Pakistan

ISLAMABAD: Large-scale manufacturing (LSM) in Pakistan grew by a modest 4.1% during the first quarter (July-September) of FY2025-26, down from an initial 4.5% pace in the first two months, according to data released by the Pakistan Bureau of Statistics (PBS). Despite crossing the 4% mark, the LSM index stood at just 114.7 in September, still below the three-year-high of 132.5.An internal assessment by the Ministry of Industries has revealed that several key sectors face severe cost disadvantages ranging from 22% to 67% due to skewed economic policies, high energy prices, taxation, and regulatory burdens. The ceramic tiles and glass sectors suffer the highest handicap of over two-thirds, followed by steel (one-third) and paper & board (one-fourth). These distortions have caused the manufacturing sector’s contribution to GDP to shrink from 26% to 18% over the past three decades.The ministry has urged immediate policy corrections, including abolition of the super tax, gradual reduction of corporate tax from 29% to 26%, a 5% cut in interest rates, and market-driven exchange rate adjustments. It warned that without addressing structural high costs, tariff liberalization alone will deplete foreign exchange reserves and fail to boost competitiveness.Growth was mainly driven by food, tobacco, textile, and paper sectors, while overall industrial activity remains constrained by political uncertainty and anti-export biases.

Federal Minister for Climate Change and Environmental Coordination, Musadik Malik, highlighted Pakistan’s progress in forest revival and ecosystem restoration during a COP30 side event dedicated to the Upscaling Green Pakistan Programme (UGPP). Speaking through a recorded message, the minister noted that global climate conversations continue to focus on reducing greenhouse gas emissions and expanding natural systems that can effectively absorb carbon. He stressed that forests play a central role in both climate mitigation and adaptation, calling nature-based solutions essential to long-term global resilience. “Carbon sequestration requires factories that absorb carbon dioxide and release oxygen — and that factory is a tree,” he stated, underscoring the value of forest ecosystems in lowering carbon loads and strengthening environmental stability. The session, hosted by the Ministry of Climate Change, showcased Pakistan’s achievements in rehabilitating degraded landscapes, restoring ecological balance, and actively involving local communities in conservation initiatives. The UGPP has facilitated extensive plantation drives in previously barren areas while promoting stronger grassroots participation in protecting natural resources. Dr. Malik added that the programme has significantly improved climate awareness at the community level, encouraging citizens to safeguard forests and adopt more sustainable practices. He reaffirmed Pakistan’s dedication to global forest protection, saying the country stands committed to preserving its own forests as well as supporting global restoration efforts. A documentary produced by the ministry was also screened, featuring on-ground success stories and visible improvements in local ecosystems. The event concluded with a panel discussion attended by climate experts, international partners, development organisations, and civil society members working to advance forest restoration and climate resilience.

The Collectorate of Customs Enforcement Peshawar has confiscated smuggled goods worth over Rs. 51 million after intercepting a truck in Dera Ismail Khan. The operation was carried out on Wednesday by the Quick Response Force, which stopped the vehicle near Waziristan Chowk. Officials reported that the truck, registered as P 4234, was en route from Quetta to Rawalpindi when it was flagged down for inspection. A detailed search of the vehicle resulted in the seizure of a substantial consignment of foreign-made cigarettes, rolls of polyester fabric, and betel nuts. The truck was taken into custody, and a case has been initiated under the Pakistan Customs Act, 1969. The Federal Board of Revenue (FBR) commended the enforcement team for its timely action, noting that it reflects the department’s continued commitment to combating illegal trade and protecting national revenue. Authorities stated that increased surveillance on key transit corridors is proving effective, particularly as smuggling groups attempt to alter their routes and strategies to evade detection. Customs officials added that enforcement activities across Khyber Pakhtunkhwa are being further strengthened. The goal is to disrupt the inflow of non-duty-paid goods that commonly enter Pakistan through its western borders and to ensure stronger control over illicit supply chains.

Mari Energies Limited has entered into a joint venture with Ghani Chemical Industries Ltd. to create a new project company dedicated to processing vent and exhaust gases from the Sachal Gas Processing Complex in Daharki, Sindh. In a filing to the Pakistan Stock Exchange, the company stated that the newly formed entity will focus on extracting valuable hydrocarbons from the plant’s exhaust stream. The recovered components will be used to produce liquefied natural gas (LNG) along with industrial-grade and food-grade carbon dioxide (CO₂). Under the agreement, Mari Energies will retain a majority shareholding of 51%, while Ghani Chemical will own the remaining 49%. The initiative is designed to transform waste gases into commercially useful products, helping to curb greenhouse emissions while creating economic value. According to the companies, the project aligns with broader sustainability goals by capturing gases that would otherwise be released into the atmosphere. This collaboration builds on a preliminary term sheet signed between the two firms earlier in July. The venture is expected to support environmental conservation efforts, boost local industry, and generate additional revenue streams through the efficient utilization of gas by-products. Once operational, the project aims to contribute to both regional economic development and Pakistan’s growing emphasis on cleaner, more resource-efficient industrial practices.

Karachi: Shield Corporation Limited (SCL), a leading Pakistani manufacturer of baby care and hygiene products, has announced its decision to delist from the Pakistan Stock Exchange (PSX). In a filing submitted to the bourse on Wednesday, the company stated that its Board of Directors has resolved to pursue voluntary delisting under Rule 5.14 of the PSX Rule Book. Sponsors have been authorized to buy back ordinary shares from minority shareholders at a price to be determined in accordance with regulations set by the PSX or the Securities and Exchange Commission of Pakistan (SECP). The move follows SCL’s earlier decision in May to discontinue diaper production while continuing its other product lines. Shares of SCL closed at Rs408 on Wednesday, marking a sharp 10% or Rs37.09 increase amid the announcement. Established in 1975, Shield serves over 300 towns and cities in Pakistan and exports to Europe, Asia, and Africa. The delisting adds to a growing trend of companies exiting the PSX.

