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PHEV Tax Concessions May Cost Govt Rs230bn

Web Desk / October 6, 2026

Proposed tax concessions for plug-in hybrid electric vehicles (PHEVs) could reduce government revenue by around Rs230 billion over five years, according to an estimate by an auto industry expert. The assessment is based on a projected market volume of 150,000 new-energy vehicles (NEVs), along with current vehicle prices and applicable tax structures. The potential revenue impact comes as the government considers changes to the taxation framework for different categories of new-energy vehicles, including range-extended electric vehicles (REEVs) and PHEVs. PHEVs Could Receive Lower GST and Tax Exemptions Under the proposed changes, GST on range-extended electric vehicles would increase from 1 percent to 6 percent, potentially generating additional revenue for the government. At the same time, GST on PHEVs would be reduced from 18 percent to 9 percent. The proposal would also provide PHEVs with exemptions from federal excise duty (FED) and capital value tax (CVT). According to the auto industry expert, the additional revenue generated through the higher GST rate on REEVs would not be sufficient to compensate for the revenue loss arising from the proposed PHEV concessions. PHEV Tax Changes Could Reduce Revenue by Rs230bn The assessment estimates that the combined measures could reduce government revenue by approximately Rs230 billion, equivalent to around $821 million, over a five-year period. The estimated revenue loss would primarily result from the lower GST rate on PHEVs and the proposed removal of FED and CVT. These taxes currently contribute to government revenue from vehicle sales, meaning changes in the applicable rates and exemptions could have a significant impact on collections if PHEV sales expand as projected. Government Weighs EV Adoption Against Fiscal Impact The proposed tax concessions could make PHEVs more affordable and potentially support the wider adoption of new-energy vehicles in Pakistan. PHEVs can operate using both electric power and an internal combustion engine, while REEVs use an electric drivetrain with an engine or generator serving to extend driving range. Supporters of incentives for such technologies may view lower taxation as a means of encouraging cleaner mobility and accelerating the development of Pakistan’s new-energy vehicle market. However, the estimated Rs230 billion revenue impact highlights the fiscal trade-off facing policymakers. NEV Policy Faces Revenue and Environmental Considerations The proposed changes place two policy objectives alongside each other: encouraging the transition towards cleaner transport technologies and maintaining government revenue from vehicle taxation. The industry assessment suggests that policymakers will need to consider the potential growth in PHEV and REEV adoption alongside the impact of tax concessions on the national exchequer. With the government reviewing the taxation structure for different categories of new-energy vehicles, the final policy design will determine how incentives, environmental objectives and fiscal considerations are balanced.

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SIUT Reaches 1M Women with Breast Cancer Awareness Message

Web Desk / October 6, 2026

KARACHI, October 6, 2026: The Sindh Institute of Urology and Transplantation (SIUT) and Santex Products (Pvt.) Limited have signed a Memorandum of Understanding (MoU) to launch a three-month breast cancer awareness campaign aimed at reaching one million women with information on breast cancer awareness and early detection. The campaign will run from October to December 2026 and will focus on improving awareness, encouraging timely breast self-examination and providing women with credible and accessible health information. SIUT and Santex Launch Three-Month Awareness Campaign The MoU was signed by Dr. Lamiya Rizvi, Trustee, SIUT Trust, and Feroz Mujtaba Rahman, Director, Operations, Santex Products (Pvt.) Ltd. Through the partnership, the two organisations aim to take breast cancer awareness beyond conventional healthcare settings and reach women through an everyday consumer product. The campaign reflects a joint effort to encourage women to pay greater attention to breast health and understand the importance of seeking appropriate medical advice when concerns arise. Breast Self-Check Guidance to Reach Women Through Sanitary Napkin Packs As part of the initiative, breast cancer awareness inserts will be included in Santex sanitary napkin packs. The inserts will feature a QR code linking women to an educational breast self-check video developed by SIUT. The campaign encourages women to incorporate breast self-examination into their monthly routine, with the material suggesting that it can be performed particularly 3–4 days after the end of the menstrual cycle. By placing the information inside sanitary napkin packs, the initiative seeks to make breast health education more accessible and relevant to women in their everyday lives. SIUT Brings Medical Expertise to Awareness Initiative The collaboration combines SIUT’s medical expertise and its commitment to providing free quality healthcare with dignity with Santex’s consumer reach. The partnership is designed to connect women with credible health information and encourage greater awareness of breast cancer and early detection. Speaking on the occasion, Dr. Lamiya Rizvi, Trustee, SIUT Trust, said the campaign’s ambition to reach one million women reflects the organisation’s commitment to taking reliable health information beyond healthcare facilities and into communities. She noted that awareness and timely attention can play an important role in encouraging women to seek medical advice when needed. Campaign to Run Until December 2026 The breast cancer awareness campaign will continue from October through December 2026. During this period, SIUT and Santex will use the awareness inserts and digital educational content to promote breast health information and encourage women to become more familiar with breast self-examination. The initiative highlights the potential of partnerships between healthcare institutions and consumer brands to extend public health education into everyday settings.

