The oil companies have been demanding that oil smuggling be stopped, but it has continued for years. However, the arrival of Iranian petroleum products increased after the US-Israeli war on Tehran began, pushing crude oil prices above $100 per barrel.

“Over the past month and a half, at least six oil tankers coming from Iran were destroyed by terrorists, but the actual number is not known,” said the source familiar with those in the oil business. However, it was not confirmed by other sources.

Since the US-Israeli attack on Iran on Feb 28, the entire world was shocked due to due to closure of the Strait of Hormuz, which is the world’s most critical energy transit chokepoint, carrying roughly 20pc of global oil, 20pc of liquefied natural gas (LNG), and about one-third of the world’s fertiliser trade.

Influx slows after terrorists destroyed six tankers in 45 days

Reserves of petroleum products began to decline in countries like Pakistan, which depend largely on imported fuel.

Pakistan faced the same situation, but the country did not experience rationing of oil and gas products. Reserves for 25 days were available, while more ships entered Pakistan during the war.

However, the influx of Iranian oil increased significantly. Smuggled petroleum products were available not only in Balochistan but also in Sindh, up to Karachi. Many say that Punjab also benefited from these smuggled oil products, which helped the country avoid rationing of oil products, as seen in India, Bangladesh and Sri Lanka in the region.

“It is difficult to determine the proportions of previous and current influxes, but smuggling has decreased significantly, by at least 60pc,” the source claimed.

In FY26, Pakistan spent a record $16.86bn on the import of petroleum products, which was around 22pc of the country’s total import bill. Notably, despite higher prices, the share of petroleum products in the import bill remained within the average. Each year, Pakistan has to spend 22-25pc of its total imports on oil products.

According to the Pakistan Bureau of Statistics, the import bill for petroleum products in FY25 was $15.94bn.

Pakistan’s illegal trade with Iran is worth more than $2 billion per year, and a number of products, such as edible oil, food products, washing powder, soaps, etc., are readily available in Karachi.

It is widely believed in the circles of trade and industry that the smuggling of oil products from Iran was deliberately ignored by the authorities due to the war and to avoid a crisis from a possible shortage of oil supplies across the country.

The government has consistently been passing on the increase in oil prices to consumers, but has successfully avoided a shortage-like situation.

Published in Dawn, August 2nd, 2026

The EU has the world’s most comprehensive digital rulebook covering social media, online retailers and search engi­nes, with plans for more rules this year.

In 2024, the EU adopted a sweeping AI law known as the “AI Act”, but its rules have been introduced in stages.

New law

The EU’s new law takes a risk-based approach to the technology from Sunday.

The higher the risk to Europeans’ rights or health, for example, the greater the obligations of firms to protect individuals from harm.

Chatbots must disclose AI identity; companies face up to €35m fine in case of violation; labelling rules hit general-purpose models

It also bans AI used for predictive policing, emotion recognition systems in workplaces or schools and AI that manipulates human behaviour.

From Sunday, AI-generated content like deepfakes must be labelled, while firms must ensure their AI systems like chatbots make it clear to users they are AI.

Existing AI systems have until December 2 to adapt to the new rules, and there are exemptions for “artistic, creative, satirical, fictional” work.

Enforcement powers

On Sunday, European regulators in the AI Office will have the power to enforce the bloc’s rules on the most advanced AI models.

The regulatory body attached to the EU executive will be made up of dozens of tech experts, lawyers and economists.

The AI Office will be able to test the most advanced general-purpose AI models, such as chatbots, to ensure they comply with the law.

Companies must also give the EU access to their models, and in some cases the EU can demand access before they are placed on the market, an EU official said.

The EU will also be able to restrict a model’s deployment within the EU if it has concerns that the provider doesn’t address.

The powers arrive at an opportune moment. The EU struggled this year to get access to American AI developer Anthropic’s Mythos model, but the rules kicking in on Sunday mean an issue like that shouldn’t happen again.

National authorities will be able to enforce the rules for smaller AI systems.

If the EU finds companies breaking the rules, it can force them to take action to remedy the breach and fine the firms if they fail to do so.

The stiffest fines are for businesses that allow their systems to conduct banned practices — up to seven per cent of a company’s annual worldwide turnover or €35 million ($40m), whichever is higher.

For other violations, companies could be fined up to 3pc of their global annual revenue or €15m. They may also be fined if they hinder or fail to cooperate with EU probes.

What’s next?

More rules under the AI Act will be enforceable later this year and beyond.

From December, there will be a ban on artificial intelligence systems generating sexualised deepfakes, introduced following the global outrage over non-consensual nudes produced by Elon Musk’s chatbot Grok.

The EU is also delaying the implementation of some high-risk AI rules concerning models deemed as potentially dangerous to safety, health or citizens’ fundamental rights — to give companies more time to prepare.

The rules will apply for stand-alone high-risk AI systems from December 2027 and in August 2028 for AI tools embedded in other products.

Published in Dawn, August 2nd, 2026

Imports from the region, however, rose 6.52pc to $3.822bn from $3.588bn.

Under the new agreement, Pakistan will import additional goods from the US to balance the trade deficit. As a result of this agreement, imports from the region, especially the US, grew sharply during the year.

However, exports to Canada declined. Imports under the agreement grew by nearly 39pc in FY26, while Pakistan’s exports to the US grew by a paltry 1.55pc.

Trump tariffs reshape trade landscape

The development comes amid policy shifts by US President Donald Trump, who has imposed additional tariffs while extending limited relief to Pakistan under a reciprocal arrangement.

Under the understanding, Pakistan is expected to increase imports of oil and other commodities from the US to narrow the bilateral trade gap.

The US remained the dominant market, accounting for nearly 94pc of Pakistan’s total exports to North America, with the remaining share going mainly to Canada and other countries.

In FY25, Pakistan’s merchandise exports to North America rose by 9.97pc to $6.415bn, up from $5.833bn in the corresponding period of the previous year, driven mainly by higher textile and clothing shipments to the US, according to data compiled by the State Bank of Pakistan.

Within the region, exports to the US increased 1.55pc to $6.125bn in FY26 from $6.031bn a year earlier.

In FY25, exports to the US rose 10.72pc to $6.028bn, up from $5.444bn in the preceding year.

Exports to Canada contracted 2.30pc to $377.455m in FY26 from $386.347m a year ago.

Imports from the US surged 38.93pc to $3.265bn in FY26 from $2.350bn in the preceding year.

In the same region, Pakistan’s exports to Latin America declined by 8.32pc to $66.98m in FY26, down from $73.06m a year ago.

Similarly, exports to Central America dipped 2.11pc to 165.86m in FY26 from $169.43m the previous year. The main export destination was Mexico, which fell 6.25pc to $122.03m in FY26, down from $130.17m.

According to SBP data, exports to South America — Argentina, Brazil, Uruguay, etc., — rose 15pc to $402.39m in FY26 from $349.88m in FY25.

Published in Dawn, August 2nd, 2026

Chairing a high-level meeting, the prime minister directed that the government’s reform agenda be implemented uniformly across all institutions.

