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National Refinery Limited says petroleum levy killed 95 RON just as Pakistan needed cleaner petrol ## 95 RON Petrol Was Taxed Out of the Market National Refinery Limited spent a year developing and producing higher-octane petrol. But according to its FY2026 annual report, a steep petroleum levy eventually “effectively eliminated” sales of its 95 RON Mogas. The company had introduced the premium grade to meet demand for cleaner, higher-octane fuel while improving refining margins beyond ordinary Mogas. NRL’s Directors’ Report says the government subsequently imposed an “exorbitantly high” petroleum levy on the product. The result, according to the refinery, was not weak consumer demand but a price structure that made the premium grade commercially unviable. The development comes as Pakistan continues to rely heavily on petroleum levies for fiscal revenue. The government collected more than Rs1.56 trillion in petroleum levy during FY26. ## Record Gasoline Output Failed to Translate Into a Premium-Fuel Success NRL nevertheless recorded its highest-ever motor gasoline production, at around 282,840 metric tons. However, the increase did not translate into the premium-fuel growth story the refinery had initially expected. Instead, cheaper grades filled the gap created by the policy environment surrounding 95 RON petrol. The episode highlights a broader challenge for Pakistan’s refining sector: companies are being encouraged to produce cleaner, higher-value fuels while simultaneously facing taxes and levies that can undermine their commercial viability. ## Hormuz Crisis Transformed the Refining Year NRL’s FY26 performance was heavily influenced by geopolitical disruption. Until February, refining margins remained weak and smuggled fuel continued to put pressure on domestic demand. The situation changed dramatically when the US-Iran conflict disrupted shipping through the Strait of Hormuz, a critical global oil transit route. The disruption created significant challenges for NRL. One of the company’s crude cargoes remained stranded for almost a month, while crude prices reached as high as $167 per barrel in a single day. Freight and war-risk premiums reportedly increased around tenfold. Lighter Aramco grades became unavailable, leaving heavier crude from Yanbu as one of the key available feedstocks. ## Heavier Crude Created a Diesel Yield Problem The shift toward heavier crude had consequences for product yields. Diesel cracks were among the few positive elements in the refining market, yet heavier crude reduced the refinery’s ability to maximise diesel output. NRL responded by purchasing locally produced crude that had been destined for export, securing ADNOC spot cargoes and rerouting shipments through the Red Sea. These measures helped keep the refinery operating despite the disruption. Throughput increased to around 70 percent from 56 percent a year earlier. HSD sales climbed 26 percent, while gasoline sales increased 34 percent. ## War Boosted Margins but Left a Costly Inventory Bill The geopolitical shock did not translate into a straightforward improvement in annual profitability. After the ceasefire, petroleum prices declined sharply. NRL was left holding high-cost inventory, resulting in an estimated year-end net realisable value loss of around Rs7 billion. The sequence illustrates the volatility of refining during a geopolitical crisis: margins can rise sharply during supply disruptions, but falling prices can quickly turn those gains into inventory losses. ## Profit Rebounds but Dividend Remains Absent NRL reported a net profit after tax of Rs6.16 billion for FY26, compared with a loss of Rs14.87 billion a year earlier. Earnings per share also turned positive, rising to Rs77.09 from a loss per share of Rs185.91. Despite the turnaround, the Board did not recommend a dividend, with capital requirements for refinery upgrades taking priority. The profit recovery therefore comes with significant caveats, particularly when the company’s policy-related costs and other charges are taken into account. ## Rs1.82bn Payment to PSO Adds to Policy Pressure In April 2026, the government required refineries to transfer part of their HSD-era gains. NRL’s share amounted to Rs1.82 billion, which was paid to Pakistan State Oil and deducted from revenue. The refinery also faced repeated changes to diesel pricing mechanisms. Pricing moved through several structures, including weekly adjustments, crude-linked pricing and eventually daily revisions after the financial year ended. The shifting framework has added uncertainty to refinery earnings and investment planning. ## Brownfield Policy Creates Another Financial Burden NRL also booked around Rs8.2 billion through June 2026 in connection with deemed duty under the Brownfield Refining Policy. The company says it completed the relevant signing formalities in March 2024 and had already invested in Euro-V HSD production as far back as 2017. NRL is contesting the charge, but the accounts still reflect the financial impact. The dispute comes at a time when refineries are under pressure to commit billions of dollars to modernisation and cleaner fuel production. ## Tax Changes Further Reduced Cash Flow The refinery also faced the impact of changes to Pakistan’s tax regime. Crude customs duty linked to deregulated products, amounting to around Rs6.7 billion through June 2025, was written off. NRL estimates the cumulative impact of related charges at approximately Rs13.5 billion. The Finance Act 2024 also classified motor spirit, HSD, kerosene and LDO as exempt supplies. NRL says this eliminated around 70 percent of its input sales tax claims. Super tax, turnover tax, alternate corporate tax and changes to the treatment of export income further increased the tax burden. Chairman Shuaib A. Malik said in his review that profit would have been “significantly higher” without these charges. ## Furnace Oil Market Collapses The refinery’s furnace oil business faced an even more dramatic decline. Local furnace oil sales plunged around 95 percent following the petroleum levy introduced through the Finance Act 2025, falling from 93,792 tons to just 5,065 tons. NRL responded by exporting 280,726 tons of furnace oil, compared with 180,726 tons previously. However, export realisations remained below crude costs as well as the previous local market price, limiting the financial benefit of shifting volumes overseas. ## Smuggling and Imports Continue to Weigh on Demand NRL also identified fuel smuggling and excessive imports as persistent threats to domestic demand. These pressures forced the refinery to manage throughput carefully even after market conditions improved. The weakening rupee added another layer of pressure by increasing the cost of crude payments and creating foreign exchange losses. Utility expenses, freight costs and letters-of-credit charges also continued to consume working capital. ## EVs Add to the Long-Term Refining Challenge Beyond immediate market and policy pressures, NRL sees structural changes emerging in the petroleum market. The growing adoption of electric vehicles could gradually reduce demand for conventional fuels. At the same time, global markets are moving away from furnace oil, creating another challenge for refineries with older configurations. NRL’s credit profile also carries some uncertainty. PACRA maintained the company’s AA/A1 ratings but assigned a “developing” outlook and kept the refinery under watch. ## NRL Plans Further Investment and Upgrades The company is looking at several operational initiatives to strengthen its position. NRL has highlighted plans involving lighter crude processing, higher HSD and Mogas production, wax sales, the turnaround of its Lube-I unit and repairs to its BTX facility. A Wood study is also being undertaken to assess potential refinery upgrades. These measures represent the operational response to a rapidly changing refining environment. But the company’s report suggests that investment decisions will remain closely tied to government taxation, pricing rules and the economics of upgraded products. ## The Bigger Policy Question NRL’s FY26 results tell a complicated story. The refinery returned to profitability, increased throughput and kept its supply chain functioning during a period of severe geopolitical disruption. Yet at the same time, policy charges, taxation changes, the collapse of furnace oil demand and fuel smuggling continued to weigh on its underlying economics. The 95 RON episode is perhaps the clearest example. Pakistan needs cleaner, higher-quality fuels and wants its refineries to invest billions of dollars in modernisation. But if the fiscal framework makes premium products commercially unattractive, the incentive to invest becomes weaker. NRL’s own theme for the year was “Beyond the Barrel.” Its annual report suggests that moving beyond the barrel will require more than new technology and capital. It will also require a policy framework that allows cleaner and higher-value refinery products to survive in the market. ### SEO Optimized Keywords National Refinery Limited, NRL FY2026 results, petroleum levy Pakistan, 95 RON petrol Pakistan, NRL 95 RON Mogas, Pakistan refinery sector, Brownfield Refinery Policy, Pakistan petroleum levy, Euro-V fuel Pakistan, NRL profit FY26, furnace oil Pakistan, refinery upgrades Pakistan, Pakistan refining industry, HSD deemed duty, NRL annual report 2026 ### Focus Keyphrase NRL 95 RON Petrol Petroleum Levy ### Meta Description NRL’s FY2026 report says a steep petroleum levy wiped out 95 RON Mogas sales, while policy charges, furnace oil losses and smuggling pressure the refinery’s recovery.
Pakistan

