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Pakistan Services Trade Surplus Faces Sharp Monthly Drop Despite Strong Export Growth
Pakistan

Pakistan Services Trade Surplus Faces Sharp Monthly Drop Despite Strong Export Growth

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Pakistan’s external services sector delivered a mixed financial picture in April, as the Pakistan services trade surplus dropped sharply on a monthly basis despite strong underlying export growth and a significant year-on-year improvement. According to the latest data released by the State Bank of Pakistan, the surplus stood at $24 million in April, reflecting a steep 59.32 percent decline compared to $59 million in the previous month. The decline highlights short-term volatility in the services balance, even as broader indicators continue to show resilience and long-term expansion in export performance. Pakistan Services Trade Surplus and Yearly Turnaround Story While the monthly decline appears significant, the annual comparison paints a very different picture for the Pakistan services trade surplus. In the same period last year, Pakistan recorded a services trade deficit of $162 million, meaning the country has moved from deficit territory into surplus within a year. This turnaround suggests structural improvement in export capacity, particularly in digital and business-related services, which continue to drive foreign exchange inflows. Pakistan Services Trade Surplus Supported by Strong Export Growth A closer look at the export performance reveals the foundation behind the Pakistan services trade surplus trend. Services exports rose by 21.7 percent year-on-year to $914 million in April, compared to $751 million in the same month last year. On a month-on-month basis, exports also posted a slight increase of 0.33 percent compared to March, showing stable momentum despite global economic uncertainty. Over the broader period of 10MFY26, services exports climbed 17.67 percent year-on-year to $8.27 billion, compared to $7.028 billion in 10MFY25. This sustained growth indicates rising global demand for Pakistani services, particularly in digital sectors. Technology Sector Leads Pakistan Services Trade Surplus Growth One of the strongest contributors to the Pakistan services trade surplus was the telecommunications, computer, and information services segment. This category generated $423 million in April alone, marking a robust 33.44 percent year-on-year increase. This performance underscores Pakistan’s growing role in the global IT and software outsourcing market, where skilled freelancers and IT firms are increasingly competing in international markets. Other business services also contributed significantly, bringing in $190 million during April. Although this segment grew 9.83 percent year-on-year, it showed a slight month-on-month decline of 3.06 percent compared to March, indicating some cooling after earlier gains. Transport and travel services added $83 million and $117 million respectively, further diversifying Pakistan’s services export base. Rising Imports Pressure Pakistan Services Trade Surplus Despite strong exports, the Pakistan services trade surplus faced pressure from rising import costs. Services imports reached $890 million in April, increasing 2.52 percent year-on-year, while also rising compared to the previous month. Over the 10MFY26 period, imports climbed to $10.31 billion, reflecting an 8.61 percent year-on-year increase. This rising import bill continues to challenge the sustainability of the surplus. Transport remained the largest import expense at $377 million, even though it declined both year-on-year and month-on-month. Meanwhile, travel services emerged as a fast-growing cost category, reaching $198 million, with sharp increases of 64.79 percent year-on-year and 23.16 percent month-on-month. Outlook for Pakistan Services Trade Surplus The outlook for the Pakistan services trade surplus remains cautiously optimistic. Strong IT exports and rising digital services continue to strengthen the external account, but increasing import pressures, especially in travel and transport, could limit surplus expansion in the short term. If export momentum in technology and business services continues, Pakistan may further strengthen its position in global services trade. However, managing import growth will be critical to sustaining long-term surplus stability.

