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Pakistan Unemployment Rate Climbs to 7.1% as Nearly Six Million People Struggle Without Jobs
Pakistan

Pakistan Unemployment Rate Climbs to 7.1% as Nearly Six Million People Struggle Without Jobs

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Pakistan’s unemployment crisis has deepened as the Pakistan Unemployment Rate has increased to 7.1 percent, leaving approximately 5.9 million people without employment. The latest labour market data highlights a troubling trend for an economy already facing weak investment, slow industrial growth, and declining business confidence. The rising unemployment figures are more than just statistics. They reveal a widening gap between economic promises and ground realities. While policymakers continue to speak about economic recovery and investment opportunities, millions of Pakistanis remain unable to find stable employment. The latest numbers raise serious questions about whether current economic policies are creating enough productive jobs to absorb the country’s rapidly expanding workforce. Pakistan Unemployment Rate Continues an Upward Trend According to the latest available data, the Pakistan Unemployment Rate has increased from 6.3 percent in 2020-21 to 7.1 percent in 2024-25. During the same period, the number of unemployed individuals rose from 4.51 million to 5.9 million, representing an increase of nearly 1.39 million people. This sharp rise reflects growing pressure on Pakistan’s labour market despite repeated claims of economic stabilization. Pakistan’s total labour force reached 83.1 million people during 2024-25. Out of this workforce, approximately 77.2 million individuals were employed. While employment has increased in absolute numbers, it has failed to keep pace with the rapid growth of the labour force, leaving millions searching for work. Youth Unemployment Is Becoming a National Economic Threat The most alarming aspect of the latest labour market data is the impact on young Pakistanis. Pakistan has around 46.3 million people between the ages of 15 and 24. Among them, approximately 20.6 million participate in the labour force. However, only 17.9 million have employment, while nearly 2.6 million young people remain unemployed. The data further shows that unemployed youth include approximately 2 million men and 700,000 women, demonstrating that job creation has failed to meet the needs of both genders. Youth unemployment creates long-term economic risks that extend beyond income loss. Prolonged unemployment reduces workforce productivity, increases poverty, encourages skilled workers to migrate abroad, and weakens future economic growth. Without meaningful reforms, Pakistan risks losing one of its greatest assets, its young population. Why the Pakistan Unemployment Rate Keeps Rising Economic experts attribute the increase in the Pakistan Unemployment Rate to several structural problems. The country’s economic growth has remained relatively slow, limiting business expansion and private-sector hiring. Investment levels continue to fall short of what is required to generate large-scale employment. At the same time, many graduates and job seekers lack the skills currently demanded by employers, creating a significant mismatch between education and market needs. Complicated regulatory procedures also discourage domestic and foreign investment, while limited overseas employment opportunities have reduced an important source of jobs for Pakistani workers. These challenges have combined to create an environment where workforce growth continues to outpace employment creation. Economic Recovery Must Be Measured by Jobs, Not Headlines The rising Pakistan Unemployment Rate deserves greater public attention because employment remains one of the strongest indicators of economic health. While government officials frequently highlight improvements in inflation, foreign exchange reserves, or stock market performance, these indicators alone do not reflect the financial condition of ordinary households. Economic recovery cannot be considered complete when nearly six million people remain unemployed and millions of young people struggle to enter the workforce. The latest figures suggest that Pakistan urgently needs policies focused on attracting private investment, expanding industrial production, supporting small and medium-sized businesses, improving vocational training, and simplifying regulations for investors. Without sustained job creation, economic growth risks becoming concentrated in financial indicators rather than translating into improved living standards for the broader population. Pakistan’s Labour Market Faces Long-Term Challenges The latest labour market figures send a clear warning. The Pakistan Unemployment Rate reaching 7.1 percent is not merely a statistical increase but a reflection of deeper structural weaknesses within the economy. Unless investment, industrial expansion, education reforms, and labour market policies move together, unemployment is likely to remain one of Pakistan’s biggest economic and social challenges in the coming years.

