Pakistan

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.

Karachi: The Pakistan Stock Exchange (PSX) has removed Dewan Farooque Motors Limited (DFML) from its list of stocks that can be traded in futures contracts. This means investors can’t start new 90-day futures deals for DFML shares anymore. The decision comes after DFML was labeled “non-compliant” in a notice on December 1. In simple terms, futures contracts are like agreements to buy or sell shares at a set price in the future. DFML was allowed for these before, but now it’s off the list because it doesn’t meet the rules anymore. However, any ongoing deals—like those ending in December 2025, January 2026, or February 2026—will still go on until they finish. PSX’s General Manager Jawad H. Hashmi shared this update in a notice to all traders, regulators, and companies involved. He asked everyone to take note and adjust their plans. This change aims to keep trading fair and follow strict guidelines. Investors in DFML should check with their brokers for what this means for their holdings. The full notice is on the PSX website.

Karachi: In a significant development, DP World, a global provider of end-to-end logistics solutions, and K-Electric entered into an agreement under which a dedicated 132 kV grid station will be built at the Qasim International Container Terminal (QICT), a key trade gateway for Pakistan. The project will ensure reliable and efficient 26MW power supply, supporting the terminal’s growing operations and Pakistan’s expanding role in global trade. The new grid station is aimed at enhancing power resilience, improving operational efficiency, and supporting future electrification at the terminal, aligning with the companies’ shared commitment to sustainability, reliability, and innovation. Reinforcing KE’s mission to drive sustainable industrial growth through dependable, high-quality power solutions, the partnership will cater to the growing energy demand of port operations, enabling uninterrupted logistics and trade activity. Sadia Dada, Chief Distribution & Marcomms Officer at KE, said, “The move to grid power represents growing confidence in the system’s reliability and cost competitiveness especially for industries with expanding operations. Our agreement with DP World reflects a shared understanding that stable, high-quality electricity is fundamental to growth and efficiency.” Junaid Zamir, DP World’s CEO of QICT, said, “Port Qasim is one of Pakistan’s most vital trade gateways, and reliable energy is the backbone of its continued growth. This partnership with KE to install a dedicated grid station enables us to strengthen our terminal’s resilience and supports our goal of enabling more sustainable trade across Pakistan and beyond.” The grid station will cater to QICT’s expanding operations, ensuring uninterrupted power for continuous trade activity. By energising and empowering critical sectors such as ports, manufacturing, and logistics, KE continues to strengthen the country’s economic backbone, ensuring that reliable, efficient power remains central to progress and productivity. DP World is a leading global provider of end-to-end logistics solutions, enabling the flow of trade across six continents, including operations in Port Qasim.

