Pakistan

The All Pakistan Textile Mills Association (APTMA) has formally approached the Federal Board of Revenue (FBR), seeking an extension of at least three weeks for the filing and payment of sales tax returns, citing severe logistical disruptions caused by ongoing transport strikes across the country. In a letter addressed to FBR Chairman Rashid Mahmood Langrial, APTMA Chairman Kamran Arshad outlined the operational challenges being faced by textile mills due to the breakdown of supply chains and delays in the movement of goods between upcountry regions and major port cities. Transport Strikes Disrupt Compliance Timelines According to APTMA, the prevailing transport situation has significantly hampered the timely movement of goods, documents, and essential records between textile mills, clearing agents, and tax consultants. The impact has been particularly acute for mills located in upcountry regions, where access to ports and administrative hubs has been severely restricted. “The ongoing disruption has made it extremely difficult for member mills to reconcile accounts, compile required documentation, and meet statutory sales tax deadlines,” the association stated in its communication to the tax authority. Request to Avoid Penal Consequences APTMA emphasized that the delays are beyond the control of registered taxpayers and warned that failure to extend deadlines could expose compliant businesses to unnecessary penalties and financial strain. The association urged the FBR to consider a minimum three-week extension to facilitate smooth compliance and maintain business continuity. The textile body expressed confidence that the FBR would take a pragmatic and industry-friendly view of the request, given the genuine operational difficulties currently confronting the sector. APTMA also conveyed its willingness to provide any additional clarification or data required by the tax authorities. The letter was also copied to Zubair Bilal, Member Inland Revenue (Operations) at the FBR, underscoring the urgency and importance of the matter. Textile Sector Under Pressure The textile industry, one of Pakistan’s largest contributors to exports, employment, and industrial output, has repeatedly highlighted logistical bottlenecks as a key factor affecting operational efficiency and regulatory compliance. Industry stakeholders warn that without timely relief, delayed tax filings could have a cascading financial impact on mills already grappling with rising costs and supply chain uncertainties. APTMA’s request comes at a critical time, as concerns grow over documentation delays and the potential economic fallout if sales tax deadlines are not adjusted in line with ground realities.

Karachi: Industrial activity has been severely disrupted due to a goods transporters’ strike that has continued for the past nine days, causing billions of rupees in daily losses to the national economy, said President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput.Expressing grave concern over the prolonged strike, Rajput said the suspension of goods movement from major industrial zones including Korangi, Landhi and Bin Qasim has badly affected the supply of raw materials and the delivery of finished goods. As a result, production at sev Read More: https://theboardroompk.com/transport-crisis-talks-at-kcci-25-member-goods-transporters-delegation-meets-karachi-chamber-amid-ongoing-strike/

ISLAMABAD: Prime Minister Shehbaz Sharif has named retired Lieutenant General Hassan Azhar Hayat as the Managing Director of the newly established Pakistan Land Port Authority (PLPA). The appointment was formalized through a notification issued by the Cabinet Secretariat’s Establishment Division. With this development, Pakistan joins India and Bangladesh as the third South Asian nation to create a dedicated land port authority, aimed at streamlining cross-border trade and transportation. The PLPA will act as a centralized hub for coordination among various agencies, promoting smoother trade facilitation, efficient passenger movement at border points, and stronger regional connectivity. It will establish effective mechanisms for collaboration with border management entities, while ensuring compliance with international treaties and conventions. Overall, the creation of the Pakistan Land Port Authority represents a major advancement in bolstering Pakistan’s trade ties with neighbors, upgrading border infrastructure, and fostering greater economic integration in the region.

