Pakistan

Over 2.1M Skilled Workers to Be Sent Abroad This Year Compared to 9 Lac Last Year, Chairman PM Youth Programme
Pakistan

Over 2.1M Skilled Workers to Be Sent Abroad This Year Compared to 9 Lac Last Year, Chairman PM Youth Programme

KARACHI: Chairman Prime Minister’s Youth Programme Rana Mashood has said that a special meeting will be arranged between a delegation of industrialists from the Korangi Association of Trade and Industry (KATI) and the Prime Minister, enabling them to directly present their proposals for industrial development. He further stated that efforts would also be made to release pending federal funding of Rs250 million for infrastructure improvement. He made these remarks while addressing industrialists at KATI. The event was attended by KATI President Muhammad Ikram Rajput, Deputy Patron-in-Chief Zubair Chhaya, Chairman KITE Limited Zahid Saeed, Senior Vice President Zahid Hamid, Vice President Muhammad Talha Ali, CEO KITE Ltd Saleem-uz-Zaman, Former Presidents and Chairmen Junaid Naqi and Masood Naqi, UBG President Zubair Tufail, Sindh Youth Programme Coordinator Dr Fahad Shafiq, Pakistan Muslim League-N Business Forum President Ishtiaq Baig, and other senior officials. Rana Mashood said that more than 900,000 skilled workers were sent abroad for employment last year, while the target for the current year has been set at 2.1 million. He added that agreements are being finalized with countries including Australia, New Zealand, Japan, the United States, and Middle Eastern states to facilitate overseas employment. He said young people will be provided modern professional training including soft skills, social ethics, and vocational competencies. He noted that in the next three years, Japan alone will require over 700,000 skilled workers, while Saudi Arabia and Gulf countries will need more than 100,000 healthcare professionals and nurses. He further stated that a Digital Youth Portal has been launched, registering over 800,000 young people, exceeding its operational capacity. The portal includes more than 4,000 organizations and has already facilitated over 100,000 job opportunities. Rana Mashood announced that an internship programme is also being launched under which educated youth will be placed in industries for six months. During this period, the government will cover all expenses, and successful candidates may be offered permanent employment within the same organizations. He added that beneficiaries of the Prime Minister’s laptop scheme have successfully utilized e-commerce platforms to generate self-employment opportunities and are now productively engaged in the economy. Earlier, KATI President Muhammad Ikram Rajput said that initiatives under the Prime Minister’s Youth Programme related to education, skill development, digital training, business support, easy loan schemes, and employment opportunities are laying the foundation for Pakistan’s bright future. He emphasized that Pakistan’s large youth population is its most valuable asset, and with access to quality education, technical training, modern skills, and employment opportunities, they can become key drivers of economic growth and prosperity. He added that KATI has always played a positive role in promoting industry, trade, employment, and human resource development, and believes that strong linkage between industry and youth is essential to align graduates with market needs. Deputy Patron-in-Chief Zubair Chhaya said that Pakistan’s global standing has improved after May 2025 and that the country has emerged as a peaceful mediator in recent international tensions. He warned, however, that Pakistan risks missing a critical opportunity to strengthen its economy. He noted that the Korangi Industrial Area contributes around 10 percent of Pakistan’s total exports and that this share could be increased with improved policies. He stressed that youth make up around 60 percent of Pakistan’s population, yet adequate employment opportunities remain limited. He urged the government to urgently pursue industrialization policies, warning that Pakistan risks shifting from an industrial to a trading-based economy, which he termed concerning. He added that both the public and private sectors must work together to create opportunities for youth. Chairman KITE Limited Zahid Saeed highlighted Pakistan’s strategic geographic position, ports, and airports as key advantages. He said Karachi’s exports stand at around $16 billion and remittances from overseas Pakistanis remain a lifeline for the economy. He added that vocational training for youth could increase remittances by $4 billion annually, potentially reaching $84 billion over the next decade. He also pointed out that a promised federal grant of Rs250 million to KITE Limited has yet to be released, although the Sindh government has provided Rs2 billion for development projects in the industrial area. He said federal funding would significantly improve Karachi’s infrastructure and increase government revenue. Senior Vice President KATI Zahid Hamid and Pakistan Muslim League-N Business Forum President Ishtiaq Baig also addressed the gathering.