Petrol Price on August 4 Reduced by Rs4.08 Per Litre
Pakistan

Petrol Price on August 4 Reduced by Rs4.08 Per Litre

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Government Cuts Petrol and Diesel Prices Under Revised Fuel Pricing Mechanism The federal government has reduced the price of petrol by Rs4.08 per litre and lowered the price of high-speed diesel (HSD) by Rs2.45 per litre, with the revised rates taking effect from August 4, 2026. According to a notification issued by the Ministry of Energy (Petroleum Division), the Oil and Gas Regulatory Authority (OGRA) revised the ex-depot prices of petroleum products under the government’s updated fuel pricing mechanism. New Petrol and Diesel Prices Effective August 4 Under the latest revision, the price of Motor Spirit (MS), commonly known as petrol, has been reduced from Rs336.03 per litre to Rs331.95 per litre. Meanwhile, the price of high-speed diesel (HSD) has been cut from Rs392.38 per litre to Rs389.93 per litre. The revised prices will remain in force until the next official review. Revised Fuel Prices Product Price on August 1 (Rs/litre) Price on August 4 (Rs/litre) Change Motor Spirit (MS) 336.03 331.95 -4.08 High-Speed Diesel (HSD) 392.38 389.93 -2.45 Second Fuel Price Reduction Within Days The latest announcement follows the previous fuel price revision on August 1, when the government reduced petrol prices by Re0.12 per litre and lowered high-speed diesel prices by Re0.66 per litre. The consecutive reductions reflect the government’s revised petroleum pricing mechanism, under which domestic fuel prices are adjusted more frequently in line with international oil prices, exchange rate movements and other pricing components. Lower Fuel Prices Expected to Ease Cost Pressures Petrol is primarily used by motorcycles, passenger cars and other light vehicles, making it the most widely consumed transportation fuel in Pakistan. High-speed diesel is mainly used by heavy transport vehicles, the agriculture sector and industries, meaning changes in HSD prices directly influence freight costs, agricultural operations and industrial production expenses. The latest reduction is expected to provide some relief to consumers and businesses by lowering transportation costs and helping ease inflationary pressures, although the overall impact will depend on future movements in global oil markets and the exchange rate.

Chinese Firms To Sell 18.31% Stake In Masood Textile To UAE's Velora Over Three Years
Pakistan

Chinese Firms To Sell 18.31% Stake In Masood Textile To UAE’s Velora Over Three Years

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Chinese Shareholders Agree to Sell 18.31% Stake in Masood Textile Masood Textile Mills Limited has informed the Pakistan Stock Exchange (PSX) that two of its Chinese shareholders have entered into agreements to sell a combined 18.31% stake to UAE-based Velora Global Ventures – F.Z.C. over the next three years. The transactions will be carried out in phases and remain subject to regulatory approvals, including clearance from the Competition Commission of Pakistan (CCP). Phased Divestment Details Shanghai Challenge Textile Co., Ltd., which currently holds 17,396,833 shares representing approximately 25.77% of Masood Textile Mills, has agreed to sell a 7% stake in the company. According to the agreement, the transfer will be completed through 11 equal quarterly instalments, subject to contractual terms and regulatory compliance. Meanwhile, Zhejiang Xinao Industry Company Ltd., which owns 7,636,550 shares or around 11.31% of the company’s paid-up capital, has agreed to dispose of its entire shareholding. The sale will take place in 10 equal quarterly instalments over the agreed period. Velora to Complete Acquisition in Phases Velora Global Ventures – F.Z.C. confirmed that it has signed separate share purchase agreements with both Chinese shareholders for the acquisition of the combined 18.31% stake. The UAE-based company stated that the acquisition will be completed gradually over approximately three years. The transaction remains subject to approval from the Competition Commission of Pakistan, along with other applicable legal and regulatory requirements. Regulatory Approvals Required Velora said it will submit a pre-merger application to the Competition Commission of Pakistan and will share the official acknowledgment once it is issued. Masood Textile Mills stated that the disclosures were made in accordance with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the Pakistan Stock Exchange Regulations. The company received formal notifications from both selling shareholders dated July 31, 2026, while the buyer’s notification was received on August 3, 2026. Shareholding Structure to Change According to the disclosures, no further approval or action is required from Masood Textile Mills for the transactions to proceed. The phased divestment represents a significant change in the shareholding structure of the Faisalabad-based textile manufacturer, which has long counted Chinese investors among its major shareholders. Market participants are expected to closely monitor the Competition Commission’s review process and the scheduled quarterly share transfers over the coming years.