The ongoing goods transporters’ strike in Pakistan continues to pose a serious challenge to business continuity and economic stability, with industry leaders warning of escalating losses and long-term damage to the national supply chain. According to the Karachi Chamber of Commerce and Industry (KCCI), the strike now entering its second week has brought logistics operations across the country close to a complete standstill. A 25-member delegation of goods transporters recently visited the Karachi Chamber of Commerce and Industry to discuss the crisis and its far-reaching impact on trade, manufacturing, and exports. KCCI President Rehan Hanif emphasized that the prolonged strike is not only disrupting day-to-day business activities but is also inflicting heavy losses on Pakistan’s economy, estimated to be worth billions of rupees with each passing day. Supply Chain Breakdown and Industrial Impact The goods transporters’ strike has severely disrupted the movement of raw materials and finished goods between ports, factories, warehouses, and markets. As a result, multiple industries are facing production slowdowns, while some are approaching temporary shutdowns due to the unavailability of essential inputs. Export-oriented sectors are among the worst affected, as delays in shipments are leading to missed deadlines and growing uncertainty among international buyers. Business leaders warn that the paralysis of the supply chain in Pakistan is creating a ripple effect across the economy, affecting manufacturing output, retail availability, and employment. In an already challenging economic environment, prolonged logistics disruptions are adding further pressure on businesses struggling with high costs and weak demand. Exports at Risk, Foreign Exchange Under Pressure The suspension of export shipments due to the transport strike is having a direct impact on Pakistan’s foreign exchange earnings. With exports stalled, inflows of foreign currency are declining, increasing pressure on the country’s foreign exchange reserves. Analysts caution that continued disruption could damage Pakistan’s credibility as a reliable trading partner, with long-term consequences for export growth and investment. Call for Immediate Government Intervention KCCI has urged the government to take immediate notice of the goods transporters’ strike, which began on December 8, and to initiate constructive dialogue with transporters. According to Rehan Hanif, addressing the legitimate concerns of transporters through negotiations is essential to restoring smooth logistics operations and preventing further economic losses. “In the current fragile economic situation, Pakistan cannot afford prolonged strikes,” the KCCI president stated, stressing that uninterrupted goods transportation is critical for industrial productivity, export performance, and overall economic recovery. National Interest Demands Swift Resolution Industry stakeholders agree that an immediate end to the goods transporters’ strike is now a national priority. Continued delays risk deepening supply chain disruptions, increasing business uncertainty, and undermining economic stability. A swift and mutually acceptable resolution, they argue, is essential to safeguard trade flows, protect jobs, and support sustainable economic growth.

Islamabad, December 16, 2025 – The long-awaited privatisation of Pakistan International Airlines (PIA) has gained significant momentum, with four consortia pre-qualified to bid for a controlling stake in the national carrier. The competitive bidding is scheduled for December 23, 2025, and will be broadcast live on national television to ensure maximum transparency, as announced by Prime Minister Shehbaz Sharif.The pre-qualified bidders are the Lucky Cement Consortium (including Hub Power Holdings, Kohat Cement, and Metro Ventures), the Arif Habib Corporation Consortium (with Fatima Fertiliser, City Schools, and Lake City Holdings), Fauji Fertiliser Company Limited, and private airline Air Blue Limited. Serious contenders like the Lucky and Arif Habib groups have engaged international aviation experts—Pegasus Airlines from Turkey and Sibra Aviation Partners, respectively—to refine their bids. Reports suggest both may seek partnerships with Fauji Fertiliser to strengthen their offers. Read More: https://theboardroompk.com/pm-promises-live-tv-coverage-for-pia-privatization-bids-on-december-23/ This renewed push follows a failed attempt last year, when a lone bid of just Rs10 billion from Blue World City fell far short of the Rs85 billion reserve price and was rejected. The Privatisation Commission relaunched the process in April 2025, inviting expressions of interest for 51-100% stake with management control. Key hurdles, including outstanding loans and tax issues, have been resolved, paving the way for progress.PIA has shown signs of recovery, posting Rs11 billion in pre-tax profits this financial year. The expected reserve price is now Rs90-100 billion. Post-privatisation plans include fleet expansion from 18 to 38 aircraft within four years, route growth to over 40 cities by 2029, and retaining the iconic PIA brand and national flag on planes.As the deadline approaches, PIA’s 6,500 employees express anxiety over job security. The government emphasises a transparent process to restore the airline’s former glory as “Great People to Fly With.” This marks Pakistan’s first major privatisation in nearly two decades, aligned with IMF reform commitments.

