he added. The economy must expand by at least 6 to 7 per cent in real terms each year to deliver jobs, education, healthcare, housing and other basic facilities. A growth rate of around 3 to 4 per cent may offer temporary stability. However, it is not enough to raise living standards substantially or generate sufficient employment. Demographic Challenge Demands Economic Roadmap According to World Bank data, Pakistan’s GDP stood at about $407.3 billion in 2025. Per capita income was approximately $1,596, while economic growth measured 3.7 per cent. Business leaders calculated that an economy of roughly $640 billion would be needed merely to maintain the current per capita income level if the population reaches 400 million by 2040. Significantly higher output would be required to improve living standards. An economy of around $2 trillion would be necessary to achieve a per capita income of $5,000. Reaching $6,000 per capita would demand an economy of approximately $2.4 trillion. Syed Mahmood Ghaznavi, another office-bearer, said the demographic challenge should be treated as an economic planning issue rather than solely a population-control matter. A large young population can become a major source of growth if the right conditions for investment, industrialisation and employment are created. “We have to turn our young population into an economic asset by investing in skills, education and productive sectors,” he said. This requires a clear 2040 economic roadmap with targets for exports, industrial production, investment, tax collection and productivity. Failure to create opportunities for young people could turn the demographic dividend into a serious economic burden. The business community called for a major expansion in export-oriented industries. Higher foreign exchange earnings will be essential to support a larger economy without repeated external financing pressures. They also stressed the need to attract private investment by reducing the cost of doing business, improving energy supply, simplifying regulations and ensuring policy consistency. Higher productivity is equally critical, as simply expanding the workforce will not deliver sustainable income gains. Leaders emphasised that sustained high growth, combined with structural reforms and targeted investment in human capital, remains the only viable path to prevent mounting social and economic pressures in the decades ahead.

OICCI Investment in Pakistan Crosses 23 Billion Dollars as Foreign Firms Defy Economic Uncertainty
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OICCI Investment in Pakistan Crosses 23 Billion Dollars as Foreign Firms Defy Economic Uncertainty

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Foreign investors are sending a message that Pakistan’s economic story is far from over, with OICCI investment in Pakistan exceeding 23 billion dollars over the last decade, according to the Overseas Investors Chamber of Commerce and Industry’s Members Contribution to the Economy 2025 report. The figure is striking because the report places OICCI members’ capital investment above Pakistan’s reported net foreign direct investment of 21 billion dollars during the same period. The data highlights the scale of investment made by multinational and foreign affiliated companies operating in Pakistan and points to continued confidence in the country’s long term commercial potential. However, the comparison also deserves careful scrutiny. Capital investment made by OICCI members and net FDI are not necessarily identical measures, and presenting the two figures side by side should not be interpreted as proof that OICCI members supplied more foreign investment than the entire FDI system. Instead, the comparison demonstrates the unusually significant contribution of OICCI companies within Pakistan’s investment landscape. OICCI Investment in Pakistan Shows Continued Business Confidence The report shows that OICCI members remained major contributors to Pakistan’s economy during 2025 despite high operating costs, regulatory uncertainty and difficult macroeconomic conditions. OICCI members recorded gross revenue of 13.1 trillion rupees and maintained total assets worth 42 trillion rupees. Their capital expenditure reached 615 billion rupees, while government levies paid by member companies stood at 3.2 trillion rupees. These numbers indicate that the contribution of foreign affiliated companies extends well beyond initial investment. Their operations generate substantial economic activity, tax and levy payments, employment opportunities and demand across multiple sectors. Foreign Companies Continue to Deliver Despite Economic Pressure The performance of OICCI listed companies also provides an important indication of business resilience. Between 2021 and 2025, the average annual growth rate of profit before tax among listed OICCI companies was 26 percent in rupee terms and 11 percent in US dollar terms. Turnover grew at an average annual rate of 21 percent in rupees and 6 percent in US dollars. The decline from the previous reporting period’s 35 percent rupee based PBT growth should not be ignored. The report attributes the slowdown partly to exchange rate volatility and the unusually high base recorded during the previous period. This is an important warning for policymakers. Foreign companies may remain profitable, but rising costs, currency instability and unpredictable business conditions can weaken future investment incentives if structural problems remain unresolved. Energy Sector Leads Government Revenue Contribution The oil, gas and energy sector emerged as the largest contributor to government levies, accounting for 36 percent of the total. Banking, insurance, finance and leasing companies dominated the asset base, representing 75.6 percent of total assets and 25 percent of turnover. Telecommunications companies accounted for 33 percent of total capital expenditure, underlining their importance in maintaining and expanding Pakistan’s digital and communications infrastructure. Food and consumer products, tobacco, chemicals, pharmaceuticals, automobiles, engineering and other sectors also contributed to the broader economic footprint of OICCI members. The Real Test for Pakistan Is Whether Investment Will Increase The biggest question raised by the OICCI report is not whether foreign companies are investing in Pakistan. The data clearly shows that they are. The bigger question is whether Pakistan can persuade these companies to invest substantially more. OICCI members have continued investing despite policy uncertainty, taxation pressures, higher operating costs, security concerns and regulatory challenges. That resilience should not become an excuse for policymakers to maintain the status quo. Instead, it should be treated as an opportunity. Stable taxation, predictable regulation, transparent implementation of policies, improved security and faster structural reforms could turn existing investor confidence into significantly larger investment flows. The 23 billion dollar investment figure therefore represents both an achievement and a challenge. It shows that international businesses still see value in Pakistan, but it also raises a critical question for policymakers: how much more investment could Pakistan attract if the business environment became predictable enough for companies to plan for the next decade with confidence? For Pakistan’s economy, that may be the most important message hidden inside the OICCI investment in Pakistan figures.

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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