Pakistan Advertising Association expresses condolences on the passing of Pervez Iqbal
Pakistan

Pakistan Advertising Association expresses condolences on the passing of Pervez Iqbal

Karachi, June 1, 2026: The Pakistan Advertising Association (PAA) has expressed deep grief over the passing of Mr. Pervez Iqbal, former Managing Director of Big Bang Communications Limited (BBCL) and a respected figure in Pakistan’s advertising, media, corporate communications and event management industry. Mr. Iqbal was widely regarded as a seasoned and composed professional who earned respect across the industry through his commitment, integrity and dignified conduct. His career spanned some of the most defining years of Pakistan’s advertising and media landscape, when communication, brand activation, event management and corporate partnerships were beginning to take a more organised and strategic shape. During his association with BBCL, Mr. Iqbal contributed to several landmark assignments that connected advertising, media, sports and public engagement. BBCL’s work around the 1996 Cricket World Cup and subsequent cricket-related event management projects remains part of the institutional memory of many advertising and media professionals in the country. PAA noted that Mr. Iqbal belonged to a generation of professionals who helped build bridges between brands, media platforms, institutions and audiences at a time when the advertising business was evolving beyond conventional media buying and creative execution. His work reflected the importance of discipline, relationship-building, professional credibility and operational excellence – qualities that continue to guide the industry today. Paying tribute to him, Mr. Ahmed Kapadia, Chairman, PAA, said, “Mr. Iqbal was among those professionals who understood the true value of trust, commitment and reputation. His contributions to BBCL and to major communication and event-led assignments helped raise the professional standards our industry holds dear. On behalf of the PAA, we extend our heartfelt condolences to his family. May Allah grant him the highest place in Jannah and give strength to his loved ones during this difficult time.” PAA further noted that Pakistan’s advertising industry has been shaped by individuals who worked quietly but consistently behind major campaigns, media partnerships and national events. Mr. Iqbal was one such professional whose contribution deserves to be remembered with respect and gratitude. The Association offered prayers for the departed soul and expressed solidarity with the bereaved family.

KSE-100 Index Decline Deepens as Inflation Shock and Global Tensions Trigger Market Rout
Pakistan

KSE-100 Index Decline Deepens as Inflation Shock and Global Tensions Trigger Market Rout

Market Under Pressure as KSE-100 Index Decline Accelerates The KSE-100 Index Decline intensified sharply on Monday as Pakistan’s benchmark stock index fell under heavy selling pressure, closing at 170,600.20 after losing 3,362.61 points, or 1.93 percent. The session reflected a decisive shift in sentiment as investors rushed to reduce exposure across key sectors amid worsening macroeconomic and geopolitical conditions. Market activity showed extreme volatility, with the index swinging nearly 3,775 points during the day. It touched an intraday high of 174,171.64 before plunging to 170,396.85, signaling aggressive profit-taking and panic-driven exits in later trading hours. Total traded volume in the benchmark index reached 246.94 million shares, yet the breadth of the market painted a deeply negative picture, with 85 of the 100 index companies closing in the red. Inflation Surge Amplifies KSE-100 Index Decline Pressure A major catalyst behind the KSE-100 Index Decline was the latest inflation data, which showed Pakistan’s Consumer Price Index rising to 11.7 percent year-on-year in May 2026. This marked a sharp increase from 10.9 percent in April and a dramatic jump from 3.5 percent in the same month last year. The inflation surprise has unsettled investors, who now fear that monetary easing may be delayed further. Higher inflation typically reduces expectations of interest rate cuts, increasing borrowing costs for businesses and pressuring corporate earnings. This shift in outlook triggered broad-based selling, particularly in rate-sensitive sectors. Sector-Wise Breakdown Highlights Widespread Weakness The KSE-100 Index Decline was driven primarily by heavy losses in key sectors: The commercial banks sector led the downside, dragging the index by more than 680 points as concerns over margins and interest rate uncertainty weighed heavily. Cement stocks followed closely, shedding over 560 points amid demand uncertainty and cost pressures. Oil and gas exploration companies also weakened significantly, contributing more than 520 points in losses as global energy volatility intensified. Fertilizer and investment-related companies added further pressure, collectively deepening the market’s negative close. On the positive side, only a few sectors provided limited relief. Synthetic and rayon stocks, leather and textile-related segments, and leasing companies offered marginal support, but their contribution was not enough to offset the broader downturn. Heavyweights Drive the Downside Momentum The KSE-100 Index Decline was further amplified by weakness in major heavyweight stocks. ENGROH emerged as the largest drag on the index, followed by Fauji Fertilizer, Lucky Cement, Oil and Gas Development Company, and Pakistan Petroleum Limited. These names alone accounted for a substantial portion of the index loss, reflecting concentrated pressure in blue-chip stocks. In contrast, a few counters such as TRG, Honda Atlas Cars, and Pakistan Oilfields managed to post gains, but their impact remained limited in reversing overall sentiment. Market Breadth Confirms Bearish Sentiment The broader market also mirrored the weakness seen in the benchmark index. The All-Share Index fell by 1.51 percent, closing at 102,602.54. Total market volume reached 589.76 million shares, with trading value recorded at Rs31.98 billion across nearly half a million trades. Out of 489 listed companies, 296 declined while only 168 advanced, reinforcing the dominance of sellers throughout the session. Volatile Stocks Dominate Trading Activity High-volume trading further highlighted speculative activity amid the KSE-100 Index Decline. Dewan Cement led the volume chart with over 43 million shares, followed closely by TRG with nearly 39 million shares. Other actively traded stocks included WorldCall Telecom, Cnergyico, Bank of Punjab, and K-Electric. This heavy participation suggests that while long-term investors were reducing exposure, short-term traders continued to seek opportunities in volatile counters. Geopolitical Risks Add to Investor Anxiety Beyond domestic inflation concerns, global developments added another layer of uncertainty. Rising international oil prices, driven by escalating tensions in the Middle East following expanded military operations in Lebanon, heightened fears of supply disruptions. These geopolitical risks contributed to a broader risk-off sentiment across emerging markets, with Pakistan’s equity market particularly vulnerable due to its reliance on energy imports and external financing pressures. Year-to-Date Performance Still Positive Despite Decline Despite the recent downturn, the KSE-100 Index has posted strong gains of 44,973 points, or 35.80 percent, during the fiscal year. However, on a calendar year basis, it is now down by 3,454 points, reflecting increasing volatility and shifting investor expectations. Market Sentiment Hinges on Inflation and Global Stability The ongoing KSE-100 Index Decline underscores a fragile market environment shaped by rising inflation, uncertain monetary policy direction, and escalating geopolitical risks. Until inflation stabilizes and global tensions ease, investor sentiment is likely to remain cautious, with continued volatility expected across Pakistan’s equity market.

