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ADB-Backed Pakistan Border Connectivity Upgrade Aims to Boost Regional Trade Corridors
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ADB-Backed Pakistan Border Connectivity Upgrade Aims to Boost Regional Trade Corridors

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Pakistan is set to receive a major boost to its trade and transport network through an ADB-backed Pakistan Border Connectivity Upgrade, with a new financing facility expected to be approved in the coming weeks. The initiative aims to modernise border infrastructure, improve logistics, strengthen regional trade corridors and enhance Pakistan’s connectivity with neighbouring countries under the Central Asia Regional Economic Cooperation (CAREC) programme. The development was shared during a meeting between a delegation from the CAREC Secretariat and Federal Minister for Commerce Jam Kamal Khan, where both sides reviewed ongoing regional initiatives designed to expand trade, attract investment and deepen economic integration among CAREC member states. Officials said the proposed Border Connectivity and Logistics Upgrade Facility, backed by the Asian Development Bank (ADB), will play a key role in improving Pakistan’s border management systems, reducing logistical bottlenecks and facilitating faster cross-border movement of goods. ADB Facility to Modernise Border Infrastructure During the meeting, the CAREC delegation informed the Commerce Minister that the ADB-supported facility is expected to receive formal approval within the next few weeks. Once approved, the programme will support the modernisation of Pakistan’s border infrastructure through improvements in logistics facilities, customs operations and transport connectivity. Officials said better border infrastructure would enhance trade efficiency, lower transportation costs and strengthen Pakistan’s position as a regional transit and trade hub linking South Asia with Central Asia and beyond. The initiative also aligns with Pakistan’s broader objective of improving trade competitiveness by developing modern border facilities capable of handling increasing regional trade volumes. Pakistan Advances CAREC Trade Agenda The delegation also briefed the Minister on Pakistan’s active participation in implementing the Regional Trade and Investment Facilitation Partnership (CARIF) framework. According to CAREC officials, the framework is now entering its operational phase and is expected to improve regional trade facilitation, logistics cooperation and cross-border investment among member countries. The CARIF initiative aims to simplify trade procedures, strengthen customs cooperation and encourage greater private sector participation in regional commerce. Officials said Pakistan’s continued engagement demonstrates its commitment to promoting open markets, improving regional supply chains and expanding economic partnerships with neighbouring economies. CAREC Conference in Mongolia to Focus on Regional Growth The meeting also reviewed preparations for the upcoming CAREC Ministerial Conference and Business Forum, scheduled to take place in Mongolia on September 29-30, 2026. The CAREC Secretariat formally invited Commerce Minister Jam Kamal Khan to participate in the event, which is expected to bring together ministers, senior government officials, international development partners, investors and business leaders from across the region. The accompanying Business Forum will focus on key sectors driving regional economic cooperation, including logistics, energy security, critical minerals, digital connectivity, investment opportunities and private-sector collaboration. Officials believe the conference will provide an important platform for strengthening economic partnerships and identifying new investment opportunities across the CAREC region. Regional Chambers Alliance to Boost Private Sector Cooperation The CAREC delegation also shared plans to establish a Regional Chambers Alliance, an initiative supported by the ADB to strengthen business-to-business cooperation among Chambers of Commerce and Industry across member countries. The proposed alliance aims to improve networking opportunities, facilitate commercial partnerships and encourage greater private sector engagement in regional trade initiatives. Officials said stronger institutional cooperation between business organisations would help create new investment opportunities while supporting the growth of regional value chains. The initiative is expected to complement government-led trade facilitation efforts by increasing collaboration between exporters, manufacturers and investors throughout the CAREC region. Digital Corridor Study to Strengthen Regional Connectivity Another key topic discussed during the meeting was the ADB-supported Digital Corridor Study, which includes Pakistan alongside other CAREC member countries. The study seeks to identify opportunities for improving digital infrastructure, expanding cross-border digital connectivity and promoting technology-driven trade across the region. Officials said stronger digital connectivity would support modern customs systems, facilitate e-commerce, improve information sharing and enhance the efficiency of regional supply chains. The project also reflects growing regional efforts to integrate digital technologies into trade and logistics networks to support long-term economic growth. Pakistan Reaffirms Commitment to Regional Integration Commerce Minister Jam Kamal Khan welcomed the continued support of the CAREC Secretariat and the Asian Development Bank in advancing regional economic cooperation. He reaffirmed Pakistan’s commitment to strengthening trade, connectivity and investment partnerships with CAREC member countries through infrastructure development, policy reforms and enhanced regional collaboration. The Minister said initiatives such as the Pakistan Border Connectivity Upgrade, CARIF framework and Digital Corridor Study would contribute to improving Pakistan’s trade competitiveness while creating new opportunities for businesses and investors. With the ADB-backed border infrastructure programme expected to receive approval in the coming weeks, Pakistan is preparing to strengthen its transport and logistics network as part of broader efforts to expand regional commerce and economic integration.