He directed that advanced technology and software be used to establish digital monitoring of the petroleum supply chain from ports and refineries to petrol pumps. The prime minister further directed that reputable experts from the private sector be appointed to strengthen Ogra’s institutional capacity.

PM Shehbaz called for Ogra’s reorganisation and said experts should be appointed to every department and position through a transparent, merit-based process.

Orders FBR-style digital monitoring of fuel supply chain

He affirmed that the government would provide all necessary professional expertise to support Ogra’s reforms and restructuring.

“The government will safeguard every single penny of the public. No one will be allowed to exploit the people or interfere with the system,” the prime minister said. He also directed all regulatory bodies to establish formal coordination mechanisms with their respective ministries. The prime minister instructed that work on the upgradation of oil refineries under the approved national policy be accelerated.

During the meeting, the Ogra chairman gave a detailed briefing on the authority’s current performance, key challenges and comprehensive reform programme.

The meeting was informed that Ogra had made significant progress in digitally monitoring the oil supply chain from ports to petrol pumps.

Several digital systems have already been activated, including the National Monitoring Dashboard, Tanker Track and Trace System, Depot Tank Telemetry, Rahguzar Mobile App, Digital Sales Entry System at petrol pumps and Central Monitoring Cell.

The meeting was told that these systems enabled effective monitoring of the movement, storage and sale of petroleum products.

The prime minister was informed that a data-driven special enforcement campaign in July 2026 had identified multiple cases of hoarding, unnecessary supply disruptions and other violations.

Show-cause notices, requests for explanations and other legal actions were initiated against the violators.

The meeting also received a briefing on Ogra’s comprehensive reform programme, which includes digitalisation of the authority, restructuring of the enforcement system, establishment of a Compliance Wing, reforms in the licensing framework, improved management of legal affairs, strengthening of financial resources and institutional restructuring.

Published in Dawn, August 1st, 2026

ISLAMABAD: In a major price shock, Ogra on Friday notified a record 32pc increase in regasified liquefied natural gas (RLNG) prices for August, fixing the rate at $25.83 per mmBtu for Sui Northern Gas Pipelines Limited (SNGPL) and $25.09 per mmBtu for Sui Southern Gas Company Limi­ted (SSGCL), while denying consumers about Rs50bn in savings from lower natural gas rates.

This translates into a retail price of around Rs7,204 per mmBtu.

The revised price is based on five imported LNG cargoes procured from the spot market, as no shipment could be secured from Qatar due to the US war on Iran. This is the biggest-ever increase in RLNG prices in the commodity’s decade-long history.

The latest increase comes on top of around a 15pc rise in RLNG prices last month, when the rate was fixed at $19.52 per mmBtu (Rs5,446 per mmBtu) for SNGPL and $18.63 per mmBtu for SSGCL.

Compared with the February price of $10.45 (Rs2,916) per mmBtu, the RLNG rate for August is around 148pc higher. The sharp increase is expected to significantly raise fuel costs for power generation.

The impact is already visible, as the fuel cost for RLNG-based power generation rose to Rs31 per unit in May, compared with Rs13.72 per unit in April.

Meanwhile, Ogra also notified a 5.4pc (Rs12.89 per kg) increase in liquefied petroleum gas (LPG) prices for August. It fixed the LPG price at Rs254.32 per kg with effect from Aug 1, compared with Rs241.43 per kg in July.

In a belated disclosure, Ogra has revealed that it red­uced the prescribed prices for gas utilities by Rs134 per unit (7.4 per cent), resulting in savings of around Rs50 billion that will be used for circular debt adjustments instead of providing relief to consumers through lower gas prices.

For the first time, the regulator did not upload its prescribed price determination, finalised on June 23 and shared with the government, on its website. Since its inception two decades ago, Ogra has publicly released its determinations while simultaneously sharing them with the government.

In many cases, it also holds press briefings on its prescribed price determinations and the revenue requirements of gas utilities. However, it remained silent on queries for over a month and finally uploaded the determinations on its website this week after some interveners at public hearings raised concerns.

The government has also maintained silence on the matter, although it has already informed the International Monetary Fund (IMF) that consumer-end gas prices would remain unchanged. The savings resulting from lower revenue requirements determined by the regulator for SNGPL and SSGCL would be used to reduce gas sector circular debt, which was last reported at around Rs3.5 trillion, a senior government official confirmed.

As a result, Ogra has yet to notify consumer-end gas rates for the current fiscal year, which are required under the law and the IMF programme to take effect from July 1 every year.

The fresh determinations would allow annual revenue of around Rs817 billion to the two gas utilities during the current fiscal year, including Rs501 billion for SNGPL and Rs315.8bn for SSGCL.

The determinations showed that the prescribed gas price for SNGPL’s revenue requirement was reduced by Rs134 per mmBtu to Rs1,719 for FY2026-27 from Rs1,853 per mmBtu in FY2025-26, resulting in an annual revenue surplus of around Rs46.3bn.

“In exercise of its power under section 8(1) of the Ordinance, the Authority, after taking into consideration points raised by interveners, clarifications provided by the petitioner, scrutiny of the petition and available record, provisionally determines the surplus in estimated revenue requirement for the said year at Rs46.279bn,” Ogra stated.

It added that the surplus amount would be adjusted against previous years’ shortfall in accordance with the Federal Cabinet’s decision of June 30, 2024, which directed that prior-year shortfalls be adjusted to the extent possible during the current financial year.

Accordingly, the regulator determined SNGPL’s estimated revenue requirement, net of revenues, at Rs501.110bn (Rs1,718.96 per mmBtu) for the current fiscal year.

Similarly, the prescribed price for SSGCL’s revenue requirement for FY2026-27 was reduced by Rs86 per mmBtu, resulting in savings of Rs2.5bn. Ogra said it had provisionally determined a surplus of Rs1.421bn in estimated revenue requirement for the year.

The regulator noted that, based on the currently notified prescribed price, an additional recovery of Rs1.073bn was available, leaving Rs2.494bn for adjustment of previous years’ shortfalls in line with the federal cabinet’s June 30, 2024 decision.

Under the decision, the cabinet had directed Ogra to adjust previous years’ shortfalls to the extent of possible surplus during the current financial year. Accordingly, SSGCL’s revenue requirement, net of other revenues, was provisionally determined at Rs315.773bn (Rs1,691.24 per mmBtu) for the current fiscal year, compared with its previous rate of Rs1,777 per unit before June 30, 2026.

It may be noted that SSGCL had sought an estimated revenue requirement of Rs1.274 trillion, including Rs545.28bn in unrecovered shortfalls from previous years.

Karachi-based SSGCL supplies gas to consumers in Sindh and Balochistan, while Lahore-based SNGPL provides gas to consumers in Punjab and Khyber Pakhtunkhwa.

Published in Dawn, August 1st, 2026

KARACHI: The country’s banking sector is likely to remain dependent on government borrowing for profits in the current fiscal year as limited private-sector lending opportunities continue to make banks one of the most lucrative sectors for the equity market and investors, financial industry sources said.

“The options are limited for lending to the private sector and the situation will remain the same this year as witnessed in FY26,” said a senior banker.