FCEPL celebrates World Milk Day with school students across the country
Pakistan

FCEPL celebrates World Milk Day with school students across the country

Karachi: Friesland Campina Engro Pakistan Limited (FCEPL), a leading dairy company in Pakistan, and its employees celebrated World Milk Day with students across multiple cities in Pakistan as part of their ongoing mission to Nourish Pakistan. Employees from FCEPL spent a day with students at schools, including the RAAST School in Karachi and community schools in Sahiwal and Sukkur to talk to them about the long-term health benefits of drinking milk every day for school-going children. Awareness sessions like these with students are essential in Pakistan where nearly 10 million children suffer from stunting and 40% of children under the age of 5 have acute malnourishment which does not only impact their physical growth but also poses serious hindrance in their mental growth. Drinking a glass of milk alone can provide 7 out of 12 daily required nutrients, helping us fight the malnourishment battle in the country. “Our future generations’ wellbeing relies heavily on a quality diet, and safe milk is the cornerstone of this discussion. A well-informed society knows the value of sourcing and consuming safe, quality milk, which leads to a healthy, prosperous future” said Kashan Hasan – Managing Director & CEO, FCEPL.This was further emphasized by the Marketing Director, Sarah Sadiq, who said “We strive to provide the nation with safe and hygienic milk that preserves the quality and nutrients in the milk to ensure that every glass that reaches our consumers remains in its purest form. Our mission is not only to Nourish Pakistan but also to ensure maximum accessibility to safe and pure milk”. The company further carried out milk distribution drives in schools across Punjab in collaboration with the Pakistan Dairy Association to extend their reach to more students in the country.Friesland Campina Engro Pakistan Limited is one of Pakistan’s dairy production companies, with extensive focus on providing high-nutrition, safe, and affordable milk to all communities across the country.

Pakistan EU Strategic Dialogue Unlocks New Trade and Investment Opportunities
Pakistan