CDA Faces Scrutiny Over 1,083 Government Houses in Islamabad
Pakistan

CDA Faces Scrutiny Over 1,083 Government Houses in Islamabad

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Fresh controversy has erupted after allegations surfaced against the Capital Development Authority (CDA) regarding the continued occupation of more than 1,000 official residences in Islamabad. Official records claimed the houses fall under the Estate Office, but the residences allegedly remained under CDA control for years. Authorities also raised questions over the collection of rent payments that were allegedly not deposited into the federal treasury. The Ministry of Housing and Works has now decided to raise the matter before the CDA chairman. At the same time, the Public Accounts Committee (PAC) directed the Housing Secretary to resolve the issue immediately. Officials believe the matter has created major problems for thousands of government employees who continue to wait for official accommodation in the federal capital. Audit Authorities Raise Serious Objections According to official documents, audit authorities highlighted the issue after the Estate Office abolished almost all accommodation pools allocated to various institutions. Only the Foreign Office and one sensitive state institution were allowed to retain separate accommodation pools. The Estate Office also introduced restrictions to stop any increase in the number of official residences under institutional control. Under Clause 4 of the Accommodation Allocation Rules 2002, institutions that received government funds to build their own housing colonies were required to return official residences to the Estate Office. Despite these rules, the CDA allegedly continued to occupy the residences located in prime sectors of Islamabad. Officials claimed that repeated efforts to reclaim the houses did not succeed. Thousands of Employees Continue to Wait for Housing The issue has reportedly affected a large number of federal employees. Sources said many government servants have remained on waiting lists for years while official residences continue to stay under CDA control. As a result, many employees have been forced to rent private homes at high costs in Islamabad. Rising rental prices in the federal capital have increased financial pressure on middle income government workers. Officials believe the recovery of these residences could provide relief to hundreds of employees waiting for accommodation. The continued occupation of these houses has also sparked criticism regarding the management of public property. Allegations of Collusion Surface Documents further revealed allegations that some Estate Office officials may have facilitated the continued occupation of the residences. Sources claimed certain officials failed to take action even though the Estate Office rules gave them authority to cancel allotments and repossess the houses. Under Rule 24 of the Estate Office regulations, authorities can cancel allotments and recover residences whenever required. However, officials allegedly did not fully enforce these powers in the CDA government residences matter. The alleged inaction has now raised concerns over transparency and accountability within the housing management system. Retired Officials Still Occupying Residences Sources disclosed that several original allottees occupying the residences have already retired from service. In some cases, the allotments were allegedly transferred to family members, including children of former officials. These allegations have triggered questions regarding the legality of the occupancy and the process through which the residences remained under CDA control for years. Officials familiar with the matter stated that the continuation of such allotments violated government housing rules. They also warned that failure to recover the properties could further damage public trust in government institutions. Questions Raised Over Rent Payments Another major concern involves the collection of standard rent from the occupants of the residences. According to the documents, the CDA allegedly collected five per cent standard rent from residents but did not deposit the amount into the federal treasury as required by law. Instead, the authority allegedly retained and used the funds internally. Audit authorities are now examining whether financial rules were violated and whether the government suffered losses because of the alleged practice. Financial experts believe the matter could lead to further investigations if authorities confirm misuse of public funds. Housing Ministry Seeks Immediate Resolution The Ministry of Housing and Works has indicated that it wants the issue resolved without delay. Officials said the matter would be presented before the CDA chairman for further action. The Public Accounts Committee also stressed the importance of an urgent settlement. Members reportedly directed relevant authorities to ensure compliance with housing regulations and protect government assets. The controversy surrounding the CDA government residences has once again highlighted long standing issues in the management of official housing in Islamabad. Observers believe strict enforcement of housing rules and transparent accountability measures will be necessary to restore confidence in the system.

Toyota Pakistan 35 Years: IMC Celebrates Manufacturing Success and Industry Leadership
Pakistan

Toyota Pakistan 35 Years: IMC Celebrates Manufacturing Success and Industry Leadership