National Refinery Limited Says Petroleum Levy Killed 95 RON Just as Pakistan Needed Cleaner Petrol

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95 RON Petrol Was Taxed Out of the Market National Refinery Limited spent a year developing and producing higher-octane petrol. But according to its FY2026 annual report, a steep petroleum levy eventually “effectively eliminated” sales of its 95 RON Mogas. The company had introduced the premium grade to meet demand for cleaner, higher-octane fuel while improving refining margins beyond ordinary Mogas. NRL’s Directors’ Report says the government subsequently imposed an “exorbitantly high” petroleum levy on the product. The result, according to the refinery, was not weak consumer demand but a price structure that made the premium grade commercially unviable. The development comes as Pakistan continues to rely heavily on petroleum levies for fiscal revenue. The government collected more than Rs1.56 trillion in petroleum levy during FY26. Record Gasoline Output Failed to Translate Into a Premium-Fuel Success NRL nevertheless recorded its highest-ever motor gasoline production, at around 282,840 metric tons. However, the increase did not translate into the premium-fuel growth story the refinery had initially expected. Instead, cheaper grades filled the gap created by the policy environment surrounding 95 RON petrol. The episode highlights a broader challenge for Pakistan’s refining sector: companies are being encouraged to produce cleaner, higher-value fuels while simultaneously facing taxes and levies that can undermine their commercial viability. Hormuz Crisis Transformed the Refining Year NRL’s FY26 performance was heavily influenced by geopolitical disruption. Until February, refining margins remained weak and smuggled fuel continued to put pressure on domestic demand. The situation changed dramatically when the US-Iran conflict disrupted shipping through the Strait of Hormuz, a critical global oil transit route. The disruption created significant challenges for NRL. One of the company’s crude cargoes remained stranded for almost a month, while crude prices reached as high as $167 per barrel in a single day. Freight and war-risk premiums reportedly increased around tenfold. Lighter Aramco grades became unavailable, leaving heavier crude from Yanbu as one of the key available feedstocks. Heavier Crude Created a Diesel Yield Problem The shift toward heavier crude had consequences for product yields. Diesel cracks were among the few positive elements in the refining market, yet heavier crude reduced the refinery’s ability to maximise diesel output. NRL responded by purchasing locally produced crude that had been destined for export, securing ADNOC spot cargoes and rerouting shipments through the Red Sea. These measures helped keep the refinery operating despite the disruption. Throughput increased to around 70 percent from 56 percent a year earlier. HSD sales climbed 26 percent, while gasoline sales increased 34 percent. War Boosted Margins but Left a Costly Inventory Bill The geopolitical shock did not translate into a straightforward improvement in annual profitability. After the ceasefire, petroleum prices declined sharply. NRL was left holding high-cost inventory, resulting in an estimated year-end net realisable value loss of around Rs7 billion. The sequence illustrates the volatility of refining during a geopolitical crisis: margins can rise sharply during supply disruptions, but falling prices can quickly turn those gains into inventory losses. Profit Rebounds but Dividend Remains Absent NRL reported a net profit after tax of Rs6.16 billion for FY26, compared with a loss of Rs14.87 billion a year earlier. Earnings per share also turned positive, rising to Rs77.09 from a loss per share of Rs185.91. Despite the turnaround, the Board did not recommend a dividend, with capital requirements for refinery upgrades taking priority. The profit recovery therefore comes with significant caveats, particularly when the company’s policy-related costs and other charges are taken into account. Rs1.82bn Payment to PSO Adds to Policy Pressure In April 2026, the government required refineries to transfer part of their HSD-era gains. NRL’s share amounted to Rs1.82 billion, which was paid to Pakistan State Oil and deducted from revenue. The refinery also faced repeated changes to diesel pricing mechanisms. Pricing moved through several structures, including weekly adjustments, crude-linked pricing and eventually daily revisions after the financial year ended. The shifting framework has added uncertainty to refinery earnings and investment planning. Brownfield Policy Creates Another Financial Burden NRL also booked around Rs8.2 billion through June 2026 in connection with deemed duty under the Brownfield Refining Policy. The company says it completed the relevant signing formalities in March 2024 and had already invested in Euro-V HSD production as far back as 2017. NRL is contesting the charge, but the accounts still reflect the financial impact. The dispute comes at a time when refineries are under pressure to commit billions of dollars to modernisation and cleaner fuel production. Tax Changes Further Reduced Cash Flow The refinery also faced the impact of changes to Pakistan’s tax regime. Crude customs duty linked to deregulated products, amounting to around Rs6.7 billion through June 2025, was written off. NRL estimates the cumulative impact of related charges at approximately Rs13.5 billion. The Finance Act 2024 also classified motor spirit, HSD, kerosene and LDO as exempt supplies. NRL says this eliminated around 70 percent of its input sales tax claims. Super tax, turnover tax, alternate corporate tax and changes to the treatment of export income further increased the tax burden. Chairman Shuaib A. Malik said in his review that profit would have been “significantly higher” without these charges. Furnace Oil Market Collapses The refinery’s furnace oil business faced an even more dramatic decline. Local furnace oil sales plunged around 95 percent following the petroleum levy introduced through the Finance Act 2025, falling from 93,792 tons to just 5,065 tons. NRL responded by exporting 280,726 tons of furnace oil, compared with 180,726 tons previously. However, export realisations remained below crude costs as well as the previous local market price, limiting the financial benefit of shifting volumes overseas. Smuggling and Imports Continue to Weigh on Demand NRL also identified fuel smuggling and excessive imports as persistent threats to domestic demand. These pressures forced the refinery to manage throughput carefully even after market conditions improved. The weakening rupee added another layer of pressure by increasing the cost of crude payments and creating foreign exchange losses. Utility expenses, freight costs and letters-of-credit charges also