Pakistan EU Strategic Dialogue Unlocks New Trade and Investment Opportunities

The Pakistan EU Strategic Dialogue has emerged as a major diplomatic and economic development, with both Pakistan and the European Union expressing strong interest in transforming their relationship into a broader and more ambitious partnership. During the 8th Pakistan-EU Strategic Dialogue in Islamabad, Deputy Prime Minister and Foreign Minister Ishaq Dar and European Union foreign policy chief Kaja Kallas highlighted significant untapped opportunities that could reshape economic, political and strategic cooperation between the two sides. The meeting comes at a time when global trade routes, geopolitical alliances and economic partnerships are rapidly evolving, making stronger Pakistan-EU cooperation more important than ever. Pakistan Sees Untapped Potential in EU Partnership Speaking at the high-level dialogue, Ishaq Dar emphasized that Pakistan’s relationship with the European Union has a strong foundation but remains far from reaching its full potential. According to Dar, several sectors offer opportunities for deeper engagement, particularly trade, investment, economic development and institutional cooperation. The foreign minister stressed that both sides should maintain regular strategic dialogues to ensure continuous progress and stronger diplomatic coordination. His remarks reflected Islamabad’s growing desire to diversify international partnerships and attract foreign investment amid challenging global economic conditions. Pakistan EU Strategic Dialogue Focuses on Long-Term Vision One of the most significant developments emerging from the dialogue was Pakistan’s proposal for a comprehensive strategic vision designed to guide future cooperation. Building upon the Strategic Engagement Plan of 2019 and the Cooperation Agreement signed in 2004, Pakistan aims to create a more forward-looking framework capable of addressing modern challenges and opportunities. The proposed vision seeks to: • Deepen political understanding• Expand sectoral cooperation• Strengthen institutional partnerships• Promote sustainable economic growth• Enhance regional stability initiatives Officials believe such a framework could elevate Pakistan-EU relations beyond traditional diplomatic engagement and create a stronger long-term alliance. EU Remains Pakistan’s Largest Export Market A major highlight of the Pakistan EU Strategic Dialogue was the recognition of the European Union’s critical role in Pakistan’s economy. Kaja Kallas noted that the EU remains Pakistan’s largest export destination, surpassing even the combined markets of the United States and China. This reality underscores the strategic importance of maintaining strong ties with Europe at a time when global trade competition is intensifying. The EU official described the partnership as more than a commercial relationship, calling it a key driver of economic growth and development for Pakistan. GSP Plus Continues to Deliver Major Benefits Pakistan continues to be the world’s largest beneficiary of the Generalised Scheme of Preferences Plus (GSP+), a trade arrangement that provides duty-free or reduced-duty access to European markets. The scheme has played a crucial role in boosting Pakistan’s exports, particularly in textiles, apparel and manufacturing sectors. However, European officials also signaled that continued access to GSP+ benefits depends on Pakistan’s progress in implementing international commitments related to: • Human rights• Labour rights• Good governance• Environmental protection• Minority protections While the EU has acknowledged progress made by Pakistan, it has also stressed the need for deeper reforms in the coming years. Climate, Technology and Migration Emerge as New Cooperation Areas Beyond trade, the Pakistan EU Strategic Dialogue highlighted several emerging sectors that could define future cooperation. Kallas identified climate resilience, digital infrastructure, migration management and sustainable connectivity as priority areas where both sides can deepen engagement. These sectors are becoming increasingly important as countries adapt to climate challenges, technological transformation and changing labor markets. Analysts believe that collaboration in these areas could unlock billions of dollars in future investment opportunities while supporting sustainable economic development. Pakistan’s Diplomatic Role Gains International Recognition Another notable aspect of the discussions was the recognition of Pakistan’s diplomatic engagement in international conflicts. Kallas praised Pakistan’s efforts in facilitating dialogue between the United States and Iran, noting the broader global impact of regional instability on energy markets and fertilizer prices. The acknowledgement highlights Pakistan’s growing role as a diplomatic bridge-builder at a time of heightened geopolitical tensions. Why the Pakistan EU Strategic Dialogue Matters The latest Pakistan EU Strategic Dialogue signals that both sides are moving beyond traditional diplomatic exchanges toward a more comprehensive strategic partnership. For Pakistan, stronger engagement with the European Union could mean greater export growth, increased foreign investment, improved market access and stronger support for economic modernization. For the European Union, deeper cooperation offers an opportunity to strengthen regional stability, expand trade networks and engage with one of South Asia’s most strategically positioned economies. As global uncertainties continue to reshape international relations, the growing momentum behind Pakistan-EU cooperation could become one of the most significant diplomatic and economic developments for Pakistan in the years ahead.

SECP Compliance Certificate to Open New Doors for Pakistani Companies
Pakistan

SECP Compliance Certificate to Open New Doors for Pakistani Companies

The SECP Compliance Certificate is set to become a major milestone for Pakistan’s corporate sector as the Securities and Exchange Commission of Pakistan (SECP) introduces a new framework aimed at improving transparency, strengthening corporate governance, and enhancing the credibility of businesses operating in the country. The initiative is expected to help Pakistani companies gain greater trust from investors, international partners, financial institutions, and stakeholders by providing official proof of regulatory compliance. What Is the SECP Compliance Certificate? Under the newly announced framework, the SECP will issue a formal Certificate of Statutory Compliance to eligible companies. This certificate will serve as an official verification that a company is properly registered, actively operating, and complying with all applicable regulatory requirements set by the commission. The move reflects the regulator’s growing focus on improving corporate standards and creating a more transparent business environment in Pakistan. Why the SECP Compliance Certificate Matters In today’s competitive business world, credibility and transparency play a critical role in securing partnerships and attracting investment. The SECP Compliance Certificate is expected to act as an official seal of trust for businesses seeking to expand their operations beyond Pakistan’s borders. Companies often face challenges when dealing with international partners who require proof of legal status and regulatory compliance before entering into agreements. The newly introduced certificate is designed to address this issue by providing a standardized and government-backed confirmation of compliance. Business experts believe the initiative could improve Pakistan’s corporate image globally and make local firms more attractive to foreign investors. SECP Compliance Certificate Can Strengthen International Partnerships One of the most significant benefits of the new framework is its potential to support cross-border business relationships. According to the SECP, the certificate will help companies demonstrate their compliance standing when engaging with international investors, multinational corporations, suppliers, and financial institutions. As global businesses increasingly conduct extensive due diligence before forming partnerships, the availability of an official compliance certificate could simplify verification processes and accelerate business negotiations. Which Companies Are Eligible? Not every company will qualify for the SECP Compliance Certificate. The regulator has clearly outlined eligibility requirements to ensure that only compliant and active businesses receive certification. Companies must: • Be properly registered with the SECP• Maintain active operational status• Comply with all applicable regulatory requirements• Have complete and updated corporate records• Submit all required statutory returns and filings Businesses meeting these conditions can apply for the certificate through the Registrar of Companies. Companies That Will Not Qualify The SECP has also identified categories of companies that will be excluded from the certification process. The following entities will not be eligible: • Companies that are inactive• Companies currently under investigation• Companies with incomplete records• Companies that have failed to submit statutory returns• Companies with outstanding compliance deficiencies This strict screening process aims to preserve the credibility and integrity of the certification framework. How to Apply for the SECP Compliance Certificate Eligible companies can submit their applications directly to the SECP’s Registrar of Companies. The regulator is expected to review company records and compliance status before issuing the certificate. Businesses seeking certification are advised to ensure that all filings, returns, and regulatory obligations are up to date before applying. A New Era of Corporate Transparency in Pakistan The launch of the SECP Compliance Certificate marks another important step toward improving corporate governance and transparency in Pakistan. As businesses increasingly compete in international markets, official compliance verification can become a valuable asset for building trust, attracting investment, and securing strategic partnerships. With the new framework in place, compliant companies now have an opportunity to showcase their regulatory standing through a recognized certification that could strengthen their reputation both locally and globally. The introduction of the SECP Compliance Certificate reflects Pakistan’s broader efforts to modernize its corporate regulatory framework and encourage responsible business practices. By rewarding compliant companies with official certification, the SECP aims to promote transparency, accountability, and investor confidence across the corporate sector. For businesses seeking growth opportunities and international collaborations, obtaining this certificate may soon become an important competitive advantage.