Pakistan’s flagship overseas banking initiative, Roshan Digital Account (RDA), continued to demonstrate resilience in November 2025, even as monthly inflows softened slightly. According to the State Bank of Pakistan (SBP), total inflows into RDA during the month stood at $181 million, taking cumulative inflows since launch to an impressive $11.49 billion. While November inflows declined by $24 million compared to October’s $205 million, the overall trend remains positive, underscoring sustained confidence among Non-Resident Pakistanis (NRPs) in Pakistan’s banking and investment ecosystem. Net Repatriable Liability Rises as Local Utilization Grows SBP data shows that $140 million was either repatriated or utilized locally during November. Of this amount: • $15 million was repatriated abroad• $126 million was utilized within Pakistan As a result, the Net Repatriable Liability (NRL) of Roshan Digital Accounts increased by $41 million during the month, reflecting stronger retention of overseas funds within the domestic economy. Cumulatively, total repatriation and local utilization from RDA has now reached $9.3 billion. This includes: • $1.92 billion repatriated• $7.39 billion utilized locally This leaves the Net Repatriable Liability at $2.19 billion, representing 19.04% of total RDA inflows. Where RDA Funds Are Currently Parked A detailed breakdown of the Net Repatriable Liability highlights the diversity of overseas Pakistani investments: • Conventional Naya Pakistan Certificates (NPC): $496 million• Islamic Naya Pakistan Certificates: $1.01 billion• Equity Investments: $100 million• Balances in RDA Accounts: $521 million• Other Liabilities: $58 million This mix reflects a growing preference among NRPs for Shariah-compliant instruments, along with stable interest in equities and liquid account balances. Strong Financial Year Momentum During the current financial year, RDA inflows reached $931 million, surpassing the $884 million received in the same period last year. Meanwhile, total repatriation and local utilization amounted to $733 million, compared to $663 million in the corresponding period of the previous year. These numbers signal not only continuity but year-on-year growth in engagement by overseas Pakistanis. Account Growth Continues Steadily In November alone, 9,572 new Roshan Digital Accounts were opened, taking the total number of active accounts to 883,037. Since its launch, RDA has consistently expanded its user base, reflecting increasing trust in Pakistan’s digital banking framework. For context:• Highest monthly inflow: June 2021 ($310 million)• Highest monthly reduction in NRL: July 2022 (NRL declined by $330 million due to high repatriation and utilization) Why Roshan Digital Account Matters Launched by the State Bank of Pakistan in collaboration with commercial banks, RDA is one of the country’s most successful financial inclusion initiatives for overseas Pakistanis. It enables NRPs and POC holders to: • Open Pakistani bank accounts fully online• Invest in government securities and equities• Make digital payments and transfers• Manage finances without visiting any bank, embassy, or consulate The entire account-opening process is paperless and presenceless, requiring minimal documentation. Banks are mandated by SBP to complete customer due diligence within 48 hours, making RDA one of the fastest digital onboarding systems in the region. Despite short-term monthly fluctuations, Roshan Digital Accounts remain a critical pillar of Pakistan’s external financing and financial stability. Rising cumulative inflows, expanding account numbers, and increasing local utilization highlight the initiative’s long-term strategic value. As Pakistan continues to strengthen its digital banking infrastructure, RDA is proving to be more than a remittance channel, it is a trusted investment and savings platform for millions of overseas Pakistanis worldwide.