Power Division Blames Finance Ministry As Pakistan Circular Debt Rises To Rs1.675tr
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Power Division Blames Finance Ministry As Pakistan Circular Debt Rises To Rs1.675tr

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Budget Cuts Push Pakistan’s Power Sector Circular Debt Higher Pakistan’s power sector circular debt increased to Rs1.675 trillion by the end of fiscal year 2025-26, with the Power Division attributing the rise to a reduction in budgeted financial support by the Ministry of Finance. According to the ministry, the Pakistan power sector circular debt would have declined further had the full budget allocation for the sector been released. In a statement issued on Tuesday, the Power Division said the circular debt, excluding K-Electric, rose to Rs1.675 trillion on June 30, 2026, compared with Rs1.614 trillion a year earlier. The division maintained that the increase was not caused by operational weaknesses but by a reduction in government funding during the fiscal year. The Power Division stated that a Rs98 billion cut in the allocated budget resulted in an additional Rs61 billion being added to the circular debt stock. The ministry has not yet released its end-of-year financial report, explaining that the document is still awaiting regulatory and statutory approvals. Budget Reduction Blamed For Circular Debt Increase The Power Division said the federal government had initially earmarked Rs893 billion for the power sector in the FY2025-26 budget. However, it said a further Rs98 billion was deducted under the government’s austerity measures before the budget was finally approved. According to the division, if the power sector had received the full amount originally allocated, the circular debt would have fallen to approximately Rs1.577 trillion instead of increasing. Budget documents presented to Parliament showed that Rs1.036 trillion had originally been proposed for power sector subsidies. The allocation was later revised to Rs893 billion during the presentation of the FY2026-27 federal budget. The Power Division now says another Rs98 billion reduction effectively lowered the subsidy allocation to Rs795 billion, limiting the government’s ability to reduce outstanding liabilities. The ministry argued that the increase in circular debt should therefore be viewed as a temporary financial consequence of reduced budgetary support rather than evidence of deteriorating sector performance. IMF Targets And Government Commitments The increase comes despite Pakistan’s commitment under its International Monetary Fund (IMF) programme to prevent any further accumulation of circular debt while gradually reducing the overall stock. The Power Division noted that Pakistan successfully achieved its end-December 2025 circular debt target, a milestone that was acknowledged and appreciated by the IMF during programme reviews. Officials maintained that the latest increase was largely driven by fiscal adjustments rather than failures in reform implementation, stressing that the government’s broader commitments under the IMF programme remain unchanged. Distribution Company Losses Continue To Decline While explaining the rise in circular debt, the Power Division highlighted improvements in the operational performance of state-owned electricity distribution companies (DISCOs). According to the ministry, distribution company losses declined significantly over the past two fiscal years. Losses stood at Rs591 billion in FY2023-24 before falling by Rs193 billion to Rs397 billion in FY2024-25. During FY2025-26, the Power Division said those losses were reduced further to Rs326 billion, representing a cumulative decline of Rs265 billion over two years. Officials described the reduction as evidence that ongoing reforms aimed at improving operational efficiency, reducing electricity theft, and strengthening financial management are beginning to deliver measurable results. Power Division Defends Reform Programme The Power Division insisted that recent financial data demonstrate continued progress in restructuring Pakistan’s electricity sector. It said the reforms introduced across the energy sector have strengthened operational performance while reducing financial losses, despite budgetary pressures faced by the government. According to the ministry, the latest increase in Pakistan power sector circular debt should not be interpreted as a reversal of reform efforts because it resulted primarily from lower-than-expected budgetary support rather than inefficiencies within power companies. Officials maintained that improvements in the financial health of distribution companies reflect sustained policy implementation and better governance across the sector. Govt Reaffirms Commitment To Sustainable Energy Sector The Power Division said it remains committed to continuing reforms designed to make Pakistan’s electricity sector financially sustainable while ensuring reliable power supply for consumers. It reiterated that the budget reduction was a temporary fiscal measure linked to broader government austerity efforts and not an indication of weakening sector performance. Going forward, officials said the government will continue implementing structural reforms aimed at reducing losses, improving recoveries, strengthening the financial position of power companies, and gradually lowering the country’s circular debt in line with commitments made under the IMF programme.