Sindh Water Shortage Hits 22% as PPP Demands Federal Action Against IRSA's Unjust Cuts
Pakistan

Sindh Water Shortage Hits 22% as PPP Demands Federal Action Against IRSA’s Unjust Cuts

The Sindh water shortage has reached a critical level. The province is now facing a 22% deficit in its water supply, raising alarms over food security and public health. PPP leader and senior Sindh government official Sharjeel Memon raised the alarm on Sunday, blaming the Indus River System Authority (IRSA) for disregarding Sindh’s legitimate rights. Crisis Deepens at Key Barrages The Sindh water shortage is most severe at two critical points. Guddu Barrage is reeling under a staggering 42% water deficit. Kotri Barrage is recording a 29% shortfall. Both barrages are lifelines for millions of farmers and residents across the province. The scale of the crisis has left agricultural fields dry and urban water supply systems under severe strain. Karachi, Pakistan’s economic engine, is not spared. The megacity draws heavily on Sindh’s river water system. Experts warn that a prolonged shortage could trigger a severe urban water emergency in the country’s largest city. IRSA Accused of Violating 1991 Water Accord Memon directly accused IRSA of acting against Sindh’s interests. He said IRSA is using the pretext of “shortage equalization” to slash Sindh’s allocated share. He called this move a direct violation of the 1991 Water Apportionment Accord — a landmark agreement that governs how river water is distributed among all four provinces. “IRSA’s continued disregard for Sindh’s legitimate concerns and the unjust reduction of Sindh’s share under the guise of ‘shortage equalization’ is unacceptable,” Memon said. “No province can be given preference at the expense of another.” The 1991 Accord was designed to ensure fair water distribution. Critics argue that IRSA’s latest actions undermine the spirit of that agreement and set a dangerous precedent for inter-provincial water disputes. Agriculture and Livelihoods at Risk The Sindh water shortage directly threatens the province’s farming sector. Sindh is one of Pakistan’s most fertile agricultural zones, producing rice, sugarcane, cotton, and wheat. Farmers in districts dependent on Guddu and Kotri barrages report that their crops are already wilting. Irrigation canals are running well below capacity. If the shortage persists through the Kharif sowing season, losses could run into billions of rupees. Rural communities that depend entirely on canal water for drinking and domestic use are also suffering. Local representatives report that some villages have gone days without adequate water supply. PPP Vows to Fight for Sindh’s Rights Memon made clear that the PPP and the Sindh government will not stay silent. He called on the Federal Government to take immediate notice and intervene. He demanded full restoration of Sindh’s rightful water share in accordance with the law and the 1991 Accord. “The PPP and Sindh Government will continue to defend Sindh’s water rights at every constitutional, legal, and democratic forum,” Memon stated. The party signaled it is prepared to escalate the matter through formal legal channels if the federal government fails to act swiftly. Federal Government Under Pressure to Act Water experts and opposition voices are now calling on Islamabad to convene an emergency meeting of the Council of Common Interests (CCI) to address the Sindh water shortage. The CCI is the constitutional body mandated to resolve inter-provincial resource disputes. Failure to act could deepen tensions between Sindh and the federation at a politically sensitive time. Civil society groups have warned that water inequity, if left unaddressed, risks fuelling wider unrest across rural Sindh.

