Pakistan

ISLAMABAD: In a crucial move to reverse the declining trend in cotton production, an inter-ministerial meeting chaired by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar on Thursday approved the implementation plan for revival of the cotton sector, including collection of cotton cess through the Federal Board of Revenue (FBR), well-informed sources told Business Recorder.Pakistan’s cotton production has nosedived to an estimated 6.85 million bales in the 2025-26 season from 2.0 million hectares — a sharp 34 percent shortfall against the target of 10.18 million bales.During the meeting, the Cotton Commissioner, Ministry of National Food Security & Research, presented a comprehensive revival roadmap prepared in consultation with the All Pakistan Textile Mills Association (Aptma) and incorporating its recommendations.The meeting adopted an inclusive and participatory approach, emphasising industry ownership of the initiative. Concluding the session, the Chair reaffirmed the government’s firm commitment to ensuring that leadership of cotton revival rests with an industry-led council under Aptma’s stewardship.Sources said the approved measures aim to address structural challenges and restore cotton production to sustainable levels in the coming years.

Karachi:The Pakistan Stock Exchange (PSX) witnessed a volatile yet resilient trading session on Thursday, December 4, 2025. After a lackluster performance in the previous session and an early intraday dip, the bulls managed to stage a recovery, pushing the benchmark KSE-100 Index to close in the green. The market sentiment shifted significantly during the second half of the session, driven by aggressive buying in the Cement and Leather & Tanneries sectors, offsetting the selling pressure seen in Fertilizer and Commercial Banks. Market Overview: Key Statistics: The KSE-100 Index concluded the session at 166,283.55, recording a gain of 138.21 points (+0.08%). Indices Summary: Index: KSE-100Current Level: 166,283.55 PointsChange (Points): +138.21Change (%)+0.08% Index :KSE-30Current Level: 50,536.06 PointsChange (Points): +39.88Change (%): +0.08% Index: KMI-30Current Level: 238,289.02 PointsChange (Points): +380.14Change (%) +0.16% Index: ALLSHRCurrent Level: 100,872.71 PointsChange (Points): +307.41Change (%) +0.31% Technical Note: The index successfully defended the psychological support level near 165,800. The recovery from the intraday low suggests that smart money is accumulating value stocks at dips, preventing a deeper correction. Sector Watch: The Bulls vs. The Bears: Today’s session was a classic tug-of-war between sector rotation strategies. While Fertilizer giants faced profit-taking, cyclical sectors like Cement and Leather stepped up to support the index. Top Positive Contributors (The Saviors): The Leather & Tanneries and Cement sectors were the primary drivers of today’s gains. Top Negative Contributors ( The Drags): Profit-taking was evident in the Fertilizer and Banking sectors, capping the index’s upside. Volume Leaders: Where is the Liquidity? Trading activity remained robust with the KSE-All Share volume hitting 607 million shares, indicating healthy market participation despite the volatility. Technical Analysis & Market Outlook: The market formation today indicates an “Intraday Reversal.” After dipping 259 points, the index found support and bounced back. This “buy on dip” behavior is a bullish signal for the short term. Strategic Advice for Investors: The rotation into Cement suggests investors are positioning for potential construction demand or favorable pricing power. The selling in LPL (despite high volume) warrants caution—high volume on a price drop is often a bearish divergence. Conversely, PIAHCLA shows strong momentum, likely driven by privatization news flows.