Pakistan Palm Oil Imports Hit Record 3.48 Million Tonnes as Tax Changes Threaten Cooking Oil Prices
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Pakistan Palm Oil Imports Hit Record 3.48 Million Tonnes as Tax Changes Threaten Cooking Oil Prices

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Pakistan Palm Oil Imports surged to an all-time high during fiscal year 2025-26, highlighting the country’s growing dependence on imported edible oil while exposing long-standing policy failures that continue to threaten food security and consumer affordability. According to the Pakistan Bureau of Statistics (PBS), the country imported 3.482 million tonnes of palm oil worth $3.785 billion in FY26, compared to 3.214 million tonnes valued at $3.4 billion in the previous fiscal year. The latest figures underline not only increasing domestic demand but also Pakistan’s inability to develop a sustainable edible oil production strategy despite decades of reliance on costly imports. Pakistan Palm Oil Imports Continue to Rise Despite Higher Global Prices The average import price of palm oil increased to $1,078 per tonne during FY26 from $1,056 per tonne in FY25. Although the increase appears modest, the higher import volume significantly raised Pakistan’s overall import bill, placing additional pressure on the country’s foreign exchange reserves. Industry experts believe the demand for edible oil is expanding much faster than domestic agricultural production. Population growth, urbanisation and changing consumption patterns have pushed annual edible oil consumption to approximately 4.8 million tonnes, up from around four million tonnes just five years ago. This widening gap between demand and domestic production continues to force Pakistan to rely heavily on imported palm oil, leaving consumers vulnerable to international price fluctuations and currency depreciation. Lack of an Edible Oil Policy Raises Serious Questions Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan criticised successive governments for failing to introduce a comprehensive edible oil policy since the country’s independence. His criticism raises an important question: how can a nation importing billions of dollars worth of edible oil every year continue without a long-term strategy to reduce dependence on imports? While policymakers frequently discuss food security, little progress has been made to encourage large-scale cultivation of oilseed crops such as sunflower, canola and soybean. Production of traditional oilseed crops, including cottonseed, has also remained weak, further widening Pakistan’s import dependence. Without structural reforms and investment in domestic agriculture, the country’s edible oil import bill is likely to continue rising year after year. New Tax Mechanism Could Increase Cooking Oil Prices Another major concern for consumers is the Federal Budget FY27, which introduced a new sales tax mechanism for the edible oil and ghee sector. Under the revised taxation framework, sales tax will now be calculated on the Maximum Retail Price (MRP) instead of the ex-mill price. Industry representatives argue that this change will substantially increase the tax burden on manufacturers. According to the PVMA, the revised mechanism could raise retail prices of ghee and cooking oil by approximately Rs10 to Rs15 per kilogram, adding another layer of inflation for already burdened households. The association has also criticised the Federal Board of Revenue (FBR), alleging that instead of simplifying tax compliance and improving the business environment, the authority is introducing additional complexities for manufacturers. Consumers Already Paying Higher Prices Market data already reflects a gradual increase in edible oil prices across Pakistan. The national average price of a five-litre cooking oil container currently ranges between Rs2,975 and Rs3,110, compared with Rs2,800 to Rs3,000 a year earlier. Similarly, 2.5-kilogram packs of ghee now sell for Rs1,500 to Rs1,565, while one-kilogram packs are priced between Rs590 and Rs610, both recording noticeable increases over the previous year. Although these increases appear moderate individually, they add significant financial pressure on millions of households already struggling with inflation and rising living costs. Pakistan Must Reduce Import Dependence The record Pakistan Palm Oil Imports should serve as a wake-up call for policymakers. Increasing imports may satisfy immediate demand, but they also expose the economy to external price shocks, exchange rate volatility and growing pressure on foreign reserves. Rather than relying almost entirely on imported edible oil, Pakistan urgently needs a comprehensive national strategy that encourages domestic oilseed cultivation, supports farmers through targeted incentives and promotes investment in modern agricultural technology. Without meaningful reforms, consumers will continue paying higher prices while the country’s import bill keeps climbing. The record-breaking Pakistan Palm Oil Imports in FY26 demonstrate both the strength of domestic demand and the weaknesses in Pakistan’s agricultural and food security policies. As new taxation measures threaten to push cooking oil and ghee prices even higher, the government faces increasing pressure to balance revenue collection with consumer protection. Unless long-overdue structural reforms are implemented, Pakistan’s dependence on imported edible oil is likely to deepen, making future price shocks even more difficult to manage.