Sazgar Flags Rival Models, Pricing, and After-Sales as Share Threat
Pakistan

Sazgar Flags Rival Models, Pricing, and After-Sales as Share Threat

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Record Year Puts Competition Under the Spotlight Sazgar Engineering Works Limited delivered a record performance in FY26, but its annual report places competitive pressure firmly among the company’s key risks. The company warned that new models, aggressive pricing and stronger after-sales offers from competitors could affect its revenue, profitability and market share. Emerging competitors have also been identified as a threat in Sazgar’s SWOT analysis. At the same time, the company acknowledged an internal weakness: it is not fully capitalising on available marketing opportunities. Sales Reach Record High While Margins Narrow Sazgar’s net sales increased 76 percent to Rs191.7 billion from Rs108.7 billion a year earlier. Profit after tax rose 45 percent to Rs23.6 billion from Rs16.3 billion. The revenue figure represents the strongest sales year in the company’s history. However, profit growth lagged behind the pace of sales expansion, with net margin declining to 12.3 percent from 15.0 percent. Four-wheelers remained the main contributor, generating Rs180.7 billion of total sales. During the year, Sazgar sold 19,179 four-wheelers, 26,845 three-wheelers and 42,980 tractor wheel rims. While three-wheelers and tractor rims remain important to the company’s broader business, the central competitive battle is increasingly focused on its GWM-linked SUV range. New Models and Pricing Could Reshape Market Share According to the directors’ report, competitors can put pressure on Sazgar through aggressive pricing, new product launches, warranty policies and stronger after-sales commitments. These factors are identified as principal risks alongside issues such as currency movements, CKD supplies and tax policy. Pakistan’s passenger-car and SUV market is becoming increasingly competitive, with existing assemblers and newer energy-focused brands adding models and expanding their market offers. For customers considering vehicles such as Haval or Tank, factors such as a longer warranty, better after-sales support or more attractive financing can influence the final purchase decision. Sazgar says it monitors competitors and intends to respond according to product and regional market conditions if demand or market share weakens. Marketing Remains an Internal Weakness Sazgar’s SWOT analysis offers an interesting assessment of its own position. The company identifies its brand, product quality, manufacturing capacity and people among its strengths. However, its stated weakness is the underutilisation of marketing opportunities. That admission stands out against a year of record sales. It suggests that while manufacturing capacity and product demand have expanded rapidly, Sazgar sees room to strengthen the marketing effort supporting its growing portfolio. The company also identifies several opportunities, including stronger brand management, new models with upgraded technology, expansion of its dealership network and localisation of imported parts. CKD Dependence Adds to Competitive Pressure Competitive pressure is not the company’s only concern. Sazgar continues to rely on imported CKD kits and critical components. Shipment delays, freight and insurance costs, exchange-rate movements and dependence on single-source suppliers can disrupt production or increase manufacturing costs. The company says it maintains additional inventory and works closely with vendors to reduce the impact of supply-chain disruptions. Currency movements add another layer of pressure. A weaker rupee can increase the cost of imported inputs and eventually push up vehicle prices, making competitor discounts more attractive to consumers. Policy and Economic Risks Remain Changes in auto policy, customs duties, sales tax, regulatory duties and safety requirements can also alter Sazgar’s cost structure. The company has identified inconsistent government policy as an ongoing threat. Consumer confidence, dealer offtake and production planning can also be influenced by political developments, law-and-order conditions, interest rates and inflation. Energy shortages and potential plant breakdowns remain additional operational uncertainties. These risks did not prevent Sazgar from achieving record results in FY26, but they underline how difficult it can be to protect market share once competition intensifies. Sazgar Expands Its New Energy Vehicle Portfolio Sazgar launched CKD versions of the Tank 500 hybrid and plug-in hybrid during FY26 and completed an expansion of its four-wheeler manufacturing plant. The company also points to the government’s growing emphasis on new energy vehicles as supportive of its strategy. At the same time, its sustainability discussion identifies a longer-term shift in consumer preferences as a potential risk, particularly as buyers gradually move away from conventional petrol and diesel vehicles. This means the competitive challenge is not limited to pricing and conventional SUVs. Powertrain technology could increasingly determine which brands gain market share in the years ahead. Strong Payout and Balance Sheet Growth Sazgar’s financial performance also translated into a substantial return for shareholders. The board recommended a final cash dividend of Rs20 per share, equivalent to 200 percent. The company had already paid interim dividends amounting to 500 percent during the year. This takes the total cash dividend for FY26 to 700 percent, compared with 520 percent in FY25. Despite the increase, the overall payout ratio remains relatively modest at around 18 percent of earnings. Equity increased 81 percent to Rs43.0 billion after accounting for profit and distributions, while total assets nearly doubled to Rs81.7 billion. The company has also notified its 35th annual general meeting, with the proposed final dividend subject to members’ approval. Exports Offer Another Growth Avenue Sazgar’s strategy for dealing with competitive pressure includes monitoring rival products, refreshing its vehicle portfolio, strengthening after-sales services, localising components and expanding exports. Three-wheeler exports remain relatively small compared with the company’s SUV business, but they are being positioned as one way to provide a degree of protection against rupee depreciation. The broader objective is to diversify growth beyond the domestic market while building greater resilience against currency and demand-related pressures. The Next Test Is Protecting Market Share Sazgar’s FY26 numbers remain strong, with record sales of Rs191.7 billion and profit after tax of Rs23.6 billion. But the company’s risk disclosures suggest that the next phase of growth may be more challenging. New models, sharper pricing, stronger warranties and increasingly competitive after-sales packages are likely to make the SUV market more demanding. Sazgar has the manufacturing capacity, growing product portfolio and financial strength to respond. The question is whether it can turn those advantages into sustained market share as competition becomes more aggressive. Its