Copper Prices Surge As Global Inventories Shrink While Middle East Oil Uncertainty Deepens
Pakistan

Copper Prices Surge As Global Inventories Shrink While Middle East Oil Uncertainty Deepens

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Copper Prices Climb as Tight Supply Supports Global Markets Global commodity markets experienced another volatile trading session as Copper Prices extended their rally on tightening supplies, while oil prices attempted to recover after suffering one of their biggest one-day declines in recent weeks. Investors are closely monitoring shrinking metal inventories, geopolitical uncertainty in the Middle East and weakening industrial demand from China, creating a challenging outlook for manufacturers, businesses and investors. The latest market movements highlight a growing disconnect between supply constraints and slowing consumption, raising questions about how sustainable the current commodity rally will be. Copper Prices Rise on Falling Global Inventories Copper Prices moved higher after inventories across major international exchanges continued to decline, signaling tighter physical supplies outside the United States. The benchmark three-month copper contract on the London Metal Exchange (LME) rose 0.60 percent to $13,953 per metric ton. Meanwhile, the most actively traded copper contract on the Shanghai Futures Exchange (SHFE) gained 0.91 percent to 106,700 yuan per ton. The latest gains have been driven primarily by a sharp decline in exchange inventories. Stocks held in LME-approved warehouses have fallen to 244,025 tons from nearly 400,000 tons in April. In China, SHFE inventories have also declined significantly to around 69,300 tons after exceeding 430,000 tons only a few months ago. The reduction in available inventories has tightened immediate copper supplies and supported higher prices despite broader concerns about the global economy. US Copper Inventories Continue to Increase While copper supplies remain tight across international markets, the situation in the United States is markedly different. Copper inventories on COMEX have climbed to more than 717,000 short tons as of August 3, more than doubling compared with levels recorded late last year. Weekly copper imports into the United States also remain elevated, indicating that buyers continue building inventories in anticipation of possible future supply disruptions. The divergence between rising US inventories and declining global stocks suggests that some of the market tightness may reflect strategic stockpiling rather than stronger industrial demand, increasing the possibility of future price corrections if consumption weakens further. China’s Demand Raises Questions Over Price Sustainability Although tighter supplies have supported Copper Prices, concerns are growing over slowing demand from China. Analysts note that downstream manufacturers are reducing purchases as higher copper prices increase production costs. Since China remains the world’s largest consumer of industrial metals, weaker manufacturing activity could significantly affect future demand. This creates a challenging environment for commodity markets, where supply shortages continue to support prices while slowing industrial activity threatens longer-term consumption. Oil Prices Recover After Sharp Decline Oil markets also remained volatile after crude prices recorded one of their sharpest recent declines. Brent crude recovered by more than one percent after falling nearly seven percent during the previous trading session, which pushed prices to a three-week low. The rebound followed comments by US President Donald Trump claiming that negotiations with Iran were underway and describing them as Tehran’s final opportunity to reach an agreement. However, Iran’s Foreign Ministry rejected the claims, stating that no negotiations or scheduled meetings were taking place. The conflicting statements have left investors uncertain about whether diplomatic progress is actually being made or whether geopolitical tensions will continue affecting global energy markets. Strait of Hormuz Remains a Key Risk The Strait of Hormuz continues to be one of the biggest concerns for commodity markets. As one of the world’s most important energy shipping routes, any disruption could increase transportation costs and create additional pressure on global supply chains. Higher energy prices also raise mining, refining and shipping costs, adding further inflationary pressure on industrial commodities such as copper. Industrial Metals Post Mixed Performance Nickel prices rebounded after leading losses during the previous session. The London Metal Exchange nickel contract gained 1.61 percent, while Shanghai futures rose 1.55 percent as traders awaited further guidance from Indonesia regarding new mining quotas. Other industrial metals also posted gains. Aluminium, lead, zinc and tin advanced on the London Metal Exchange, while trading on the Shanghai Futures Exchange delivered mixed results, reflecting cautious investor sentiment across the broader metals market. Commodity Markets Face Continued Uncertainty The recent rally in Copper Prices reflects tightening supply conditions rather than a broad recovery in global industrial demand. At the same time, weakening manufacturing activity in China and ongoing geopolitical uncertainty in the Middle East suggest that commodity markets remain highly vulnerable to sudden shifts in sentiment. If industrial demand continues to soften or geopolitical tensions ease, both copper and oil prices could experience renewed volatility in the months ahead.