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Toyota Pakistan 35 Years celebrations turned into a major moment for the country’s automotive industry as Indus Motor Company (IMC) showcased its remarkable rise from a small assembly operation into one of Pakistan’s largest industrial success stories. The grand ceremony held at Toyota’s manufacturing facility in Port Qasim, Karachi, highlighted how the company transformed Pakistan’s automobile landscape over the last three and a half decades. What started with a production capacity of just 5,000 vehicles annually has now grown into a massive operation capable of producing 76,000 vehicles every year. More importantly, Toyota’s journey in Pakistan has become a symbol of industrial resilience, localization, job creation, and foreign investment confidence. Toyota Pakistan 35 Years Journey Crosses 1.2 Million Vehicle Sales Since operations began, IMC has sold more than 1.2 million Toyota vehicles across Pakistan. The legendary Toyota Corolla, which rolled out as the company’s first locally manufactured vehicle decades ago, remains one of the country’s most trusted automobiles today. The scale of Toyota’s economic footprint in Pakistan is enormous. The company revealed that its nationwide ecosystem now supports over 55,000 jobs through dealerships, suppliers, vendors, and associated industries. Toyota’s contribution to Pakistan’s economy also includes approximately USD 6.3 billion paid in taxes over 35 years. According to the company, this represents nearly 1% of Pakistan’s annual government tax collection. Toyota Pakistan 35 Years Celebration Attracts Global Attention The anniversary event drew top executives from Japan and Pakistan, underlining the strategic importance of Toyota’s Pakistan operations. Among the notable attendees were: • His Excellency Shuichi Akamatsu, Ambassador of Japan to Pakistan• Hiroshi Nambu, President Business Planning and Operation at Toyota Motor Corporation• Masahiko Maeda, CEO Toyota Motor Asia• Shigeru Harada, CEO Mobility Division and Growth Market Region at Toyota Tsusho Corporation• Hiroshi Yonenaga, CEO Asia Pacific Region at Toyota Tsusho Corporation• Mohamedali Rafiq Habib, Chairman of IMC• Ali Asghar Jamali, CEO of IMC More than 3,000 employees also participated in the landmark celebration. Toyota Pakistan 35 Years Success Built On Localization One of the biggest achievements highlighted during the event was Toyota’s aggressive localization strategy in Pakistan. Every working day, local vendors supply over Rs 210 million worth of automotive parts to support Toyota’s production operations. This has helped Pakistan reduce import dependence while strengthening the domestic engineering sector. Toyota Tsusho Corporation officials stated that localization efforts alone have helped Pakistan conserve nearly USD 6.5 billion in foreign exchange over the years. Industry experts believe Toyota’s localization model has become a benchmark for Pakistan’s manufacturing sector because it developed a large network of skilled suppliers and engineering businesses capable of meeting global quality standards. Toyota Pakistan 35 Years Brings Massive New Investment Plans IMC CEO Ali Asghar Jamali announced that the company has already invested USD 736 million in Pakistan over the past 35 years. However, the bigger surprise came with the company’s future roadmap. Toyota plans to inject another USD 300 million into Pakistan during the next five years, signaling long-term confidence in the country’s industrial and automotive potential. Jamali stressed that stable government policies and long-term industrial planning are critical for future growth. He called for stronger localization policies to reduce Pakistan’s dependence on imported materials and improve industrial competitiveness. Toyota Pakistan 35 Years Achievement Includes Green Revolution Toyota’s anniversary celebrations were not limited to manufacturing achievements alone. The company announced a historic environmental milestone by planting its one millionth tree under the “Green Pakistan” initiative. This makes IMC the first automotive company in Pakistan to achieve such a target within only five years. The tree plantation campaign reflects Toyota’s growing focus on environmental sustainability, ecosystem restoration, and climate resilience in Pakistan. Toyota Pakistan 35 Years Reflects Strong Japan-Pakistan Partnership Japanese Ambassador Shuichi Akamatsu described Toyota as a powerful symbol of the enduring partnership between Pakistan and Japan. Toyota executives also praised Pakistani workers and engineers for achieving world-class manufacturing standards. IMC recently secured “Zero Defect” status in Toyota Motor Corporation’s global quality audits for two consecutive years, a rare achievement in the global automotive industry. As Toyota Pakistan 35 Years celebrations conclude, the company now stands as more than just a car manufacturer. It has become a major industrial force shaping Pakistan’s economy, engineering sector, employment market, and environmental future.

CPEC IPPs Payment Crisis Deepens as Pakistan Pushes China for Circular Debt Deal
Pakistan