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K-Electric Withdraws From GEPCO Privatisation Race

Web Desk / October 6, 2026

ISLAMABAD: K-Electric has withdrawn from the privatisation process for Gujranwala Electric Power Company (GEPCO), leaving nine other parties prequalified to pursue the acquisition of 51% to 100% of the power distributor along with management control. The Privatisation Commission (PC) Board approved the prequalification of the nine parties on Monday after reviewing 11 Expressions of Interest (EOIs) submitted for GEPCO. K-Electric Withdraws From Process K-Electric formally informed the Privatisation Commission in writing that it was withdrawing its EOI from the GEPCO transaction. Another interested party, Al Sharif Contracting & Commercial Development Co. Ltd., could not provide the documents required under the Request for Statement of Qualification. The nine remaining parties will now move to the next stage, including access to the Virtual Data Room for detailed due diligence. Nine Parties Prequalified The approved list includes Turkish energy companies Aktor Elektrik Enerji Yatirimlari, Genvera Enerji and Cengiz Enerji, along with major Pakistani business groups and investment consortia. The Pakistani bidders include Engro Energy, Sapphire Fibers, Hub Power Holdings Consortium, Shirazi Investments Consortium, Artistic Milliners Consortium and an AKD Securities Consortium. The participation of three Turkish energy companies alongside prominent domestic investors indicates continued interest in Pakistan’s electricity distribution sector. Airport, Banking Privatisation Reviewed The PC Board also considered reconstituting the Negotiation Committee for outsourcing or concession arrangements for Lahore, Karachi and Islamabad international airports. It further directed transaction advisers to accelerate the privatisation processes for House Building Finance Company Limited and Zarai Taraqiati Bank Limited. The board said the privatisation programme would focus on transparent and competitive transactions, attracting credible investors, improving efficiency and service delivery, and maximising value for the government and the public.

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Businesses Voice Grave Concerns Over 15% Surge in Q1 FY27 Trade Deficit