Despite a sharp increase in revenue during the last three years, government borrowing also rose rapidly during the period, resulting in almost 50 per cent of revenue going towards interest payments.

The Federal Board of Revenue achieved its revised target for FY26, but federal government borrowing from banks rose to Rs5.9 trillion compared to Rs5.4tr in FY25.

Bankers said the borrowing trend was likely to continue in the new fiscal year, while the private sector could receive even less credit than it did in FY26.

“If investment opportunities appear in the private sector, the situation could change, but policymakers are focusing only on external fronts while relying heavily on banks’ money for rising domestic spending. Their budget always leaves a fiscal gap to be filled by borrowed money or new taxes,” the banker said.

Some financial experts pointed to the declining advance-to-deposit ratio, saying it reflected weak private-sector growth. The advance-to-deposit ratio fell to 35.2pc in June 2026 from 38.1pc in June 2025.

They said the ratio was among the lowest in the region, contributing to rising domestic debt that consumed around Rs8tr in interest payments.

During FY26, the State Bank and the government repeatedly asked banks to boost lending to the private sector, particularly small and medium enterprises, to help lift economic growth from below 4pc.

However, the private sector received only around Rs1.4tr compared to Rs5.9tr borrowed by the government.

Bankers said nothing had changed in FY27, as neither the manufacturing sector was expected to show a sharp recovery nor the export sector likely to post significant growth.

“If domestic investment in the country is the lowest in the region, it clearly indicates that the private sector needs little money from banks,” said S.S. Iqbal, a money market expert.

The investment-to-deposit ratio stood at 104.2pc in June 2026, reflecting continued dependence on government securities. Banks remain eager to invest almost all their funds in government papers. The ratio was even higher at 106pc last year.

“With growing uncertainties in the region due to the five-month-long war, which is still continuing and spreading, there is little chance for domestic investors to take risks and borrow high-cost money from banks,” Mr Iqbal said.

Published in Dawn, August 1st, 2026

The first month target was achieved largely because of higher-than-anticipated sales tax collection, federal excise duty and customs. However, the target of income tax collection in July FY27 was missed.

In FY26, the FBR had collected over Rs13 trillion, exceeding the revised target of Rs12.983tr by over Rs21bn. Collections rose eight per cent to Rs820bn in July FY27 from Rs756bn over the same month last year. Sales tax, customs duty and federal excise duty (FED) collection exceeded the target while income tax fell short of its target.

The government has projected an annual revenue collection target of Rs15.264tr for FY27. The FBR issued Rs99bn in refunds and rebates to taxpayers during July FY27, up from Rs85bn a year earlier, representing an increase of Rs14bn.

Higher sales tax, FED, customs collections offset income tax gap

Income tax collection reached Rs308bn in 1MFY27, falling short of the target of Rs323bn by Rs15bn. It also increased by 2pc from Rs301bn collected in the corresponding period last year. Sales tax collection totalled Rs360bn, exceeding the target of Rs305bn by Rs55bn. However, it increased by 18pc from Rs305bn last year.

Higher inflation is boosting domestic sales tax revenues, particularly due to surging petroleum product prices. As fuel costs rise, not only does the petroleum development levy (PDL) increase, but the knock-on effect also drives up the prices of other goods, generating additional sales tax collections.

In the first month of the fiscal year, sales tax receipts recorded an 18pc growth — a clear reflection of inflation running higher than anticipated across the country. Customs duty collection stood at Rs105bn, against the target of Rs104bn, resulting in an increase of Rs1bn. It nevertheless grew by 1pc from Rs104bn in FY26.

Federal excise duty collection reached Rs48bn, exceeding the target of Rs47bn.

It increased by 3pc from Rs46bn collected last year. Higher-than-expected receipts from the PDL also helped the government offset the shortfall in revenue collection.

The record PDL receipts were largely driven by historically high levy rates, with the government charging up to Rs120 per litre on petrol.

Unlike general sales tax on petroleum products, which is collected by the FBR and shared with the provinces under the National Finance Commission award, PDL receipts accrue entirely to the federal government. Petroleum products currently carry no GST.

Published in Dawn, August 1st, 2026

Short-term inflation has started rising again, mainly driven by a steady increase in daily petroleum prices. As a result, the transportation cost has increased over the period of last one week. This increase in transportation prices also resulted in higher prices of essential food items.

On a week-on-week basis, the index decreased by 0.91pc compared to the previous week, according to the Pakistan Bureau of Statistics.

The overall SPI showed a broad-based rise, indicating continued pressure on the cost of living. The increase was largely driven by sharp gains in key items on a year-on-year basis, including tomatoes (228.71pc), onions (95.36pc) wheat flour (78.65pc), diesel (37.42pc), petrol (23.28pc) and beef (13.44pc).

Food inflation remained elevated, with notable increases in the prices of onions, tomatoes, potatoes, mutton, beef and wheat flour.

Despite this limited easing, energy-related costs continued to weigh on household budgets and push up transport expenses across the economy. The SPI has now recorded an increase for the 68th consecutive week. Although the pace of growth has slowed, it reflects sustained pressure on consumers.

This is a cost-push inflation, which means that energy took priority, followed by food. As a result, the average households are under pressure due to higher consumer prices.

The items, whose prices increased the most over the previous week included onions (7.62pc), diesel (4.17pc), eggs (3.16pc), petrol (2.46pc), wheat flour (2pc), potatoes (1.93pc), LPG (1.90pc), pulse gram (1.44pc), vegetable ghee 2.5kg (0.71pc), pulse mash (0.69pc), pulse masoor (0.64pc) and firewood (0.15pc).

The items whose prices saw a decline week-on-week included tomatoes (22.96pc), chicken (11.20pc), electricity charges for Q1 (9.06pc), bananas (0.70pc), sugar (0.16pc) and pulse moong (0.15pc).

However, on an annual basis, the items whose prices increased the most were tomatoes (228.71pc), onions (95.36pc), wheat flour (78.65pc), LPG (51.76pc), diesel (37.42pc), petrol (23.28pc), gents sponge chappal (16.69pc), mutton (16.06pc), chilies powder (15.20pc), bananas (14.69pc), beef (13.44pc) and bread plain (9.69pc).

In contrast, the prices of potatoes dropped 30.89pc, followed by pulse gram (19.89pc), chicken (19.56pc), sugar (17.48pc), salt powder (14.09pc), pulse masoor (12.80pc), eggs (8.38pc) and pulse moong (7.38pc).

The index, comprising 51 items collected from 50 markets in 17 cities, is computed weekly to assess the prices of essential commodities and services at shorter intervals. Data showed that the prices of 27 items increased, six decreased, and 18 remained stable compared to the previous week.

Published in Dawn, August 1st, 2026

KARACHI: The Pakis­tan Stock Exchange (PSX) snapped a three-session losing streak on Friday as investors cherry-picked stocks despite heightened geopolitical tensions that fuelled concerns over inflation amid rising oil prices.

The benchmark KSE-100 index gained 546.13 points, or 0.31 per cent, to close at 176,094.12.

