Pakistan

Karachi: Premium Textile Mills Limited (PSX: PRET), one of Pakistan’s leading yarn manufacturers, has approved a $4.15 million investment to install a 7.5-megawatt wind turbine, the company informed the Pakistan Stock Exchange on Monday.The decision was taken through a circular resolution by the Board of Directors on November 24, 2025. The new turbine will substantially boost the renewable share in the company’s energy mix and reduce reliance on grid electricity amid soaring power tariffs.“Keeping up with our commitment towards sustainable environment practices, the contribution of renewable energy in the power mix will significantly increase after the completion of the above-mentioned project, the filing stated. The project is the latest addition to Premium Textile’s ongoing efforts to adopt cleaner energy sources and lower its carbon footprint in an energy-intensive industry.

The federal government is going to abolish the Export Development Surcharge (EDS), a move widely welcomed by the export sector as critical relief at a time when rising input costs and regional competition continue to erode profitability. Waqas Ghani Kukaswadia, Head of Research at JS Global Capital, commented: “The removal of the Export Development Surcharge is a meaningful relief for exporters facing intense cost pressures. Although the direct fiscal burden of the surcharge was modest, its elimination sends a strong positive signal that policy is finally moving in the direction of export-led growth. The real test now is follow-through. This step needs to be supported by broader trade facilitation measures and structural reforms that tangibly lower the cost of doing business — faster tax refunds, competitive energy pricing for exporters, and streamlined temporary importation procedures will determine whether this marks a genuine turning point for Pakistan’s export competitiveness.” Export Development Surcharge imposed at 0.25% of the FOB value of exports, the EDS has been a longstanding grievance for exporters who argued it effectively taxed foreign exchange earnings at a time when margins were already under severe strain. Industry sources indicate that the decision is part of an emerging package of export-supportive measures, with expectations building for additional steps such as phased reduction in minimum turnover tax and duty rationalization on imported raw materials in the near term.  

The government is under increasing pressure to prevent a steady exodus of multinational companies from Pakistan. While more than 200 global firms remain active, their growing departures are raising serious economic red flags. These multinationals contribute a substantial portion of tax revenues, but their lack of exports and high repatriation of profits is creating an unsustainable pattern. According to insiders, the authorities are now considering a business-protection framework aimed at retaining these companies. A key part of this involves rethinking tax strategies—moving away from heavy import tariffs toward policies that reward efficient, export-oriented operations. One proposal under review is to eliminate or reduce the burden of federal excise duty and other indirect taxes for well-compliant multinationals. The sharp rise in foreign firm exits has been linked to a range of issues: discriminatory tax policies, steep corporate tax rates, regulatory uncertainty, and growing difficulties in repatriating profits. Additionally, rupee devaluation, inflation, and frequent policy changes are adding pressure. Some companies reportedly face blocked dividends running into the billions of dollars. Experts warn that a further foreign-company run could deal a blow to Pakistan’s reputation. These multinational players are not just profit machines—they bring advanced technology, best-in-class management practices, and valuable employment opportunities. Their exit creates a gap not only in capital but also in expertise and innovation. Industry associations are calling for urgent reforms. They want simplified tax structures, stable regulation, and clear protection mechanisms. Their concern is not just profit—it’s about sustaining foreign direct investment, preserving high-quality jobs, and maintaining the country’s competitiveness on the global stage. As the debate intensifies, the hope among business leaders is that the government recognizes the wider cost of these exits and takes decisive steps to stem the tide before it’s too late.

Pakistan’s telecom sector is moving closer to a major shift as the Competition Commission of Pakistan (CCP) progresses into the final stages of reviewing the proposed acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL). This review is a key requirement under local competition laws and ensures that market consolidation does not negatively affect consumers or industry competitiveness. According to officials familiar with the matter, the CCP has been thoroughly examining market dynamics, potential impacts on pricing, service quality, infrastructure sharing, and overall market fairness. The regulator has already completed several rounds of data collection, stakeholder feedback, and internal assessments. The focus remains on whether the acquisition could create a dominant market position or limit competitive choices for telecom users in Pakistan. PTCL, backed by e& (formerly Etisalat Group), aims to acquire 100% of Telenor Pakistan’s operations. If approved, the deal is expected to reshape Pakistan’s telecom landscape by combining PTCL’s fixed-line expertise and fiber infrastructure with Telenor Pakistan’s large mobile user base. Industry analysts believe this merger could accelerate Pakistan’s digital connectivity goals, improve network coverage, and enable better integration of emerging technologies such as 5G. However, the CCP’s final decision will depend on whether sufficient safeguards are in place to maintain fair competition. The regulator may impose conditions related to spectrum management, consumer protection, and market transparency before granting approval. Once cleared, the acquisition will move toward closing formalities, including financial settlement and operational integration. This will mark one of the largest telecom mergers in Pakistan’s history, potentially influencing service standards and expanding digital access nationwide. For now, the industry awaits the CCP’s concluding verdict, which is expected soon. The outcome will determine how Pakistan’s telecom sector evolves in the coming years and whether this consolidation will ultimately benefit consumers and the broader digital ecosystem.