CPEC IPPs Payment Crisis Deepens as Pakistan Pushes China for Circular Debt Deal

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The CPEC IPPs Payment Crisis is rapidly turning into one of Pakistan’s most sensitive economic and diplomatic challenges as the government struggles to unlock billions of rupees meant to reduce the country’s ballooning circular debt. Behind closed doors, Islamabad is reportedly making aggressive efforts to convince Chinese Independent Power Producers (IPPs) operating under the China-Pakistan Economic Corridor (CPEC) to sign renegotiated settlement agreements. Without those signatures, the government cannot fully release the remaining funds from the massive Rs1.225 trillion bank facility raised to tackle Pakistan’s chronic energy sector debt. The deadlock has now exposed deep tensions between Pakistan’s cash-strapped power sector and powerful Chinese investors who are demanding immediate payment of long-overdue dues. Pakistan’s Circular Debt Crisis Reaches Dangerous Levels Pakistan’s circular debt problem has become a financial nightmare for the country’s energy sector. Officials say the total circular debt stock has surged close to Rs1.8 trillion, threatening the stability of power generation companies and increasing pressure on electricity consumers. Sources revealed that the Central Power Purchasing Agency-Guaranteed (CPPA-G) currently owes more than Rs560 billion to Chinese IPPs alone. This amount has sharply increased from Rs430 billion recorded in June 2025. The government had secured a huge Rs1.225 trillion financing arrangement from 18 commercial banks to partially clear these liabilities. However, a significant portion of the amount remains stuck because Chinese IPPs are refusing to accept discounted settlements similar to those agreed with other local power producers. According to insiders, the federal cabinet has already decided that no major disbursement can take place unless CPEC projects agree to revised payment terms. Chinese Power Producers Resist Islamabad’s Proposal The standoff has become increasingly sensitive because Chinese power companies are reportedly using several diplomatic and official channels, including the CPEC Secretariat, to pressure Pakistan for immediate clearance of dues. Government officials have urged Chinese companies to join the settlement framework so they can recover payments through the circular debt facility. However, resistance remains strong. Chinese investors argue that they entered Pakistan under sovereign guarantees and legally binding agreements. They are therefore reluctant to offer discounts on outstanding receivables at a time when Pakistan’s energy sector continues to face severe liquidity shortages. The issue has become even more alarming after reports emerged that several Chinese IPPs are struggling to transfer shareholder returns abroad due to delayed payments. Port Qasim Power Plant Warns of Operational Shutdown The situation escalated further after Port Qasim Electric Power Company (PQEPC) issued a strong warning to Pakistan’s finance authorities. In a letter sent to the finance minister, the company reportedly expressed serious concern over the growing payment backlog affecting both Chinese and Qatari investors. The company warned that under the terms of its Power Purchase Agreement (PPA), it has the legal right to suspend operations if receivables continue to pile up. Such a move could create fresh electricity shortages and intensify Pakistan’s ongoing power supply challenges. This warning has sent shockwaves across the energy sector because Port Qasim is considered one of the key coal-fired power plants operating under the CPEC framework. Government Avoids Fresh Ad Hoc Payments Before Prime Minister Shehbaz Sharif’s visit to China in August 2025, the government had released around Rs100 billion to nearly 16 Chinese power projects in an attempt to ease tensions. However, authorities now appear unwilling to continue ad hoc payments without broader restructuring agreements. Officials believe selective payments could weaken Islamabad’s negotiating position and complicate ongoing efforts to reform the power sector under commitments made to the International Monetary Fund (IMF). IMF Reforms Could Trigger Higher Electricity Costs The IMF has repeatedly warned Pakistan that the circular debt crisis is unsustainable and poses serious risks to the economy. Under its reform programme, Pakistan has committed to introducing regular electricity tariff adjustments, reducing untargeted subsidies, imposing additional surcharges, and restructuring accumulated debt into CPPA-G liabilities. While these measures are aimed at stabilizing the energy sector financially, they are expected to increase pressure on households and businesses already struggling with rising electricity costs. Annual tariff rebasing is also expected to remain a major part of Pakistan’s future economic reform agenda. A High-Stakes Test for Pakistan-China Economic Relations The ongoing CPEC IPPs Payment Crisis is no longer just a domestic financial issue. It has evolved into a crucial test for Pakistan’s relationship with China, its largest strategic and economic partner. Any prolonged delay in payments could damage investor confidence, slow future CPEC investments, and raise concerns among foreign stakeholders about Pakistan’s ability to honor financial commitments. For now, Islamabad faces a difficult balancing act: protecting its fragile economy while keeping Chinese investors satisfied and preventing another explosion in the country’s already painful electricity crisis.

