The government on Monday increased the price of petrol by Re0.88 per litre, but reduced that of high-speed diesel (HSD) by Rs1.88 per litre.

Following the revision, petrol will retail at Rs393.64 per litre, while HSD will cost Rs397.76 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division’s notification, the new prices are applicable for Oct 6 (Tuesday).

The price of HSD 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.

Meanwhile, the government has reintroduced a raft of austerity measures in response to rising fuel prices amid the ongoing Middle East conflict. Under these measures, markets are required to close by 9pm and fuel allocations for official vehicles has been cut by 50 per cent for three months.

On September 13, Prime Minister Shehbaz Sharif also announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.

Previously, on July 17, 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.

Prior to this, 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.

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 high-speed diesel (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.

The two nations announced an initial understanding in February that would see Washington reduce tariffs to 18 per cent and India cut duties on a range of industrial and agricultural products.

Several rounds of talks have since taken place but have been complicated by Washington launching a probe into unfair trade practices against multiple countries, including India.

“The agreement’s negotiations are still ongoing, although we’d like to believe that both the sides have reached a plateau, beyond which giving or taking might be very, very difficult,” Sitharaman said.

But Sitharaman, responding to a question on concessions at the Munich Security Conference in New Delhi, added that there is “room to operate from; both sides would do it”.

The remarks echoed sentiment expressed by US Trade Representative Jamieson Greer last week, who said he didn’t believe an announcement was “imminent”, but that both sides had identified the “universe of items that are sticking points”.

Indian Prime Minister Narendra Modi spoke to US President Donald Trump last week in a telephone call discussing “cooperation in trade, defence, energy, critical technologies and other areas”, according to a statement from the premier’s office.

Can Karachi’s business community take a cue from relatively smaller Sialkot and mobilise its own resources to bridge infrastructure and service gaps to improve the business environment?

Sialkot’s business community has distinguished itself by collectively financing major capital-intensive infrastructure initiatives. Most city leaders, however, see little prospect of Karachi replicating this model, citing deep trust deficits, weak unity, and the sheer scale of the city’s infrastructure deficiencies. Other constraints include the national rather than local focus of Karachi’s large conglomerates, their preference for separate representative platforms, and what some describe as the short-term, narrow focus of the dominant group within the KCCI.

Last week KCCI elections for the 30-member managing committee and four-member leadership body were decisively won by the Businessmen’s Group (BMG). Its older rival, the Businessmen’s Association (BMA), contested only 26 managing committee seats, according to information gathered.

Can Karachi’s business community take a cue from relatively smaller Sialkot and mobilise its own resources?

BMA virtually monopolised KCCI until 2000 under leaders including Tariq Saeed, Latif Ebrahim Jamal, Basheer Janmohammad, Rauf Tarmuhammad, Mian Rafi, Riaz Tata and Haji Razzak Janoo. BMG emerged in 2000, led by figures such as SM Munir, Siraj Teli, Zubair Motiwala, Majyd Aziz and Haroon Farooki.

Interestingly, most KCCI members and leaders contacted were unable to identify any clear differences between BMG and BMA in terms of agenda, platform or policy priorities.

As of June 30, KCCI reportedly had 26,500 members — companies with annual turnover of at least Rs50 million alongside associate members including partnerships, trade bodies and market associations. If indirect members are included, representation reaches 75-80,000 city businesses.

About 16,000 members were eligible to vote this year, comprising 52 per cent corporate and 48pc associate members. An unwritten KCCI convention reportedly divides the 30 managing committee seats equally among three dominant linguistic communities: Gujarati-speaking Memons, Urdu-speaking Muhajirs, and Punjabis. While some independents contest, chamber politics is largely dominated by the two main groups.

According to insiders, KCCI top offices traditionally rotated among three linguistic communities, each free to nominate its candidate when its turn came. They contend that this autonomy has since eroded, alienating many members and pushing some to the sidelines.

Most city leaders see little prospect of Karachi replicating this model, citing deep trust deficits, weak unity, and the sheer scale of the city’s infrastructure deficiencies

“The Memon community currently dominates KCCI and its politics, with some leaders using the platform for self-promotion and advancing the textile lobby’s narrow interests while other sectors are ignored. As a result, problems facing traders and entrepreneurs keep mounting, forcing members to seek individual solutions in the absence of effective collective action,” a disgruntled chamber leader said.