PTCL Swings To Profit In Q2 As Revenue Climbs; Still No Dividend Recommended
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PTCL Swings To Profit In Q2 As Revenue Climbs; Still No Dividend Recommended

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PTCL Returns To Profit In Second Quarter Pakistan Telecommunication Company Limited (PTCL) reported a turnaround in profitability for the quarter and half-year ended 30 June 2026, reversing prior-year losses on both unconsolidated and consolidated bases. The Board of Directors, meeting on 28 July 2026 in Islamabad, recommended no cash dividend, bonus shares, right shares or other entitlement. Unconsolidated Results Revenue for the three months rose 10% to Rs32.24 billion from Rs29.31 billion a year earlier. Gross profit stood at Rs8.67 billion against Rs8.27 billion. Operating profit improved to Rs3.93 billion from Rs3.69 billion. After a much smaller past-service pension cost (Rs355 million versus Rs5.89 billion last year) and higher other income, the company posted a pre-tax profit of Rs2.66 billion compared with a loss of Rs4.82 billion. Net profit for the quarter was Rs2.73 billion (EPS Rs0.53) against a loss of Rs4.44 billion (LPS Rs0.87). For the six months, revenue reached Rs63.75 billion (up from Rs58.91 billion). Net profit was Rs3.63 billion (EPS Rs0.71) versus a loss of Rs3.26 billion (LPS Rs0.64). Consolidated Results Group revenue jumped sharply to Rs103.82 billion in the quarter from Rs62.75 billion, lifting gross profit to Rs37.12 billion from Rs20.81 billion. Operating profit more than doubled to Rs15.90 billion from Rs7.40 billion. Net profit for the three months was Rs1.60 billion (EPS Rs0.31) against a loss of Rs5.93 billion (LPS Rs1.16). For the half-year, consolidated revenue rose to Rs201.67 billion from Rs124.60 billion and net profit stood at Rs4.67 billion (EPS Rs0.92) versus a loss of Rs9.90 billion (LPS Rs1.94). Cash Flow And Financial Position Finance costs remained elevated on both bases. Net cash generated from operating activities strengthened, though investing and financing outflows kept overall cash positions under pressure. Equity on the unconsolidated balance sheet improved to Rs130.73 billion at 30 June 2026 from Rs127.10 billion at year-end 2025. No Dividend Recommended The Board of Directors recommended no cash dividend, bonus shares, right shares or any other entitlement for shareholders. The quarterly report will be transmitted through PUCARS within the prescribed timeframe.

Govt Picks Rs98bn Interest Cost To Push Exports With Cheap 5% Long-Term Loans
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Govt Picks Rs98bn Interest Cost To Push Exports With Cheap 5% Long-Term Loans