Pakistan’s Reform Success Overshadowed by External Vulnerabilities, IMF
Editor pick, Pakistan

Pakistan’s Reform Success Overshadowed by External Vulnerabilities, IMF

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The International Monetary Fund has released its detailed Staff Report following the Executive Board’s approval of the third review under Pakistan’s Extended Fund Facility. This milestone unlocks fresh funding and reinforces international confidence in the country’s economic direction. Macroeconomic Stability Gains Momentum Climate Resilience and Structural Reforms Advance The completion of the third EFF review has made available US$1.1 billion (SDR 760 million), bringing total disbursements to US$4.4 billion (SDR 3,040 million). Alongside this, the Resilience and Sustainability Facility remains on track with a US$220 million (SDR 154 million) disbursement. Pakistan’s continued strong policy implementation is supporting economic recovery, rebuilding confidence, and strengthening resilience against external shocks. The IMF highlighted consistent efforts to maintain macroeconomic stability through sound policies and rebuilding of international reserves.All seven Quantitative Performance Criteria were met at end-December, along with six of eight Indicative Targets. Most continuous and other Structural Benchmarks were also achieved, reflecting disciplined execution of the program. IMF staff emphasized key priorities including broadening the tax base, boosting market competition, enhancing productivity and competitiveness, and reforming state-owned enterprises. Improving public service delivery and ensuring the financial viability of the energy sector remain critical focus areas.The RSF arrangement is helping Pakistan strengthen disaster-response coordination, improve water resource management, and better integrate climate considerations into budgeting and project selection.However, external vulnerabilities persist. Pakistan faces spillover risks from the Middle East conflict, particularly through energy imports, remittances, and capital flows. Careful monitoring of these channels will be essential in coming months. Analysts view the IMF program as vital for sustaining confidence in the government’s reform agenda, fiscal discipline, debt sustainability, and long-term climate resilience. Consistent implementation will be key to unlocking further support and private sector investment.

Pakistan’s forex reserves surge from $3bn to $17bn, remittances to cross record $41bn: Governor SBP
Editor pick, Pakistan

Pakistan’s forex reserves surge from $3bn to $17bn, remittances to cross record $41bn: Governor SBP