Web Desk / October 5, 2026

KARACHI: Businesses have expressed concern over the widening trade deficit during the first quarter of fiscal year 2026-27, with the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) warning that rising imports could increase pressure on Pakistan’s foreign exchange reserves and macroeconomic stability. FPCCI President Atif Ikram Sheikh, responding to the latest Pakistan Bureau of Statistics (PBS) data, said the continued expansion of the trade gap was a matter of serious concern for businesses and the broader economy. According to PBS figures, Pakistan’s trade deficit widened by 15.13 percent to $10.792 billion during July-September 2026, compared with $9.374 billion in the same period of the previous fiscal year. September Trade Deficit Rises 6.15% The deterioration continued through the end of the quarter. In September 2026 alone, Pakistan’s trade deficit reached $3.55 billion, registering a 6.15 percent year-on-year increase from the $3.35 billion recorded in September 2025. The latest monthly figure added to concerns that the country’s import bill could continue to outpace export growth and put additional pressure on external financing and foreign exchange resources. FPCCI Warns Of Pressure On Foreign Exchange Reserves Atif Ikram Sheikh said the widening trade gap could place significant pressure on Pakistan’s foreign exchange reserves. He attributed the trend in part to the high cost of doing business in Pakistan, which, he said, was weakening the competitiveness of domestic manufacturers against regional competitors. The FPCCI chief argued that high production and financing costs are making it more difficult for local industries to expand output, add value and compete in international markets. High Interest Rates And Energy Costs Hit Industry According to Sheikh, prohibitive interest rates, heavy electricity capacity charges and elevated petroleum levies are among the major barriers affecting industrial productivity. Higher financing costs increase the expense of working capital for manufacturers, while elevated electricity and fuel costs add to production and transportation expenses. Businesses have argued that these pressures can reduce the competitiveness of Pakistani products in both domestic and international markets. FPCCI Calls For Single-Digit Policy Rate To support industrial activity and help meet FY27 export targets, the FPCCI leadership has called on the Ministry of Finance and the State Bank of Pakistan to pursue a significant reduction in the policy rate. Sheikh urged policymakers to bring the policy rate into single digits, arguing that lower borrowing costs would provide manufacturers with more affordable working capital. The business community has maintained that improved access to financing would help companies invest in production, maintain operations and increase their capacity to export. Business Community Seeks Lower Energy Costs The FPCCI president also called for the rationalisation of electricity and gas tariffs. According to the business body, energy costs should be brought closer to levels faced by competitors in regional markets to improve the international competitiveness of Pakistani manufacturers. Sheikh also called for targeted relief on inland logistics costs, which he said could help reduce expenses throughout domestic supply chains. Trade Deficit Raises Balance Of Payments Concerns The widening trade deficit has renewed attention on Pakistan’s external account, particularly as businesses seek stronger export growth to offset the country’s import requirements. Sheikh warned that continued reliance on expensive imports to meet domestic demand could place additional pressure on the national exchequer and increase the risk of balance-of-payments stress. He called for immediate structural measures to strengthen domestic production, encourage value addition and improve the competitiveness of export-oriented industries. Export Growth Remains A Key Priority With the first quarter of FY27 already showing a 15.13 percent increase in the trade deficit, businesses are urging policymakers to focus on measures that can support exports while controlling unnecessary import costs. The FPCCI has linked lower financing costs, competitive energy tariffs and more efficient logistics with the ability of Pakistani businesses to expand production and compete in international markets. The business community argues that addressing these structural cost pressures will be important for supporting export targets and preventing industrial activity from weakening further.

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Karachi Climate Action Plan Faces Slow Progress as Experts Call for Stronger Government, Civil Society, and Media Coordination for Mitigation Targets