Pakistan Electricity Rates Down 20% from Rs53.04 per unit to Rs42.26 per unit, Energy Minister
Pakistan

Pakistan Electricity Rates Down 20% from Rs53.04 per unit to Rs42.26 per unit, Energy Minister

The narrative surrounding the Pakistani power sector has just been completely turned upside down. While public outcry and media headlines have long painted a bleak picture of skyrocketing energy bills, explosive new data from the Ministry of Energy reveals a radically different reality. In an emergency media briefing, Energy Minister Awais Khan Leghari officially went to war against widespread public misinformation. The numbers are out, and they reveal an unprecedented shift: national power bills are not just stabilizing, they are actively crashing. The Shocking Truth: Pakistan Electricity Tariffs Drop Nationwide For a public accustomed to monthly economic shocks, the latest official statistics seem almost unbelievable. Between March 2024 and May 2026, the national average all-inclusive power rate experienced a massive 20% reduction. The national average rate tumbled down from 53.04 Rupees per unit to 42.26 Rupees per unit. This sweeping reduction has offered direct relief across multiple consumer classes. Residential lifelines held steady at 7.56 Rupees per unit, showing a 0% change. However, protected consumers utilizing up to 200 units saw their all-inclusive rate slashed by 31%, dropping from 24.07 Rupees to 16.56 Rupees per unit. Non-protected consumers using less than 300 units received an 8% drop to 42.73 Rupees per unit, while those exceeding 300 units and utilizing Time-of-Use meters saw a 10% reduction down to 54.30 Rupees per unit. The overall domestic category recorded a 16% decline, settling at 36.35 Rupees per unit. Commercial users enjoyed an 8% cut down to 70.08 Rupees per unit, and General Services experienced a 10% reduction to 55.12 Rupees per unit. The absolute biggest winners of this policy shift are industrial consumers and the region of Azad Jammu and Kashmir. Industrial tariffs collapsed by a staggering 33%, down to 42.40 Rupees per unit, giving a massive boost to local manufacturing. Meanwhile, AJK witnessed an incredible 45% plunge, bringing its rate down to 33.65 Rupees per unit. Bulk consumers and the agricultural sector also gained, noting cuts of 13% and 14% to sit at 54.03 Rupees and 40.82 Rupees per unit respectively. Other miscellaneous categories followed the downward trend with a 10% reduction to 56.29 Rupees per unit. This massive drop did not happen by accident. The government achieved these numbers through aggressive, structural overhauls. Renegotiated Independent Power Producer contracts successfully unlocked a mind-boggling 3.5 trillion Rupees in lifetime savings. Additionally, the state slashed circular debt by 780 billion Rupees during the 2024-25 fiscal year and recovered another 193 billion Rupees by aggressively cutting down distribution company losses. The Trillion-Rupee Subsidy Boom for Protected Consumers Popular media claims insist that the state is abandoning vulnerable citizens, but the actual data exposes this as completely false. Pakistan has more than doubled its subsidies for protected consumers since 2022. The financial cushion allocated to protected citizens rocketed from 199 billion Rupees in 2022 to an astronomical 423 billion Rupees for the 2025-26 fiscal year. The sheer volume of citizens insulated from market rates is massive. Protected consumers shot up from 9.5 million in 2022 to 21.5 million today. This means that out of the country’s 34.2 million total residential consumers, a whopping 29.57 million households or 86% of the entire population receive subsidized electricity. When adding agricultural support to the equation, the total national subsidy budget reaches 527 billion Rupees. The government directly funds 249 billion Rupees of this total, while the remaining 278 billion Rupees is cross-subsidized by higher-end power consumers. To safeguard this system, a high-tech QR code registration system has already registered two million single-phase consumers to ensure that financial relief lands exclusively in the right hands. Debunking the Myth: The 26 GW Grid Capacity and Solar Deception Critics have repeatedly slammed the state for allegedly forcing 26,000 megawatts of wasteful, idle capacity onto an over-burdened grid. The Ministry of Energy has firmly corrected the record. The actual installed capacity sits at 36,397 megawatts, far below the exaggerated 46,000 megawatt figure often cited in talk shows. With a capacity-to-peak-demand ratio of 2.1x, Pakistan perfectly mirrors the structural stability of major emerging economies like Brazil and Turkey. Under the optimized Integrated System Plan, the government eliminated over 9,000 megawatts of expensive, forced capacity additions. This strategic move saved 15 billion dollars in capital investment and prevents 400 billion Rupees in annual consumer costs. The upcoming capacity additions are strictly focused on affordable, clean energy. The upcoming grid development pipeline includes 5,255 megawatts of hydel power, including the major Diamer Bhasha Dam project, alongside the strategic retirement and replacement of 2,577 megawatts of old, expensive generation plants. Wind power will add 1,655 megawatts, while nuclear energy contributes 1,200 megawatts. The international CASA G2G project will supply 1,000 megawatts, and market-based additions will bring around 3,000 megawatts at zero cost to ordinary grid consumers. The biggest clean energy driver, however, is a massive 8,120 megawatt expansion via net-metering solar additions. This brings us to the final myth: that the state is actively killing the green solar revolution. In reality, the national plan has fully integrated 8 to 9 gigawatts of distributed solar energy. The recent transition from net metering to net billing has zero impact on 90% of the country’s solar users, as all single-phase households are entirely exempt. The government has also completely wiped out licensing fees for any solar systems sized at 25 kilowatts and below. The shift to net billing applies exclusively to major three-phase commercial and industrial setups. This ensures that wealthy solar adopters pay their fair share for grid maintenance rather than offloading those operational costs onto low-income families. With 55% of Pakistan’s current energy mix already coming from clean sources, the country outperforms India’s 48% and stands shoulder-to-shoulder with Turkey. As the nation targets a 90% clean energy mix by 2035, the foreign fuel import bill is expected to plummet from 2.4 billion dollars down to just 300 million dollars. The era of unchecked power sector panic is officially over. The data proves that structural reforms are finally delivering a cheaper, greener, and far more stable economic future.

