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KSE-100 Index Closes Higher as Banking Stocks Shield PSX from Middle East Shock
Pakistan

KSE-100 Index Closes Higher as Banking Stocks Shield PSX from Middle East Shock

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The KSE-100 Index once again demonstrated resilience as Pakistan’s stock market weathered a storm of geopolitical uncertainty and sector-specific selling pressure to close Thursday’s trading session in positive territory. At a time when investors worldwide are nervously monitoring escalating tensions in the Middle East, the Pakistan Stock Exchange managed to deliver a modest gain. Strong performances from banking and exploration companies prevented a broader selloff, highlighting where investor confidence currently lies. The benchmark KSE-100 Index settled at 169,703.60 points, gaining 276.16 points or 0.16 percent by the end of trading. KSE-100 Index Witnesses Wild Swings Before Positive Finish The seemingly calm closing figure masked a highly volatile trading session. The KSE-100 Index moved within a massive range of 1,455 points during the day. It climbed to an intraday high of 170,138.18 points before retreating sharply to a low of 168,682.25 points as traders reacted to both domestic economic developments and international headlines. Total KSE-100 Index volume reached 186.64 million shares. Market breadth remained weak despite the positive close. Out of the 100 companies included in the benchmark index, only 40 stocks advanced, while 58 declined and two remained unchanged. The figures suggest that investors remained selective rather than broadly optimistic. Banking Stocks Become the Market’s Lifeline Commercial banks emerged as the biggest saviors of the market. The banking sector contributed approximately 276 index points, effectively carrying the benchmark into positive territory. Investors appeared to favor financially strong institutions amid uncertainty, viewing them as defensive plays during volatile periods. Among the largest contributors to the KSE-100 Index were: MEBL, which added nearly 79 points to the benchmark. MARI contributed around 60 points as exploration stocks benefited from rising energy prices. ENGROH supported the index with almost 60 points. UBL added approximately 59 points. POL contributed close to 58 points. These heavyweight stocks helped neutralize widespread weakness elsewhere. Fertilizer and Power Sectors Dragged the Market Not all sectors enjoyed investor confidence. Fertilizer companies emerged as the biggest losers and collectively erased more than 112 points from the benchmark. Power generation stocks also remained under pressure as investors reduced exposure to sectors perceived to be vulnerable during uncertain economic conditions. Major drags on the index included: FFC, which shaved off more than 58 points. HUBC reduced the benchmark by over 33 points. PPL contributed a negative impact exceeding 32 points. EFERT erased approximately 25 points. FATIMA further pressured the market. The sharp divergence between sectors reflects a market struggling to balance optimism with caution. Middle East Tensions Keep Investors on Edge Global events heavily influenced local trading sentiment. International oil prices moved higher after reports that the United States launched another round of military strikes against Iran. The developments revived fears of prolonged instability in the Middle East and raised concerns over potential disruptions to global energy supplies. The immediate beneficiary of higher oil prices was Pakistan’s exploration sector. Investors rushed toward energy-related names expecting improved profitability. However, the same geopolitical risks limited broader risk appetite across the market, preventing stronger gains. The result was a classic tug-of-war between opportunity and fear. Pakistan Economic Survey Offers a Confidence Boost While external developments unsettled investors, domestic economic indicators offered reasons for optimism. The Pakistan Economic Survey FY2025-26 indicated that the country’s economic recovery remained intact despite a challenging global environment. According to the survey, Pakistan’s economy expanded by 3.70 percent during the fiscal year compared with growth of 3.18 percent in the previous year. The stronger GDP performance reinforced hopes that economic stabilization efforts are beginning to produce tangible results. For many investors, this data provided reassurance that Pakistan’s broader economic outlook remains on a recovery path. Volume Leaders Signal Continued Speculative Interest Activity remained concentrated in a handful of stocks. FNEL dominated trading volumes with more than 118 million shares exchanged. SPSL followed with nearly 54 million shares and emerged among the strongest performers with a gain of over 10 percent. MLCF, LOADS, TPLRF1, TPL, KOSM, TPLP, WTL and PREMA also attracted significant investor attention. The heavy turnover suggests that speculative participation remains alive despite elevated uncertainty. Can the KSE-100 Index Maintain Its Momentum? Despite Thursday’s modest gain, the broader picture remains impressive. The KSE-100 Index has surged by 44,076 points, representing an extraordinary gain of 35.08 percent during the fiscal year. However, the benchmark remains down by 4,351 points or 2.50 percent on a calendar-year basis, underscoring the uneven nature of the market’s recovery. The latest session revealed a market caught between encouraging domestic fundamentals and mounting geopolitical risks. As long as this battle continues, volatility is likely to remain the defining feature of Pakistan’s equity market. For now, banking giants and exploration stocks are carrying the torch, but investors will be watching closely to see whether broader sectors eventually join the rally or whether external shocks once again test the resilience of the KSE-100 Index.