Haroon Farooki, a prominent leader, urged the new KCCI’s leadership to make the chamber more inclusive and pursue a collective agenda focused on removing bureaucratic hurdles and accelerating implementation of business-friendly policies.

Majyd Aziz, president of the Employers Federation of Pakistan, attributed Sialkot’s success to cohesion, self-reliance and its export orientation. Unlike diverse Karachi, he said, Sialkot’s business community is more unified and, being distant from ports, developed its own infrastructure — including a dry port, airport, airline, think tank and training institutions — rather than waiting for government approvals and funding.

The chamber also exercises greater influence over export associations, unlike Karachi, where multiple competing business leaders dilute collective action. Sialkot has developed an export-oriented industrial base spanning at least 10 sectors, with thousands of units exporting most of their output. Mr Aziz credited its entrepreneurs with innovation, business acumen and strong social responsibility. He believes greater integration between Sialkot, Gujrat and Gujranwala could create a powerful export triangle for Pakistan.

Ehsan Malik, former CEO of the Pakistan Business Council, declined to comment on KCCI’s elections and the body’s composition, focusing instead on why Sialkot’s businesses have collectively invested in their city while Karachi’s have not.

Despite its smaller size, Sialkot’s business community financed a dry port, roads, an international airport and eventually AirSial, with exporters voluntarily contributing 0.25pc of export proceeds to city development.

Mr Malik identified five structural differences. Sialkot’s business community is smaller, geographically concentrated and interconnected, making collective action easier. Its predominantly export-oriented industries also share common needs in logistics, customs, certification and infrastructure, making returns on joint investment clearer.

Business owners are locally embedded, unlike Karachi’s mix of multinationals, banks and large professionally managed corporations with broader interests. Karachi also faces a much greater free-rider problem: businesses question why they should finance infrastructure while already contributing heavily in taxes.

Most importantly, Karachi’s fragmented governance—divided among provincial, municipal, cantonment, port, utility and federal authorities—makes coordinated intervention difficult.

“Karachi’s weakness is not a shortage of business talent, wealth or institutions; it is a collective-action problem,” Mr Malik said. Sialkot, he argued, has less corporate power but greater social capital and alignment of interests.

Defending BMG, Shariq Vohra described it as diverse and inclusive, citing 28 years of community service and uninterrupted electoral success. Memons dominate its leadership because of their numerical strength and community support, he said, but BMG has never excluded other communities.

Mr Vohra said KCCI largely represents traders and smaller industrialists, while conglomerates prefer sectoral associations or the Pakistan Business Council. Karachi’s business community itself is highly diverse, with different communities prominent across textiles, commodities, construction, finance, pharmaceuticals, transport and trade.

He attributed the low election turnout partly to KCCI’s focus on federal macroeconomic and tax issues, while smaller businesses are more concerned with provincial and civic problems such as roads, water, sewerage and law and order. He acknowledged Sialkot Chamber as an exceptional model of collective responsibility and project execution.

A senior business leader pointed to a deepening rift between Karachi’s corporate community and the PPP, which has governed Sindh since 2008. “The corporate sector largely holds the PPP responsible for the decline of a city that remained far ahead of its peers until the 1980s. But the record of other political parties has hardly inspired confidence either. Many business leaders have consequently lost faith in political rhetoric and lofty democratic ideals. What they want is a shake-up that delivers better governance and restores the city,” he said, requesting anonymity.

The writer is a former Dawn staffer

Published in Dawn, The Business and Finance Weekly, October 5th, 2026

Pakistan’s electricity is expensive not because the grid is poorly run, though it often is, but because the country built a power system for an economy that never arrived, financed it on contracts that force everyone to pay whether or not they use the power, and has spent thirty years pushing the cost forward instead of confronting it.

Pull out your last bill and look at the total. If your household uses around 400 units a month, you are paying close to Rs16,000. Less than half of that is for the electricity you use. The rest pays for idle power plants, debt built up because someone upstream did not pay their share, and charges added over the years to plug holes the system kept opening.

Start with the number that explains everything else. Pakistan has 46,600 megawatts of installed capacity, and according to the National Electric Power Regulatory Authority’s own data, it used only about a third of that in FY24. Two out of every three megawatts the country built simply sat there. Peak demand rarely goes past 35,000 MW, so every month we pay for power nobody needs. Capacity grew 64 per cent between 2013 and 2024 because planners and investors bet on a manufacturing boom and a fast-growing middle class that never fully showed up.