Islamabad: The Universal Service Fund (USF) is poised to achieve another monumental milestone toward the Prime Minister’s vision of Digital Pakistan with the approval of nine new Telecom projects valued at Rs. 13.05 Billion. These projects are set to provide high-speed internet and voice services to 5.55 million unserved and underserved residents across 178 Towns/UCs and 753 mauzas of 11 districts across the country, significantly empowering the rural population to participate in the digital economy & connect with Digital World. APPROVED PROJECTS: • Next Generation – Broadband Services for Sustainable Development (NGBSD):Six projects will deliver high-speed broadband and voice services to 1,267,225 population of 753 Mauzas across seven districts. • Optical Fiber Network (OFC) Expansion:Three projects will lay 1,428 kilometers of Optical Fiber Cable across 178 Town/Union Councils in four districts and enable connectivity to 4,292,639 population. The new projects received formal approval during the 101st meeting of the USF Board of Directors, chaired by the Chairman USF Board and Secretary IT & Telecommunication, Zarrar Hasham Khan.The meeting was attended by, Chairman PTA Major General (R) Hafeez Ur Rehman, Member Telecom Jahanzeb Rahim, Independent Board Members, Muhammad Yousuf and Ms. Ayla Majid, Chief Executive Officer USF Ch. Mudassar Naveed, and other senior officials.The USF Board awarded the projects to various service providers following a rigorous and transparent process, selecting the lowest compliant bidders. Chairman USF Board, Zarrar Hasham Khan, underscored the urgent imperative need to enhance the fiberization of mobile towers and Base Transceiver Stations (BTS) nationwide, proactively encouraging USF to spearhead this crucial effort within its mandated areas.He emphasized the government’s commitment:“In line with the vision of Prime Minister Mian Shehbaz Sharif and Federal Minister IT & Telecommunication Ms. Shaza Fatima Khawaja, we are fully committed to providing superior quality connectivity to the rural population, thereby definitively bridging the digital divide between urban and rural communities.” He lauded USF’s instrumental role in empowering rural communities, asserting that connectivity is the key driver for digital growth and the IT sector. He specifically noted the fund’s vital support for the IT Industry, freelancers, and essential Health and Education services. To date, he stated that approximately 39.4 million of the rural population have been served or enabled with broadband, voice, and fixed-line services through USF’s projects. DETAILS OF THE PROJECTS:The CEO USF, Ch. Mudassar Naveed, in his presentation to the Board members, outlined the highlights of the new projects, provided a comprehensive briefing on the transparent bidding process, and detailed the expected positive impact in the designated areas.The resulting portfolio, which totals over Rs. 13.05 Billion, is geographically widespread across the country: NEXT GENERATION BROADBAND SERVICES (NGBSD) PROJECTS: • In Umar Kot District (Sindh), a project valued at Rs. 914.6 million will provide high-speed broadband and voice services to 243,695 residents across 142 Mauzas. • In Gujranwala & Mandi Bahuddin District (Punjab), a project worth Rs. 737.3 million will extend services to 234,573 residents across 160 Mauzas. • Kohat District (KPK) will see a project valued at Rs. 359.3 million, covering 41,404 residents across 24 Mauzas. • A major investment of Rs. 2.94 billion has been allocated to Khuzdar District (Baluchistan), where broadband services will reach 75,637 residents across 144 Mauzas. • Muzaffargarh District (Punjab) will benefit from Rs. 1.50 billion project, connecting 498,927 residents across 138 Mauzas. Finally, Mansehra District (KPK) will receive a project valued at Rs. 1.36 billion, enabling services for 172,989 residents across 145 Mauzas. OPTICAL FIBER NETWORK (OFC) PROJECTS: • Sialkot District (Punjab) will see the laying of 488 km of OFC through a project worth Rs. 1.64 billion, benefitting 2.29 million people across 75 Town/Union Councils. • Narowal District (Punjab) has been approved for an OFC project worth Rs. 1.51 billion, covering 447 km of OFC and enabling connectivity for 1.14 million residents across 66 Town/Union Councils. • The Quetta-Ziarat Project (Baluchistan), will see the laying of 493 km of OFC valued at Rs. 2.06 billion, will enable high-speed connectivity for 858,783 residents across 37 Town/Union Councils.

Islamabad: Prime Minister Shehbaz Sharif pledged full transparency and merit in the privatization of Pakistan International Airlines (PIA), announcing that the bidding process on December 23 will be aired live on national television. Addressing a meeting at the Prime Minister House with business leaders and representatives from all bidding entities, Sharif emphasized the government’s commitment to reviving the national flag carrier’s tarnished image and aligning it with global aviation standards. “The privatization is advancing smoothly to make PIA competitive again,” Sharif stated, expressing optimism that the new management would restore its iconic slogan, ‘Great People to Fly With.’ He highlighted that resuming international flights would benefit overseas Pakistanis and boost the country’s tourism sector. The gathering, attended by key federal ministers including Muhammad Ishaq Dar, Ahsan Iqbal, and Muhammad Aurangzeb, along with advisers and officials, saw participants commend the government’s professional approach. Sharif reiterated that restoring PIA’s operations is vital for economic growth and national pride.

Islamabad: Prime Minister Shehbaz Sharif has directed officials to negotiate with the International Monetary Fund (IMF) on implementing a proposed Rs975 billion tax relief package, aimed at easing burdens on businesses and the salaried class. The recommendations, presented by a private-sector-led panel chaired by Shehzad Saleem, include a 25% reduction in taxes for salaried individuals, abolition of the 10% income surcharge on earnings over Rs10 million, and elimination of the wealth tax on foreign assets via capital value tax. The package’s immediate relief is estimated at over Rs600 billion, with key proposals prioritizing the scrapping of super tax (Rs190b relief), halving the minimum income tax rate before full elimination (Rs160b), ending the 15% corporate dividend tax (Rs80b), and reducing corporate income tax to 25% over two years (Rs170b). Additional measures involve abolishing provincial cesses like Sindh’s 1.9% and Punjab’s 0.9% infrastructure levies, advance income tax on exporters, workers’ welfare and participation funds (Rs50b combined), and withholding taxes on goods and services (Rs175b). Due to IMF program constraints, implementation hinges on lender approval. Sharif formed a committee under Finance Minister Muhammad Aurangzeb to develop an actionable roadmap. Sources highlight a growing consensus among government, military, and business leaders that such reforms are essential for economic growth, alongside lowering energy costs to regional levels. The PM emphasized that robust businesses are key to generating revenue and driving export-led expansion, amid criticisms of excessive taxation stifling industry.