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KARACHI: Governor of the State Bank of Pakistan, Jameel Ahmad, stated that Pakistan’s economy has witnessed a remarkable turnaround over the past three years, with foreign exchange reserves increasing from a critically low $3 billion to $17 billion, while remittances are expected to surpass a historic $41 billion during the current fiscal year. Read More: https://theboardroompk.com/imf-imposes-rs1-73-trillion-petroleum-levy-target-for-fy27-signals-tougher-revenue-push/ Addressing an interactive session during his visit to the Karachi Chamber of Commerce & Industry, Jameel Ahmad said the country’s economic situation today is significantly different from the crisis conditions of 2023, when imports had sharply declined and businesses faced severe difficulties in opening Letters of Credit (LCs). He noted that average monthly imports have now crossed $5 billion compared to nearly $3 billion three years ago, while the LC situation has improved substantially. The SBP Governor said reforms introduced by the central bank, along with strict action against hundi and hawala operations, played a major role in stabilizing the economy and strengthening foreign exchange reserves. He added that remittances, which stood at $38 billion last fiscal year, are now projected to exceed $41 billion during FY26. He further revealed that Pakistan’s current account remained in surplus during the first nine months of FY26, while the overall deficit is expected to remain between zero and one percent. According to him, Pakistan’s external account is now in a significantly healthier and stronger position despite global economic uncertainty and tensions in the Middle East. Discussing economic growth, Jameel Ahmad said the Pakistan Bureau of Statistics estimated GDP growth at 3.7 percent during the first nine months of the current fiscal year, while the State Bank projects annual growth between 3.75 and 4.75 percent. He acknowledged that international uncertainties and oil price volatility could affect growth during the final quarter of FY26. Warning about temporary inflationary pressures, the Governor said inflation may exceed 7 percent during the last quarter of FY26, but emphasized that the State Bank remains committed to maintaining inflation within its medium-term target range of 5 to 7 percent. He expressed confidence that inflation would gradually ease over time. Highlighting the State Bank’s focus on Small and Medium Enterprises (SMEs), Jameel Ahmad said regulations have been simplified, procedural hurdles reduced, and banks directed to prepare dedicated SME growth plans. He revealed that SME financing increased from Rs491 billion in June 2024 to Rs882 billion by December 2025, with a target of reaching Rs1.5 trillion by June 2028. He stressed that Pakistan’s future GDP growth is closely linked to the expansion of SMEs and added that the SBP has introduced a simplified one-page loan application form for small businesses. On exports, the Governor noted that global economic conditions and falling international commodity prices negatively impacted export performance. He said rice exports worth $3.5 billion had significantly boosted exports last year, but declining global rice prices reduced export earnings by nearly $1 billion this year. Exports are expected to reach around $30 billion this year compared to $32 billion last year, although the government is taking measures to improve the situation. In another major announcement, Jameel Ahmad disclosed that the designs for Pakistan’s new currency notes have been finalized and forwarded to the federal cabinet for approval. He also clarified that exchange company rates are determined entirely by market forces and that the State Bank does not directly set exchange rates. The SBP Governor further confirmed that progress is underway regarding the licensing and regulatory framework for virtual assets in Pakistan. Speaking at the event, Zubair Motiwala said overseas Pakistanis played a crucial role in stabilizing the economy by sending $38 billion in remittances during the previous fiscal year, which significantly supported the current account surplus. Referring to the geopolitical situation in the Middle East, he appealed to overseas Pakistanis to continue supporting the national economy during the ongoing regional conflict. Zubair Motiwala also emphasized that the cost of doing business in Pakistan is not limited to high interest rates, as rising energy tariffs have become a major burden for industries and exporters. He warned that Pakistan cannot sustainably reduce fiscal and external deficits without significantly increasing exports and stressed the need for a practical export-oriented strategy. Vice Chairman BMG Jawed Bilwani stated that sustainable industrial growth would remain difficult unless excessive government borrowing from banks is reduced. He pointed out that private sector lending accounts for only around 20 percent of total financing, while government borrowing consumes nearly 70 to 80 percent, restricting industrial expansion and private investment. KCCI President Rehan Hanif, in his welcome address, recalled the severe economic challenges Pakistan faced three years ago when foreign exchange reserves sharply declined and fears of sovereign default intensified. He praised the State Bank for maintaining resilience and economic stability during that difficult period. Rehan Hanif also raised concerns regarding valuation issues affecting businesses, claiming that commercial banks were effectively determining valuation benchmarks instead of customs authorities. He urged the State Bank to withdraw valuation-related powers from banks to facilitate smoother trade operations. Highlighting the importance of SMEs, he said both the government and private sector have failed to fully recognize their economic significance, despite countries like Japan and China building their economic rise on the strength of small and medium-sized enterprises. He further pointed out that SMEs in Pakistan face numerous procedural requirements when seeking financing, discouraging entrepreneurship and business expansion. He requested the State Bank to establish a dedicated SME financing desk for small businesses and also highlighted difficulties in importing industrial machinery, saying banking and procedural hurdles were slowing industrial modernization and expansion plans.

EDB urged to slash taxes on lithium battery cells
Pakistan

EDB urged to slash taxes on lithium battery cells

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KARACHI: Stakeholders in the renewable energy sector have urged the Engineering Development Board (EDB) to slash taxes and duties on lithium battery cells to support domestic production and utilization of green energy across the country as part of the national agenda. Chairman of the Pakistan Renewable Energy Development Forum (PREDF), Irfan Allahawala, stated that the government should encourage import substitution of lithium batteries by providing a level playing field and an enabling environment for new investors to assemble and manufacture lithium batteries locally. In a letter addressed to the Engineering Development Board (EDB), he stated that cells used in lithium batteries are currently taxed at an exorbitant rate of 50 percent, which discourages the local assembly of batteries. The letter further stated that high taxes and duties keep battery prices elevated in local markets, creating a barrier to the rapid transition toward renewable and environmentally friendly energy sources and away from expensive conventional electricity sources. To reduce reliance on imported petroleum products and LNG, it was proposed to increase dependence on cost-effective and climate-friendly renewable energy sources, including solar and wind power, across domestic and commercial sectors such as factories, offices, buses, cars, motorcycles, and household appliances. In this regard, the government should also rationalize taxes in the local market and attract invetments. He further said that this would help significantly reduce dependence on petroleum products in two- and four-wheel vehicles, thereby lowering the country’s import bill. It would also encourage local assemblers to manufacture batteries domestically and facilitate technology transfer. Pakistan imported approximately 26,000 MW worth of solar panels during 2022–2024, all of which require batteries. In 2024, lithium-ion battery imports reached 1.25 GWh and are projected to increase to 2.5–3 GWh in 2025, the letter added. The availability of lithium batteries at affordable prices will also reduce the burden of energy-led high inflation across the country and attract investment in local markets.