Pakistan Buffalo Genetic Material Exports to China Set to Unlock a Multi-Million Dollar Livestock Opportunity
Pakistan

Pakistan Buffalo Genetic Material Exports to China Set to Unlock a Multi-Million Dollar Livestock Opportunity

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Pakistan buffalo genetic material exports have entered a new era after Islamabad and Beijing signed a landmark agreement that could redefine the future of the country’s livestock industry. Long overshadowed by traditional export sectors, Pakistan’s prized buffalo genetics are now being positioned as a high-value commodity capable of generating millions of dollars in foreign exchange. The development is not merely another bilateral agreement. It signals Pakistan’s entry into the rapidly expanding global market for advanced animal genetics. Pakistan Buffalo Genetic Material Exports Open a New Revenue Stream Pakistan and China have signed a historic Material Transfer Agreement (MTA) that paves the way for the export of buffalo embryos, semen and sexed semen to the Chinese market. Under the agreement, China’s Royal Group has established a modern embryo, semen and ova production facility in Pakistan. The facility will collect, process and prepare buffalo genetic material for exports, creating a specialized value chain that did not previously exist at this scale within the country. Initial imports under the arrangement are estimated at around $5 million. However, the bigger story lies in future projections. Officials expect annual exports to reach approximately $25 million, creating a steady stream of foreign exchange earnings for Pakistan. For a country struggling with recurring balance-of-payment pressures, even niche export sectors are gaining strategic importance. Why Pakistan’s Buffalo Genetics Are Suddenly in Global Demand At the center of this opportunity is Pakistan’s renowned Nili-Ravi buffalo breed. Known internationally for its exceptional milk production and superior genetic traits, the breed has long been regarded as one of Pakistan’s most valuable yet underutilized biological assets. For decades, Pakistan exported dairy products and livestock on a limited scale while overlooking the commercial potential of its genetic resources. The China agreement changes that equation. Instead of exporting only conventional agricultural products, Pakistan is moving up the value chain by exporting intellectual biological assets that command significantly higher returns. The strategy could eventually establish Pakistani buffalo genetics as a globally recognized brand. The Hidden Battle to Protect Pakistan’s Genetic Wealth The agreement also addresses a concern that experts have repeatedly raised: protecting national genetic resources from exploitation. The Material Transfer Agreement functions as a legal safeguard mechanism. It ensures controlled access to buffalo genetics, regulates transfers and prevents unauthorized use or commercial misuse by external parties. Importantly, the framework protects Pakistan’s intellectual property rights linked to its buffalo genetic resources. This aspect of the agreement may prove just as significant as the expected export revenues. Without proper protections, countries risk losing ownership and control over valuable indigenous genetic assets that can later generate enormous profits elsewhere. Diplomatic Efforts Behind the Breakthrough The agreement was finalized through sustained diplomatic, technical and regulatory engagement led by Federal Minister for National Food Security and Research Rana Tanveer Hussain and Animal Husbandry Commissioner Dr. Syed Murtaza Hassan Andrabi. Their efforts involved close coordination with Chinese authorities to establish protocols acceptable to both countries. The successful conclusion of the negotiations highlights how agricultural diplomacy is increasingly becoming an economic tool rather than merely a technical exercise. Pakistan Buffalo Genetic Material Exports Could Redefine Livestock Economics Pakistan’s livestock sector contributes significantly to the agricultural economy and supports millions of rural households. Yet much of its potential remains untapped. The China agreement introduces a new business model where scientific innovation, biotechnology and genetics become drivers of export growth. If managed effectively, the initiative could encourage investment in breeding programs, veterinary services, research institutions and modern livestock infrastructure. It may also inspire policymakers to identify other indigenous assets with export potential beyond traditional commodities. For now, the message is clear. Pakistan is no longer selling only livestock products. It is beginning to commercialize knowledge, genetics and innovation. That transition could transform the country’s buffalo industry from a domestic agricultural success story into a globally competitive export enterprise. Pakistan buffalo genetic material exports represent more than a trade deal with China. They reflect a strategic shift toward higher-value exports built on indigenous strengths. The projected revenues may appear modest compared with major industries, but the long-term implications are substantial. If protected, promoted and expanded, Pakistan’s buffalo genetics could emerge as one of the country’s most surprising export success stories in the years ahead.