According to Ali Najib, deputy head of Trading at Arif Habib Ltd, the market witnessed a mixed session. The benchmark opened on a firm footing and climbed to an intraday high of 177,109, up 1,561 points, before surrendering a large part of its gains in late trade as investors booked profits ahead of the weekend.

On the corporate front, Maple Leaf Cement Factory Ltd (MLCF) reported a consolidated profit attributable to equity holders of Rs4.27 billion for the fourth quarter of FY26, translating into earnings per share (EPS) of Rs4.08.

Index recovers 546 points on value-hunting despite oil-led inflation fears

The result was up 18pc year-on-year and more than four times higher than the preceding quarter, taking full-year EPS to Rs11.34, an increase of 3pc from a year earlier.

The earnings growth was primarily driven by the acquisition of Pioneer Cement Ltd. The company did not announce a cash dividend.

Meanwhile, Askari Bank posted a profit after tax of Rs13.33bn for the first half of 2026, with EPS of Rs9.20, reflecting a 25pc increase over the corresponding period last year. The bank also declared a second interim cash dividend of Rs2 per share, taking the cumulative payout to Rs4 per share.

Among index-heavy stocks, Engro Holdings, Habib Bank, Lucky Cement, Bank Al Habib and Askari Bank collectively contributed 250 points to the benchmark index.

In contrast, Engro Fertilisers, United Bank, Habib Metropolitan Bank, Javedan Corporation Ltd and MLCF together wiped out 101 points as investors engaged in selective profit-taking.

Trading activity remained robust, with 879 million shares changing hands and the traded value reaching Rs24.9bn.

Analysts expect market sentiment to remain broadly constructive, supported by the ongoing corporate earnings season and improving macroeconomic indicators. However, geopolitical developments and upcoming financial results are likely to dictate the market’s near-term direction.

Published in Dawn, August 1st, 2026

The government on Friday reduced the prices of petrol and high-speed diesel (HSD) by 12 paisas and 66 paisas per litre, respectively.

Following the revision, petrol will retail at Rs336.03 per litre, while HSD will cost Rs392.38 per litre. The government continues to levy Rs110 per litre in taxes and duties on petrol and Rs96 per litre on diesel.

The Petroleum Division’s notification said that the new prices would be applicable from August 1 to August 3.

Meanwhile, in a bigger price shock, the Oil and Gas Regulatory Authority (Ogra) notified a record 32pc increase in the price of regasified liquefied natural gas (RLNG) for August, taking it to $25.83 per mmBtu for SNGPL and $25.09 per mmBtu for SSGCL.

This will translate into a retail price of Rs7,204 per mmBtu. The price is based on five imported cargoes from the spot market, as no shipment could be secured from Qatar because of the US-Iran war. This is the single biggest jump in RLNG rates in its decade-long history.

This comes on top of an about 15pc increase in the RLNG price fixed last month at $19.52 per mmBtu (Rs5,446 per mmBtu) for SNGPL and $18.63 per mmBtu for SSGCL.

Compared with $10.45 (Rs2,916) per mmBtu in February this year, the RLNG price hike works out to around 148pc for August.

This mainly results in a substantial increase in fuel costs for power generation. This can be seen from the fact that the fuel cost for RLNG-based power generation in May worked out to Rs31 per unit, compared with Rs13.72 per unit in April.

The diesel price has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.

The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

Earlier, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.

The government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel.

The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends.

The daily pricing decision was rejected by the All Pakistan Dealers Association, which said it would consider a protest plan this week.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.

Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.

Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.

ISLAMABAD: Undeterred by public criticism, the government on Thursday indicated it could reintroduce targeted fuel subsidies within the next few days, with financial support from the provinces, if renewed tensions in the Middle East persisted, and stood firm on its plan to go ahead with petroleum price deregulation.

“If this matter [renewed US-Iran attacks] does not end in a few days, we will bring back the targeted subsidy mechanism that we previously used to prevent the price shock from reaching the people,” Petroleum Min­ister Ali Pervaiz Malik said, recalling that the prime minister had initially provided Rs130 billion in fuel subsidies before bringing the provincial governments on board under the targeted subsidy mechanism.

He said the prime minister and the entire government understood the difficulties being faced by common Pakistanis.

Talking to journalists after attending a meeting of the Senate Standing Committee on Petroleum, the minister said real relief would reach the people only when the US-Iran war came to an end and global oil prices fell — for which Chief of Defence Staff and Chief of the Army Staff Field Marshal Asim Munir and Prime Minister She­hbaz Sharif were making efforts.

Malik said that while Pakistan remained under an Intern­ational Monetary Fund (IMF) programme and had limited financial resources, recovering legitimate fuel costs from consumers was the only option.

Otherwise, he added, someone else would have to bear the burden if pricing was kept artificially controlled.

He said the transparent daily pricing mechanism had been introduced in the interest of common people, transferring the impact of international prices gradually to the consumers instead of the major shocks that might have accrued as a result of weekly or fortnightly pricing.

“We have tied our hands ourselves and handed over a transparent system to the people,” he said, adding that the Oil and Gas Regulatory Authority (Ogra) was presenting its “transparent working” on its website. He said the real benefit would reach the people when cheapest fuel reached the consumers through competition and transparency.

Senate panel concerned

Earlier, he told the Senate panel, headed by Senator Umer Farooq, that Ogra was setting petroleum prices in line with movement in the international market under a transparent formula.

Senators gave a mixed feedback to the new pricing mechanism. Senator Amir Chishti app­reciated the daily pricing system, while Senator Saifullah Abro described it as “slow poison”.

The committee held a detailed discussion on the recently introduced daily petroleum pricing mechanism and questioned the rationale for replacing the previous fortnightly system. The petroleum minister said the federal government had “depoliticised” the pricing process by empowering Ogra, as the independent regulator, to determine petroleum prices.

Ogra Chairman Nabeel Awan said petroleum prices were calculated using a seven-day rolling average of Platts international benchmarks. He added that the daily pricing mechanism protected consumers by spreading the impact of international price fluctuations over a seven-day period, thereby minimising sudden price shocks, especially due to the ongoing US-Iran conflict.

The panel expressed serious concern over the high tax burden on petroleum products. Representatives of the Petr­oleum Dealers Association told the committee that frequent price revisions were creating operational difficulties for dealers. The committee chairman directed Ogra to engage all relevant stakeholders, incl­uding the dealers’ association, and submit a practical proposal to address their concerns.

Pricing system examined

On the other hand, a government committee constituted by the prime minister to review the petroleum pricing mechanism, and headed by the petroleum minister, examined the daily pricing system and “appreciated the daily pricing formula and the steps taken to enhance transparency as well as reduce volatility in the new petroleum pricing mechanism”, according to an official statement.

The sub-committees constituted by the main committee presented their findings and recommendations on various aspects of the pricing mechanism. The KPMG consulting firm also presented its report comparing petroleum pricing and taxation structures across the region.

The minister directed oil marketing companies (OMCs) should be held responsible for ensuring end-to-end digitisation of the petroleum supply chain to improve transparency, traceability, efficiency and accountability, in line with directives issued by the prime minister in December last year.