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Government Approves Rs98 Billion Export Support Package ISLAMABAD: The government on Monday approved a Rs98 billion subsidy to provide highly cheaper loans to exporters, including 10-year financing at a fixed 5% rate, in a fresh bid to reverse a 6% drop in exports during the last fiscal year. Three Schemes Cleared By ECC Performance Rebate And Long-Term Facility Launched The Economic Coordination Committee, chaired by Finance Minister Muhammad Aurangzeb, endorsed three schemes recommended by the central bank for the current fiscal year and beyond. Under the enhanced Exim-administered Export Finance Scheme, exporters will access six-month working capital loans at 8.5%. The government will pick the remaining 5% interest cost, requiring a Rs58 billion subsidy this year. The scheme’s portfolio has been raised from Rs1 trillion to Rs1.5 trillion to expand access. Some ECC members sought caps on maximum limits to ensure wider distribution of cheaper funds. New Long-Term Financing Facility For Export Growth A new Long-Term Export Growth Financing Facility will offer loans at 2% for the first two years and a fixed 5% for the subsequent eight years. It targets new export-oriented projects and balancing, modernisation and replacement of existing units. Loans of Rs350 billion are projected under the facility, with a total subsidy impact of around Rs196 billion over time as the government absorbs interest costs up to 11.5%. This year’s estimated cost is Rs25 billion. The existing long-term facility with variable rates had drawn limited interest due to rate risk. The fixed-rate structure is designed to remove that uncertainty for businesses planning capacity expansion. Performance-Based Rebates To Reward Export Growth The third measure is a performance-based rebate on incremental exports, effective from July 1, 2026, at an annual cost of Rs15 billion. Exporters achieving up to 10% growth over the previous year will receive a 1% rebate on the incremental value. Those recording growth above 10% will qualify for a 2% rebate. The finance ministry said the total estimated subsidy impact of the export schemes over 10 years stands at Rs270 billion at current interest rates. The government last month withdrew a Rs76 billion subsidy on foreign remittance transfer costs, signalling a clear preference for export promotion. Exports trailed remittances by $11.5 billion in the last fiscal year. The ECC directed that a six-month performance report on the new schemes be presented to assess their impact. Officials noted that earlier incentives had failed to prevent the 6% export decline. Focus Shifts Towards SMEs And Sustainable Export Expansion The package places emphasis on fixed low-rate financing and greater inclusion of small and medium enterprises.

Pakistan Exports to Saudi Arabia, Qatar Decline as Regional Tensions Hurt Trade
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Pakistan Exports to Saudi Arabia, Qatar Decline as Regional Tensions Hurt Trade

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Pakistan’s exports to Middle East countries declined by more than 2 per cent during fiscal year 2025-26 (FY26), reflecting the impact of prolonged geopolitical tensions and conflict in the region on bilateral trade. According to data compiled by the State Bank of Pakistan (SBP), exports to Middle Eastern markets fell to $3.093 billion in FY26 from the previous fiscal year, as shipments to several key destinations weakened amid ongoing instability in the region. The decline highlights the growing challenges facing Pakistani exporters as conflicts in the Middle East continue to disrupt supply chains, trade routes and business activity. Exports Decline Across Major Markets Pakistan recorded lower exports to several important trading partners, including Saudi Arabia, Qatar, Bahrain and Jordan, during FY26. Among the Gulf countries, Saudi Arabia remained one of Pakistan’s largest export destinations despite a decline in trade. Exports to the Kingdom fell 3 per cent to $682.56 million in FY26 compared with $706.04 million recorded in the previous fiscal year. Exports to Qatar, Bahrain and Jordan also registered declines during the year, reflecting weaker regional demand and the impact of ongoing geopolitical uncertainty. However, Kuwait stood out as the only major market in the region where Pakistani exports increased during FY26. Meanwhile, exports to the United Arab Emirates (UAE)—Pakistan’s largest export market in the Middle East—remained largely unchanged, helping limit the overall decline in regional exports. Imports Also Register Decline Pakistan’s imports from the Middle East also contracted during FY26. According to the SBP data, imports declined 4 per cent to $16.413 billion, compared with $17.097 billion in the previous fiscal year. The reduction was primarily driven by lower imports from Bahrain, Qatar and Kuwait, while imports from the UAE, Saudi Arabia and Jordan recorded growth during the same period. The decline in imports reflects changing trade patterns as Pakistan adjusted its purchasing decisions amid volatile global energy prices and regional security concerns. June Marks Fourth Consecutive Monthly Contraction Trade data showed that June became the fourth month of import contraction since March, underlining the continued impact of geopolitical developments on Pakistan’s external trade. The trend suggests that Pakistan’s import flows remain highly sensitive to developments in the Middle East, particularly disruptions affecting regional energy corridors and shipping routes. Rising geopolitical risks have increased uncertainty in international commodity markets, influencing both the availability and cost of imported goods. Pakistan Remains Dependent on Gulf Energy Supplies Despite the decline in overall imports, Pakistan continues to rely heavily on the Gulf region for its energy requirements. The data indicates that approximately 90 per cent of Pakistan’s energy imports originate from the United Arab Emirates and Saudi Arabia, making the two countries the nation’s primary energy suppliers. Other Gulf producers—including Qatar, Kuwait, Oman and Bahrain—continue to play supporting roles in Pakistan’s energy imports despite their significant production and export capacity. The country’s heavy dependence on Middle Eastern oil and petroleum products means that any disruption in regional supply chains can have a direct impact on Pakistan’s economy, inflation and energy security. Trade Deficit Narrows in FY26 Although exports declined, Pakistan’s trade deficit with the Middle East narrowed during FY26 due to the sharper fall in imports. The trade deficit decreased 4.48 per cent to $13.32 billion, compared with $13.94 billion in the previous fiscal year. The improvement follows a challenging FY25, when Pakistan’s trade deficit with the Middle East widened 7.37 per cent to $13.97 billion, up from $13.01 billion recorded in FY24. The narrower deficit suggests that slower import growth helped offset weaker export performance, although Pakistan continues to maintain a substantial trade imbalance with the region. Regional Stability Remains Crucial The latest trade figures underline the importance of stability in the Middle East for Pakistan’s external sector. The Gulf region remains one of Pakistan’s most significant trading partners, supplying the bulk of its energy imports while also serving as an important destination for Pakistani food products, textiles, surgical instruments and other manufactured goods. Analysts believe that sustained geopolitical tensions could continue to affect trade volumes, shipping costs and business confidence in the coming months. Conversely, an improvement in regional stability could support stronger export growth and smoother import flows, particularly in the energy sector. With the UAE and Saudi Arabia remaining Pakistan’s key economic partners in the Middle East, future trade performance will largely depend on global oil market conditions, regional security and the pace of economic activity across Gulf economies.