Karandaaz Pakistan and United Nations hosted Better Than Cash Alliance Launch Working Group to Accelerate Digital Merchant Payments in Pakistan
Pakistan

Karandaaz Pakistan and United Nations hosted Better Than Cash Alliance Launch Working Group to Accelerate Digital Merchant Payments in Pakistan

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Karachi – June 10, 2026: Karandaaz Pakistan and the Better Than Cash Alliance, hosted by the United Nations Development Programme (UNDP) are formally collaborating to accelerate digital merchant payments in Pakistan. The National Merchant Payments Working Group is being established to anchor this partnership, a multi-stakeholder platform designed to drive the growth of digital payments acceptance, particularly through the country’s inclusive instant payment system, Raast. While Pakistan has registered significant advancements in its digital financial infrastructure, including the rollout of Raast P2M, merchant adoption remains uneven. This initiative specifically aims to bridge that gap by reducing onboarding friction, addressing operational bottlenecks, and advancing financial inclusion for women and small merchants. Formed under the stewardship of the State Bank of Pakistan, the National Merchant Payments Working Group will serve as a neutral industry coordination platform for advancing merchant digitization in Pakistan. Drawing on successful models implemented across leading regional markets, the Working Group brings together banks, fintechs, payment service providers, merchant acquirers, merchant associations, and other key ecosystem stakeholders. The Working Group will facilitate industry-wide dialogue to identify market barriers, co-create practical solutions, and generate actionable recommendations to support policy and ecosystem development. It will also design and execute time-bound proofs of concept to advance merchant acceptance across Pakistan. By facilitating closer collaboration between industtry participants and policymakers, the Working Group aims to deliver a better-than-cash digital payments experience that unlocks new economic opportunities for businesses and consumers. “To achieve a truly cashless Pakistan, we must move beyond person-to-person transfers and digitize everyday business transactions. This collaboration with the Better Than Cash Alliance will build a collective forum, bringing together key industry stakeholders, ecosystem players, and financial institutions, where small businesses can transition away from cash, unlocking new economic opportunities. A cashless economy is the future, it is now time for us to embrace it” — Waqas ul Hasan, CEO, Karandaaz Pakistan The Better Than Cash Alliance brings extensive global expertise to this partnership with insights from in-country advisory services and implementation across Asia, Africa, and Latin America, as well as global advocacy leadership for financial inclusion within the G7 and G20. Karandaaz will complement this by bringing its deep domestic network spanning banks, fintechs, and regulators, as well as its extensive research and programmatic experience in small business digitization. “Responsible digital payments are a proven catalyst for enabling transparency, efficiency, and scaling financial inclusion. Pakistan’s digital merchant payments ecosystem holds enormous, untapped potential, yet adoption at scale remains constrained by questions of affordability, sustainability, and the commercial viability of digital payments for value-chain suppliers and merchants across the economy. Closing this gap requires the entire ecosystem to move together: suppliers, merchants, and financial service providers aligned around shared incentives and practical solutions. The National Merchant Payments Working Group is the best space and platform for the ecosystem to collectively resolve what no single player can address alone.” — Nshuti Mbabazi, Managing Director, Better Than Cash Alliance The Working Group will prioritize building consensus around sustainable merchant payment models, enabling structured knowledge exchanges between local and international experts, and consolidating industry perspectives to assist regulatory authorities in shaping future policies.