The reason this keeps getting worse instead of fading away is buried in the contracts themselves. Power producers are paid two ways: a fixed amount just for existing, and a separate amount for whatever they generate. That made sense in the 1990s, when the state had no money to build plants and investors needed a guarantee before risking their own. What nobody accounted for was a rupee that would lose more than 60pc of its value while these obligations stayed tied to the dollar. In FY24 alone, consumers paid Rs46 billion to two plants that produced no power at all. At Rousch Power, the fixed payment alone came to over seven hundred rupees a unit, roughly eighteen times what electricity itself was worth.

Peak demand rarely goes past 35,000 MW when installed capacity is 46,600 MW, so every month we pay for power nobody needs

Then there is a problem that grew almost by accident. Rooftop solar went from about 500 megawatts in 2022 to over five gigawatts by early 2025, as households watched their tariffs climb 155pc in three years and finally had enough. Pakistan imported more solar panels last year than any other country in the world.

For any one household, that choice makes complete sense. But the fixed bills on the grid do not shrink just because fewer people are paying them. The same cost spread over a smaller group, prices rise for whoever is left, and more people leave. The government itself estimates this shifted close to Rs159bn onto grid-connected households in a single year, the very people who could not afford solar panels to begin with. A system meant to serve the public is quietly taxing the poor to fund an exit only the well-off can take.

Industry has felt this hardest. Pakistani factories pay between 13 and 15 cents per unit, roughly double what factories in India, Bangladesh, or Vietnam pay. All Pakistan Textile Mills Association says over 140 mills have shut down nationally, most of them in Punjab. Industrial electricity use dropped from 34bn units in FY22 to 28bn in FY24. Factories did not get more efficient. They got smaller, or they closed.

Credit where it is due, the reforms since late 2023 are the most serious this sector has seen in years. Six ageing, expensive plants had their contracts terminated, and 14 more were renegotiated. Circular debt fell by Rs780bn in one year. But talk to the people paying the bills and a different picture emerges.

The Federation of Pakistan Chambers of Commerce and Industry says no industrial consumer has ever received the promised rate of Rs22.98 a unit; bills are still landing at Rs34 or Rs35. The plants that got renegotiated were the oldest and weakest, because those were the only ones anyone could touch. Nuclear and hydro plants still absorb 44pc of all capacity payments, and China-Pakistan Economic Corridor-era coal plants take another 19pc, both protected by guarantees nobody can renegotiate around.

This is the trap Pakistan cannot seem to break out of. Industry needs cheaper power to recover. Power gets cheaper only once the capacity crisis is solved. Solving it needs either far more demand or a much smaller contracted fleet. And demand only grows once industry has already recovered. No single actor can fix this alone, and every reform so far has worked at the edge of the problem, not at its centre.

What would move the needle is not a mystery. Sell off the distribution companies so someone has a real reason to stop the losses. Convert the remaining fixed payment contracts into ones that pay only for power used. Retire the stranded plants for good instead of leaving them on the books. Build new renewable capacity on contracts investors can trust will not be torn up the moment politics shifts.

Until then, the consumer keeps paying the gap every month, on a bill they were never given the tools to understand, for power they did not use, to cover promises they never made. The least the state can offer in return is an honest explanation of how that bill got built in the first place.

The writer is a research assistant at the IBA School of Business Studies and a CFA Level I passed candidate.

Published in Dawn, The Business and Finance Weekly, October 5th, 2026

WeChat is the obvious example. It began with messaging and expanded into an ecosystem of payments, commerce and services. However, WeChat succeeded because the Chinese government banned WhatsApp and other messaging services.

Should Pakistan simply order a WeChat of its own? Our digital lives remain fragmented between messaging applications. WhatsApp is the top-ranked messaging platform by far. Among bank accounts and wallets, Easypaisa and JazzCash both claim 100 million cumulative downloads; among shopping platforms, Daraz is the local e-commerce leader. The government-related services portal, Pak ID, leads the way among government apps.

Pakistan has tried the super app route before. In 2017, Veon launched its application with Jazz, combining communications, content, offers and eventually financial services. Profit reported at the time that spending on the initiative had exceeded $100 million. Despite Jazz’s customer base and Veon’s financial resources, the application failed to become Pakistan’s WeChat and was eventually withdrawn.