Consumer Confidence Hits Two-Year Low in Q3 FY2026, Amid Inflation and Job Worries
Pakistan

Consumer Confidence Hits Two-Year Low in Q3 FY2026, Amid Inflation and Job Worries

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Consumer Confidence Falls Sharply in Q3 FY2026 Consumer confidence in Pakistan deteriorated sharply during the third quarter of FY2026, with the latest Consumer Confidence Index (CCI) showing growing concerns over inflation, employment and household finances. The 20th edition of the Consumer Confidence Index, released by Dun & Bradstreet Pakistan and Gallup Pakistan, recorded a reading of 65.3, down from 86.4 in the previous quarter. The decline represents a 24.4 per cent drop and marks a two-year low in consumer confidence, reflecting a significant deterioration in how households view both their current financial position and the broader economy. Current Sentiment Drops Into Extremely Pessimistic Territory The latest survey shows that consumers are facing difficulties in the present as well as worrying about the future. The current sentiment index fell to 51.8, while the future outlook stood at 78.7. Although the future outlook remains considerably stronger than current sentiment, it too declined compared with the previous quarter. The gap between the two measures suggests that consumers retain some hope for improvement but are currently experiencing considerable financial pressure. Inflation Remains the Biggest Concern Inflation emerged as the most widespread concern among respondents. According to the survey, 89.3 per cent of the 1,592 respondents said they had experienced price increases for essential goods during the previous six months. The continued rise in the cost of necessities can directly affect household purchasing power, leaving consumers with less disposable income for non-essential spending and savings. For businesses, weaker consumer confidence can also signal softer demand as households become more cautious about spending. Unemployment Concerns Intensify Employment conditions added another layer of pressure. Around 81 per cent of respondents said unemployment had worsened over the previous six months. The figure highlights the extent to which job security and employment prospects are influencing consumer sentiment. Concerns over unemployment can affect spending decisions even among households that remain employed, as uncertainty about future income often encourages consumers to delay purchases and increase precautionary savings. Household Finances Offer Little Relief Household financial expectations also remained weak. Nearly 40 per cent of respondents expected their personal financial situation to deteriorate further over the next six months. This suggests that pessimism is not limited to perceptions about the national economy. A significant portion of consumers also see potential deterioration in their own financial circumstances. The combination of higher prices, employment concerns and weaker household expectations creates a challenging environment for consumer-facing businesses. Older Consumers Record the Sharpest Decline The deterioration in confidence was not uniform across age groups. Respondents aged 50 and above experienced the steepest decline, with confidence falling 30.4 per cent. Consumers below the age of 30 recorded a comparatively smaller decline, but their confidence was still significantly lower than in the previous survey. The variation suggests that different segments of the population may be responding differently to inflation, employment conditions and financial uncertainty. Gallup Pakistan Warns of Pressure on Consumers Bilal Gilani, Executive Director of Gallup Pakistan, said the Q3 2026 reading of 65.3 placed Pakistan in an extremely pessimistic territory. He described the decline as the sharpest single-cycle drop recorded by the survey in recent years and emphasized that the weakness was not limited to expectations about the future. The current sentiment reading of 51.8, he noted, indicates that consumers are facing financial challenges in the present rather than simply worrying about what may happen tomorrow. Businesses and Policymakers Face a Clear Warning Signal Zubair Qureshi, Chief Business Officer at Dun & Bradstreet Pakistan, said the results demonstrate that consumers are under significant pressure. He emphasized that confidence is unlikely to recover without visible improvements in the economic conditions affecting households. For businesses, the CCI provides an important indicator when assessing consumer demand, market risks and spending patterns. Policymakers can also use such sentiment data to understand how economic conditions are being experienced at the household level. Consumer Sentiment Could Shape Economic Activity Consumer confidence plays an important role in economic activity because household expectations can influence spending, saving and borrowing decisions. The latest CCI reading suggests that Pakistani consumers are becoming increasingly cautious amid persistent inflation and employment concerns. While the relatively stronger future outlook offers some indication of continued expectations for improvement, the sharp fall in current sentiment shows that households remain under considerable pressure. A sustained recovery in consumer confidence will likely depend on improvements in purchasing power, employment conditions and household financial stability.

90% Women Farmers Faced Climate Extremes; Most Still Lack Land and Bank Accounts
Pakistan