RCCI Budget Proposals Call for Lower Interest Rates and Energy Costs
Pakistan

RCCI Budget Proposals Call for Lower Interest Rates and Energy Costs

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The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged the government to bring interest rates below 10 percent and reduce electricity and gas prices in the upcoming budget to stimulate investment and industrial growth. RCCI President Usman Shaukat said Pakistan should aim to align borrowing costs with those prevailing in other countries in the region. Lower Interest Rates Needed for Investment Usman Shaukat said high interest rates discourage investment and slow industrial activity. He stressed that the benchmark interest rate should be brought below 10 percent to encourage businesses to expand and attract new investments. According to him, lower borrowing costs would help industries grow and support economic activity. Falling Oil Prices Offer Opportunity The RCCI president said declining global oil prices provide the government with an opportunity to address inflation. He said lower international oil prices could ease economic pressures and help stabilize prices in the domestic market. According to him, the government should take advantage of the changing global environment to provide relief to businesses and consumers. Chamber Seeks Lower Electricity and Gas Tariffs Usman Shaukat highlighted the high cost of energy in Pakistan. He called for reductions in electricity and gas tariffs, saying expensive utilities are increasing production costs and hurting industrial competitiveness. He added that affordable energy is essential for sustainable economic growth and export expansion. Tax Base Should Be Expanded The RCCI president urged the Federal Board of Revenue (FBR) to broaden the tax base instead of increasing pressure on existing taxpayers. He also recommended reducing corporate tax rates to make Pakistan a more attractive destination for investment. According to him, a competitive tax regime would help strengthen the economy and encourage business activity. Support Sought for Electric Vehicles Usman Shaukat endorsed the government’s policy to promote electric vehicles (EVs), saying the shift helps save fuel and reduce dependence on imported energy. However, he noted that the International Monetary Fund (IMF) is pressing for higher taxes on electric vehicles. He proposed a differentiated policy under which smaller EVs would continue to enjoy lower taxes. At the same time, he said imposing taxes on electric vehicles equivalent to 1,500cc conventional vehicles would not be problematic. He also called for the continuation of tax incentives for locally manufactured electric vehicles to support the domestic industry. Pharmaceutical Exports Offer Growth Potential The RCCI president said Pakistan has significant opportunities to increase pharmaceutical exports. He urged the government to issue the notification for the Pharma Export Council without delay. He also recommended providing tax incentives to pharmaceutical exporters to help the sector expand in international markets. According to him, supportive policies could transform pharmaceuticals into an important source of export earnings. Focus on Growth and Competitiveness RCCI said lower interest rates, reduced energy costs, tax reforms, and export incentives are essential for improving Pakistan’s economic competitiveness. The chamber emphasized that measures supporting investment and industrial activity would help strengthen economic growth and create new opportunities for businesses.

ABAD Urges Tax Reforms in Budget 2026-27 to Revive Real Estate Investment
Pakistan

ABAD Urges Tax Reforms in Budget 2026-27 to Revive Real Estate Investment

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Chairman Hassan Bakhshi Presents Key Proposals to Simplify Property Taxation Association of Builders and Developers (ABAD) Chairman Muhammad Hassan Bakhshi has presented a set of budget proposals to the government. He says long-term policy is critical for the real estate sector and must be developed through consultation with all stakeholders, including builders, developers, buyers, and allied industries. Replace Section 7F With Area-Based Taxation The government introduced a new tax under Section 7F last year. Under this regime, builders pay 10% on net income, while developers face 12.5% and 15% respectively on all receipts. ABAD wants this replaced with the previous Section 100D, which taxed builders on a per-square-foot basis. Bakhshi argues that area-based taxation gives builders a clear, advance estimate of their tax liability regardless of project size. He says this will also close loopholes for corruption. Remove Section 236C Tax on Business Income ABAD is challenging the application of Section 236C, which is a Capital Gains Tax, on builders and developers. The council argues that property sales by builders constitute business income, not capital gains. Therefore, Section 236C should not apply to them. Similarly, sub-leasing of property should also be exempt from this tax. Reduce Section 236K Advance Tax to 0.25% Section 236K is an advance tax of 1.5% paid at the time of property purchase. Its purpose is to inform the government that a transaction has taken place. ABAD proposes reducing this rate to 0.25%. Bakhshi points out that no value appreciation occurs at the time of purchase. A lower rate will still keep the government informed about property transactions without burdening buyers. Restore Capital Gains Tax Exemption After Five Years Previously, Capital Gains Tax (CGT) expired after five to ten years of property ownership. This encouraged people to hold onto properties. The government has since removed this exemption entirely. Now, even a property sold after 50 years attracts CGT. ABAD wants the old law restored so that CGT is waived after five years of ownership. Cap Rental Income Tax at 15% ABAD wants more people to buy and rent out properties. However, excessive taxes on rental income are discouraging this. Bakhshi notes that landlords currently create two separate agreements, one showing the actual rent and another showing a lower figure to reduce tax liability. He proposes that the government fix rental income tax at a flat 15%. This will bring more landlords into compliance and increase government tax revenue. Broaden Tax Net Instead of Raising Tax Rates ABAD warns that the overall tax burden on businesses is already too high. Tax rates have reached nearly 50%, and any further increase in the next budget will force businesses to shut down and drive away investment. Bakhshi says the business community, chambers of commerce, trade associations, and even the IMF are all demanding the same thing: tax those who are not paying taxes rather than increasing the burden on existing taxpayers. He urges the government to reduce the load on compliant taxpayers and expand the tax net in Budget 2026-27.