Government-owned, it could integrate public services and keep sensitive national information within Pakistan’s jurisdiction

The lesson is important. Money and distribution alone do not create a super app. A telecom company can offer free data and spend heavily on acquisition, but it cannot easily persuade families, friends and businesses to abandon a messaging platform they already use every day. A super app first needs a compelling reason for daily engagement. Everything else follows. There is also a broader national issue.

Much of Pakistan’s digital communication, commerce and even official business passes through foreign platforms. Governments face risks when sensitive official communication and public records sit beyond their effective control. Where is the information stored? Who can access it? How is it preserved? What happens if a foreign platform changes its policies or becomes unavailable?

Some governments have responded by restricting the use of consumer messaging applications for official communication. France has directed ministers and staff towards approved secure systems rather than applications such as WhatsApp. Britain has issued guidance around the use of non-corporate communication channels for government business.

Pakistan should distinguish between consumer choice and official communication. There may be little logic in trying to force citizens away from WhatsApp. However, government communications, sensitive records and critical public data deserve stronger safeguards.

Pakistan already possesses many of the building blocks required for a broader digital ecosystem.

Nadra provides identity infrastructure, biometric verification and digital identity services. Its Nishan Pakistan platform allows regulated organisations to use services including fingerprint and facial verification, demographic verification and proof of life. These capabilities can help citizens establish identity without requiring Nadra itself to operate their banking, shopping or messaging applications.

The Pakistan Digital Authority, established under the Digital Nation Pakistan Act 2025, has a different role. It is responsible for the National Digital Masterplan, data governance standards, digital public infrastructure and coordination across government. A national data exchange layer could eventually allow government institutions to exchange information securely.

Raast provides another critical component: the instant payment rail.

Put these pieces together and Pakistan already has the foundations of a digital ecosystem: identity through Nadra, payments through Raast, government services through digital public infrastructure and financial services through banks and fintechs. The additional benefit of a super app is that, given the depth of individual data available, a personal credit score can be built quite easily. Based on the data available on WeChat, Chinese financial institutions can provide a credit limit of upto 200,000 yuan on the spot. Instant credit online or offline.

It is not rocket science to assume that a super app would be a game changer for Pakistan. Other than the convenience of a single app providing messaging, social media, payments, government services and keeping key data within Pakistan, the benefit of getting a behavioural credit score would materially change financial inclusion. But how realistic is this ambition? Why would this effort succeed while Veon’s $100 million play did not? How to convince existing customers to leave messaging services like WhatsApp , which now seems to be deeply embedded in our DNA?

Let us first address ownership.

A government-owned super app could integrate public services and keep sensitive national information within Pakistan’s jurisdiction. But concentrating identity, financial transactions, communications and government services in one application creates both trust and surveillance concerns.

A privately owned super app creates a different risk. One company controlling messaging, payments, commerce, lending and access to government services would accumulate enormous economic power and personal data. Pakistan could simply replace dependence on a foreign platform with dependence on a domestic one. The better model is therefore public-private.

The government should build and govern the rails: digital identity, payments, public-service APIs, and data-sharing standards. Private companies should compete to build applications and customer experiences on top of them. Neither government nor one private company should control the entire ecosystem.

The safeguards must also be clear. Collect data only when necessary. Customers should explicitly consent to sharing. Transactions should have audit trails. Identity verification should confirm identity without unnecessarily exposing an individual’s full personal record.

Pakistan does not need to spend billions trying to manufacture another WhatsApp. The Veon experience demonstrates how difficult it is to buy network effects. What Pakistan can build is something more useful: national digital rails it controls, official communications it can secure, and an open ecosystem in which multiple private companies compete to serve consumers.

If one of those companies eventually creates Pakistan’s super app, consumers will decide whether it is worth switching or not.

The writer is the chairman of the Pakistan Fintech Network

Published in Dawn, The Business and Finance Weekly, October 5th, 2026

Pakistan’s “nuclear electricity production has increased from 21.7TWh net in 2024 to a new all-time high of 22.5TWh in 2025,” says the World Nuclear Industry Status Report (WNISR) 2026, based on data for the period ending July 2026.

“For the first time, solar power generation exceeded nuclear output — and by far — with 36.3 TWh,” the report said, describing the figure as highly underestimated.