90% Women Farmers Faced Climate Extremes; Most Still Lack Land and Bank Accounts

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Mobilink Bank, SDPI Study Highlights Growing Financial Vulnerability of Women Farmers in Pakistan Climate Shocks Are Pushing Women Farmers Toward Borrowing A new study by Mobilink Bank and the Sustainable Development Policy Institute (SDPI) has highlighted a growing financial vulnerability among women farmers in Pakistan, with many turning to borrowing to cope with climate-related shocks while continuing to face limited access to formal financial services. The study points to an urgent need for more inclusive and climate-responsive financial products that can help women farmers protect their livelihoods, recover from losses and build greater resilience against future climate risks. Titled “Designing Gender-Responsive Climate Finance: A Diagnostic Study and Product Framework for Women Farmers in Pakistan,” the research is based on fieldwork conducted across eight districts of Punjab and Sindh. Women Farmers Face a Major Finance and Climate Gap The study identifies a significant disconnect between women’s contribution to agriculture, their exposure to climate risks and their ability to access formal financial services. The findings were presented at a policy dialogue jointly hosted by SDPI and Mobilink Bank in Islamabad. The event brought together government officials, financial regulators, banks, development finance institutions and development partners to discuss how the research could be translated into practical financial solutions. The discussion focused particularly on designing products that reflect the realities of women working in agriculture rather than relying on conventional lending models that may exclude them. More Than 90pc Experienced Climate-Related Shocks The scale of climate exposure among women farmers is particularly concerning. More than nine in ten women surveyed had experienced an extreme climate-related event during the previous five years. These events included heatwaves, flooding, heavy rainfall and drought-like conditions. More than 80 per cent also reported crop losses or other negative impacts on their farming activities. Borrowing emerged as one of the first- or second-most common coping strategies across every district surveyed. In Khushab, every woman who reported using a coping strategy had borrowed money. More than half of the affected women in the district had also sold livestock, a step that could weaken their future earning capacity and make household recovery more difficult. Women’s Role in Agriculture Remains Underrecognized The research also highlights structural barriers that limit women’s access to agricultural finance. Around 67 per cent of Pakistan’s employed women work in agriculture, yet only 1.5 per cent of agricultural households are formally recorded as female-headed. Land ownership is another major obstacle. Only around 2 per cent of ever-married women aged 15 to 49 own land either individually or jointly, while 97.2 per cent have not inherited land or a house. The situation is even more restrictive in Sindh, where 99.1 per cent of surveyed women did not own land either alone or jointly. Without land ownership or formal documentation, many women struggle to meet the collateral and eligibility requirements attached to conventional agricultural financing. Financial and Digital Gaps Add to the Problem The barriers extend beyond land ownership. The study highlights a substantial gender gap in access to financial and digital services. Around 56 per cent of men have a full-service financial account compared with only 14 per cent of women. The difference is also visible in mobile-wallet ownership, which stands at 48 per cent among men but only 11 per cent among women. These gaps can make it harder for women farmers to access credit, insurance, digital payments and other financial tools that could help them manage climate-related losses. Government Calls for More Inclusive Financial Products Adviser to the Finance Minister Adnan Pasha, who attended the launch as guest of honour, stressed the importance of formally recognizing women farmers as economic actors and contributors to Pakistan’s agricultural economy. He said the government was considering policy recommendations emerging from the study and called on financial institutions to develop systems and products that are better suited to women’s circumstances. Particular attention, he said, should be given to barriers involving access to finance, collateral requirements and climate resilience. Pasha also appreciated SDPI’s work on policy reform and Mobilink Bank’s efforts to expand women’s financial inclusion. Mobilink Bank Looks to Expand Gender-Responsive Finance Mobilink Bank said its existing agricultural finance portfolio already reflects a significant focus on the sector. Khowla Shoaib, Head of Strategy, Sustainability & Women Financial Services at Mobilink Bank, said agriculture represents approximately 60 per cent of the bank’s total gross loan portfolio, while women account for more than 21 per cent. She said the SDPI study reinforced the bank’s understanding of the financial and climate-related challenges confronting women farmers and provided additional insights to strengthen its existing portfolio. The findings are also expected to support the development of new gender-responsive financial products specifically designed for women farmers. Climate Resilience Has Become an Economic Priority Pakistan’s vulnerability to climate change makes the issue broader than financial inclusion alone. The 2022 floods caused more than US$30 billion in damage and economic losses, while an estimated US$16.3 billion was required for resilient reconstruction. For rural communities dependent on agriculture and livestock, climate shocks can quickly translate into lost income, damaged assets and increased borrowing. This makes access to suitable financial products increasingly important for helping farmers absorb shocks without being forced to sell productive assets or fall deeper into debt. Research Focused on the Micro-Farmer Level Dr. Sajid Amin Javed, Deputy Executive Director (Research) at SDPI, said the study’s strength was its focus on climate finance at the micro-farmer level. He emphasized the importance of applying a gender lens to agricultural policy, particularly because a large share of women’s contribution to agricultural work remains insufficiently recognized. According to Javed, strengthening agriculture and livestock is essential for strengthening Pakistan’s broader rural economy. He also highlighted the importance of partnerships with institutions such as Mobilink Bank, particularly because access to large-scale customer data can help sustain research and support the development of more targeted financial solutions. Existing Financial Products Do Not Reflect Women’s Reality Engr. Ubaid Zia, Head of Energy Unit at SDPI, said women are already carrying out significant agricultural work, absorbing