Islamabad: In a landmark bilateral meeting at the Prime Minister’s House, Pakistan’s Prime Minister Muhammad Shehbaz Sharif welcomed Kyrgyz President Sadyr Nurgozhoevich Zhaparov on his maiden two-day state visit—the first by a Kyrgyz head of state in two decades. The leaders pledged to turbocharge cooperation in trade, energy, connectivity, and beyond, aiming to elevate bilateral trade to $200 million by 2027-28.Sharif hailed the visit as a “highly beneficial” milestone, underscoring Pakistan’s “Vision Central Asia” policy to deepen ties with Central Asian nations rooted in shared history and values. Zhaparov reciprocated with gratitude for the warm reception, expressing eagerness to explore new collaborative avenues.Discussions spanned regional flashpoints: Both nations urged the Afghan Taliban to fulfill international commitments and address Pakistan’s security concerns through verifiable anti-terror actions, reaffirming support for a stable Afghanistan. On Gaza, they voiced unwavering backing for Palestinian self-determination and a sovereign state on pre-1967 borders with East Jerusalem as capital, condemning threats to regional peace and advocating UN Charter-guided resolutions.Energy and infrastructure took center stage, with enthusiasm for the CASA-1000 project’s swift rollout to link Central and South Asia. The duo celebrated the operationalization of a road corridor under the Quadrilateral Traffic in Transit Agreement (QTTA) for bolstered trade routes.The talks, attended by Chief of Army Staff Field Marshal Syed Asim Munir, Deputy PM/Foreign Minister Ishaq Dar, and others, culminated in 15 MoUs and agreements on energy, mining, trade, education, agriculture, culture, tourism, law, and justice. Earlier, Zhaparov received a guard of honor, followed by a Sharif-hosted luncheon and joint press conference.This visit signals a strategic pivot toward economic resilience and peace, potentially reshaping South-Central Asian dynamics amid global uncertainties.

Thatta Cement Company Limited has strongly denied circulating social media claims suggesting that the company is facing a severe liquidity crisis and that its recent Rs. 6.5 billion investment has been frozen by court orders. In an official filing submitted to the Pakistan Stock Exchange (PSX) on Thursday, the company termed these reports as “false circulation of information” and reassured investors of its solid financial position. Company Maintains Strong Liquidity Position: In its clarification, the company emphasized that it continues to maintain substantial liquid cash reserves on its balance sheet. The management rejected the narrative that the company is under any financial distress, stating clearly: “The Company maintains substantial liquid cash reserves in its books.” This statement directly contradicts online speculation that suggested the cement manufacturer was struggling to meet its financial obligations. Rs. 6.5 Billion Investment Nearly Doubles: Addressing concerns about its recent investment, Thatta Cement confirmed that the lawful investment of PKR 6.5 billion made through PSX has nearly doubled in value, reinforcing confidence in the company’s financial strategy and market performance. This development is particularly significant for shareholders, as it highlights the company’s ability to generate strong returns despite broader economic challenges. Legal Matter Sub-Judice in Islamabad High Court: The company also clarified the status of ongoing legal proceedings, confirming that the matter is currently sub-judice before the Islamabad High Court. While a Single Bench granted ex parte ad interim relief to the petitioners in Company Original Petition Nos. 16 & 17 of 2025, the company stressed that: • No final decision or adjudication has been made so far• The next hearing is scheduled for December 23, 2025 Importantly, the company rejected claims that the investment has been permanently frozen or rendered a “dead asset.” Commitment to Transparency and Regulatory Compliance: Reaffirming its commitment to investors and regulators, Thatta Cement assured that any material developments will be disclosed through proper channels in full compliance with PSX regulations. The company urged stakeholders to rely only on official disclosures rather than unverified social media reports.