Rising Scams Force Banks to Embrace Real-Time AI Detection
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Rising Scams Force Banks to Embrace Real-Time AI Detection

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Fraud complaints lodged with Banking Mohtasib Pakistan climbed to 4,615 in 2025, up from 4,171 a year earlier and 3,489 in 2023, underscoring the rising pressure on the country’s banking system amid rapid digital expansion. Rising Cyber Threats Outpace Traditional Defences Phishing attacks surged tenfold between 2019 and 2023, while other cyber threats, including malware and stolen credentials, rose eightfold over the same period, according to cybersecurity firm CTM360. Conventional rule-based monitoring systems are struggling to keep pace with increasingly sophisticated tactics such as fake social media ads, UAN spoofing and identity theft. AI Offers Real-Time Edge Over Rule-Based Systems AI-powered platforms can analyse millions of transactions in real time, flag unusual behavioural patterns and stop suspicious activity before funds leave accounts. Muhammad Waleed, an AI quality engineering expert, said the technology improves both speed and accuracy by combining machine learning, deep learning and big data analytics. Banks, regulators and technology providers must therefore build technical capacity to deploy these systems effectively across commercial banks, branchless banking and fintech platforms. Continuous Innovation Is Essential for Fraud Prevention Abdus Samad Khan, CEO of iPath, called for continuous testing, upgrades and expert feedback so that fraud-management systems evolve as fast as the threats themselves. Pakistan’s financial inclusion index reached 58.1 in 2024, with account ownership at 67 percent, yet the quality sub-index lagged at 43.9, highlighting gaps in service standards and security. The State Bank of Pakistan’s National Financial Inclusion Strategy 2024-28 prioritises consumer protection and stronger cybersecurity frameworks in coordination with PKCERT. A Multi-Layered Approach Is Critical Experts stress that technology alone is not enough. AI must be paired with financial literacy campaigns, customer awareness drives, tighter regulatory oversight and closer cooperation with law-enforcement agencies. Without this multi-layered approach, the same digital channels that expand access risk eroding public trust through higher fraud losses.