KCCI Budget Proposals Focus on Tax Reforms and Industrial Relief
Pakistan

KCCI Budget Proposals Focus on Tax Reforms and Industrial Relief

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The Karachi Chamber of Commerce and Industry (KCCI) has urged the government to expand the tax net instead of imposing additional burdens on existing taxpayers, saying industries, traders, and exporters are facing growing economic challenges. KCCI President Rehan Hanif outlined several recommendations aimed at improving the business environment and supporting industrial growth ahead of the federal budget. Chamber Calls for Broader Tax Base The chamber stressed that sectors already paying taxes should not face additional levies. Instead, it recommended bringing under-taxed sectors into the documented economy. According to KCCI, sectors such as retail, wholesale, agriculture, and real estate contribute less in taxes compared to the scale of their economic activities. The chamber urged the government to take effective measures to increase documentation and broaden the tax base. Opposition to Higher Energy Prices KCCI opposed any increase in gas and electricity tariffs. The chamber warned that rising energy costs are undermining the competitiveness of local industries. It said manufacturers are already struggling with increasing production expenses and higher utility bills. According to the chamber, further increases would make it difficult for businesses to compete in international markets. High Interest Rates Hurting Industry The chamber also criticized the State Bank’s interest rate policy. KCCI said expensive financing and elevated energy costs have placed severe pressure on the productive sector. Business leaders argued that high borrowing costs discourage investment and limit industrial expansion. They called for policies that would support economic activity and reduce the cost of doing business. Relief Sought on Super Tax Payments KCCI highlighted the liquidity problems faced by industries and sought relief regarding outstanding super tax liabilities. The chamber proposed allowing installment payments or adjusting dues against pending refunds. According to KCCI, these measures would help financially stressed industrial units and prevent factory closures. Business leaders said such support is necessary to maintain production and protect jobs. Port Delays Creating Trade Problems The chamber identified delays in cargo clearance and the growing backlog of containers at Karachi’s ports as major concerns for traders and manufacturers. It said these delays are disrupting supply chains and increasing business costs. KCCI proposed relief in port charges and demurrage fees to facilitate the timely movement of raw materials and imported goods. The chamber stressed that reducing logistical bottlenecks would improve trade efficiency and support industrial activity. Support for Digital Reforms KCCI also endorsed the “One City, One Chamber” policy. In addition, it called for the complete digitalization of trade marks, intellectual property rights, and customs procedures. According to the chamber, digital reforms would reduce compliance costs and simplify regulatory requirements, particularly for small and medium-sized enterprises. Business leaders said modernizing these systems would improve ease of doing business and increase efficiency. Industry Seeks Supportive Policies The chamber emphasized that Pakistan’s industrial and commercial sectors require supportive policies to remain competitive. It urged the government to focus on expanding the tax base, lowering business costs, and improving trade infrastructure. KCCI said such measures would encourage investment, strengthen exports, and contribute to sustainable economic growth.