KARACHI: The International Finance Corporation (IFC) and Standard Chartered Pakistan have announced a new $400 million risk-participation facility designed to strengthen short-term trade financing and working-capital support for Pakistani businesses. According to a statement from Standard Chartered, the facility will be extended to major local corporates and exporters, helping to increase foreign exchange inflows and reinforce sustainable economic activity. Rehan Shaikh, CEO of Standard Chartered Pakistan, described the initiative as a significant step forward in the bank’s long-standing partnership with IFC. He noted that the agreement reflects a deepened collaboration aimed at supporting Pakistan’s business ecosystem through enhanced access to trade finance. The new facility, formalised in September, builds on a previous joint $200 million programme introduced in December 2022. The expansion demonstrates both institutions’ confidence in Pakistan’s financial sector and its export-driven industries. Momina Aijazuddin, Regional Head of Industry for IFC’s Financial Institutions Group across the Middle East, Türkiye, Central Asia, Pakistan, and Afghanistan, emphasised that doubling the facility’s size underscores IFC’s commitment to improving liquidity for businesses that play a vital role in economic development. She said the enhanced support will help companies secure essential trade and working capital, enabling them to grow, generate employment, and contribute to the country’s long-term financial resilience. The initiative marks a key milestone in efforts to strengthen Pakistan’s trade infrastructure and broaden financial support for sectors critical to the nation’s economic stability.

KARACHI – The Pakistani government is pressing ahead with its ambitious plan to privatize Pakistan International Airlines (PIA) before the end of the year, according to Muhammad Ali, Chairman of the Privatisation Commission. In an interview on a private TV, Ali confirmed the government’s resolve to conclude the sale but made a crucial clarification: no governmental guarantees will be extended to prospective buyers. While the International Monetary Fund (IMF) has approved the withdrawal of sales tax on the transaction, other forms of investor assurances are being withheld. Ali emphasized that running airlines is not the mandate of administrations and noted, “Governments change.” Addressing concerns about the sluggish pace of privatization, the Chairman explained the strategy of starting with smaller, less complex deals, such as the partial transfer of First Women Bank, before moving on to larger divestments like PIA. Looking ahead, Ali confirmed that the government plans to outsource major infrastructure, with Karachi and Lahore airports each requiring an estimated $1 billion in capital for expansion, which private operators are expected to mobilize. For the struggling gas sector, he stated that structural reforms are essential, adding, “For the sector to move forward, the Sui gas companies will have to be sold.” The Commission is thus targeting key sales across energy and aviation in the coming year.

KARACHI – Global trading firm Vitol and Pakistan’s largest oil refiner, Cnergyico, have successfully delivered the country’s biggest single shipment of Very Low Sulphur Fuel Oil (VLSFO) for ship refuelling. This milestone delivery signals a major step forward for Pakistan’s maritime capabilities and environmental compliance in the global shipping industry. The 6,800 metric ton shipment of IMO-compliant VLSFO was produced by Cnergyico from its first large-scale batch, which was refined using the company’s inaugural cargoes of U.S. crude oil imported in August and September. Vitol delivered the fuel to a vessel operated by shipping major MSC at Port Qasim, utilizing the Singapore-flagged bunker barge Marine Ista. Importantly, this operation marked the first time a bunker barge loaded fuel directly from the Karachi Port Trust’s Oil Pier, circumventing the less efficient method of truck deliveries. “This latest initiative enhances Pakistan’s capacity to serve the global shipping industry with sustainable fuel solutions,” said Aumar Abbassciy, Director at Cnergyico Pk Limited. The local supply of VLSFO will now allow large vessels refuelling in Pakistan to sail longer east-to-west routes without necessitating stops elsewhere. Vitol has confirmed that new bunkering locations will include Karachi Port, Port Qasim, and Karachi Anchorage, with Cnergyico committed to continuous VLSFO supply.

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has imposed a hefty collective fine of Rupees Fifty-seven Million Five Hundred Thousand (Rs. 57,500,000) on three major Electric Supply Companies (DISCOs) for their failure to prevent multiple fatal accidents during the Fiscal Year 2023-2024. In orders issued on November 17, 2025, under Section 27B of the NEPRA Act, the authority held Lahore Electric Supply Company (LESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO) responsible for a total of twenty-one fatal accidents. These incidents tragically resulted in the loss of lives of employees, contractors, and members of the public. LESCO received the largest fine, a penalty of Rs. 30,000,000, after being held responsible for all twelve fatal accidents reported in its service territory. GEPCO was fined Rs. 17,500,000 for its responsibility in seven accidents, and FESCO was ordered to pay Rs. 10,000,000 for two fatal accidents. The investigations consistently pointed to severe deficiencies in safety governance and operational oversight. Common root causes across the companies included a “Failure to obtain Permit to Work (PTW),” “Failure to use Personal Protective Equipment (PPE),” “Lack of Planning,” and “Inadequate/Lack of Supervision”. NEPRA criticized LESCO’s defense, calling the attempt to blame “individual actions alone… a blatant abdication of its legal and managerial responsibilities”.