The meeting also deliberated on the moratorium on establishing new OMCs and its implications for competition, investment and market structure. It was resolved that the inland freight equalisation margin (IFEM) pool also required a wholesome review, given its role in maintaining uniform fuel prices across the country and its dissolution in case of deregulation.

The issue of windfall tax also came under discussion. It was decided that the Finance Division, in consultation with the Federal Board of Revenue (FBR) and the Petroleum Division, would present a report on the matter at the committee’s next meeting.

The committee decided to continue deliberations on the recommendations of its subcommittees and formulate a comprehensive roadmap for reforms in the petroleum sector aimed at promoting transparency, competition, efficiency and consumer protection.

Published in Dawn, July 31st, 2026

Presiding over a review meeting on power division issues here, the prime mi­­nister said as performance of the distribution companies had improved considerably, but more efforts were still required. He termed the countrywide installation of smart meters indispensable for the sector’s turnaround, a Prime Minister’s Office news release said.

The prime minister said strict measures should be enforced at every level of the power sector, adding that electricity theft should be eliminated.

He instructed the power division to devise clear performance indicators to gauge the working of distribution companies and to set integrated targets backed by defined timelines.

Says best-performing Disco will be formally recognised, awarded

PM Shehbaz announced that the best-performing Disco would be formally recognised and awarded for its performance as an incentive. He said such discos would be encouraged for a healthy competition among the companies.

To effectively address load-shedding in rural areas, the prime minister directed that solarisation projects be developed at the village level, saying decentralised solar solutions could ease the burden on the national grid.

Officials informed the meeting that technical and commercial losses of Discos were gradually declining, with the Islamabad, Lahore and Gujranwala electric supply companies recording the lowest transmission and distribution losses during the last fiscal year.

The briefing further disclosed that the Islamabad Electric Supply Company, La­­hore Electric Supply Company, Gujran­wala Electric Power Company, Faisal­a­b­­ad Electric Supply Company and Multan Electric Power Company achieved 100 per cent recoveries in fiscal year 2025-26.

To curb electricity theft, improve re­­c­overies and better resolve technical issues, Disco Support Units have already been established in the Hyderabad, Sukkur, Lahore, Multan and Hazara electric supply companies, the meeting was told.

The officials also apprised the prime minister that the first phase of installing an Asset Performance Management System (APMS) at the transformer level would be completed by September 30, noting that transformers integrated with the APMS would help reduce both electricity theft and load-shedding.

The meeting was further informed that a plan to install 16.2m single-phase Advanced Metering Infrastructure (AMI) meters in the Multan, Lahore, Peshawar, Hazara and Quetta regions was under consideration.

Published in Dawn, July 31st, 2026

Speaking at the launch of the Monthly Development Outlook (MDO) for July, the minister said expanding exports through new products and destinations was critical to securing long-term economic independence.

He reported that ministries and divisions reported a total actual expenditure of Rs916.02bn in 2025-26, which was almost 20pc higher than the Rs820.5bn revised allocation for the Public Sector Development Programme (PSDP) due to diversion of over Rs125bn towards fuel subsidies following the US-Iran war. However, even the actual PSDP expenditure at Rs916bn was around 15pc lower than last year’s Rs1.077tr.

The minister said the excess utilisation was due to increased rupee-cover expenditure on foreign-funded projects, especially through third-party payments in the infrastructure, health & nutrition, and governance projects. Moreover, the Government of Sindh’s counterpart share for railways also contributed to increased expenditures.

Planning minister targets $100bn exports by 2035; PSDP spending up on fuel subsidies in FY26

The MDO showed that the infrastructure sector spent Rs608.5bn in FY26 against a revised allocation of Rs514bn, indicating a utilisation rate of 118.4pc. In the energy sub-sector, Rs183bn was spent against Rs105bn, showing a utilisation rate of 174pc. The social sector consumed Rs69.1bn in FY26, achieving 99.8pc of the Rs69.2bn allocation.

The minister said the government was working closely with industry and the State Bank of Pakistan (SBP) to transform the country’s top 20 export clusters into globally competitive sectors while promoting non-traditional industries, including engineering, light engineering, chemicals and advanced manufacturing.

“Our destination is not only stabilisation but sustainable growth of at least 6pc. That growth has to be export-led; otherwise it will become another economic bubble that bursts within a few years,” he said.

Mr Iqbal said the government had set a target of increasing Pakistan’s exports to $100bn by 2035, adding that the existing export structure was inadequate to achieve this objective. “We have to diversify both our product portfolio and our export markets. Pakistan is still exporting many of the same products to the same destinations as it did 40 years ago. This model is no longer sufficient for a competitive global economy,” he remarked.

The minister said the government, in collaboration with the SBP and the private sector, was offering incentives to promote non-traditional export sectors, including engineering, light engineering, chemicals and advanced manufacturing, to broaden the country’s export base.

Published in Dawn, July 31st, 2026

This has raised serious concerns for policymakers about the decline in exports to Europe, while Brussels has already hinted that any further extension in GSP+ status will be contingent on full compliance with human rights, press freedom, and political rights.

For Pakistani exporters, the evolving situation presents a dual challenge: maintaining compliance with EU conditions while facing increasing competition from countries gaining preferential or expanded market access.

Official data compiled by the State Bank of Pakistan showed that exports to European countries shrank by 0.18pc to $9.089 billion in FY26 from $9.106bn in the preceding year.

Exporters will face a greater challenge in retai­ning market share amid the ongoing conflict in the Middle East and rising input costs in the country. Exports to northern Eur­ope slightly dipped by 1.31pc to $741.985m in FY26, from $751.783m in FY25.

Exports to southern Europe grew by 3.35pc to $3.206bn in FY26, from $3.102bn a year ago. In this region, exports to Spain grew 5.18pc to $1.562bn in FY26 from $1.485bn in FY25.

Exports to eastern Europe grew 3.36pc to $801.71m from $775.63m in FY25.

In the post-Brexit period, Pakistan’s exports to the UK decreased 0.55pc to $2.148bn in FY26.

Published in Dawn, July 31st, 2026

The Pakistan Pavilion at Texworld New York City 2026 opened on Wednesday at the Jacob K. Javits Convention Centre, where five manufacturers are showcasing home textiles, apparel, leather garments, sportswear, gloves and other value-added products for buyers from across the US and overseas.

Organised by the Trade Development Authority of Pakistan (TDAP) in collaboration with the Trade and Investment Wing of Pakistan’s Consulate General in New York, the pavilion showcases A1 Infinity, MRI Group, Hometex Corporation, Ruqi Sports and Niza Sports.

Speaking at the opening ceremony, Pakistan’s Ambassador to the US, Rizwan Saeed Sheikh, described the textile sector as “the backbone of Pakistan’s export economy” and reaffirmed the government’s commitment to expanding exports and to strengthening commercial ties with the US.

10pc duty could cost exporters $2 billion

Textiles and apparel account for the overwhelming majority of Pakis­tan’s exports to the US, while the remainder includes rice, leather products, surgical instruments, sports goods and other manufactured items. Ready-made garments, knitwear and home textiles remain the country’s leading export categories.