Web Desk / October 5, 2026

KARACHI, Oct 5: Experts and civil society representatives have raised concerns over the slow implementation of the Karachi Climate Action Plan (KCAP), calling for stronger coordination among government institutions, civic bodies, researchers, civil society and the media. The concerns were raised at a media dialogue on the Karachi Climate Action Plan and progress on its implementation, jointly organised by The Knowledge Forum (TKF), Karachi Union of Journalists (KUJ) and the Local Government Reporters Association, Karachi, at a local hotel. The discussion comes as Karachi faces growing climate risks, including extreme heat, urban flooding, drought, coastal hazards, air pollution and the rapid loss of green spaces. Karachi Faces Growing Climate Risks M. Mashood Tariq of the Urban Research and Design Cell at the Department of Architecture and Planning, NED University of Engineering and Technology, said Karachi was facing increasing climate risks and required urgent and coordinated action. He explained that the KCAP provides a pathway for Karachi to become emissions-neutral by 2050 while establishing an ambitious interim target for 2030. The plan also aims to strengthen Karachi’s ability to adapt to current and future climate hazards while ensuring that the social, environmental and economic benefits of climate action are distributed more equitably among citizens. Tariq noted that the plan requires periodic review and updating of its targets through a proposed Directorate of Environment and Climate Change as part of the KCAP governance structure. Karachi Emissions Could Triple By 2050 According to Tariq, Karachi’s greenhouse gas emissions could almost double by 2040 and triple by 2050 if urgent mitigation measures are not introduced. As a member of the C40 network of major cities, Karachi is expected to work towards carbon neutrality by 2050. The KCAP therefore seeks to address both the causes of rising emissions and the city’s exposure to climate-related hazards. Built-Up Area Expands While Natural Spaces Decline Rapid urban expansion has emerged as a major factor behind Karachi’s growing climate vulnerability. Tariq said Karachi’s built-up area increased from 270 square kilometres in 2013 to 538 square kilometres in 2023. Over the same period, grass and shrubland declined by 45 percent, agricultural land fell by 59 percent and mangrove areas decreased by 23 percent. The loss of natural areas has increased the city’s exposure to heat, flooding and other climate-related risks. KCAP Calls For Green Spaces And Better Drainage The Karachi Climate Action Plan proposes a range of adaptation measures to strengthen the city’s resilience. These include conserving and expanding mangrove forests, improving drainage infrastructure, creating floodwater storage capacity and restoring natural riverbeds. The plan also includes mitigation measures such as increasing urban green spaces, improving energy efficiency in Karachi’s industrial sector and reducing greenhouse gas emissions from solid waste and sewage. A Directorate of Environment and Climate Change and a Climate Change Board have also been proposed to support implementation. Waste Management Critical To Flood Protection Experts at the dialogue also highlighted the connection between waste management and urban flooding. Poor sewage and solid waste management can contribute to the accumulation of waste and blockage of drainage systems, increasing the risk of flooding during periods of heavy rainfall. Improving these systems is therefore considered an important part of Karachi’s broader climate adaptation strategy. Solar Power Changes Karachi’s Energy Landscape The second presentation at the dialogue focused on Karachi’s changing energy landscape and the challenges faced by electricity consumers. Clean Energy Expert Basil Andrews of The Knowledge Forum said rooftop solar adoption had increased substantially across Pakistan amid the energy crisis, rising electricity tariffs and persistent load-shedding. He said solar panels with an estimated total capacity of around 50,000 megawatts had arrived in Pakistan, with most of them sourced from China. According to Andrews, approximately 2,300MW of solar capacity had been installed in Karachi alone, representing a significant shift in the city’s electricity landscape. Of this total, around 606MW had been incorporated into the K-Electric system through net metering. K-Electric Grid Imports Rise As Own Generation Falls Andrews said K-Electric had become increasingly dependent on electricity supplied through the national grid because of its relatively lower cost. Between fiscal year 2020 and 2025, K-Electric’s electricity imports from the national grid increased from 5,764 gigawatt-hours to 10,234GWh. Over the same period, the utility’s own generation declined from 10,185GWh to 6,433GWh. The changing generation mix highlights the broader transformation taking place in Karachi’s power sector as consumers and utilities respond to changing electricity costs and energy demand. Renewable Energy Opportunities Expand Andrews also pointed to the gradual emergence of wind energy technologies for both small- and large-scale applications in Pakistan. He said wind power could provide additional opportunities for the country to move towards cleaner and more indigenous sources of energy. However, he cautioned that the benefits of Karachi’s energy transition were not yet reaching smaller consumers and vulnerable sections of society equally. Affordable And Reliable Electricity Needed Referring to a National Electric Power Regulatory Authority (NEPRA) order issued in August 2026, Andrews said commercial losses, electricity theft and non-payment could not be used as a blanket justification for load-shedding affecting consumers who regularly paid their electricity bills. He also stressed that affordable electricity was important for protecting citizens against the increasing episodes of extreme weather affecting Karachi. Andrews called for targeted action against electricity theft, improvements to distribution networks and greater adoption of community- and apartment-based solar solutions. He also highlighted the potential role of energy storage and greater consumer choice in supporting Karachi’s energy transition. “Karachi must move beyond simply managing electricity scarcity towards providing affordable, reliable and inclusive electricity to its consumers,” he said. Experts Call For Stronger Climate Coordination During an interactive session, journalists questioned the presenters on KCAP implementation, climate risks, urban planning, energy transition and the role of civic institutions. Participants emphasised the need for closer cooperation between civil society and the media to highlight Karachi’s environmental challenges and keep citizens informed about progress on the climate action plan. They called for stronger coordination among civil society organisations, civic bodies, researchers and journalists covering local government

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KSE-100 Falls Over 2,300 Points As Politics And Oil Weigh