Karandaaz and PBA Launch Major Push for Social, Climate Impact Finance in Pakistan
Pakistan

Karandaaz and PBA Launch Major Push for Social, Climate Impact Finance in Pakistan

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Karandaaz Pakistan, in collaboration with Pakistan Banks Association (PBA) and supported by the Ministry of Finance, hosted a two-day workshop titled “Impact Finance Training (IFT) 2026: From Value to Vision” in Karachi on 14–15 May 2026. Building on last year’s initiative, the workshop brought together senior professionals from commercial banks, development finance institutions, and investment firms to strengthen the integration of impact finance principles into investment and lending decisions. Led by impact finance practitioner Alex MacGillivray, Executive Director at the Joint Impact Model Foundation, the sessions focused on practical frameworks to align capital allocation with measurable social, environmental, and economic outcomes. Speaking at the occasion, Thomas Burge, Deputy Head of Mission at the British Deputy High Commission, said, “Sustainable economic growth and climate resilience will increasingly depend on the ability to mobilise private capital at scale. This requires a financial sector equipped with the right skills, tools, and frameworks to identify and deliver high-impact investments. The UK is pleased to support initiatives that strengthen this capacity and promote the integration of impact outcomes into financial decision-making in Pakistan.” Adnan Pasha Siddiqui, Advisor to the Federal Minister for Finance & Revenue, appreciated the initiative led by Karandaaz and highlighted the importance of capacity building and skills development. He noted that the Social Impact Financing and Sustainable Finance frameworks make it clear that mobilising outcome-linked private capital is essential for advancing Pakistan’s socio-economic development and climate priorities. Recognising the scale of financing required, he added that the Government is developing an enabling policy framework to support impact investing, encourage private-sector participation, and channel capital towards measurable social, economic, and climate outcomes. Linking the initiative to Karandaaz’s broader role in advancing impact finance, Syed Salim Raza, Chairperson, Karandaaz Pakistan, highlighted that impact finance represents an important evolution in how financial institutions assess value, risk, and long-term development outcomes. He noted that, for Pakistan, this means strengthening institutions’ ability to direct capital towards measurable economic, social, and environmental outcomes. Through this training, Karandaaz is supporting the financial sector with practical frameworks to embed impact considerations into investment and lending decisions. In his closing remarks, Muneer Kamal, CEO & Secretary General, Pakistan Banks Association (PBA), emphasised the key role the banking sector has to play in driving sustainable and inclusive growth. He highlighted that, as the representative body of Pakistan’s banking industry, PBA remains committed to facilitating capacity building and collaboration around emerging areas such as impact finance and sustainable banking. He further noted that initiatives such as IFT 2026 help strengthen institutional understanding and develop the frameworks needed to integrate responsible, development-focused, and impact-oriented financing practices across the financial sector. This initiative reflects the ongoing collaboration between the Ministry of Finance, Karandaaz, and PBA to strengthen institutional capacity. As demand for impact-aligned capital grows, initiatives such as IFT 2026 can help strengthen the tools, frameworks, and institutional understanding needed to build a more responsive financial ecosystem that supports long-term, inclusive growth.

VIS Reaffirms Entity Ratings of K-Electric Limited
Pakistan

VIS Reaffirms Entity Ratings of K-Electric Limited

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Karachi, May 15, 2026: K-Electric’s (KEL) entity ratings were reaffirmed at ‘AA/A1+’ (Double A/A One Plus) with a ‘Stable’ outlook by VIS Credit Rating Company. Medium to long-term rating of ‘AA’ denotes high credit quality; protection factors are strong; risk is modest but may vary slightly from time to time because of economic conditions. Short-term ratings of ‘A1+’ indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Previous rating action was announced on January 23, 2025. Read More: https://theboardroompk.com/sme-growth-in-pakistan-gains-momentum-as-pm-shehbaz-orders-easier-loans-for-women-entrepreneurs/ This development reaffirms the trust and faith capital markets and financial institutions place in KE, while also being a reflection of investor confidence in KE’s performance, growth plans, and future outlook. The assigned ratings are supported by KE’s cash flows that continue to support debt servicing. Meanwhile, long-term financial projections and capitalization strength are closely linked to regulatory outcomes under the Multi-Year Tariff (MYT) framework. As per the PSX notice issued by the Company, the relevant authority has advised KEL to transmit its annual financial statements for FY24 & FY25 latest by June 30, 2026.