VIS Credit Rating Company Limited has announced an upgrade in the medium to long-term entity rating of Maple Leaf Cement Factory Limited (MLCF), raising it from A (Single A) to A+ (Single A Plus). The company’s short-term rating has been reaffirmed at A1 (A One), while the outlook remains Stable. This rating action reflects strong confidence in Maple Leaf Cement’s financial health, operational resilience, and long-term business sustainability. Strong Credit Quality and Liquidity Position: According to VIS, the upgraded medium to long-term rating indicates good credit quality backed by strong protection factors, while the reaffirmed short-term rating highlights a high likelihood of timely debt repayments and excellent liquidity. Maple Leaf Cement’s rating continues to benefit from its well-established position in Pakistan’s cement industry and its strategic integration within the broader Kohinoor Maple Leaf Group (KMLG), which provides additional operational and financial stability. Experienced Management and Solid Corporate Governance: VIS also credited the company’s experienced and long-standing management team, known for its deep industry knowledge. The presence of strong corporate governance structures, including active audit and remuneration committees, ensures high levels of transparency, accountability, and regulatory compliance. Operational Resilience Amid Industry Challenges: Despite facing subdued construction demand, volatile input costs, and fluctuating energy prices, Maple Leaf Cement has managed to maintain stable production levels. The company’s resilient profitability is supported by: • Strong pricing power• Ongoing cost optimization measures• Efficient energy utilization These factors have helped the company sustain healthy profit margins and positive cash flows, even in a challenging macroeconomic environment. Strengthening Financial Profile and Lower Leverage: From a financial perspective, VIS highlighted the company’s conservative capital structure, marked by: • Declining debt levels• A stronger equity base• Improving liquidity ratios Timely repayment of long-term borrowings and reduced dependence on short-term financing have significantly lowered leverage, while efficient working capital management has further strengthened liquidity buffers. In addition, robust internal cash generation and steady subsidiary income continue to support the company’s strong debt-servicing capacity. Outlook and Future Rating Prospects: VIS emphasized that the continued strengthening of Maple Leaf Cement’s financial profile will be a key factor in future rating actions. With a Stable outlook, the current rating suggests confidence in the company’s ability to maintain its solid performance in the near to medium term. The upgrade of Maple Leaf Cement’s rating to A+ is a strong endorsement of the company’s financial discipline, operational efficiency, and strategic market position. For investors and stakeholders, this move signals enhanced creditworthiness, lower financial risk, and long-term stability in one of Pakistan’s leading cement manufacturers.

KARACHI: Thousands of garment and textile workers in Karachi, producing clothes for major global brands including H&M, Zara, GAP, Mango, ASOS, C&A, NA-KD, NEXT, and IKEA, are suffering severe heat stress amid rising temperatures fueled by climate change, according to a damning new report by Climate Rights International (CRI).Released Wednesday, the report titled “They Don’t See What Heat Does to Our Bodies” reveals factory floors often hotter than outdoor temperatures, with poor ventilation, sealed windows, and intense machinery heat creating suffocating conditions. Workers report frequent fainting, dehydration, dizziness, nausea, and swollen limbs, yet production continues during extreme heatwaves.“Inside, it feels like my body is melting,” said Muhammad Hunain, a textile worker. Many avoid drinking water to prevent reprimands for frequent bathroom breaks, increasing risks of kidney damage and long-term health complications.Despite earning just Rs32,000–40,000 ($115–145) monthly, workers face wage deductions or dismissal threats if they stop due to illness. Fainting incidents often result in unpaid leave without medical care.The report links affected factories to the named international brands through public supply-chain disclosures. Most brands are signatories to the International Accord on health and safety, yet only NEXT has explicit heat-risk guidelines for suppliers. Others reportedly rely on general standards that ignore extreme heat as a hazard.Workers and researchers accuse factories of temporarily improving conditions—adding fans, providing clean water—only during brand audits.CRI warns Karachi’s garment sector is on the frontlines of climate change, with Pakistan warming faster than the global average. Without urgent action—better ventilation, heat protocols, paid sick leave, and enforceable laws—the human toll will worsen.One worker, Shaista, summed it up: “We’re not asking for luxury… just air to breathe and water to drink.”

KARACHI: State Bank of Pakistan Governor Jameel Ahmad announced that Pakistan’s external debt-to-GDP ratio has improved significantly to 26% in FY25 from 31% a few years ago, mainly due to strong growth in workers’ remittances and a larger economy.Speaking on the sidelines of “Pakistan Women Entrepreneurship Day 2025”, he revealed that total foreign debt has remained stagnant at June 2022 levels for the past three years, with all new external financing used solely to repay maturing obligations rather than building reserves.Remittances hit a record $38.3 billion in FY25, up 27% from $30.3 billion in FY24, and are projected to cross $40 billion in FY26. The GDP has expanded to $407.1 billion from $375 billion in FY22.The Governor reiterated that the current account deficit will stay within the projected 0–1% of GDP despite rising imports ($5.2 billion in November 2025). SME financing rose by Rs150 billion to Rs700 billion in the last year, keeping the sector on track to reach the Rs1.1 trillion target in five years.