Security Papers Profit Falls 40pc As Sales Slip And Margins Compress
Pakistan

Security Papers Profit Falls 40pc As Sales Slip And Margins Compress

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Security Papers Reports Sharp Profit Decline in FY26 Security Papers Limited (SPL) ended the financial year 2025-26 with a significant decline in both sales and profitability as weaker volumes, higher production costs and lower other income weighed on its results. The company’s sales fell 7.2 per cent to Rs7.31 billion from Rs7.87 billion a year earlier. Profit after tax dropped 40 per cent to Rs907 million, while earnings per share declined to Rs15.31 from Rs25.72. The decline was also visible in margins. Gross margin narrowed to around 21.7 per cent from 28 per cent, while net margin fell to approximately 12.4 per cent from 19.4 per cent. Higher Costs Deepen the Impact of Lower Sales SPL’s cost of sales increased by around 1 per cent to Rs5.72 billion despite the decline in revenue. As a result, gross profit fell 28 per cent to Rs1.59 billion from Rs2.20 billion. The company had already shown signs of weaker operating momentum during the year. Sales volume for the nine months ended March 31 stood at 2,594 tons, compared with 2,839 tons during the same period last year. Administrative expenses also moved higher, increasing 5 per cent to Rs522 million. This meant that overhead costs did not decline in line with the weaker revenue base. Dependence on PSPC Remains a Key Risk A major factor behind SPL’s earnings performance is its dependence on a single large customer, Pakistan Security Printing Corporation (PSPC). PSPC takes the bulk of the company’s banknote paper, meaning changes in its procurement requirements can quickly affect SPL’s production volumes and financial results. The trade agreement between the two companies was renewed in April 2026, maintaining the commercial relationship. However, the renewal does not eliminate the concentration risk associated with relying heavily on one customer. SPL’s exposure is particularly important because its core products include watermarked paper used for banknotes, prize bonds, defence savings certificates, stamp papers, passports, cheque books, degrees and ballot papers. Other Income Also Loses Momentum Other income, which has provided meaningful support to SPL’s earnings in stronger years, declined 25 per cent to Rs688 million from Rs916 million. Other expenses provided some relief, falling 29 per cent to Rs146 million. However, the reduction was not enough to compensate for the decline in gross profit and other income. Finance costs also increased, doubling to Rs6.75 million from Rs3.36 million. Although the absolute amount remains relatively small, the increase added further pressure to the bottom line. Profit before tax consequently fell 34 per cent to Rs1.60 billion from Rs2.41 billion. The company’s tax expense declined 22 per cent to Rs691 million from Rs890 million, limiting the overall impact but not preventing a 40 per cent decline in net profit. PM-2 Upgrade Could Shape the Next Growth Cycle The Balancing, Modernisation and Replacement (BMR) project for Paper Machine-2 is now central to SPL’s next phase. The company is executing the upgrade with the objective of enabling the mill to produce banknote paper containing features required for the State Bank of Pakistan’s new currency series. Chairman Mohammad Aftab Manzoor has described the PM-2 project as an important milestone for improving the company’s efficiency and production capabilities. The project, however, also introduces a short-term operational risk. SPL has indicated that the upgrade could require an extended plant shutdown of between 15 and 30 days on technical grounds. Such a stoppage could interrupt production, delay customer orders and create financial losses. The timing of the shutdown will therefore be closely watched, particularly because the new currency series is expected to be an important source of future demand. Energy, Water and Supply Chains Remain Watchpoints SPL also faces broader operating risks linked to energy prices, imported spares and regional supply chains. Geopolitical tensions surrounding the US-Iran conflict could increase energy costs and disrupt supply routes, according to management. The company is coordinating with suppliers to keep critical raw materials and project-related work moving. Water availability is another operational constraint. During the year, SPL added a 500,000-gallon storage tank and new reverse-osmosis bores to strengthen its water security. The company also upgraded its cogeneration plant and installed 350 kW of solar capacity. These investments are intended to reduce reliance on external water supplies and grid electricity. Fire, pilferage and cyber disruption remain additional risks because the company operates a strategically important, single-site manufacturing facility. Dividend Payout Remains Intact Despite the sharp decline in earnings, the Board has recommended a final cash dividend of Rs9 per share, or 90 per cent, subject to shareholder approval. The proposed final payout is the same as last year’s final dividend. However, it is below the total FY25 payout of Rs11.50 per share, which included an interim dividend of Rs2.50. The company’s shares are scheduled to go ex-dividend on September 18, while payment is due on October 9. FY26 Reverses Two Years of Strong Performance The latest results mark a clear reversal from the company’s recent performance. In FY25, SPL’s sales increased 8 per cent to Rs7.87 billion, while profit after tax reached Rs1.52 billion. The company is now dealing with the opposite combination: weaker sales, higher production costs and reduced other income. The balance sheet continues to provide some financial support through its relatively strong cash position compared with debt. The bigger question for investors is whether customer demand can recover before the PM-2 shutdown affects production. What Investors Will Watch Next SPL’s annual general meeting is scheduled for September 25, and investors are likely to focus on three key issues. First is the order outlook from PSPC, particularly demand linked to the new currency series. Second is the timing, duration and cost of the PM-2 shutdown. Third is the trajectory of energy and input prices if regional supply routes remain under pressure. SPL retains a strategically important position as Pakistan’s domestic producer of security paper, helping reduce dependence on imports. But its FY26 results demonstrate that strategic importance alone cannot shield the company from margin pressure when its largest customer reduces orders. With sales down 7.2 per

Pakistan Raises Largest Ever Debt From Market: Gets Record $3 Billion in International Bond Sale
Pakistan

Pakistan Raises Largest Ever Debt From Market: Gets Record $3 Billion in International Bond Sale

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Pakistan Raises $3 Billion Through Record Eurobond Pakistan has raised $3 billion through its largest-ever international bond transaction, marking a significant return to global capital markets after years of depending heavily on bilateral and multilateral financing. The dual-tranche Eurobond attracted strong interest from international investors, with orders reaching almost twice the amount offered. Record $6 Billion Investor Demand The transaction consists of a $1.75 billion 5½-year Eurobond carrying a 7.50% coupon and a $1.25 billion 10-year Eurobond with a 7.90% coupon. Investor orders reached nearly $6 billion, with institutional participation coming from Asia, the Middle East, Europe and the United States. Strong demand for the longer 10-year maturity was particularly notable, suggesting that investors are willing to maintain exposure to Pakistan beyond the immediate term. First Issuance Under Renewed Bond Programme The transaction is Pakistan’s first issuance under its renewed Global Medium-Term Note programme and follows the country’s first Panda Bond issued in China. Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered acted as joint bookrunners, while Pakistan’s Debt Management Office handled the transaction. Government Focuses on Debt Management The Finance Ministry has stressed that the transaction is not simply about raising fresh borrowing. Pakistan plans to use the proceeds as part of its broader sovereign liability management strategy, including extending debt maturities, reducing rollover risks and replacing shorter-term and potentially more expensive obligations where economically appropriate. Finance Minister Muhammad Aurangzeb described the transaction as external validation of the country’s recent credit-rating improvements. Pakistan Explores More Financing Options Aurangzeb said Pakistan is also considering additional financing instruments, including Sukuks, rupee-denominated dollar-settled bonds and further Panda Bonds. The objective is to create greater flexibility in managing the country’s external obligations while reducing reliance on expensive short-term borrowing. Fiscal Reforms Support Market Confidence The government has pointed to several fiscal improvements as part of the story behind Pakistan’s renewed access to international investors. Officials highlighted a 22-year low in the fiscal deficit, three consecutive years of primary surpluses and an increase in the tax-to-GDP ratio from 8.1% to 10.3%. Federal Board of Revenue Chairman Rashid Mahmood Langrial also highlighted tax administration reforms undertaken over the past two and a half years, including third-party auditors and work on IRIS 3.0. Credit Rating Upgrades Improve Investor Sentiment Pakistan has received three credit-rating upgrades since April last year, according to the finance minister. The latest bond transaction provides an important market-based test of whether those improvements have translated into stronger investor confidence. The nearly $6 billion order book indicates that international institutions were willing to provide significantly more financing than Pakistan ultimately sought. The Real Test Is Fiscal Discipline Pakistan’s return to the international bond market represents an important shift from the crisis conditions of recent years. The latest coupons are below the 8.25% rate Pakistan paid on a Eurobond issued a decade ago that has since been repaid. However, borrowing costs remain relatively high because investors continue to price Pakistani sovereign risk as speculative grade. The bigger challenge now is how Islamabad uses this renewed market access. Longer maturities can reduce immediate refinancing pressure, but continued international borrowing will require sustained fiscal discipline. Investors are likely to closely monitor whether Pakistan uses the improved access to strengthen economic reforms rather than return to the borrowing cycles that contributed to previous balance-of-payments pressures.