The WNISR 2026 is financed by the German Federal Office for the Safety of Nuclear Waste Management, the Austrian Federal Ministry for Agriculture and Forestry, Climate and Environmental Protection, Regions and Water Management, the Greens/EFA Group in the European Parliament and the Swiss Energy Foundation.

Solar generation reaches 36.3 TWh, surpassing nuclear production for first time

The report noted that the US leads the world, with 94 operating reactors and a nuclear generation capacity of 96,952 megawatts (MW), followed by France with 63,000MW from 57 reactors and China with 61,521MW from 63 reactors.

Despite being the pioneer in connecting nuclear power to the grid in 1954, Russia ranks fourth, with 27,969MW from 34 reactors, up from 26,800MW in 2023. Pakistan operates six nuclear reactors with a combined operating capacity of 3,262MW. All six operating reactors were built by the China National Nuclear Corporation (CNNC), including the two Hualong One reactors, Kanupp-2 (K-2) and Kanupp-3 (K-3), outside Karachi, and four 300MW Chashma nuclear reactors.

The WNISR, citing the Pakistan Economic Survey 2025-26, said the country’s share of debt repayment was notable in the total cost of electricity generation from nuclear energy. The debt is mainly associated with the newly constructed K-2 and K-3 reactors, commissioned in 2022 and 2023, respectively.

According to the survey, the 12-year debt repayment period “is only 20 per cent” of the reactors’ estimated economic lifetime of 60 years.

The Kanupp site also houses a 90MW CANDU (K-1) reactor, which was closed in 2021 after 50 years of operation.

The Chashma Nuclear Power Gener­ating Station (CNPGS) comprises four operating reactors, C-1 to C-4, with a total capacity of 1,230MW. CNNC is also building another 1,000MW Hualong One reactor at the Chashma site, known as C-5.

The agreement to build the reactor dates back to 2017, but it took more than seven years to progress to formal construction. The first concrete pour for the base slab of the reactor building took place on Dec 30, 2024. C-5 is expected to be completed by 2030 and is China’s only ongoing nuclear new-build project abroad.

Solar revolution

The report said Pakistan’s solar revolution apparently did not reflect the full deployment of solar technology in the country. A mysterious decline in power consumption despite economic growth was later explained by import statistics: private, unregistered photovoltaic installations had enabled considerable self-consumption that did not pass through the public grid.

Between the beginning of 2017 and mid-2026, Pakistan imported a cumulative total of more than 58GW of solar panels from China. Of this, 40GW, or 69pc, was imported during the two and a half years from 2024 to mid-2026. Pakistan has consequently become the second-largest single-country import market behind the Netherlands, which acts as a hub for Europe.

“Pakistan installed in five years about twice as much solar capacity as France did in a decade,” the report said.

In 2025, Pakistan was China’s top customer for solar panels. By summer 2025, solar had become Pakistan’s single largest source of electricity.

Published in Dawn, October 5th, 2026

The department has also accelerated efforts to make all faulty (dummy) wagons fit for operation while taking action against the vendors who failed to supply parts on time.

“It is the vision of the prime minister as well as mine to make all-out efforts to maintain the railway infrastructure for safe train operation. This is why I have assigned the officers concerned the task to accomplish the target of making all dummy coaches and wagons fit for operation,” Minister for Railways Hanif Abbasi explained while talking to Dawn.

“I have also asked the officers to replace the faulty brake cylinders, blocks and shoes with new ones,” he added.

According to the minister, the outsourcing of trains and luggage vans is also underway and 13 express passenger trains would be outsourced till Dec 31. For this, the process, including the advertisement and award of the contract, would be completed soon.

“At present, the commercial operation of six trains is being carried out by the private parties,” Mr Abbasi said, adding that the trains to be outsourced by December included Sandal, Allama Iqbal Express, Faiz Ahmad Faiz, Fareed Express, Sukkur Express, Babu Passenger, Bulleh Shah Passenger, Mohenjodaro Express, Lasani Express, Sialkot Express, Karachi Express, Bahauddin Zakariya Express and Tezgam.

To a question, he said the railway bridge affected by the recent floods on Lahore-Faisalabad track would be rehabilitated within the next two months, helping railways to restore the rail traffic. For the first time, according to him, the freight revenue exceeded the passenger revenue in the railways.