SMEDA Calls for Incentives and Regulatory Relief for SMEs
Pakistan

SMEDA Calls for Incentives and Regulatory Relief for SMEs

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The Small and Medium Enterprise Development Authority (SMEDA) has called for special incentives and regulatory reforms for small and medium enterprises (SMEs), saying the sector holds the key to Pakistan’s economic growth, exports, and job creation. SMEDA Director Mashhood Ali Khan said SMEs are unable to realize their full potential because of frequent audits, complex regulations, and high production costs. SMEs Face Regulatory Challenges According to Mashhood Ali Khan, businesses with annual turnover of up to Rs500 million already pay income tax and sales tax. He said such enterprises should be exempt from repeated audits conducted by different government departments. He noted that small businesses operate with limited staff. Owners often have to manage production, procurement, sales, and administration simultaneously. Frequent audits divert their attention from expanding their businesses. He urged the government to create a trust-based environment and provide incentives to registered businesses. According to him, these measures would encourage undocumented enterprises to become part of the formal economy. Focus Should Be on Untaxed Sectors Mashhood Ali Khan stressed that the government should broaden the tax base instead of increasing the burden on existing taxpayers. He said several sectors are still not contributing effectively to tax revenues. Bringing such sectors into the tax net would generate additional resources without discouraging compliant businesses. Lower Electricity Tariffs Essential The SMEDA director described lower electricity prices as essential for industrial growth. He said high energy costs are making it difficult for Pakistani industries to remain competitive in international markets. According to him, the government must review electricity tariffs if it wants to promote exports and industrial development. He added that affordable energy would help businesses reduce production costs and improve competitiveness. Proposal for Collateral-Free Loans Mashhood Ali Khan also proposed introducing collateral-free financing schemes for SMEs. He said businesses that have consistently paid taxes over several years should receive easy loans based on their tax records. Such financing, he said, would allow companies to increase production capacity and expand operations. He added that business growth would ultimately lead to higher government revenues. Long-Term Financing Needed The SMEDA official emphasized the need to restore long-term financing facilities at single-digit interest rates. He said industries require financing for at least 10 years to invest in modern machinery, technology, and production capacity. According to him, loans with two- or three-year tenures do not support sustainable industrial growth. He said access to affordable and long-term financing is crucial for strengthening Pakistan’s manufacturing sector. SMEs Generate Jobs and Exports Mashhood Ali Khan highlighted the importance of the SME sector in the national economy. He said SMEs currently contribute around $2.8 billion in exports. He added that nearly 80 percent of employment opportunities in Pakistan are linked to the sector. According to him, SMEs have the potential to play a major role in economic recovery and sustainable growth. Sector Can Drive Economic Revival The SMEDA director said the government should provide regulatory ease, affordable energy, and better financial facilities to unlock the sector’s potential. He said supportive policies would help small and medium enterprises expand, increase exports, and create more jobs. According to him, a stronger SME sector could become one of the main drivers of Pakistan’s long-term economic development.

OICCI Proposes Corporate Tax Cuts and GST Reduction in Budget 2026-27
Pakistan

OICCI Proposes Corporate Tax Cuts and GST Reduction in Budget 2026-27

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The Overseas Investors Chamber of Commerce and Industry (OICCI), which represents international investor companies operating in Pakistan, has proposed a series of reforms for the federal budget 2026-27 aimed at attracting foreign investment and improving the business environment. The chamber also called for measures to address challenges faced by local industries and the commercial sector. OICCI Seeks Lower Corporate Taxes In its budget recommendations, OICCI placed corporate tax reforms at the center of its proposals. The chamber urged the government to reduce the corporate tax rate to 28 percent in the fiscal year 2026-27. It also recommended a gradual reduction to 25 percent over the next three years to make Pakistan more competitive for foreign investors. According to OICCI, lower tax rates would encourage investment and support economic growth. Chamber Calls for Gradual End to Super Tax OICCI also advocated the phased abolition of the super tax. The chamber noted that when corporate tax, super tax, Workers Welfare Fund (WWF), and Workers Profit Participation Fund (WPPF) are combined, the effective tax burden on large companies reaches nearly 46 percent. It argued that this level is significantly higher than those prevailing in many countries in the region and undermines competitiveness. High Taxes on Banks Raising Cost of Capital The chamber expressed concerns over the heavy taxation imposed on banks. According to OICCI, higher taxes increase the cost of capital and affect the entire business and industrial sector. It said the existing taxation system limits banks’ ability to provide financing, making working capital more expensive for businesses and reducing economic activity. Reforms Proposed for Salaried Individuals OICCI also recommended changes to personal income taxes to address the growing trend of highly skilled professionals leaving the country. The chamber proposed abolishing the 10 percent surcharge and super tax imposed on high-income salaried individuals. It further recommended setting the maximum income tax rate at 25 percent. The chamber believes such measures would help retain qualified professionals and strengthen Pakistan’s human capital. GST Reduction Recommended On indirect taxes, OICCI suggested simplifying withholding taxes and reducing the General Sales Tax (GST) on goods. The chamber proposed lowering the GST rate from 18 percent to 17 percent initially and eventually bringing it down to 15 percent. According to OICCI, these measures would ease the tax burden on businesses and consumers and improve economic competitiveness. Delayed Refunds and Tax Notices Remain Major Concerns The chamber highlighted several issues that continue to hamper business activity. It pointed to delays in tax refunds, unnecessary notices issued to large taxpayers, and weak coordination between federal and provincial revenue authorities. OICCI said these challenges create uncertainty for investors and hinder ease of doing business in the country. Focus on Investment and Business Growth The recommendations form part of OICCI’s broader efforts to promote foreign direct investment and create a more business-friendly environment. The chamber emphasized that reforms in taxation and regulatory processes are essential for increasing investment, supporting industries, and enhancing Pakistan’s economic competitiveness ahead of the upcoming fiscal year.