Karachi, December 15, 2025 – Independent Power Producers (IPPs) in Pakistan, long undervalued amid sector reforms, are sparking investor excitement through bold diversification moves. According to a latest research note from Arif Habib Limited, companies like Nishat Power Limited (NPL), Nishat (Chunian) Power Limited (NCPL), and Kot Addu Power Company (KAPCO) are transitioning beyond traditional power generation, fueling significant stock gains and attractive dividend prospects. NPL and NCPL Accelerate into Electric and Hybrid Vehicles NPL and NCPL have surged 54% and 80% respectively since announcing their entry into the booming auto sector via NexGen Auto – a joint venture planning to launch new energy vehicles (NEVs) in partnership with the Nishat Group and Chery International. The flagship models include the Jaecoo J7 plug-in hybrid electric vehicle (PHEV), aggressively priced at PKR 10.5 million, and the fully electric Omoda E5 SUV at PKR 8.9 million. The Jaecoo J7 has already seen blockbuster demand, with reports of 3,500 bookings shortly after launch – one of the strongest responses for a new entrant in Pakistan’s automotive market. NexGen Auto is investing heavily, including PKR 14.7 billion for a new CKD assembly plant with 32,000 units annual capacity. Analysts project this venture could add over PKR 30 per share in value to NPL and NCPL, with incremental earnings upside of PKR 2.8–3.3 per share in coming years. Both companies benefited from power sector reforms, recovering billions in receivables under new “Hybrid Take-and-Pay” agreements. This has bolstered balance sheets, enabling high dividend yields of around 9–10% expected for FY27–28. KAPCO’s Turnaround: PPA Renewal and Cement Ambitions KAPCO, operator of Pakistan’s largest multi-fuel power plant, has staged a remarkable recovery. After 12 quarters of gross losses, its Power Purchase Agreement (PPA) for 500 MW has been reinstated for three years under a hybrid model, paving the way for profitability. The company holds a massive PKR 39.7 billion in cash (PKR 45/share) after clearing debts and receivables. KAPCO shares have risen 21% on news of a binding offer, jointly with Fauji Foundation, to acquire an 84% stake in Attock Cement Pakistan Limited (ACPL). ACPL reported strong Q1FY26 results with 61% YoY dispatch growth and margins expanding to 29%. The deal could add PKR 1.9–2.4 per share to KAPCO’s earnings, while maintaining high dividend yields of 13.7%. Arif Habib analysts view these moves as catalysts for re-rating overlooked IPPs, trading at deep discounts despite robust fundamentals. With Pakistan’s SUV market share rising to 17% and cement demand recovering, these diversifications signal a new growth chapter for the sector.

Pakistan’s equity market began the week on a strong note as the KSE-100 Index closed Monday’s trading session at 170,741.34 points, posting a gain of 876.82 points (0.52%). The benchmark index remained firmly in positive territory throughout the day, reflecting sustained investor confidence and broad-based sectoral participation. During the session, the index touched an intraday high of 171,001.71 points, while the day’s low was recorded at 170,292.95 points, highlighting steady buying interest despite minor intraday fluctuations. Market Activity and Breadth Remain Strong Trading volumes remained healthy, with the KSE-100 Index recording a total volume of 410.45 million shares. Market breadth was slightly positive, as 53 index companies closed higher, 46 ended lower, while one stock remained unchanged. The overall tone of the market suggested selective accumulation, particularly in energy, technology, cement, and banking stocks. Top Gainers and Losers on the KSE-100 Leading Gainers The best-performing stocks of the day included: These stocks attracted strong volumes, driven by sector-specific optimism and improved earnings expectations. Top Losers On the downside, selling pressure was seen in: Stocks Driving the Index Higher In terms of index-point contribution, Pakistan Petroleum Limited (PPL) led the rally, adding 198.55 points, followed by: Meanwhile, Hub Power Company (HUBC) and fertilizer sector stocks slightly offset gains, exerting downward pressure on the index. Sector-Wise Performance: Energy and Technology Lead Sectoral performance remained mixed but largely supportive of the upward move. Top Supporting Sectors Sectors Under Pressure Broader Market Snapshot The broader market also mirrored the positive momentum. The All-Share Index closed at 103,176.20 points, gaining 451.08 points (0.44%). Most Active Stocks by Volume High trading activity was observed in: Bigger Picture: KSE-100 Performance in FY and Calendar Year The long-term performance of the market remains impressive: These gains underscore sustained momentum in Pakistan’s equity market, supported by macroeconomic stability expectations, improved liquidity conditions, and renewed investor participation. With the KSE-100 Index holding above the 170,000 level, market sentiment remains constructive in the near term. Continued sector rotation, earnings announcements, and macroeconomic developments will be key drivers to watch in upcoming sessions.