SBP Fuel Card Payment Charges Cap Extended to Accelerate Raast QR Expansion
Pakistan

SBP Fuel Card Payment Charges Cap Extended to Accelerate Raast QR Expansion

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The SBP Fuel Card Payment Charges Cap has been extended until January 31, 2027, giving Pakistan’s banking and fuel retail sectors another six months to prepare for wider adoption of Raast QR-based digital payments. The decision reflects the State Bank of Pakistan’s continued efforts to reduce the cost of electronic transactions while encouraging fuel stations across the country to modernize their payment infrastructure. The latest circular, issued to banks, microfinance banks, electronic money institutions, payment system operators and payment service providers, directs all regulated entities to continue implementing the capped pricing mechanism for payment cards issued in Pakistan. While the move provides relief to consumers and fuel retailers by keeping transaction costs predictable, it also raises an important question: why does Pakistan still require repeated extensions for a digital payment initiative that has been under implementation for years? SBP Fuel Card Payment Charges Cap Remains Unchanged Under the extended policy, the SBP Fuel Card Payment Charges Cap will continue to apply to all card-present fuel purchases across Pakistan. The central bank has maintained the Merchant Discount Rate (MDR) at a maximum of Rs1.00 per litre for fuel purchases. Similarly, the Interchange Reimbursement Fee (IRF) will remain capped at Rs0.20 per litre for transactions involving fuel and related petroleum products. These limits apply to all payment cards issued within Pakistan and are intended to prevent excessive transaction costs from discouraging digital payments at petrol pumps. By maintaining lower processing charges, the SBP aims to make electronic payments commercially viable for fuel station operators while providing customers with greater convenience. Raast QR Expansion Remains the Main Objective A key objective behind extending the SBP Fuel Card Payment Charges Cap is to accelerate the nationwide rollout of interoperable Raast QR-based payment acceptance at fuel stations. The State Bank has instructed all regulated financial institutions to actively coordinate with fuel station merchants to ensure that Raast QR payment facilities become widely available during the extension period. Raast has emerged as Pakistan’s flagship instant payment system, enabling secure and real-time digital transactions. Expanding its presence at fuel stations is expected to reduce reliance on cash, improve transaction transparency and strengthen financial inclusion. However, widespread adoption depends not only on policy support but also on the willingness of fuel retailers to invest in digital infrastructure and staff training. A Necessary Extension or a Sign of Slow Progress? Although the extension provides continuity for businesses, it also highlights the slower-than-expected pace of Pakistan’s digital payment transformation. The State Bank first introduced these incentives to encourage digital acceptance at fuel stations. Yet another extension suggests that the desired level of Raast QR deployment has not been achieved. This raises concerns about implementation rather than policy design. Regulatory incentives can only succeed if banks, payment providers and fuel retailers actively invest in payment infrastructure, consumer awareness and operational readiness. Without stronger execution and measurable adoption targets, repeated policy extensions risk delaying the broader transition to a cashless economy. For Pakistan to realize the full benefits of digital payments, stakeholders must move beyond compliance and focus on creating a seamless customer experience that encourages everyday use. SBP to Review Policy in January 2027 The State Bank has confirmed that it will review the pricing framework on or around January 31, 2027, after assessing market response and the progress of Raast QR implementation. The revised instructions have taken immediate effect, while all other provisions of the earlier policy remain unchanged. The coming months will be critical in determining whether Pakistan’s fuel retail sector can finally achieve meaningful digital payment adoption or whether further extensions will become necessary. The extension of the SBP Fuel Card Payment Charges Cap offers stability for banks, payment service providers and fuel retailers while reinforcing Pakistan’s digital payment agenda. Lower transaction costs continue to support card-based fuel purchases, but the real measure of success will be the pace of Raast QR adoption across the country. If implementation remains slow despite continued regulatory support, policymakers may eventually need to address operational bottlenecks rather than relying solely on pricing incentives to drive digital transformation.