P@SHA Calls for 10-Year Policy Stability: Continue 0.25% Tax Regime for IT Exporters & Genuine Freelancers
Pakistan

P@SHA Calls for 10-Year Policy Stability: Continue 0.25% Tax Regime for IT Exporters & Genuine Freelancers

The Pakistan IT Industry Association (P@SHA), in its comprehensive Federal Budget 2026–27 recommendations, aimed at solidifying the nation’s digital exports ecosystem, has stressed the need to ensure policy stability for formal IT enterprises – and, providing necessary clarity for the broader digital workforce. Read More: https://theboardroompk.com/islamic-money-market-turnover-hits-rs142-6-billion/ P@SHA aims to clarify its official stance, which prioritizes the sustainable, long-term growth of registered IT companies while supporting the gradual formalization of the gig economy; while categorically stating that P@SHA fully supports maintaining a supportive environment for the genuine freelancers of the country. To provide stability and confidence to the industry, P@SHA has strongly recommended the continuation of the existing 0.25% final tax regime for IT exporters and genuine freelancers for a period of 10 years. This policy continuity is deemed essential to attract global business, secure foreign exchange inflows, and empower the registered corporate entities that serve as the primary engines of Pakistan’s technological and economic advancement. A central pillar of P@SHA’s budgetary framework is the critical need to distinguish between genuine, project-based freelancers and full-time remote employees working for overseas entities. Mr. Tufail Ahmed Khan, Honorary President of the Global Freelancers Union (GFU), acknowledged that P@SHA has rightfully proposed that authentic freelancers should continue to benefit from the simplified 0.25% final tax regime (FTR); whereas, it recommends that remote professionals earning fixed salaries from foreign employers be taxed appropriately under standard graduated salary slabs. This strategic distinction is designed to foster a level playing field for domestic IT companies. Currently, local enterprises that invest heavily in physical infrastructure, compliance, comprehensive employee benefits, and skill development face unfair competition for talent from unregistered remote setups. P@SHA Chairman Sajjad Syed emphasized that, by formalizing the tax structure for full-time remote workers, P@SHA aims to protect the local corporate sector, encourage the documentation of the economy, and incentivize the transition of individual contributors into fully structured, globally competitive IT businesses. Furthermore, the recommendations emphasize the urgent need for structural reforms that benefit the entire ecosystem but are particularly vital for scaling IT enterprises. P@SHA is advocating for simplified banking processes, smoother inward remittance mechanisms, and frictionless tax filing procedures to remove barriers to business growth. Acknowledging that freelancers play a vital role in youth employment and foundational digital exports, P@SHA believes the ultimate goal must be enabling these individuals to scale into formal organizations. To this end, the association is also urging significant national investments in advanced domains such as Artificial Intelligence, cloud computing, and cybersecurity. By prioritizing these structural and technological investments, alongside clear and equitable taxation policies, P@SHA remains committed to transforming Pakistan into a premier global hub for formalized, high-value technology outsourcing and innovation.

Pakistan Economic Recovery in Jeopardy: UNDP Issues Blistering Warning Ahead of Budget
Pakistan

Pakistan Economic Recovery in Jeopardy: UNDP Issues Blistering Warning Ahead of Budget