Karachi: Atif Ikram Sheikh, President FPCCI; President ECO-CCI and VP CACCI, has apprised that The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has announced that it will host the 30th Executive Committee Meeting and the 20th General Assembly Meeting of the ECO Chamber of Commerce & Industry (ECO-CCI) on 22 January 2026 at the FPCCI Head Office in Karachi on the sidelines of 2nd Sustainable Tourism Forum (STF) to be jointly organized by FPCCI and Islamic Chamber of Commerce, Industry and Development (ICCD) during January 21-22. Mr. Atif Ikram Sheikh stated that these ECO-CCI events carry immense strategic importance for the region – as they will help strengthen economic cooperation; expand intra-ECO trade; promote investments; foster business linkages and revitalize the institutional role of ECO-CCI as a key platform for vis-à-vis regional economic integration. FPCCI Chief further disclosed that invitations have already been extended to all ECO Member Chambers – and, FPCCI expects participation from Presidents, senior officials, B2B delegations and sectorial experts from multiple ECO countries. Mr. Atif Ikram Sheikh added that the Sustainable Tourism Forum will also provide a significant platform to highlight the tourism potential of ECO countries; enhance regional cooperation in aviation and hospitality sectors; promote investment opportunities in tourism sector of Pakistan and encourage collaborative initiatives for sustainable and responsible tourism development across the region. FPCCI maintained that hosting these events in Karachi will further strengthen Pakistan’s leadership role in regional economic diplomacy; expand B2B connectivity and reinforce the country’s commitment to deeper economic and trade partnerships within the ECO framework.

Pakistan’s long-standing circular debt crisis is once again emerging as a major roadblock to energy sector growth, putting over $1 billion in gas field investment at risk. Mari Energies Limited has issued a clear warning: without structural reforms and payment assurances, large-scale upstream investments may not move forward. At the center of the issue is the Ghazij–Ghiskori gas field, a strategic asset that could significantly strengthen Pakistan’s domestic gas supply if investment conditions improve. Why Mari Energies Is Holding Back Investment Mari Energies has formally informed the government that it cannot proceed with more than $1 billion in development spending for the Ghazij–Ghiskori gas field due to worsening financial conditions in the gas sector. According to the company, several interconnected issues are undermining cash flows:• Rising LNG imports• Limited domestic gas offtake• Delayed payments caused by circular debt• Uncertainty over long-term gas availability Without firm guarantees on timely payments and assured gas demand, Mari Energies says committing such a large investment would be financially imprudent. Circular Debt at Rs. 2.6 Trillion: A Systemic Risk Pakistan’s circular debt has now reached approximately Rs. 2.6 trillion, creating severe liquidity constraints across the entire energy value chain. This has affected not only private players like Mari Energies but also state-owned exploration and production companies such as:• OGDCL• Pakistan Petroleum Limited (PPL) As receivables pile up, exploration activity slows, drilling budgets shrink, and future production capacity comes under threat. Declining Gas Demand Adds Another Layer of Complexity Citing a study by Wood Mackenzie, Mari Energies highlighted that gas demand, particularly from the power sector has declined in recent years. Key contributing factors include:• High electricity tariffs• Rising taxes and levies on consumers• Persistent supply-demand mismatches at SNGPL• A shift toward alternative fuels in power generation Together, these trends have weakened the commercial viability of new upstream investments. The Proposed Solution: Fertilizer Sector Linkage To unlock stalled investment, Mari Energies has urged the government to support a proposal submitted by the FMPAC (Fertilizer Manufacturers of Pakistan Advisory Council). Under the proposal:• Gas from the Ghazij–Ghiskori field would be supplied to fertilizer plants• A back-up (backfill) gas supply mechanism would be ensured• Total planned investment would exceed $1 billiono $800 million by Mari Energieso $200 million by the fertilizer industry This structure would provide predictable demand, reduce payment risk, and improve project bankability. What’s at Stake if the Proposal Is Rejected Mari Energies has cautioned that if the proposal is withdrawn or delayed, the entire $1 billion investment could be shelved. That would send a strong negative signal to both local and international investors — reinforcing concerns that Pakistan’s energy sector lacks the financial stability needed for long-term capital deployment. The Bigger Picture: Fixing Circular Debt Is No Longer Optional This case highlights a broader reality: Pakistan cannot attract or sustain energy investment without resolving circular debt.Without reform:• Domestic gas production will stagnate• LNG import dependence will increase• Energy costs will remain volatile• Industrial competitiveness will sufferFor policymakers, the message is clear circular debt reform is not just a fiscal issue; it is an investment imperative. Energy Security Depends on Financial Stability The Ghazij–Ghiskori gas field could play a critical role in strengthening Pakistan’s energy security. But unless the government restores confidence through payment discipline, demand assurance, and sectoral reform, billion-dollar investments will continue to remain on hold.Pakistan’s energy future depends not just on resources underground, but on fixing the financial systems above ground.