Pakistan Launches South Asia's First National Gender-Responsive AI School
Pakistan

Pakistan Launches South Asia’s First National Gender-Responsive AI School

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MoITT, UN Women and KOICA Partner to Promote Inclusive AI Development Pakistan has launched South Asia’s first national Gender-Responsive AI School, marking a significant milestone in the country’s digital transformation agenda. The initiative, introduced by the Ministry of Information Technology and Telecommunication (MoITT) in partnership with UN Women Pakistan and supported by the Korea International Cooperation Agency (KOICA), aims to strengthen national capacity for developing ethical, inclusive and gender-responsive artificial intelligence. The programme is designed to equip policymakers, government institutions, parliamentarians, United Nations personnel, academia, civil society, private sector representatives and community leaders with the knowledge and practical skills needed to ensure women and girls participate equally in Pakistan’s rapidly evolving digital economy. Pakistan Sets a Regional Benchmark for AI Education Speaking at the launch ceremony, UN Women Pakistan Country Representative Jamshed M. Kazi described the initiative as a landmark achievement for the Asia-Pacific region. He said Pakistan had become the first country in South Asia to introduce a national Training of Trainers (ToT) programme under the UN Women AI School, with customised learning pathways for the executive, legislative and judicial branches, as well as civil society and the private sector. According to Kazi, the programme establishes a new regional benchmark by moving beyond existing models and creating a comprehensive national framework for gender-responsive AI education. Curriculum Covers AI Governance, Ethics and Practical Skills The Gender-Responsive AI School combines theoretical learning with hands-on training to help participants understand both the opportunities and challenges presented by artificial intelligence. The curriculum includes modules on: Before the official launch, specialised training sessions had already been conducted for parliamentarians, government officials, UN personnel, academic institutions and civil society organisations, creating an initial network of AI champions across the country. KOICA Backs Inclusive Digital Innovation KOICA Pakistan Deputy Country Director Sodam Baek said the initiative represents an investment in Pakistan’s inclusive digital future. She noted that strengthening digital skills while promoting responsible AI would help build an innovation ecosystem where women and girls can participate equally and contribute to sustainable economic development. Addressing the Global Gender Gap in AI Policy The initiative also responds to a significant gap in global AI governance. According to UN Women, only a small number of nearly 140 national AI policies worldwide explicitly address gender considerations. The new AI School aims to help Pakistan develop policies and institutions that integrate gender equality into future AI development. The programme aligns with several international commitments, including the Global Digital Compact, the CSW67 Agreed Conclusions and the Beijing+30 agenda, translating global policy objectives into practical national action. MoITT and UN Women Sign Long-Term Partnership During the ceremony, MoITT and UN Women Pakistan signed a Memorandum of Understanding (MoU) to institutionalise the Gender-Responsive AI School. The platform was formally handed over to the ministry, reinforcing Pakistan’s ownership of the initiative and supporting its long-term sustainability. Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja said artificial intelligence is transforming every sector of society and emphasised the government’s commitment to ensuring that transformation remains inclusive. She said the partnership with UN Women and KOICA would strengthen institutional capacity, promote ethical AI governance and create greater opportunities for women and girls to lead in Pakistan’s digital economy. Supporting Pakistan’s Digital Transformation Agenda Pakistan has become the first country in South Asia to host the complete national Training of Trainers programme under the UN Women AI School initiative. Since its regional launch in 2024, the broader programme has trained more than 5,000 policymakers, UN officials, civil society leaders and young innovators across Asia and the Pacific. The launch supports Pakistan’s wider digital transformation strategy while contributing to the United Nations Sustainable Development Goals, particularly SDG 5 (Gender Equality) and SDG 9 (Industry, Innovation and Infrastructure). MoITT, UN Women and KOICA said they will continue working with development partners, universities, civil society organisations and the private sector to ensure artificial intelligence becomes a driver of innovation, equality and sustainable development across Pakistan.

Ghandhara Tyre (GTR) Secures GSO Certification for Exports to Six Gulf Countries
Pakistan