The illusion of financial stability is cracking. While Islamabad celebrates short-term stabilization milestones, a damning fiscal review by the United Nations Development Programme presented to the National Assembly Standing Committee on Finance and Revenue paints a terrifying picture. The highly anticipated Pakistan economic recovery is not just slowing down, it is standing on the edge of a precipice. With Budget 2026-27 around the corner, the UNDP has made it clear that without radical structural overhauls, the nation is headed straight back into a vicious cycle of external debt dependence. The Mirage of Economic Stabilization Gains At first glance, the macroeconomic indicators look like a triumph. Foreign exchange reserves climbed to 22.58 billion dollars by mid-May 2026, securing nearly two and a half months of import cover. Remittances are on track to hit a massive 41.2 billion dollars, contributing roughly 9% to the national GDP, with over half flowing from the Gulf Cooperation Council countries. Furthermore, aggressive monetary easing slashed the policy rate down to 11.5% after a staggering cumulative cut of 1,200 basis points since mid-2024. Even the State Bank of Pakistan projected an optimistic GDP growth rate of up to 4.75% for the fiscal year 2026, backed by an exceptional first-half primary surplus of 4.1 trillion rupees that comfortably outpaced IMF targets. But this is where the good news ends, and the economic horror story begins. The FBR Revenue Collapse and the Unsustainable Cushion The structural integrity of the Pakistan economic recovery is failing due to a massive revenue black hole. The Federal Board of Revenue missed its third-quarter target by a catastrophic 610 billion rupees, managing to collect only 9.304 trillion rupees, which represents a meager 66% of the budget estimate. This spectacular failure has blown the projected fiscal deficit out to approximately 5.8% of GDP, completely violating the 5% ceiling mandated by the International Monetary Fund. To paper over these massive cracks, the federal government resorted to desperate measures. Islamabad heavily relied on non-tax revenues, specifically shuffling profits from the State Bank of Pakistan and maximizing petroleum development levy collections. The UNDP explicitly labeled this tactic as an unsustainable non-tax cushion that artificially masks the absolute failure of federal tax collection. With the year-end tax collection projected to fall short of the strict 13.457 trillion rupee IMF target, the upcoming FBR target of 14.13 trillion rupees for the next fiscal year seems less like a realistic goal and more like a mathematical fantasy. While Pakistan has managed to push its comprehensive tax-to-GDP ratio past 12% by including provincial levies and petroleum surcharges, it remains structurally inferior to regional peers like India, which boasts a stable 18% ratio. IMF Compliance Reality Check: The Critical Targets Missed The narrative of smooth compliance under the IMF Extended Fund Facility is a myth. Out of seven critical Quantitative Performance Criteria, Pakistan definitively met only three. Four major criteria, including the absolute ceiling on the general government primary budget deficit and the floor on FBR net tax revenues, remain highly inconclusive. The breakdown of the eight Indicative Targets reveals an even more alarming trend: • Only one single target was fully met.• Two major targets were completely missed: the floor on FBR net tax revenues and the critical ceiling on power sector payment arrears. The only reason the federal IMF program has not entirely collapsed is due to provincial fiscal surpluses, which contributed 1.3% of GDP to bail out federal inefficiencies. The UNDP has now urgently advised the Standing Committee to enforce legally binding provincial expenditure limits before the fiscal year 2027 gets derailed by unchecked spending. Hyper-Inflation Unleashed and the Looming Oil Shock Any relief citizens felt from temporary price drops evaporated in April 2026 as consumer inflation roared back to 10.9%. The Sensitive Price Index exposed an even uglier reality for the public, hitting 14.42% year-on-year by mid-May. The cost of surviving in Pakistan has become exorbitant. Onions have skyrocketed by over 68%, while everyday energy and transportation costs have reached breaking points. Fuel prices have surged, with petrol up 62.2% and diesel up 60.9%. Essential kitchen commodities followed suit, as wheat flour spiked by nearly 60% and Liquefied Petroleum Gas rose by over 50%. Electricity tariffs also saw a punishing 43.3% hike. Looking forward, the IMF predicts inflation will hover around 8.4% for the fiscal year 2027, contrasting sharply with the Asian Development Bank’s more hopeful forecast of 6.4%. This wide analytical divide stems from one terrifying vulnerability: energy insecurity. Pakistan imports roughly 90% of its energy requirements from the volatile Middle East. The UNDP warns that a regional conflict pushing oil prices to 100 or 120 dollars per barrel will obliterate the current account deficit, send the currency into a tailspin, and crash the Pakistani Rupee past 295 per US dollar. Degraded Export Competitiveness and Structural Decay No nation can sustain a real economic recovery when its industrial engine is dying. Pakistani exports shrank by 6.25% year-on-year during the first ten months of the fiscal year 2026, collapsing to 25.2 billion dollars. The national export-to-GDP ratio languishes at a dismal 9% to 10%. To put this into perspective, Bangladesh sits at 12%, while Vietnam dominates at 85%. The complete lack of export diversification has allowed the trade deficit to widen to 32.19 billion dollars. The internal budget distribution is equally alarming. The national spending framework is heavily skewed toward immediate survival, with a current-to-development spending ratio of 96 to 4. This means a staggering 96% of federal outlays are swallowed whole by debt servicing and recurring bureaucratic costs, leaving a miserable 4% for infrastructure, healthcare, and education. Gross public debt has mounted to a staggering 83.28 trillion rupees, with external debt obligations consuming 137.56 billion dollars. Merely servicing this debt cost the country 8.2 trillion rupees in the fiscal year 2026 alone. Compounding this tragedy is the bleeding energy sector. Circular debt continues to function as an unexploded fiscal bomb, with power sector arrears sitting at 1.76 trillion rupees and gas sector debt reaching a monstrous 3.44

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