Akhund Forbes Launches Conclavity, Introducing Legal AI Grounded in Pakistani Law
Pakistan

Akhund Forbes Launches Conclavity, Introducing Legal AI Grounded in Pakistani Law

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KARACHI, 2 September 2026: Artificial intelligence continues to reshape how professionals across every sector deliver their work, and the practice of law is no exception. On Wednesday, 2 September 2026, at the Mövenpick Hotel in Karachi, Rabel Akhund of the leading corporate law firm Akhund Forbes brought that evolution to the Pakistani legal sector with the launch of Conclavity, a legal intelligence platform built specifically for the practice of Pakistani law and grounded in Pakistani statute. The launch is understood to be the first of its kind in the country: a commercial legal AI tool developed in Pakistan, by Pakistani lawyers, around the body of law that Pakistani practitioners and businesses actually work with. The evening brought together members of the judiciary, in-house counsel, senior figures from banking and industry, and clients of the firm to consider the changing nature of legal practice and the role technology can play in supporting it. Proceedings opened with a keynote address by Mr Justice Yousuf Ali Sayeed of the Sindh High Court, who spoke on the undeniable limitations of AI, eventually highlighting the potential of Conclavity to resolve a long-held ambition for accessible verified legal AI intelligence. This was followed by an introduction to Conclavity by Mr Rabel Akhund, Advocate the Founder of Conclavity and a demonstration of its capabilities, before Mr Nasim Beg of the Arif Habib Group delivered the closing remarks. The case for a platform of this kind rests on a simple observation. General-purpose AI tools have become remarkably capable, but they are trained on the internet at large, and the law they know best is the law of the jurisdictions most heavily represented there. For a Pakistani lawyer, this creates a familiar set of hazards: answers that borrow from English or American doctrine without saying so, citations to provisions that have since been amended or repealed, and, on occasion, authorities that do not exist at all. In a profession where a misplaced section number can change the advice, these are not minor inconveniences. Conclavity approaches the problem from the other direction. At its centre is a maintained database of Pakistani legislation, comprising statutes, ordinances, rules and regulations together with their amendments, which allows the platform to work with the law as it stands in force today rather than as it may once have appeared in a training set. Every answer the platform gives can be traced back to the provision on which it rests, so that the lawyer using it is never asked to take a conclusion on trust. The platform is designed to support the three activities that make up the greater part of everyday legal work: advising, drafting and reviewing. In advisory work, it answers questions on Pakistani law with precise statutory references, allowing a practitioner to move from a client query to the governing provision in moments rather than hours. In drafting, it produces first drafts of agreements, notices, board resolutions and other documents that a lawyer can then refine, shortening the distance between a blank page and a workable draft. In review, it reads contracts and other instruments against the legislation currently in force and flags the points at which a document departs from, or fails to address, what the law requires. Those who built Conclavity are careful about what it is and what it is not. The platform does not offer legal advice and does not replace the judgment of a qualified lawyer. It is a tool for lawyers and for the businesses that depend on them, intended to take on the research and first-draft burden so that professional attention can be spent where it matters most. Confidentiality has been treated as a design requirement rather than an afterthought, and the platform has been built as a secure environment suitable for the sensitive material that legal teams handle daily. Following the launch, Conclavity will be made available to an initial group of early adopters, drawn principally from in-house legal teams and corporate clients, over the coming months before a wider release. Feedback from that first cohort will shape the platform’s further development, including the expansion of its corpus beyond legislation. Conclavity was developed under the leadership of Rabel Z. Akhund, Advocate, Managing Partner of Akhund Forbes. A graduate of University College London and a solicitor of England and Wales, Mr Akhund practised at leading global law firms in London before returning to Pakistan in 2008 to found Akhund Forbes. He has advised on many of the country’s most significant corporate, finance and projects transactions over the past two decades, and it is that experience, of what legal work in Pakistan actually demands, that has informed the design of the platform. Conclavity brings a leading lawyer’s understanding of the realities of modern practice into a product built for those same realities. Reflecting on the vision behind Conclavity, Mr. Rabel Akhund commented, “Conclavity was conceived and developed in Pakistan, for Pakistani law. Its ambition is not to replace lawyers but to raise the floor, so that the standard of work once available only to those who could pay for the largest firms becomes the ordinary standard. That, in the end, is what access to justice means in practice.” He further added, “Sensible people told us that Pakistan is not ready yet. This is precisely why Conclavity is built the way it is. The product works- It was built here on Pakistani resources by Pakistani lawyers and Pakistani engineers for Pakistani businesses. Conclavity is not a single machine, behind it is a team that works.” Speaking on the significance of the platform, Mr. Justice Yousuf Ali Sayeed observed, “For years, lawyers and judges alike have dreamt of having that kind of resource, and today perhaps we are at the crux of having realised that dream. AI can help us realise that ambition.” He further remarked, “AI too has its limitations, for instance, citing a point as fact, when it is not grounded on reality. The approach which Conclavity seems to adopt promises to address this danger

PIA to Increase Flight Frequencies to London
Pakistan

PIA to Increase Flight Frequencies to London

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Daily Flights to London From October 27 Pakistan International Airlines (PIA) is set to increase its flight frequencies to London in response to growing passenger demand. According to a PIA spokesperson, the airline will operate daily flights between Pakistan and London from October 27, 2026. Five Weekly Flights From Islamabad Under the revised schedule, PIA will operate five weekly flights between Islamabad and London. The increased frequency is expected to provide passengers with greater flexibility when planning their travel. The airline will also continue serving London from Lahore with two weekly flights. Lahore to Have Two Weekly London Flights PIA will operate two flights per week between Lahore and London under the new schedule. Combined with the Islamabad service, this will take PIA’s total Pakistan-London operations to seven flights per week. PIA Responds to Growing Passenger Demand PIA currently operates four weekly flights to London. The increase to daily operations represents a significant expansion of the airline’s London service. The spokesperson said the decision reflects passenger satisfaction with PIA’s services, including flight comfort and convenience, while also responding to growing demand for travel between Pakistan and the United Kingdom. The expanded schedule is expected to give passengers more travel options and improve connectivity between major Pakistani cities and London.