Ghandhara Tyre (GTR) Secures GSO Certification for Exports to Six Gulf Countries

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GTR Tyres Receive Gulf Standardization Organization Approval Ghandhara Tyre and Rubber Company Limited has secured official certification from the Gulf Standardization Organization (GSO), allowing its GTR Tyres brand to export products to six Gulf Cooperation Council (GCC) member countries. The company disclosed the development to the Pakistan Stock Exchange (PSX) on August 3, 2026, in compliance with applicable regulatory requirements. Certification Opens Access to Six Gulf Markets The GSO certification covers the company’s tyre products and enables exports to the following Gulf countries: The approval confirms that GTR Tyres meet the common quality and technical standards required across GCC markets, creating new opportunities for the company to expand its international footprint. Company Calls Certification a Major Milestone In its notification, Ghandhara Tyre described the certification as an important milestone in its export strategy. The company said the approval reflects its continued commitment to expanding its export portfolio while entering new international markets with products that meet globally recognised quality standards. Management added that it remains focused on strengthening its position in the international tyre industry by maintaining compliance with global manufacturing and safety requirements. Export Strategy Gains Momentum The GSO certification is expected to support Ghandhara Tyre’s broader strategy of increasing overseas sales and diversifying its customer base beyond Pakistan. Access to Gulf markets could provide the company with additional revenue opportunities, particularly as demand for quality automotive products continues to grow across the GCC region. By meeting the unified regulatory standards required by Gulf countries, GTR Tyres can market its products more efficiently across multiple destinations without undergoing separate certification processes for each country. Certification Strengthens International Expansion Plans The latest approval highlights Ghandhara Tyre’s efforts to position itself as a competitive exporter in regional and international markets. As Pakistani manufacturers increasingly focus on export-led growth, internationally recognised certifications such as GSO approval can play an important role in improving market access and enhancing buyer confidence. With exports now approved for six Gulf countries, the company is well positioned to strengthen its presence in one of Pakistan’s key regional export markets while continuing to build its reputation for producing tyres that meet international quality standards.

PayPak Cards Could Soon Become Mandatory for Government Salary Accounts in Pakistan
Pakistan

PayPak Cards Could Soon Become Mandatory for Government Salary Accounts in Pakistan

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Pakistan’s domestic payment network could soon receive a major boost after 1LINK proposed making PayPak cards mandatory for government employees, beneficiaries of subsidy programmes, and users of public sector services. The proposal aims to reduce Pakistan’s dependence on international payment networks while strengthening the country’s digital financial ecosystem. Submitted to the State Bank of Pakistan (SBP), the proposal seeks to expand the adoption of Pakistan’s home-grown payment system by integrating PayPak into government salary accounts, welfare programmes, subsidy schemes, and public transport payment systems. The initiative aligns with the SBP’s broader strategy of promoting local payment channels such as PayPak and Raast instead of relying heavily on international networks like Visa and Mastercard. Government Employees May Receive PayPak Cards by Default Under the proposal, all government employees would be issued PayPak cards linked to their salary accounts. Beneficiaries of social welfare programmes and other government assistance schemes could also receive payments through the domestic card network. The objective is to strengthen Pakistan’s financial independence by reducing transaction processing costs while limiting reliance on foreign payment infrastructure. Financial experts believe widespread adoption across the public sector could significantly increase the number of PayPak cardholders while accelerating the country’s digital banking transformation. Incentives Proposed to Boost Adoption To encourage greater usage, 1LINK has recommended several incentives for both consumers and merchants. The proposal includes tax benefits for transactions conducted through PayPak cards, particularly at point-of-sale (PoS) terminals and on e-commerce platforms. It also suggests cashback offers, discounts, and loyalty rewards on various transactions, including: Officials believe these incentives could encourage consumers and businesses to shift towards Pakistan’s domestic payment network. Government Offices Could Be Required to Accept PayPak The proposal also recommends expanding the acceptance network for PayPak cards across government institutions. Public service centres, including NADRA offices, passport offices, and excise departments, could be required to install payment terminals compatible with PayPak. Officials believe wider acceptance would make digital payments more convenient while reducing dependence on cash transactions and improving financial transparency. SBP Continues to Expand PayPak and Raast The State Bank of Pakistan has already introduced several initiatives to strengthen the country’s digital payment ecosystem. These include co-badged PayPak cards that support both domestic and international transactions, increased e-commerce acceptance, public awareness campaigns, and promotional initiatives designed to encourage wider merchant adoption. The central bank believes these efforts have already improved merchant acceptance and increased digital transaction volumes nationwide. Alongside PayPak, the SBP continues expanding Raast, Pakistan’s instant digital payment platform. Raast Merchant Payments Continue Rapid Growth According to official figures, the federal government allocated Rs3.5 billion for a Raast QR code subsidy programme during fiscal year 2025-26. Daily person-to-merchant (P2M) transactions increased from approximately 60,000 in June 2025 to around 1.1 million by June 2026, reflecting growing acceptance of QR-based digital payments. The SBP plans to continue expanding merchant participation while promoting QR code payments across Pakistan to support a more digitally connected economy. Domestic Payment Network Could Strengthen Financial Independence If approved, the proposal could significantly expand the use of PayPak cards throughout Pakistan’s public sector while supporting the government’s broader objective of strengthening domestic payment infrastructure. Greater adoption of PayPak and Raast could help reduce transaction costs, improve financial inclusion, enhance digital payment acceptance, and lessen reliance on international card networks. However, successful implementation will depend on expanding merchant acceptance, strengthening payment infrastructure, and ensuring a smooth transition for both government institutions and consumers.