Web Desk / October 5, 2026

Selling intensified at the Pakistan Stock Exchange on Monday, with the KSE-100 Index falling more than 2,300 points by early afternoon as political uncertainty and elevated global oil prices weighed on investor sentiment. At 12:45pm, the benchmark stood at 165,843.38, down 2,312.11 points, or 1.37 percent. The decline extended the market’s weakness from the previous week and kept risk appetite subdued. Political Uncertainty And Oil Prices Pressure Sentiment Analysts attributed the market pressure to a combination of domestic political uncertainty and external economic concerns. Saad Hanif, Head of Research at Ismail Iqbal Securities, said ongoing political uncertainty and elevated oil prices were weighing on sentiment and triggering selling across the market. He noted that continued political noise was encouraging investors to adopt a cautious stance, while higher oil prices were raising concerns about inflation and overall macroeconomic stability. Banks, Cement And Energy Stocks Lead Decline The selling was broad-based, affecting several major sectors of the market. Automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies, power generators and refineries all traded lower during the session. Index-heavy stocks including PRL, NRL, HUBCO, MARI, OGDC, PPL, HBL, MEBL, NBP and UBL remained under pressure. The weakness in these large-cap stocks added to the downward pressure on the benchmark, limiting the market’s ability to recover during the session. Oil Prices And Monetary Policy Key Market Triggers Sana Tawfik, Head of Research at Arif Habib Limited, said the market’s near-term direction would depend largely on developments in global oil prices and whether domestic political uncertainty begins to ease. She identified the upcoming Monetary Policy Statement as another major market trigger, particularly whether the central bank keeps the policy rate unchanged or announces a revision. For investors, the combination of oil prices, inflation expectations, political developments and monetary policy is likely to remain central to market sentiment. KSE-100 Extends Previous Week’s Losses Monday’s decline came after another difficult week for equities. The KSE-100 Index fell 2,609.74 points, or 1.5 percent, during the previous week to close at 168,155.48. Stalled US-Iran negotiations, a global sell-off in sovereign bonds and rising US Treasury yields had already increased risk aversion. The widening domestic trade deficit also added to concerns surrounding Pakistan’s external position. US Treasury yields reached their highest levels since 2002, adding another layer of pressure to global financial markets. Global Markets Offer Limited Relief International markets began the week on a firmer note after cooler US jobs data reduced expectations of an aggressive Federal Reserve tightening cycle. Markets were pricing in only a 22 percent probability of a US Federal Reserve rate increase this month, sharply lower than the 64 percent probability seen a week earlier. However, the improvement in global sentiment has yet to translate into a sustained recovery at the Pakistan Stock Exchange. Local investors remain focused on domestic political developments, oil prices and the direction of monetary policy. KSE-100 Close Will Determine Market Direction The figures available by 12:45pm represent an intraday snapshot rather than the final outcome for Monday’s trading session. With the KSE-100 down more than 2,300 points, the closing level will determine whether selling pressure remained dominant through the end of the session or whether buyers managed to recover some of the losses. For now, political uncertainty, elevated oil prices and expectations surrounding monetary policy remain key factors shaping investor sentiment at the PSX.

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Pakistan’s Trade Deficit Climbs to $3.56 Billion in September

Web Desk / October 3, 2026

Pakistan’s goods trade deficit widened to $3.56 billion in September, despite a significant rebound in exports, as the country’s import bill continued to grow faster in absolute terms. According to data from the Pakistan Bureau of Statistics (PBS), the September trade deficit increased 6% from $3.35 billion recorded in the same month last year. The gap also widened compared with August, when it stood at $3.29 billion. On a month-on-month basis, September’s deficit was around 8% higher. Exports Rebound to $2.94 Billion Pakistan’s exports rose to $2.94 billion in September, increasing 17.6% from $2.5 billion during the same month of the previous year. The increase represents a notable improvement in overseas sales following a period in which export growth had struggled to gain sustained momentum. However, the improvement in exports was not enough to offset the larger increase in imports. Exports increased by approximately $440 million year-on-year, while imports rose by around $640 million. The difference between those increases resulted in a wider monthly trade gap. Imports Continue to Outpace Exports Imports reached $6.49 billion in September, up 11% from $5.85 billion a year earlier. While the percentage increase in exports was higher than the growth rate of imports, the import bill remains substantially larger in dollar terms. This distinction is important for understanding the widening trade deficit. A faster percentage increase in exports does not necessarily narrow the deficit when the country’s import base is considerably larger and imports add more dollars to the overall trade bill. First Quarter Trade Deficit Reaches $10.79 Billion The July-September period shows a similar trend on a larger scale. During the first quarter of fiscal year 2026-27, Pakistan’s trade deficit increased to $10.79 billion, up 15% from $9.37 billion during the corresponding period of the previous fiscal year. Exports during the quarter reached $8.42 billion, compared with $7.59 billion a year earlier, representing an 11% increase. Imports, meanwhile, climbed to $19.22 billion from $16.97 billion, registering 13% growth. Import Growth Adds More Dollars to the Gap The quarterly figures provide a clearer picture of the pressure on Pakistan’s external trade position. During the first three months of FY27, imports increased by approximately $2.25 billion. Exports increased by around $830 million over the same period. As a result, the increase in imports exceeded the increase in exports by roughly $1.4 billion, contributing to the wider quarterly trade deficit. What the September Trade Data Shows The September figures do not indicate a collapse in Pakistan’s exports. Overseas sales improved significantly, with exports rising 17.6% year-on-year during the month. The increase suggests that exporters are generating stronger external sales compared with the same period last year. The challenge is that imports are growing from a much larger base and are adding more dollars to the trade account. Both sides of Pakistan’s goods trade are therefore expanding, but imports are currently increasing at a pace that is keeping the overall deficit on an upward path. Trade Deficit Remains a Key External-Sector Indicator The widening trade gap will remain an important indicator for Pakistan’s external-sector position. Higher imports can reflect increased domestic demand, industrial activity and requirements for machinery, raw materials and other goods. At the same time, sustained export growth is important for generating foreign exchange and narrowing the structural gap between imports and exports. For businesses, the September data presents a mixed picture: export orders and overseas sales are improving, but the gains have not yet been sufficient to offset the rising import bill.