QistBazaar Raises PKR 500 Million Through Landmark Sukuk Issuance
Pakistan

QistBazaar Raises PKR 500 Million Through Landmark Sukuk Issuance

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Pakistan’s first unrated, privately placed Sukuk of its kind signals institutional confidence in the company’s growth and opens a new avenue for Shariah-compliant funding Karachi, September 01, 2026: QistBazaar, one of Pakistan’s leading Buy Now, Pay Later (BNPL) and installment-financing platforms, has successfully raised PKR 500 million through a privately placed Sukuk, marking the first tranche in a planned series of Sukuk issuances by the company. The transaction represents Pakistan’s first unrated, privately placed Sukuk of its kind and marks an important milestone for QistBazaar as it expands its access to institutional capital. Dada Partners acted as exclusive financial advisor to QistBazaar and led the capital raise, placing the issue in full with investors sourced through the deep, long-standing institutional relationships of its Founder and Managing Partner, Shazad Dada. The Sukuk was subscribed by the Alfalah Shariah Private Financing Fund-I, managed by Alfalah Asset Management Company (Alfalah AMC), acting as the investment vehicle through which these investors participated in the issuance.  Al Hamd Shariah Advisory Services (Private) Limited were the Shariah advisor certifying the structure, Pak Brunei Investment Company Limited acted as the Investment Agent, and Akhund Forbes the  legal counsel on the transaction. Raising capital through a secured but unrated instrument for QistBazaar reflects investor confidence in the strength of its business model, management team, track record and future growth prospects. The transaction also represents an important step in the company’s evolution from a rapidly growing BNPL platform toward a larger, institutionally funded financial services business. The PKR 500 million raised will be deployed toward expanding QistBazaar’s Shariah-compliant consumer installment financing portfolio, enabling the company to extend affordable financing solutions to more underserved and unbanked consumers across Pakistan. The additional capital will support increased financing origination, expansion of the company’s merchant network, entry into new product categories and a wider geographic footprint. Arif Lakhani, co-Founder QistBazaar, said: “This Sukuk represents much more than a new source of capital for QistBazaar. The confidence shown by corporate and high-net-worth investors validates the business we have built and the opportunity that lies ahead. Our focus has always been on making essential products more accessible through affordable, Shariah-compliant installment solutions. This funding gives us greater capacity to serve more customers, expand our reach and bring more Pakistanis into the formal financial system. This landmark issuance would not have been possible without Dada Partners, our exclusive financial advisor, whose institutional relationships and guidance were instrumental in bringing it to market” Beyond QistBazaar, the transaction demonstrates the potential for high-growth Pakistani businesses to access institutional funding through Shariah-compliant capital-market instruments. It offers an example of how credible growth companies can diversify beyond traditional bank financing while providing corporate and high-net-worth investors with opportunities to participate in Pakistan’s emerging financial services ecosystem. It also reflects the evolving role of Islamic finance in supporting businesses that are addressing gaps in financial access. By channeling institutional capital toward consumer financing, structures such as Sukuk can help connect Pakistan’s capital markets with the financing needs of consumers who have historically remained outside the formal financial system. Co-founded in 2021, by Arif Lakhani and Karim Gilani, QistBazaar, in a very short time has grown into one of Pakistan’s largest BNPL and installment-financing platforms, with 100+ branches  across 18 cities and approximately 800 employees. The company enables customers to purchase essential household and technology products through manageable monthly installments,  focusingon consumers who are generally unable to access  conventional financing channels. QistBazaar is backed by institutional investors including Bank Alfalah, Indus Valley Capital and Gobi Partners. Over the past five years, the company has recorded sustained growth, approximately doubling both revenue and its bottom line year after year. As it enters its next phase of institutional development, QistBazaar also plans to pursue a future listing on the Pakistan Stock Exchange (PSX). This inaugural PKR 500 million issuance is the first in a planned series of Sukuk through which QistBazaar intends to institutionalize its funding base and finance the next phase of its growth. By building a repeatable channel to Shariah-compliant capital, the company aims to scale its financing portfolio, reduce reliance on traditional bank funding, and widen access to affordable consumer finance across Pakistan

Telecom Operators Call For End To Direct G2G Contracts
Pakistan

Telecom Operators Call For End To Direct G2G Contracts

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The Telecom Operators Association (TOA) has urged the government to remove a procurement rule that allows certain projects to be awarded directly to government-owned entities without open bidding. The association has called for the repeal of Clause 42(f) of the Public Procurement Rules, 2004, arguing that the provision is limiting opportunities for private IT, telecom and digital companies. Private Sector Seeks A Level Playing Field TOA says government spending on digital and technology services should allow private companies to compete where they already have the required expertise. The association argues that telecom and technology firms have invested billions in Pakistan over the past two decades and contributed significantly to the national exchequer. Concerns Over Competition And Jobs Pakistan’s technology sector is expanding into areas such as cloud computing, data centres and artificial intelligence. TOA believes a strong domestic market is essential for local companies to develop their capabilities and compete internationally. The association warns that directing more public contracts toward state-owned enterprises could weaken competition, reduce innovation and limit opportunities for private firms, particularly small and medium-sized businesses. TOA Raises Subcontracting Concerns The association has also questioned cases where state-owned entities receive government contracts through the G2G route and subsequently outsource the work to private companies. TOA believes such arrangements could create transparency and accountability concerns. Call For Equal Competition TOA wants government-owned companies to participate in public procurement on the same terms as private-sector firms. The association argues that removing Clause 42(f) would create a more competitive environment, encourage private investment and support the growth of Pakistan’s telecom and technology industries.

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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