AJK Elections 2026: PM Shehbaz Applauds PML-N Victory
Pakistan

AJK Elections 2026: PM Shehbaz Applauds PML-N Victory

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Prime Minister Shehbaz Sharif on Monday congratulated the Pakistan Muslim League-Nawaz (PML-N) leadership and its successful candidates after unofficial results of the AJK elections 2026 showed the party securing a commanding lead in the second phase of polling. According to unofficial results announced by the Azad Jammu and Kashmir Election Commission, the PML-N won 14 of the 18 seats contested on Sunday, significantly strengthening its position to form the next government in the region. The Pakistan Peoples Party (PPP), the PML-N’s coalition partner at the federal level, secured the remaining four seats but alleged electoral irregularities, rigging and incidents of violence during polling. The elections are being held in three phases due to security considerations. The first phase concluded in the Mirpur division, while the second phase covered the Muzaffarabad division and refugee constituencies. The third and final phase will take place in the Poonch division. PM Shehbaz Says Results Reflect Public Confidence According to a statement issued by the Prime Minister’s Office, Prime Minister Shehbaz Sharif congratulated former prime minister Nawaz Sharif, party leaders and the victorious candidates on the party’s performance. “The continuation of this success is the result of the hard work of Nawaz Sharif and the entire PML-N team,” the prime minister said. He added that the election outcome reflected the confidence of the people of Azad Jammu and Kashmir in the policies and leadership of the ruling party. The prime minister reaffirmed the federal government’s commitment to the development of AJK and pledged continued efforts to improve the welfare and living standards of the region’s residents. He also appreciated the participation of political parties in the electoral process, saying active democratic engagement would further strengthen democratic institutions. Breakdown of Unofficial Results Chief Election Commissioner Justice (retd) Ghulam Mustafa Mughal announced the unofficial results during a press conference in Muzaffarabad. According to the Election Commission, the PML-N secured victories in the following constituencies: The PPP won the following four constituencies: Polling in LA-27 and at several polling stations in LA-28 was postponed after severe weather conditions and landslides prevented election staff from reaching the affected areas. Rana Sanaullah Claims PML-N Has Secured Majority Prime Minister’s Adviser on Political Affairs Rana Sanaullah said the PML-N had secured a simple majority in the 45-member Azad Jammu and Kashmir Legislative Assembly. Speaking at a press conference alongside Minister for Kashmir Affairs Amir Muqam, he said the party had won 23 seats overall, enough to form the next government. He added that the PML-N had secured four of the seven territorial seats in the Muzaffarabad division, while the PPP won the remaining three. Rana Sanaullah rejected allegations of electoral rigging and urged the PPP to pursue legal and constitutional avenues if it had concerns regarding the electoral process. He also accused opposition parties of attempting to create instability and disrupt polling in certain constituencies. Violence and Rigging Allegations Overshadow Polling Despite the successful completion of the second phase, several incidents of violence were reported, particularly in Muzaffarabad. The PPP alleged that one of its workers, Syed Mushtaq Shah, was killed during clashes involving supporters of rival political parties. The PML-N rejected the allegation, maintaining that the individual had died after suffering a cardiac arrest rather than as a result of violence. Meanwhile, AJK Legislative Assembly Speaker Chaudhry Latif Akbar claimed there had been an attempt on his life and called for a thorough investigation into the incident. Election authorities have not yet issued an official response regarding these allegations. Outside Azad Jammu and Kashmir, polling remained largely peaceful, although voter turnout was reported to be relatively low in several areas, including Mohmand and Dera Ghazi Khan. Final Phase to Determine Complete Assembly Composition With two of the three election phases now completed, attention has shifted to the final round of polling in the Poonch division, which will determine the complete composition of the Azad Jammu and Kashmir Legislative Assembly. The Election Commission is expected to announce the official and complete results after voting concludes in the remaining constituencies. While the unofficial results have given the PML-N a significant advantage, the final phase will formally complete the electoral process and pave the way for the formation of the next AJK government.