China Unveils Hybrid Rice Cloning Technology to Cut Seed Production Costs
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China Unveils Hybrid Rice Cloning Technology to Cut Seed Production Costs

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Chinese researchers have achieved a major scientific breakthrough by developing hybrid rice cloning technology that allows hybrid rice plants to reproduce through cloning rather than traditional fertilisation. The innovation has the potential to revolutionise seed production, significantly reduce farming costs, and improve global food security by preserving the superior characteristics of hybrid rice across multiple generations. The breakthrough was made by a research team led by Wang Kejian from the China National Rice Research Institute. Scientists discovered a naturally occurring rice gene called HUAXU, which enables egg cells in hybrid rice to initiate parthenogenesis, a natural process in which seeds develop without fertilisation. The findings have been published in the scientific journal Vita, highlighting a major advance in crop breeding technology. Hybrid Rice Cloning Technology Preserves Superior Genetic Traits Researchers combined the HUAXU gene with an advanced cloned gamete technique to create several apomictic rice lines capable of producing seeds that are almost genetically identical to the parent plant. Unlike conventional breeding methods, this process allows hybrid rice plants to reproduce without losing their desirable traits, making hybrid rice cloning technology one of the most promising developments in modern agriculture. According to the research team, laboratory experiments and field trials produced remarkable results. The cloning success rate reached nearly 100%, while tests conducted across different rice varieties, environmental conditions, and successive planting generations consistently recorded efficiencies exceeding 99%. Importantly, researchers observed no reduction in crop yields, demonstrating that the technology maintains both productivity and genetic stability. Scientists Aim to Replace Traditional Hybrid Seed Systems The achievement represents a significant step towards developing what scientists describe as a “one-line hybrid rice” production system. Current hybrid rice breeding relies on two-line and three-line systems that require fresh hybrid seed production every planting season. Although hybrid rice delivers higher yields because of hybrid vigour, these genetic advantages gradually disappear in later generations due to natural genetic segregation. As a result, farmers around the world are forced to purchase new hybrid seeds each year to maintain crop performance. This annual process increases production costs for seed companies and creates additional financial burdens for farmers, particularly in developing countries where agriculture remains a primary source of income. Hybrid Rice Cloning Could Reduce Farming Costs The newly developed hybrid rice cloning technology aims to eliminate this long-standing challenge. By enabling hybrid rice plants to produce clonal seeds through apomixis, the technology allows future generations of rice plants to retain the exact genetic characteristics of the original hybrid variety. This means farmers could potentially save seeds from one harvest and replant them without losing the high-yield traits that make hybrid rice so valuable. In principle, researchers say a single hybridisation event could provide seed supplies for continuous cultivation over many generations. Such an approach would dramatically simplify hybrid seed production while lowering costs throughout the agricultural supply chain. It could also make high-performing rice varieties more accessible to farmers in regions where purchasing new seeds every season is financially difficult. Technology Could Strengthen Global Food Security Rice remains the staple food for more than half of the world’s population, making improvements in rice production essential for ensuring long-term food security. As climate change, population growth, and shrinking agricultural land place increasing pressure on global food systems, scientists continue searching for innovative ways to increase crop productivity while reducing production costs. Experts believe this new breeding approach could play an important role in addressing those challenges. Stable hybrid varieties capable of reproducing through cloning would enable farmers to consistently harvest high-yield crops without repeatedly investing in expensive hybrid seeds. The technology may also reduce the complexity of commercial seed production, making agricultural systems more efficient and resilient. Future Applications Extend Beyond Rice According to Wang Kejian, the breakthrough addresses one of the most persistent challenges in crop breeding by making it possible to permanently preserve hybrid vigour through seeds. He said the technology could pave the way for lower seed production costs, greater agricultural efficiency, and stronger long-term food security. Beyond rice cultivation, the discovery could have broader implications for crop science. If similar genetic mechanisms are identified in other staple crops, scientists may eventually apply comparable cloning techniques to improve wheat, maize, and other important food crops. Such advances could help strengthen global food supplies while supporting sustainable agricultural development in the coming decades. Although further research and regulatory evaluations will be required before the technology is adopted on a commercial scale, the discovery marks an important milestone in agricultural biotechnology. Scientists believe hybrid rice cloning technology could fundamentally reshape the future of crop breeding by allowing hybrid crops to maintain their superior performance indefinitely. The Future of Hybrid Rice Cloning Technology As research progresses, this innovation may become one of the most significant advances in modern agriculture, offering farmers a practical solution to improve productivity while contributing to global efforts to ensure a stable and sustainable food supply for future generations.

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

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

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

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

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