Islamabad, December 3, 2025 – Pakistan’s cement industry experienced a significant downturn in November 2025, with total dispatches falling 13% month-on-month (MoM) to 4.14 million tons, according to the latest sector update from Taurus Securities Limited. The decline was driven by a sharp drop in both domestic and export sales, highlighting ongoing pressures from rising costs, border closures, and international trade barriers.Domestic sales, which form the bulk of the industry’s output, decreased by 10% MoM to 3.55 million tons. Industry experts attribute this to subdued construction demand, exacerbated by higher material costs, duties, and taxes. Cement manufacturers have urged the government to introduce industry-friendly policies, including concessions on duties, to make cement more affordable and stimulate local construction activities.Exports fared even worse, plummeting 29% MoM to 0.59 million tons. The northern region, heavily reliant on trade with Afghanistan, saw exports virtually halt due to an indefinite border closure amid regional tensions. Southern exporters, meanwhile, faced headwinds from newly imposed U.S. tariffs on imports from several countries, including Pakistan. Manufacturers in the north are exploring alternative markets like Sri Lanka and Bangladesh via sea routes, but the outlook for FY26 remains subdued, with exports expected to stay under pressure. Read More:https://theboardroompk.com/cement-exports-increase-28-58-to-134-516-million-in-4-months/ On a year-on-year (YoY) basis, total dispatches dipped 3%, though domestic sales edged up 2% to 3.55 million tons, supported by improving macroeconomic indicators and increased construction in the north. Exports, however, tumbled 27% YoY, underscoring the impact of geopolitical issues and trade restrictions.Breaking it down regionally: North Region: Domestic dispatches fell 11% MoM to 3.02 million tons but rose 6% YoY, reflecting a revival in construction tied to positive FY26 budget measures. Exports were negligible, down from 0.15 million tons in October.South Region: Local sales dropped 3% MoM and 16% YoY to 0.53 million tons, amid weaker construction activity. Exports declined 13% MoM and 7% YoY to 0.59 million tons. For the first five months of FY26 (5MFY26), the picture is more optimistic on the domestic front. Total local dispatches surged 15% YoY to 17.44 million tons, fueled by lower inflation, interest rates, and stable material prices. North-based domestic sales grew 16% YoY, while the south saw a 9% increase. Exports remained flat YoY at 4.01 million tons, with northern declines offset by slight southern gains.Cement prices showed mixed trends. Average retail prices in the north stood at approximately PKR 1,374 per bag as of November 27, down 5% YoY. In the south, prices rose 4% YoY to PKR 1,440 per bag. International coal prices, a key input cost, provided some relief, falling 24% YoY to USD 85.10 per ton (around PKR 35,000 per ton in local currency terms).Looking ahead, analysts at Taurus Securities anticipate a rebound in domestic demand, driven by flood rehabilitation efforts expected to ramp up after Ramadan (March-April 2026). The FY26 budget includes PKR 10 billion in mark-up and housing subsidies to promote affordable housing, alongside tax credits on loans for homes up to 250 square yards or flats under 2,000 square feet. These measures, combined with broader economic stability, are poised to boost construction.However, exports face ongoing challenges from the Afghan border closure and U.S. tariffs, potentially limiting growth in FY26. Taurus highlights Lucky Cement (LUCK), Maple Leaf Cement Factory (MLCF), and Fauji Cement Company Limited (FCCL) as top investment picks in the sector. The report, sourced from the All Pakistan Cement Manufacturers Association (APCMA) and other data, underscores the industry’s resilience amid volatility. Industry stakeholders continue to call for policy support to navigate these hurdles and capitalize on domestic recovery opportunities.