Pakistan’s participation comes less than a week after the Office of the US Trade Represen­tative imposed a new 10pc ad valorem tariff on Pakistani imports under Section 301, effective July 24.

The measure followed a US investigation into enforcement of forced-labour import prohibitions in 60 trading partners. While acknowledging that Pakistan legally prohibits forced labour, the USTR said enforcement needed to be streng­­thened, placing the country among those subject to the additional duty.

The tariff follows months of uncertainty over US trade policy. Earlier this year, Wash­ing­ton proposed reciprocal tariffs of up to 29pc on Pakistani goods before negotiations reportedly lowered the baseline rate. Exporters fear that the latest duties, combined with rising domestic production costs, could erode Pakistan’s competitiveness in its most important export market.

Analysts estimate the new tariff could reduce Pakistan’s textile exports by about $564m in FY26, with losses potentially exceeding $2 billion if American buyers shift sourcing to lower-cost suppliers.

Pakistan already faces strong competition from Bangladesh, India, Vietnam and China while domestic manufacturers continue to contend with high energy prices, expensive financing, rising taxes and logistics costs.

Published in Dawn, July 31st, 2026

The State Bank exceeded the target of $18bn for FY26, reaching $18.4bn. The target was a part of the agreement with the IMF.

During the week ended on July 24, the SBP reserves declined by $229 million.

The country’s overall foreign exchange holdings stood at $22.442bn, including $5.412bn held by commercial banks, during the week.

SBP Governor Jameel Ahmad reportedly told the Senate Standing Committee on Wednesday that Saudi Arabia has rolled over $5bn and that the State Bank purchased $9bn in FY26 from the interbank market.

Published in Dawn, July 31st, 2026

Topline Securities Ltd said the PSX remained under pressure throughout the session as investor sentiment weakened following fresh US-Iran attacks, reigniting geopolitical tensions and pushing international crude oil prices higher.

The index plunged to an intraday low of 1,430 points at 174,612.15 before recovering some of its losses to settle at 175,547, down 495 points or 0.28 per cent.

The surge in global oil prices heightened concerns about inflationary pressures and their potential impact on the broader economy, prompting investors to adopt a cautious stance.

Although the market partially recouped intraday losses, persistent uncertainty over the geopolitical situation kept buying interest subdued.

On the index contribution front, Engro Holdings, Lucky Cement, Systems Ltd, Hub Power, and Pakistan Petroleum were the major laggards, collectively eroding approximately 547 points.

Amid persistent bearishness, investor participation rose 23.88pc from the previous session to 711 million shares, while traded value stood at Rs25.3 billion. Trust Brokerage topped the volume chart with nearly 143 million shares.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX stayed range-bound as investor sentiment remained cautious throughout the session, with market participants awaiting further progress on the geopolitical front. According to media reports, negotiations between the US and Iran to restore regional stability, particularly around the Strait of Hormuz, remain ongoing, keeping investors on the sidelines.

On the corporate front, Engro Fertiliser reported a 2QCY26 profit-after-tax (PAT) of Rs3.8bn, with earnings per share (EPS) of Rs2.85, down 32pc year-on-year, reflecting weaker fertiliser offtake.

The company declared a cash dividend of Rs1.75 per share, compared with Rs4.25 in the same period last year, indicating a more cautious capital allocation approach.

Meanwhile, Bank Alfalah Ltd reported 2QCY26 PAT of Rs10bn (EPS: Rs3.22), bringing 1HCY26 earnings to Rs21bn, up 40pc year-on-year, and announced an interim cash dividend of Rs1.5 per share.

Published in Dawn, July 31st, 2026

The government on Thursday increased the prices of petrol and high-speed diesel (HSD) by Rs1.09 and Rs2.42 per litre, respectively.

Following the revision, petrol will retail at Rs336.15 per litre, while HSD will cost Rs393.04 per litre. The government continues to levy Rs110 per litre in taxes and duties on petrol and Rs96 per litre on diesel.

The Petroleum Division’s notification said the new prices would be applicable for July 31 (Friday).

The diesel price has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.

The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

Earlier, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.

The government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel.

The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends.

The daily pricing decision was rejected by the All Pakistan Dealers Association, which said it would consider a protest plan this week.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.

Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.

Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.

“Renewed geopolitical tensions in the Middle East pose downside risks to inflation and the external outlook,” the Ministry of Finance said in its Monthly Economic Update & Outlook (July 2026), while assuring that the external sector would remain resilient, supported by government measures to facilitate exports and sustain the strong momentum in remittance inflows.

“Overall, prudent macroeconomic management, fiscal discipline, ongoing structural reforms, stronger industrial activity and improved external buffers are expected to sustain the recovery in economic activity while preserving macroeconomic stability,” the finance ministry said, adding that macroeconomic stabilisation had largely been achieved in FY2026.

It said the economy was expected to maintain its growth momentum in the current fiscal year, supported by “improving macroeconomic fundamentals, continued expansion in the manufacturing sector, fiscal consolidation, resilience in agriculture and a stable financial environment”.

Manufacturing activity was likely to maintain its positive trajectory, underpinned by stable energy availability, easing financial conditions, improving domestic demand and continued export-oriented production, the ministry said.

“Inflation, however, is expected to remain elevated in the near term, with CPI inflation projected in the range of 9-10 per cent in July 2026.”

At the same time, it also warned that normalisation of global energy prices remained contingent on a durable and lasting peace agreement between the US and Iran.

Among high-frequency indicators, the US Weekly Economic Index (WEI), which measures real-time economic activity, stood at 2.9pc for the week ended July 18, while its 13-week moving average stood at 2.87pc.

Likewise, the ministry said the Composite Leading Indicator suggested that Pakistan’s major export markets (OECD economies such as the UK and the US) remained broadly aligned with their long-term potential of 100, indicating continued support from external demand, although renewed geopolitical tensions could pose downside risks.

The ministry said the government’s focus on poverty alleviation and social protection continued during the fiscal year that had just ended.

In June 2026, the Bureau of Emigration and Overseas Employment registered 38,410 workers for overseas employment, reflecting continued opportunities for Pakistani workers in international labour markets, it said.

The finance ministry noted that Pakistan’s economy entered FY2027 with an improved macroeconomic environment, as the stabilisation gains of FY2026 continued to support economic recovery and strengthen prospects for sustainable growth.

“In FY2026, average CPI inflation remained within the targeted range despite elevated global oil prices and supply chain disruptions.

“Large-scale manufacturing rebounded and agriculture maintained moderate growth despite weather-related challenges.

“Improved revenue mobilisation and prudent expenditure management further strengthened the fiscal position. The external sector remained broadly balanced, with the current account recording a marginal deficit of $140 million. Record-high workers’ remittances and higher foreign exchange reserves helped offset the import recovery associated with the strengthening of domestic economic activity.”

Meanwhile, it said IT exports reached a record $4.6 billion (up 20.6pc from last year), underscoring Pakistan’s growing potential in technology and digital services. Keeping in view these positive developments, S&P Global Ratings recently upgraded Pakistan’s long-term sovereign credit rating to B from B-, indicating improved institutional capacity, sustained implementation of reforms, improved fiscal performance and a significant rebuilding of foreign exchange reserves.