ABAD Urges Tax Reforms in Budget 2026-27 to Revive Real Estate Investment
Pakistan

Govt Moves Ahead With Rightsizing and Privatization of Key Public Entities

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The federal government has approved a major rightsizing and privatization plan aimed at restructuring state-owned entities through a comprehensive reform programme to be implemented within the next 90 days. The decision forms part of a broader strategy to improve efficiency, reduce costs, and redefine the role of public sector organizations under a unified framework. PMDC Included in First Phase of Privatization A significant aspect of the reform package is the inclusion of the Pakistan Mineral Development Corporation (PMDC) in the first phase of privatization. The government has also placed Saindak Metals Company and ENAR Petrotech Services on the initial list for divestment. Authorities have directed the Petroleum Division to consult with the Privatization Commission and prepare a detailed divestment plan within 90 days. The move marks an important development because PMDC remains one of the country’s profitable state-owned enterprises and is the only federal mining corporation operating in Pakistan. PMDC Owns Major Mining Assets PMDC manages several important mineral projects across the country. Its operations cover coal, salt, and metal exploration activities in different provinces. The corporation also owns strategic assets, including the Khewra Salt Mines and the Duddar Lead-Zinc Project. Despite being commercially successful, PMDC has now become part of the government’s wider privatization strategy. Profits Continued to Grow Financially, PMDC has maintained steady growth in recent years. The corporation recorded revenue of Rs5.27 billion during the fiscal year 2024-25. Its profit after tax has exceeded Rs2.35 billion in recent years. Apart from generating profits, PMDC contributes taxes and dividends to the national exchequer. The company also continues to expand its mineral exploration activities through several ongoing projects. Geological Survey of Pakistan to Become Commercial Entity The reform package also includes changes to the Geological Survey of Pakistan (GSP). Under the proposal, the organization will transform into a modern and technology-driven institution with a commercial outlook. The government plans to appoint an independent adviser to develop a sustainable business model for GSP over the next two to three years. Officials hope the move will help the organization generate revenue and improve operational efficiency. Downsizing Measures Also Approved The rightsizing plan proposes major reductions in staffing and administrative expenditures. Authorities intend to cut the overall workforce and reduce budget allocations to improve efficiency and lower operational costs. The restructuring aims to make public institutions leaner and financially sustainable. Central Inspectorate of Mines to Be Abolished As part of the reforms, the government has decided to abolish the Central Inspectorate of Mines completely. Meanwhile, the Department of Explosives will continue functioning under a cost-recovery model. Under this arrangement, the department may charge provincial governments for the services it provides. The move seeks to reduce the financial burden on the federal government while maintaining regulatory oversight. Broader Reform Strategy The latest decisions form part of the government’s wider effort to restructure both loss-making and commercially viable public sector entities. Officials believe the rightsizing and privatization framework will improve governance, attract investment, and enhance the efficiency of state-owned enterprises. With a 90-day implementation period now in place, key ministries and institutions are expected to begin executing the approved reforms in the coming weeks.