Sitara Petroleum IPO Draws Massive Investor Response with 3.4x Oversubscription
Pakistan

Sitara Petroleum IPO Draws Massive Investor Response with 3.4x Oversubscription

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The Sitara Petroleum IPO has emerged as one of the hottest investment stories in Pakistan’s capital market this year after attracting extraordinary demand from investors across the country. The public offering generated a stunning response as applications poured in for more than 143.5 million ordinary shares against an offered size of just 42 million shares. The overwhelming participation pushed the IPO to an oversubscription level of nearly 3.4 times, signaling growing investor confidence in Pakistan’s petroleum and energy sector despite challenging economic conditions. According to details shared through a notification issued by Arif Habib Limited, the subscription process was conducted on May 11 and 12, 2026, through the Pakistan Stock Exchange and CDC e-IPO systems. Sitara Petroleum IPO Attracts Thousands of Applications The Sitara Petroleum IPO managed to attract an impressive 23,757 applications from investors belonging to multiple categories. The figures reveal strong participation from both retail and high-net-worth investors. However, the biggest surprise came from large-scale investors who aggressively targeted higher allocations. Applications exceeding 2,000 units alone accounted for more than 124 million shares, highlighting strong institutional and wealthy investor interest in the company. This strong demand reflects increasing optimism surrounding Pakistan’s fuel and petroleum distribution business, especially as investors continue searching for stable sectors capable of delivering long-term growth. Big Investors Dominate Sitara Petroleum IPO The subscription breakdown shows that high-volume investors dominated the IPO book-building process. Investors applying for more than 2,000 units contributed applications worth over Rs. 2.34 billion. Meanwhile, retail investors also maintained a visible presence in the public offering, with thousands of applications submitted for smaller allocations ranging from 500 to 2,000 shares. The total funds generated through the public subscription crossed Rs. 2.71 billion, making the offering one of the most closely watched IPOs on the Pakistan Stock Exchange in recent months. What Investors Will Receive After Oversubscription Due to the overwhelming response, the company will now follow the approved share allocation mechanism. Investors who applied for up to 2,000 shares are expected to receive their requested allocations in full. However, applicants seeking more than 2,000 units will receive shares on a pro-rata basis because demand significantly exceeded the available quantity. This means larger investors may receive only a portion of the shares they originally requested. Sitara Petroleum IPO Subscription Breakdown The Sitara Petroleum IPO data reveals how different investor categories participated in the offering. Applications for 500 shares attracted 6,582 investors requesting 3.29 million shares worth more than Rs. 62 million. The 1,000-share category received 5,872 applications for 5.87 million shares valued at nearly Rs. 111 million. Similarly, 1,880 applications were submitted for 1,500 shares, while 3,623 applications came in for the 2,000-share category. The most dominant segment remained applications above 2,000 units. Around 5,800 applications in this category sought an astonishing 124.27 million shares worth approximately Rs. 2.35 billion. Overall, the IPO received applications for 143.5 million shares with a total value of Rs. 2.71 billion. Why Sitara Petroleum IPO Matters for Pakistan’s Market The massive response to the Sitara Petroleum IPO sends a powerful signal about improving investor appetite in Pakistan’s equity market. Strong IPO participation often reflects renewed confidence among investors looking for growth opportunities despite economic uncertainty and market volatility. Market analysts believe the successful subscription could encourage more companies to explore public listings on the Pakistan Stock Exchange in the coming months. The development also highlights increasing investor interest in energy-related businesses, especially companies connected to fuel distribution and petroleum services. For Pakistan’s stock market, the Sitara Petroleum IPO may become a benchmark transaction that revives excitement around new listings and public offerings after a prolonged period of cautious investor sentiment.

The Boardroom PK delivers trusted business news, analysis, and insights from Pakistan and beyond, keeping readers informed, inspired, and ahead in the evolving world of business and leadership.

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