OGRA Reforms Drive Begins as PM Shehbaz Orders Digital Fuel Monitoring to Stop Hoarding and Profiteering
Pakistan

OGRA Reforms Drive Begins as PM Shehbaz Orders Digital Fuel Monitoring to Stop Hoarding and Profiteering

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Pakistan’s energy sector is set for one of its most significant regulatory overhauls in years after Prime Minister Shehbaz Sharif ordered comprehensive OGRA reforms aimed at strengthening oversight, modernising petroleum regulation, and curbing long-standing issues such as fuel hoarding, profiteering, and market manipulation. The proposed reforms extend well beyond administrative restructuring. They seek to digitise the country’s petroleum supply chain, improve transparency, and tighten regulatory enforcement from fuel imports to retail sales. If implemented successfully, the initiative could fundamentally transform how petroleum products are monitored and regulated across Pakistan. OGRA Reforms Prioritise Digital Monitoring of the Fuel Supply Chain During a high-level meeting on the restructuring and digitisation of the Oil and Gas Regulatory Authority (OGRA), Prime Minister Shehbaz Sharif directed officials to establish a nationwide digital tracking system for petroleum movement. The proposed mechanism will follow the Federal Board of Revenue’s digital monitoring model, enabling authorities to track petroleum products in real time from ports and refineries to storage facilities, transport tankers, and petrol stations. The government believes continuous digital monitoring will help prevent fuel hoarding, illegal diversion, artificial shortages, and other practices that have disrupted domestic fuel markets in the past. The prime minister also instructed officials to deploy advanced software capable of monitoring every stage of the petroleum supply chain, allowing regulators to identify irregularities before they develop into wider market disruptions. Merit-Based Hiring to Strengthen OGRA’s Institutional Capacity A key component of the reform programme focuses on enhancing OGRA’s technical expertise and institutional effectiveness. Prime Minister Shehbaz directed authorities to recruit experienced professionals from the private sector through a transparent and merit-based process to strengthen the regulator’s technical capabilities. The government pledged full support for the recruitment initiative, noting that a modern energy market requires specialised expertise and stronger regulatory capacity. Officials also emphasised the need for closer coordination between regulatory authorities and their respective ministries to improve policy implementation and decision-making. Existing Digital Systems Already Supporting Enforcement Officials informed the meeting that several digital platforms are already operational, including the National Monitoring Dashboard, Tanker Track and Trace System, Depot Tank Telemetry, Rahguzar mobile application, Digital Sales Entry System at fuel stations, and the Central Monitoring Cell. These systems provide regulators with real-time visibility into petroleum transportation, storage, and retail sales. According to OGRA, enforcement operations carried out during July 2026 uncovered multiple cases involving fuel hoarding, artificial shortages, and regulatory violations. The investigations resulted in show-cause notices, legal proceedings, and enforcement action against several operators. While these developments demonstrate the effectiveness of digital monitoring, they also highlight the importance of consistent enforcement. Technology can detect irregularities, but meaningful reform depends on timely regulatory action against violations. Broader Petroleum Sector Reforms Underway Beyond digitalisation, the government’s reform agenda includes institutional restructuring, stronger compliance mechanisms, licensing reforms, enhanced legal capacity, and improvements in financial management. Prime Minister Shehbaz reiterated that protecting consumers, ensuring uninterrupted fuel supplies, and maintaining fair pricing remain among the government’s highest priorities. He also warned that negligence, corruption, and profiteering would not be tolerated and instructed relevant ministries to accelerate the legal and administrative measures required to modernise Pakistan’s petroleum regulatory framework. Successful Implementation Will Determine the Impact of OGRA Reforms The government’s latest reform initiative signals a strong commitment to improving transparency and accountability within Pakistan’s petroleum sector. Digital monitoring, stronger enforcement, and institutional strengthening have the potential to reduce market manipulation, improve fuel supply management, and enhance investor confidence. However, the long-term success of the OGRA reforms will depend not on technology alone, but on consistent implementation, independent oversight, and sustained enforcement against regulatory violations.

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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