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Al-Ghazi Tractors Champions Smarter Mechanization as Platinum Sponsor of Pakistan Agriculture Coalition’s Agri-Connections Conference & Expo 2026

Web Desk / October 2, 2026

CEO Yasin Seker sets out a practical, farmer-led roadmap for bringing modern agricultural technology to Pakistan’s fields Lahore, October 2, 2026: Al-Ghazi Tractors Limited (AGTL), one of Pakistan’s leading agricultural machinery manufacturers, served as Platinum Sponsor of the Pakistan Agricultural Coalition’s (PAC) Agri-Connections Conference & Expo 2026, using the platform to make the case that Pakistan’s next leap in food security will depend on smarter, more accessible farm mechanisation. Held on October 1 and 2 at the Lahore Expo Centre in partnership with the Government of Punjab, the event centered on the theme “Food Security and Agri-Investment in the Era of Climate Change.” The World Bank, IFC and the Food and Agriculture Organization of the United Nations (FAO) joined the event as strategic partners, bringing together senior policymakers, multilateral institutions, agribusiness leaders, financiers and progressive farmers. Speaking on Day 1, Chief Executive Officer Al-Ghazi Yasin Seker framed the challenge facing the agriculture sector around four pressures: crop yields that lag regional benchmarks, rising food demand, mounting input costs for smallholders, and the growing toll of irregular monsoons, heat stress and water scarcity. Drawing on AGTL’s manufacturing heritage since 1983 at its Dera Ghazi Khan plant, he outlined how the company’s contribution extends beyond the tractor itself, through localization, supplier development, skills transfer in rural communities and a nationwide service network. “For decades, Pakistani farmers have asked for dependable horsepower at an affordable price. That remains essential, but their needs are changing. Today they want productivity, uptime, efficient use of every input, and support across the entire life of the machine,” said Yasin Seker, Chief Executive Officer, AGTL. Seker highlighted two technology directions with the most immediate potential. Telematics allows real-time monitoring of machine health, predictive maintenance alerts and clear visibility on usage, shifting service from reactive repair to planned maintenance. Precision guidance and automatic steering reduce overlapping passes, place seed, fertilizer and chemicals more accurately, and deliver consistent results regardless of operator experience. He was equally clear that adoption must be practical and led by farmers. AGTL’s proposed approach begins with strengthening basic mechanization and service, then piloting high-value applications, proving the economics at farm level, building dealer and service capability, and scaling only what delivers verified returns to farmers. “Technology must follow value, not the other way round. If a solution cannot prove its worth on a farmer’s own field, it has no business being scaled. That discipline is what will turn innovation into real gains in productivity and food security,” Seker said. On Day 2, Seker joined the high-level panel “The Future of Technology in Agriculture,” where he urged Pakistan to move beyond conventional tractorization towards an integrated ecosystem of machinery, precision technology, digital tools and improved farmer access. Agriculture remains one of the largest contributors to Pakistan’s economy, yet tractor production and sales have declined over the past year. AGTL noted that the challenge is not only the number of machines available, but whether farmers can afford them, finance them and access them. With most of Pakistan’s farms small in size, custom hiring, machinery rental, leasing and mechanization-as-a-service models can put modern equipment within reach of farmers who cannot own every machine themselves. Across both days, AGTL stressed that this next chapter will require every part of the system to play its role: farmers shaping what technology is relevant, manufacturers and dealers building the capability to support it, government providing the policy framework and extension services, financial institutions offering affordable equipment finance and crop insurance, technology providers adapting solutions to local conditions, and development institutions ensuring smallholders are not left behind. “No single stakeholder can close this gap alone. When government, financiers, manufacturers, technology providers and farmers move together, modern agricultural technology becomes affordable, accessible and genuinely useful in the field,” Seker added. At its stall, AGTL showcased its New Holland tractors to visitors from across the agricultural value chain. The Platinum sponsorship builds on AGTL’s decision in June 2026 to join PAC as a Patron. Through this partnership, AGTL brings more than four decades of experience manufacturing New Holland tractors in Pakistan to PAC’s national, private sector-led agenda for a more productive, technology-driven and competitive agriculture sector.