“With these gains continuing to advance the foundations for sustained economic growth, real GDP growth is targeted at 4pc in FY2027, based on the government’s continued advancement of the reform agenda through deepening financial markets, broadening the domestic investor base, strengthening debt sustainability and enhancing the country’s presence in the global capital market,” the ministry said.

Nevertheless, it warned that renewed US-Iran hostilities once again posed downside risks through global energy prices, trade and financial market volatility.

However, stronger macroeconomic fundamentals, improved external buffers, government readiness and continued policy vigilance have enhanced Pakistan’s capacity to manage such shocks effectively, the ministry concluded.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry welcomed the decision and said it would improve the competitiveness of Pakistani exports and strengthen the confidence of international shipping companies, traders and investors in the country.

He added that Pakistan’s removal could also make Karachi Port, Port Qasim and Gwadar more attractive to global shipping lines and investors, creating opportunities for regional trade, cargo transit and transshipment.

According to the minister, the issue was taken up on March 13, 2026, when it was noted that Pakistan and its maritime areas had been among the JWC’s Listed Areas for two decades — after the US declared its war on terror following the 9/11 attacks in 2001.

Their inclusion had resulted in additional war-risk insurance premiums and surcharges for Pakistani shipping and trade.

The prime minister subsequently constituted a special committee, headed by Chaudhry, to pursue the matter. This committee held negotiations with Lloyd’s officials and presented Pakistan’s case on the basis of technical evidence and factual data.

“Even during Ramazan, lengthy meetings were held for several hours after iftar,” the minister said, adding that sustained negotiations eventually resulted in Pakistan being removed from the list.

He added that the decision would reduce the additional financial burden on the country’s maritime trade and help Pakistani exports compete more effectively in international markets.

Chaudhry hailed the development as an important step towards making Pakistan a major regional logistics, transit and transshipment hub, adding that the government would continue efforts to improve maritime safety and efficiency, expand port capacity and attract investment in the sector.

The decision was reached at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, presided over by Finance Minister Muhammad Aurangzeb, which was called urgently on a single-point agenda in view of the alarming situation.

While virtually presiding over the meeting, the minister also constituted a steering committee to take urgent steps to open letters of credit for wheat imports within 12 hours, an official statement said.

“The steering committee will, inter alia, do the need assessment and devise an operational mechanism with reference to the proposal of Wheat import and demand of provinces”, the statement said.

An informed source said a need assessment for imports had already been made at the Federal Wheat Board a day earlier. The steering committee will monitor the import and tendering process. The provinces have demanded about 2.2 million tonnes of wheat in view of shortage in the market, resulting in wheat price going over Rs150 per kg from Rs125 a week earlier due to mismanagement in procurement from farmers.

To meet provincial needs, about 1.2m tonnes old stocks of defunct Pakistan Agricultural Storage and Services Corporation (Passco) would be provided to provinces while one million tonnes would be imported through state-run Trading Corporation of Pakistan.

The wheat board led by Food Security Minister Rana Tanveer Hussain had already decided a day earlier that the provincial governments would provide back-to-back LCs against the imports. In the event of any shortfall in payments for imported wheat, the federal government would deduct the amount from the provincial share of the National Finance Commission Award.

Published in Dawn, July 30th, 2026

This was stated by the Central Asia Regional Economic Cooperation (CAREC) Secretariat in a meeting with Commerce Minister Jam Kamal, which briefed him on key regional initiatives aimed at strengthening trade, connectivity, investment and economic integration among CAREC member countries.

An official announcement said that during the meeting, the delegation informed the minister that Pakistan remains an active participant in implementing the Regional Trade and Investment Facilitation Partnership framework, which is entering its operational phase to promote trade facilitation, logistics cooperation and investment across the CAREC region.

The meeting reviewed preparations for the upcoming CAREC Ministerial Conference and Business Forum, to be held in Mongolia on Sept 29-30.

The Business Forum will focus on logistics, energy security, critical minerals, digital connectivity, investment opportunities and private sector collaboration.

Published in Dawn, July 30th, 2026

The initiative will grant Kazakhstan and other Central Asian Republics (CARs) access to premium Pakistani port infrastructure across Karachi, Port Qasim and Gwadar. These shipping terminals are uniquely positioned to serve as vital transit hubs, opening up direct maritime trade corridors to global markets.

Kazakhstan’s Ambassador Yerzhan Kistafin met with Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry on Wednesday to discuss expanding bilateral trade via Pakistani ports.

“Pakistani seaports can act as transit hubs for Kazakhstan and the wider Central Asian region, offering access to markets in the Persian Gulf, Africa and Southeast Asia,” the minister said.

Mr Chaudhry said Pakistan was keen to enhance engagement with Kazakhstan in ports, shipping, trade facilitation and regional connectivity.

Published in Dawn, July 30th, 2026

KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday extended its bearish run as nervous investors continued to offload their positions amid worsening geopolitical concerns.

Topline Securities Ltd said the PSX witnessed another volatile trading session, with the benchmark KSE-100 index extending its decline as investor sentiment remained subdued amid escalating geopolitical tensions in the Middle East and a sharp rise in international crude oil prices.

Heightened risk aversion triggered broad-based selling across major sectors, outweighing selective buying interest.

The benchmark index settled at 176,042.98, down 1,580.90 points or 0.89 per cent. During the session, the index traded in a volatile range, touching an intraday high of 176,935.03 and a low of 175,631.74.

Geopolitical tensions, oil spike trigger selling

On the negative side, United Bank Ltd, Lucky Cement, Engro Holdings, Hub Power, and Pakistan Petroleum emerged as the largest drags on the benchmark, collectively eroding approximately 669 points.

Investor participation weakened sharply as the total trading volume plunged 40.07pc to 574 million shares and the turnover value dipped 38.96pc to Rs25.36 billion.

According to Arif Habib Ltd (AHL), the PSX remai­ned in the consolidation phase with the index eating further into Monday’s 7,241-point recovery rally.

Investor sentiment turned depressed after the US said its forces were targeted by Iran overnight while Washington and Saudi Arabia struck Tehran-backed militias in Iraq, abruptly ending a days-long lull in hostilities.

On the corporate front, Fauji Fertiliser announced a net profit of Rs24.4bn wi­­­­th earnings per share (EPS) at Rs16.93 in 2QCY26, up 39pc quarter-on-quarter. Alongside the results, the company anno­u­nced a dividend of Rs14.50 per share for 2QCY26 (lifting payout to 86pc), up from Rs8.5 last quarter.

Honda Atlas Cars (Pak­istan) Ltd announced its fi­­n­­­­ancial results for 1QM­Y27, posting a profit-after-tax of Rs2,486 million (EPS: Rs17.41), up three tim­­­es year-on-year from Rs828m (EPS: Rs5.80) in 1QMY26, and 2.5 times qua­­­­­­­­r­­­ter-on-quarter from Rs1,008m (EPS: R7.06) in 4QMY26.