“I think, the railways would be able to earn revenue of Rs120bn from the passenger and freight train operations alone by the end of the ongoing fiscal year on June 30,” he hoped.

Meanwhile, the minister presided over a meeting at the railway headquarters and directed the authorities to blacklist private vendors responsible for delays in the supply of equipment and materials. During the meeting, matters pertaining to railway operations, revenue generation, maintenance, security and outsourcing came under discussion.

Mr Abbasi directed the authorities to install modern CCTV cameras and deploy private security personnel at all railway workshops and yards to prevent theft. He said collective efforts were required to achieve the revenue targets set for the current financial year, adding that locomotives undergoing repairs should be restored to service according to the prescribed schedule.

The minister ordered legal action against negligent officials. The meeting was also told by the officers concerned that advance planning was essential for ensuring transparency and improving the railway system. He further directed that the ongoing track renewal work in Sukkur division should be completed by Dec 31 as it would save operational time by around one-and-a-half hours. He also ordered that the flood-damaged Mian Kallar Bridge be completed within 60 days and repair of employees’ residential quarters in Lahore within two months.

Published in Dawn, October 4th, 2026

The approval allows a written reference under Section 41B of the SECP Act, 1997, enabling the FIA to initiate formal proceedings over alleged unauthorised transfers and pledging of clients’ shares.

The SECP said the names of Sikandar Esmail Ahmed, director and CEO; Shakeela Sikandar, director; and Arshad Iqbal, advocate and liquidator, had been forwarded to the FIA as accused in the matter.

The SECP initiated an inquiry in March 2010 following complaints about unauthorised dealings in clients’ securities. The inquiry, completed in October 2013, found that clients’ shares had been transferred and pledged without consent to obtain financing and meet exposure margins.

It said the funds were used to benefit selected clients at the expense of others. A total of 176.2 million shares, including clients’ holdings, were pledged between July 2007 and March 2010.

Banks and the stock exchange subsequently exercised pledge calls, resulting in the sale of pledged shares following default.

The inquiry report also recorded that the brokerage’s directors and liquidator failed to provide the required records, leaving the committee to rely on information obtained from the Central Depository Company, Pakistan Stock Exchange and banks.

Published in Dawn, October 4th, 2026

The committee directed to accelerate the pace of ongoing development projects and to ensure that practical steps are taken for new projects.

The meeting was held for the second consecutive day and presided over by Deputy Commissioner retired Captain Nadeem Nasir and Federal Parliamentary Secretary Daniyal Chaudhry.

A briefing was given on 145 projects in Rawalpindi district under the Annual Development Programme 2026-27. The total cost of these projects stands at Rs312.576 billion, comprising 140 ongoing and five new projects.

The meeting was informed that a total of 297 development projects were being undertaken in the encompassing various development programmes, projects funded by own-source revenue, Sustainable Development Goals Achievement Programme (SAP-VIII) and beautification initiatives with a combined cost of Rs323.835 billion.

Officials directed to accelerate pace of work and ensure practical steps for new schemes

Projects related to roads, health, education, clean drinking water, drainage, sports, urban amenities, and other sectors were reviewed.

The deputy commissioner said the timely and high-quality completion of development projects was a top priority.

He directed all relevant departments to ensure projects are completed within the stipulated timeframes and emphasised that there must be no compromise on quality in development works.

He directed officials to regularly monitor ongoing projects in the field, ensure the effective and transparent use of funds and immediately remove any obstacles hindering the pace of work.

Progress on all projects will be reviewed regularly and relevant officials must ensure adherence to clear timelines for their completion.

The federal parliamentary secretary said coordinated measures would be taken at the district level to ensure the timely completion of development projects in Rawalpindi. He stressed the need to complete public welfare projects on a priority basis.

He urged relevant departments to work in close coordination to ensure transparency, quality and speed in the execution of these projects.

He added that funds allocated for development projects should be utilised effectively in accordance with the set objectives, and unnecessary delays in completing projects of public importance must be avoided.

The meeting was attended by Additional Deputy Commissioner (Social Services) Fazail Mudassir, Members of Provincial Assembly Malik Iftikhar Ahmed and Malik Mansoor and officers from relevant departments.

Published in Dawn, October 4th, 2026

The update came a day after G7 countries, in coordination with the IEA, agreed to immediately release 100 million barrels of diesel and crude oil to ease global energy supply concerns caused by fallout from the US-Iran war.