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Petrol Subsidy and Gas Debt Write-Of Puts Government And IMF At Odds

Web Desk / October 2, 2026

Talks between Pakistani authorities and the International Monetary Fund (IMF) have stalled over fuel prices and a proposal to write off Rs1.4 trillion in receivables owed to the country’s gas companies. The IMF has called for any relief under the fuel compensation scheme to be delivered through a targeted mechanism. Pakistani officials believe the compensation for motorcyclists and small-car owners is unlikely to be withdrawn before the initial three-month period ends, although extending the scheme beyond that period could prove difficult. IMF Questions Cost of Petrol Relief According to officials, the IMF believes the actual cost of the fuel compensation scheme could exceed the government’s initial estimate of Rs75 billion for three months. The Fund has also maintained that any assistance should be specifically targeted rather than taking the form of a broad fuel subsidy. Pakistan had previously committed to avoiding fuel subsidies and cross-subsidies. The commitment was breached last month, prompting the IMF to seek corrective measures during the ongoing review. A detailed meeting on the gas-sector circular debt plan is expected next week as the IMF mission continues its work in Islamabad on the fourth review of Pakistan’s $7 billion programme alongside Article IV consultations. Petroleum Division Challenges Current Fuel Pricing The Petroleum Division has argued that domestic fuel prices do not fully reflect the relationship between import costs and consumer prices. Officials said petrol is imported at roughly Rs250 per litre before taxes and margins, while consumers currently pay around Rs390 per litre. Of the consumer price, nearly Rs110 represents taxes, while another Rs27 is attributed to margins. The IMF’s position, according to officials, is that determining spending priorities ultimately remains the government’s responsibility. Gas Sector Receivables Become Major Dispute Another major point of disagreement is Pakistan’s proposal involving Rs1.4 trillion in recoverable receivables of Sui gas companies. The IMF has pushed for relief involving accumulated receivables arising from delayed payments. However, the Petroleum Division has rejected a write-off, arguing that doing so could adversely affect gas distribution and exploration companies. Officials have also maintained that the federal government cannot reverse its commitments to the gas companies. The issue is expected to receive further attention during next week’s detailed discussions on the gas-sector circular debt plan. Earlier IMF Demands on Circular Debt The dispute follows earlier IMF demands concerning Pakistan’s inter-corporate debt and late-payment surcharges. In a previous round of discussions, the Fund asked Pakistan to clear inter-corporate debt and waive late-payment surcharges estimated at around Rs1.7 trillion. A committee constituted by the prime minister has been working on reforms since the spring, but the authorities and the lender have yet to reach a settlement on the issue. The IMF has also objected to a proposal to use Rs850 billion in dividends from gas companies to retire debt, describing the measure as fiscally non-neutral. Pakistan’s Rs3.6 Trillion Gas Circular Debt The overall gas-sector circular debt is estimated at around Rs3.6 trillion. The Petroleum Division has proposed settling the debt through tariff differential claims of the Sui companies. Under the proposal, proceeds would be used to make payments to Oil and Gas Development Company Limited (OGDC), Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL). Incremental dividends would be directed only toward these three companies, in which the state holds significant stakes. IMF Raises Questions Over Debt Settlement Plan The IMF has questioned how the proposed structure would prevent potential leakage of additional proceeds to minority shareholders. The Fund has also sought clarity on assumptions concerning additional revenue from the petroleum levy and savings expected from liquefied natural gas (LNG). These questions have added another layer to negotiations over how Pakistan intends to reduce the gas circular debt without creating additional fiscal pressures. Petroleum Division Defends Circular Debt Proposal Pakistani officials argue that the accumulation of gas-sector debt originated from policy decisions that prevented the Sui companies from recovering their full costs. According to the Petroleum Division, tariff claims restricted full-cost recovery while unpaid invoices accumulated across the energy chain. The government’s proposed mechanism, officials contend, could clear long-standing receivables and help restore financial credibility among companies operating across the gas sector. However, the IMF continues to seek assurances that the proposed settlement would be fiscally neutral and would not create new subsidy or cross-subsidy arrangements. IMF Review Remains Focused on Fiscal Discipline The disagreement over petrol compensation and gas circular debt highlights the broader fiscal challenges facing Pakistan under its IMF programme. The current discussions involve not only fuel pricing but also the treatment of energy-sector liabilities, government commitments, subsidies and mechanisms for settling accumulated debt. A resolution on the fuel compensation scheme and gas-sector receivables will be important for progress in the fourth review of the IMF programme.