Pakistan UK Green Compact: £35 Million Climate Partnership Set to Reshape Sustainable Future
Pakistan

Pakistan UK Green Compact: £35 Million Climate Partnership Set to Reshape Sustainable Future

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The Pakistan UK Green Compact has emerged as a major focal point in Pakistan’s climate and economic development agenda, with both countries intensifying efforts to turn environmental cooperation into practical opportunities for growth, innovation, and resilience. The initiative came under renewed spotlight during a high-level meeting in Islamabad between Federal Minister for Climate Change and Environmental Coordination Dr. Musadik Malik and British High Commissioner Jane Marriott. At the center of discussions was the implementation of the £35 million bilateral climate cooperation framework and the future roadmap of the Green Compact. The meeting signals growing momentum behind Pakistan’s efforts to attract international partnerships aimed at tackling climate challenges while creating new opportunities for businesses, entrepreneurs, and young innovators. Pakistan UK Green Compact Focuses on Real Results While climate agreements often remain confined to policy discussions, Dr. Musadik Malik emphasized that the Pakistan UK Green Compact must deliver measurable benefits for ordinary citizens. According to officials, discussions focused on translating climate commitments into projects that can strengthen environmental protection, create jobs, improve resilience against disasters, and support sustainable economic growth. The British High Commissioner presented the Green Compact Action Plan and highlighted priority areas where both countries can deepen collaboration in the coming years. The emphasis on actionable outcomes reflects increasing pressure on governments worldwide to demonstrate that climate financing can generate tangible economic and social returns rather than simply producing policy declarations. Green University Islamabad Could Become a Regional Knowledge Hub One of the most significant developments discussed during the meeting was progress toward establishing a Green University in Islamabad. Dr. Malik informed the British delegation that consultations are underway with international partners, including stakeholders from Italy and organizations connected to Arctic Circle initiatives. The proposed university is expected to become a specialized center for climate research, environmental sciences, sustainability studies, and green innovation. If successfully established, the institution could position Pakistan as a regional destination for climate-related education and research while producing the skilled workforce required for the country’s green transition. Green Tech Hub at NUST Opens New Opportunities for Young Entrepreneurs Another major area of discussion was the Green Tech Hub established at the National University of Sciences and Technology (NUST) in collaboration with the Ministry of Climate Change and Environmental Coordination. The initiative aims to support young innovators developing environmentally friendly technologies and sustainable business solutions. Rather than functioning solely as a research center, the hub is designed to connect innovation with commercialization, allowing entrepreneurs to transform ideas into market-ready products and services. Government officials believe such initiatives could help create a new generation of green startups focused on renewable energy, sustainable agriculture, waste management, water conservation, and climate-smart technologies. Dr. Malik stressed that empowering youth through entrepreneurship, research, and innovation remains essential for achieving long-term environmental and economic goals. UK Expands Support for Climate and Youth Programmes in Pakistan During the meeting, Jane Marriott outlined several United Kingdom-backed programmes currently operating in Pakistan. These initiatives focus on youth entrepreneurship, climate resilience, sustainable development, and environmental innovation. The UK’s continued support reflects growing international recognition of Pakistan’s vulnerability to climate-related disasters and the urgent need to strengthen adaptation measures. Experts note that investments in green entrepreneurship can create a dual benefit by generating employment opportunities while simultaneously addressing environmental challenges. Climate Disasters Push Early Warning Systems Higher on the Agenda The discussion also highlighted one of Pakistan’s most pressing challenges: preparedness for climate-related disasters. Both sides reviewed measures to strengthen early warning systems and improve national readiness for extreme weather events. Pakistan remains among the countries most exposed to climate risks despite contributing only a small share of global greenhouse gas emissions. Floods, heatwaves, droughts, and other climate shocks continue to place significant pressure on communities and the economy. Improving forecasting capabilities and disaster preparedness mechanisms is increasingly viewed as a critical investment rather than a policy option. Why the Pakistan UK Green Compact Matters The growing collaboration between Pakistan and the United Kingdom extends beyond environmental protection. The Pakistan UK Green Compact is rapidly evolving into a broader framework that links climate action with economic development, education, innovation, and entrepreneurship. With £35 million allocated under the cooperation framework, the partnership has the potential to accelerate green investment, support emerging technologies, strengthen climate resilience, and create new opportunities for Pakistan’s youth. As climate risks continue to intensify globally, the success of the Pakistan UK Green Compact may ultimately be measured not by policy announcements but by its ability to deliver real-world solutions that improve lives, protect communities, and drive sustainable economic growth.

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