Pakistan’s federal government is gearing up for a major shake-up in the power sector: a nationwide rollout of prepaid electricity meters that will require users to top up credit before using power. Under this new system, once the meter balance reaches zero, electricity will automatically shut off — replacing monthly bills and late payments with a simple recharge-to-use model. Under this plan, consumers will use a rechargeable card to pay for electricity in advance. Officials say this shift could eliminate the need for meter readers and make the entire billing process more transparent, efficient, and stress-free for users. This initiative is part of a broader reform agenda. The Power Division has already begun a large-scale deployment of smart meters across the country as part of its “Year of Customer Service Improvement” for 2025–26. Thanks to competitive procurement through open tenders, the cost of single-phase smart meters has been brought down from around Rs 20,000 to approximately Rs 15,000 — a reduction that could save the country billions each year. Authorities believe these smart meters will ensure accurate readings, minimize human errors, and ultimately support the transition to a prepaid electricity model. For consumers, the benefits are clear: better control over consumption, real-time monitoring, and a system that encourages smarter energy use. For power companies, the reform promises improved operational visibility, faster billing processes, and fewer disputes. In short, Pakistan’s electricity sector is entering a new era — one where digital meters and prepaid credit may completely transform not just how people pay for electricity, but how they manage their energy consumption.

Early Monday morning, Peshawar once again faced a frightening reminder of the security challenges confronting the region. Around 8 am, militants launched an attack on the Federal Constabulary (FC) headquarters located in the busy Saddar area. According to officials, three attackers approached the main entrance, where one of them detonated an explosive vest at the gate. The remaining two attempted to enter the compound but were swiftly taken down by security personnel. Unfortunately, three FC officials stationed at the gate were martyred in the blast, while two others sustained injuries. Rescue teams and ambulances arrived quickly, shifting the wounded to nearby hospitals for urgent medical treatment. The FC headquarters is not just an administrative facility — it includes barracks, residential quarters, and a hospital, making the attack particularly alarming. Security forces immediately cordoned off the area and launched a clearance operation to ensure no additional threats remained. Traffic on Saddar Road was temporarily halted as part of the emergency response. The incident prompted strong condemnation from national and provincial leaders, who praised the quick reaction of the security forces. They emphasized that the attackers failed to achieve their objective due to the alertness and bravery of the personnel on duty. Authorities have also reaffirmed their support for the families of the martyred and injured, stressing that such acts of violence will not deter efforts to maintain peace. This attack serves as another stark reminder of the sacrifices made by frontline forces and the continued need for vigilance in the fight against terrorism.

Khyber Pakhtunkhwa (K‑P) is poised to become a trailblazer in Pakistan’s digital economy after Chief Minister Sohail Afridi approved the “Khyber-Pakhtunkhwa Digital Payments Act 2025.” This landmark legislation will be taken to the provincial cabinet for formal ratification, making K-P the first province to set up a legal framework specifically for digital payments. Under the new law, all government departments, businesses, and service providers will be required to switch to QR code–based payments. This move is meant to not only make transactions more convenient and efficient but also increase transparency and reduce the reliance on cash. One of the most ambitious and socially impactful aspects of the Act is a two-year exemption: informal or previously undocumented businesses that start accepting QR-based payments under the new law will not be hit with new direct sales tax immediately. This is a smart way to move micro-entrepreneurs into the formal economy without scaring them off with sudden tax burdens. But, if a business refuses to accept digital payments—or tries to charge extra for QR code payments—it will be breaking the law. To make this digital shift work, the government is planning to build out public Wi-Fi zones and offer digital services in markets and commercial areas. They’re also going to include financial and digital literacy lessons in schools, while setting up district-level teams to train businesses and help them adopt the new system. Afridi says that this law isn’t just about payments — it’s a major step toward a “cashless model economy.” He believes that encouraging digital payments will reduce corruption, stabilize revenue collection, and support data-driven governance. All of this, he argues, will help restore public trust in government institutions and drive K‑P’s digital transformation forward.

The Pakistan Telecommunication Authority (PTA) has come out in support of reducing taxes on mobile phones brought into the country. This move aims to make smartphones more affordable for everyday users across Pakistan. According to Amer Shahzad, Director-General (Wireless – Licensing) at PTA, the organization itself doesn’t impose these taxes — that responsibility lies with the Federal Board of Revenue (FBR). He also clarified that PTA staff pay the same import taxes as everyone else; there are no free or tax-exempt phones for employees. High import duties have long pushed the cost of smartphones out of reach for many Pakistanis. Lowering these taxes could bring several benefits: reduce the financial burden on students and lower-income families, discourage smuggling, increase legal imports, and ultimately boost mobile usage. More affordable devices mean broader internet access, which in turn supports growth in the telecom industry. While PTA doesn’t set tax rates, its public support for tax relief sends a powerful message. The authority’s stance underscores its commitment to both affordability and transparency. By making mobile devices cheaper and more accessible, Pakistan can foster greater digital inclusion and fuel long-term growth in its technology ecosystem.

Islamabad: A meeting of the Prime Minister’s Committee on Gemstone Policy was held today, chaired by Special Assistant to the Prime Minister, Haroon Akhtar Khan. Minister of State for Finance and Railways Bilal Azhar Kayani and Adviser to the Prime Minister Rana Ihsan Afzaal also attended the meeting. During the briefing, it was highlighted that Pakistan’s actual gemstone exports remain undocumented and will soon be formally registered. The Committee noted that nearly half of the total gemstone output is wasted due to outdated mining practices and obsolete technology. The Committee further observed that 30–40% of precious stones are lost because of non-scientific blasting and drilling methods. It was also emphasized that a significant portion of gemstones is exported in raw form without value addition, reducing Pakistan’s export potential. The Committee pointed out that the sector faces serious challenges due to the lack of international cooperation and investment. Haroon Akhtar Khan stated that the use of modern mining technologies can substantially enhance both gemstone production and exports. He added that comprehensive value addition to gemstones could multiply export figures. Pakistan currently holds an undocumented export potential of USD 2 billion in the gemstone sector, while only USD 7 million worth of gemstone exports are formally recorded at present. Haroon Akhtar Khan also noted that nephrite exports remain largely undocumented and directed stakeholders to present a clear five-year export analysis for the gemstone sector.