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FBATI President Aims To Strengthen SMEs

Web Desk / October 2, 2026

The Federal B Area Association of Trade and Industries (FBATI) has elected new office-bearers, with industrialist Syed Raza Hussain taking charge as President. Raza Hussain, CEO of Hussain and Co., has pledged to focus on issues affecting small and medium-sized enterprises (SMEs) and the wider business community while strengthening engagement with public- and private-sector stakeholders. New FBATI Leadership Takes Charge The industrialist members of FBATI elected a new leadership team to steer the association’s activities and represent the interests of businesses operating in the Federal B Area industrial zone. Syed Raza Hussain assumed the position of President following his election. An industrialist and advisor to several business forums, Raza said the new leadership would work to address challenges faced by businesses through greater coordination with relevant stakeholders. Focus on SMEs and Business Growth Strengthening SMEs is expected to remain an important area of focus for the new FBATI leadership. Raza said initiatives would be introduced to promote business and economic activity across the country. Improving the ease of doing business will be among the key priorities as businesses continue to face challenges related to operating costs and the broader regulatory environment. Greater engagement between the business community and policymakers is also expected to help identify practical solutions to issues affecting industrial activity. Reducing Energy Costs for Industry Energy costs remain a significant concern for Pakistan’s industrial sector, with businesses seeking measures that can improve competitiveness and support sustainable growth. Raza said the new FBATI leadership would work toward reducing energy costs. Lower operating expenses could provide businesses with greater room to invest, expand production and create employment opportunities. Artificial Intelligence Adoption on the Agenda The new leadership also plans to encourage the adoption of artificial intelligence across businesses. Raza highlighted AI as an important area for promoting business and economic activity. Wider adoption of emerging technologies could help businesses improve productivity, streamline operations and adapt to changing market requirements. For SMEs in particular, access to practical technology solutions can support efficiency while helping smaller businesses compete in increasingly digital markets. New Office-Bearers Elected Alongside Raza Hussain, FBATI members elected Muhammad Haroon Shamsi as Senior Vice President. Shamsi is a Partner at Shaheen Industries. Imran Haroon, Partner at Globe Dyeing, has been elected Vice President of FBATI. The new office-bearers will work with the association’s industrialist members to advance business interests and address challenges affecting the industrial and SME sectors. Strengthening Public-Private Engagement The new FBATI leadership has indicated that stronger engagement with both public- and private-sector stakeholders will be central to its approach. By maintaining dialogue with policymakers, regulators and other business organisations, the association aims to contribute to solutions related to ease of doing business, energy costs, technology adoption and broader economic activity.

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PHEV Tax Concessions May Cost Govt Rs230bn

SIUT Reaches 1M Women with Breast Cancer Awareness Message

K-Electric Withdraws From GEPCO Privatisation Race

Businesses Voice Grave Concerns Over 15% Surge in Q1 FY27 Trade Deficit

Karachi Climate Action Plan Faces Slow Progress as Experts Call for Stronger Government, Civil Society, and Media Coordination for Mitigation Targets

KSE-100 Falls Over 2,300 Points As Politics And Oil Weigh

Pakistan’s Trade Deficit Climbs to $3.56 Billion in September

Petrol Subsidy and Gas Debt Write-Of Puts Government And IMF At Odds

FBATI President Aims To Strengthen SMEs

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