A major financial scandal has surfaced in Khyber Pakhtunkhwa after a departmental inquiry exposed a Rs106.04 million fraud within a World Bank-funded education project. The investigation revealed deep-rooted internal control failures, suspected staff collusion, and serious lapses in banking verification. The inquiry was launched when the project director of the Khyber Pakhtunkhwa Human Capital Investment Project (KP-HCIP) flagged unusual withdrawals from the project’s bank account. KP-HCIP, backed by a Rs26 billion loan, was designed to enhance education quality in Peshawar, Haripur, Nowshera, and Swabi, and was later expanded to support flood-affected districts. According to the inquiry committee, the fraud was carried out by exploiting cheque books that had already been fully used. New cheque books were allegedly obtained illegally using a fake authority letter, enabling unauthorized withdrawals. Investigators discovered that a man with no connection to the project managed to collect four cheque books without the required approval from official signatories. The committee pointed to a former project accountant—who still held project equipment and had extensive knowledge of internal systems—as the primary suspect behind the scheme. The inquiry also highlighted significant negligence on the part of the project’s financial management specialist and internal audit officer. It further criticized the National Bank of Pakistan, along with verification systems of FBR and Faysal Bank, for failing to detect irregularities that facilitated the fraudulent transactions. To move the case forward, investigators have recommended lodging an FIR, placing all suspects on the Exit Control List (ECL), and forwarding the matter to anti-corruption authorities. They also advised that a forensic audit be conducted by an independent chartered accountancy firm, covering the period from the project’s inception up to September 2025. The education department has been urged to tighten internal controls and strengthen financial oversight across all components of the project to prevent further losses and restore accountability.

Pakistan’s largest family Takaful operator moves a step closer to listing as it plans to raise capital for digital growth, branch expansion, and brand development. Pakistan’s first dedicated Islamic family Takaful company, Pak Qatar Family Takaful Limited, has officially kicked off its journey toward becoming a publicly listed company. The company has placed its draft prospectus on the Pakistan Stock Exchange for public review, inviting feedback ahead of its much-anticipated Initial Public Offering (IPO). According to the announcement, stakeholders and investors can submit their comments on the draft prospectus until December 10, 2025, marking a key regulatory milestone before the IPO launch. Market Leader in Pakistan’s Family Takaful Sector: Pak Qatar Family Takaful currently dominates the family Takaful segment in Pakistan, holding an impressive 44% market share. In the niche of dedicated Takaful products, the company commands an overwhelming 90.47% share, reinforcing its leadership in Shariah-compliant insurance solutions. Within the broader life insurance industry, the company controls 6.6% of the total market, highlighting its growing footprint beyond just Islamic insurance. IPO Structure and Share Offering Details: Here is a quick breakdown of the IPO structure: • 75% of the issue (22.5 million shares) will be offered through the Book Building Method • Floor price: PKR 10 per share • Price band cap: Up to 40% (maximum PKR 14 per share) • 25% of the issue (7.5 million shares) will be allocated to retail investors at the final strike price • The retail portion will be fully underwritten, ensuring investor confidence and liquidity Leading brokerage house Arif Habib Limited has been appointed as the lead manager for the IPO. How Pak Qatar Plans to Use IPO Proceeds: Pak Qatar Family Takaful has outlined a clear growth strategy for utilizing the funds raised through the public offering. The capital will be directed toward strengthening both operational and digital capabilities, including: • Upgrading IT infrastructure and core insurance software • Expanding and renovating branch network across Pakistan • Human resource development and talent enhancement • Brand-building and national marketing campaigns • Boosting digital sales platforms and customer experience These investments are expected to significantly improve service delivery, operational efficiency, and the company’s competitive edge in the rapidly expanding Islamic insurance market. Strengthening Position in Pakistan’s Growing Takaful Industry: With rising awareness of Shariah-compliant financial products and increasing demand for ethical insurance solutions, Pakistan’s Takaful industry is witnessing steady growth. Pak Qatar Family Takaful aims to leverage the IPO to further fortify its financial resilience, technological base, and market leadership. The planned listing is expected to provide new growth momentum to the company while offering investors a rare opportunity to participate in the country’s largest family Takaful operator. Pak Qatar Family Takaful’s move toward a public listing reflects strong confidence in Pakistan’s Islamic finance sector. As the public comment period remains open until December 10, 2025, all eyes are now on the upcoming IPO, which is poised to become one of the most significant listings in the Shariah-compliant financial services space.