Published in Dawn, July 30th, 2026

QUETTA: The Balochistan cabinet on Wednesday approved the construction of a $14 billion tri-state gas terminal in Gwadar with investment from Turkmenistan and directed the senior member of the Board of Revenue to ensure that the province’s rights were fully protected in the project.

Addressing a press conference after the cabinet meeting, chaired by Chief Minister Mir Sarfraz Bugti, provincial ministers Mir Zahoor Buledi and Mir Ziaullah Langove said the proposed terminal would also supply natural gas to the districts of Gwadar, Panjgur, Chagai and Washuk.

The meeting, held at the Chief Minister’s Secretariat, began with prayers for security personnel and civilians martyred in recent terrorist attacks.

Buledi said the cabinet considered a 26-point agenda and reaffirmed its commitment to eliminating terrorism. He added that the government would not allow terrorist networks to operate on Balochistan’s soil.

The cabinet approved a series of major decisions aimed at improving public welfare, strengthening law and order, expanding educational opportunities, enhancing local governance and accelerating development across the province.

It approved scholarships for 300 children under Phase III of the Workers Welfare Board Scholarship Programme. Officials said 781 children had already benefited from the scheme.

The cabinet approved the release of Rs858 million for the security of seven projects under the South Balochistan Package launched in 2021.

The cabinet also cleared the grant of university status to Tameer-i-Nau College, the establishment of a child protection helpline, the Balochistan Child Protection Rules 2026, amendments to the Balochistan Cadet Colleges Act, and renewal of the service agreement for the Quetta Safe City Project.

Buledi said the cabinet also approved the completion of the Sibi-Harnai Road project, estimated to cost Rs19bn, on an 80:20 cost-sharing basis with the federal government, with the Centre contributing more than Rs15bn and the province over Rs3bn.

The government also renewed the no-objection certificate for the Parco Coastal Refinery project, subject to the payment of land charges at current market rates, and the commencement of investment within two years.

The cabinet further approved the grant of ownership rights to residents of Kalanch and New Town in Gwadar, the creation of Kandhkot and Manjoti tehsils and Kandhkot subdivision, and the upgradation of Mezai and Musizai to municipal committees.

Home Minister Langove said damaged Safe City cameras would be restored within 10 days and confirmed that investigations into the Patel Road blast were underway.

He added that the fuel tankers burnt in Chagai had violated government convoy standard operating procedures and were not part of the officially authorised convoy.

The cabinet formally declared the entire province a police area following the merger of the Levies Force into the police.

It also approved the appointment of SP Nabeel Ahmed as chief operating officer of the Balochistan Safe City Authority, endorsed the formation of a parole board on the recommendation of the home department, and sanctioned the establishment of a new police station in Marble City, Hub, to enhance security for industrial and commercial activities.

Published in Dawn, July 30th, 2026

ISLAMABAD: With electricity demand declining by over three per cent, the government on Wednesday indicated that it was working on another power tariff package as it sought about Rs1.20 per unit additional fuel cost from consumers to collect Rs15.7 billion in August for electricity consumed in June.

At a public hearing, the Nat­i­onal Electric Power Regul­atory Authority questioned the performance of power sector entities and the policy of excessive loadshedding.

Continuous system constraints limiting the utilisation of cheaper available capacity also came under criticism, while some commentators exp­re­ssed concern over outages at three nuclear power plants.

The government team, comprising representatives of the power division and its entities, reported that electricity consumption in June was around 5pc lower than estimates for the month and about 3.3pc lower than the same month last year.

Total units sold in June this year stood at 9.995bn units compared to 10.337bn units in the same month last year.

They said that, barring 2.8pc growth in industry, the reduction in consumption was across the board, ranging from 3.5pc to 5pc in the domestic and commercial sectors and 12pc to 29pc in agriculture and bulk consumers.

It was reported that non-availability of Qatar’s contra­cted LNG led to expensive purchases from the spot market and minor use of furnace oil, resulting in higher fuel cost.

Nepra’s Member Develop­ment Maqsood Anwar Khan expressed concern over rep­orts of protests in various parts of the country against excessive loadshedding while government companies were reporting a decline in demand. He also criticised commercial loadshedding.

Power companies confirmed that loadshedding was carried out for four days in June, ranging from 93MW to 730MW, while revenue-based loadshedding remained on the higher side.

They said the reduction in demand had several factors, including solar net metering, transfer of Balochistan tube wells to solar, weather conditions and other reasons.

Power division official Naveed Qaiser said solar switching between day and night was one of the key factors in fluctuating demand and consumption patterns.

He said the government was working on a new power tariff package to address time-of-use rates, captive power plant requirements and battery energy storage systems.

He said the induction of battery energy storage systems by consumers would be beneficial to the grid as well as tariff adj­u­stment, but if such systems were installed at utility scale, their fiscal impact would trans­l­ate into a slightly higher tariff.

He declined to share details of the proposed tariff package, saying it was still at the working stage and would be brought before the regulator once finalised.

Industrial representatives from Karachi demanded a review of the incremental tariff package, saying its impact was reportedly affecting other consumer categories, including domestic consumers.

Qaiser said the incremental package had equally benefited the entire industrial sector, but he agreed that the three-year incentive package had completed six months and a data set had already been shared with Nepra for review and possible adjustments.

Government representatives said Disco inefficiency costs had dropped from Rs591bn to Rs326bn in two years through a 1pc reduction in system losses.

However, Nepra member Maqsood Anwar said this had been achieved through loadshedding and shutting down grid stations and transformers instead of improving governance and removing illegal connections.

“The improvement could only be achieved when teams are in the field and remove kundas and theft, not through shutting down machines while people suffer in scorching heat,” he said.

Industrial consumers also raised concern when the government side reported that three nuclear power plants — one in Karachi and two at Chashma — faced reactor problems.

However, both Nepra and government representatives said the availability of all nuclear power plants stood at around 94pc and non-availability was within the 8pc contractual limit.

Industrial consumers also criticised power companies for positive fuel cost adjustment because of unplanned technical shutdowns, dependence on high-cost furnace oil and RLNG, and non-availability of cheaper hydropower projects.

Power division official Rihan Akhtar said the net increase in fuel cost adjustment would be around 86 paise per unit because an existing 34 paise FCA would come to an end and be replaced by Rs1.20 per unit in August, subject to regulatory approval.

The Central Power Purchasing Agency reported that the reference fuel cost for June 2026 was set at Rs7.714 per unit, but the actual fuel cost turned out to be Rs8.9 per unit, necessitating an increase of Rs1.20 per unit in additional charges from consumers in upcoming monthly bills.

Published in Dawn, July 30th, 2026

The government on Wednesday increased the price of high-speed diesel (HSD) by Rs2.24 per litre, while reducing that of petrol by a meagre 75 paisas.

Following the revision, HSD will retail at Rs390.62 per litre, while petrol will cost Rs335.06 per litre. The Petroleum Division’s notification said the new prices would be applicable for July 30 (Thursday).

The diesel price has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.

The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

Earlier, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.

The government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel.

The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends.

The daily pricing decision was rejected by the All Pakistan Dealers Association, which said it would consider a protest plan this week.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.

Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.

Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.