The G7 did not say whether the 100 million barrels included the outstanding 75 million barrels from the March IEA commitment, or came on top of that.

The US government of President Donald Trump has been pressuring allies to release diesel reserves to ease a spike in prices for the fuel, being felt in America and elsewhere.

Trump says US will soon fill its strategic oil stockpile ‘for nothing’

Restricted diesel supplies are one of the consequences of the war in the Middle East, where Iran has been throttling ship traffic through the Strait of Hormuz in retaliation for US and Israeli attacks.

Ukrainian strikes on Russian refineries, part of the fightback against Moscow’s strikes, have also affected the market.

March pledge

The IEA said in a statement on Saturday that “around 325 million barrels of the IEA collective action announced on March 11 have so far been released, representing over 80 per cent of the 400 million barrels originally pledged in the action”.

The March pledge was offered up by the IEA’s 32 member countries, a grouping that includes all the G7 nations: Britain, Canada, Germany, Italy, Japan and the US.

The G7 countries on Friday agreed to release over the next four months 100 million barrels of oil and oil-derivative products, “including a frontloaded substantial diesel release within the first 20 days”.

They also said there would be no ban on diesel exports between them — heading off a threat Washington had brandished, and which Trump later said would not be enacted.

In a related development, President Trump said on Friday that the US would soon fill its strategic petroleum reserves.

“We’re going to be filling up very shortly our strategic reserves, for nothing,” Trump said at a rally in Mobile, Alabama. He offered no additional details.

Published in Dawn, October 4th, 2026

Data released by the Pakistan Cotton Ginners Association (PCGA) showed total arrivals reaching 3.208 million bales as of Sept 30, reflecting a slim 5.39 per cent increase from the same period last year. The marginal gain marks a dramatic downturn from just a month ago, when favourable weather had pushed output 27pc ahead of last year’s pace and raised hopes for a 10 to 15pc overall harvest increase.

According to Cotton Ginners Forum Chairman Ihsanul Haq, unusually high temperatures in recent weeks caused cotton bolls to open prematurely. This initially suggested higher yields per acre, but production later plummeted.

During the Sept 16-30 fortnight, arrival figures fell short of expectations, reaching 820,000 bales compared to projected estimates of 1.1m bales.

Regionally, Punjab received 1.214m bales (up 6.91pc) while Sindh recorded 1.993m bales (up 4.48pc).

Sajid Mahmood of the Central Cotton Research Institute warns that the output dip, compounded by emerging threats of pink bollworm infestation and rising lint contamination complaints, could push domestic raw cotton prices higher and boost reliance on imports.

However, the sector expects a reduction in undocumented trading — which previously accounted for 1.5 to 2m bales annually — due to strict digital invoicing enforcement by the FBR.

The domestic deceleration mirrors broader global trends, with the International Cotton Advisory Committee (ICAC) trimming its global production forecast for the 2026-27 crop year to 25.94 million tonnes, down 3.8pc from 26.98mt in 2025-26.

Meanwhile, a major discrepancy persists between provincial reporting bodies, says Mr Haq. PCGA estimates Punjab’s output at 1.215m bales, whereas the Punjab Crop Reporting Service reports 2.492m bales — a variance of nearly 100pc.

Published in Dawn, October 4th, 2026

However, in 9M2026, urea sales inched up by a meagre 5pc to 4.4m tonnes.

The MoM decline is primarily attributable to seasonal factors. Meanwhile, the YoY increase is largely due to a low base effect, supported by improved crop activity, which has boosted urea demand, Myesha Sohail of Topline Securities said.

Industry urea inventory fell to a 9-month low, at 0.65m tonnes in September, down from 0.75m tonnes in August.

Company-wise, Engro Fertilisers holds the highest inventory at 519,000 tonnes, followed by Fauji Fertiliser Company (FFC) at 88,000 tonnes and Fatima Group at 29,000 tonnes.

She said total DAP sales plunged 39pc year-on-year and 50pc month-on-month to 59,000 in September, taking 9M2026 sales to 756,000 tonnes, down 5pc YoY.

DAP closing inventory was around 259,000 tonnes in September.

Going forward, she said urea sales were likely to grow modestly amid improved crop prices.

Published in Dawn, October 4th, 2026

After a brief decline due to the government abolishing the Pers­onal Baggage Scheme and applying restrictions to control misuse of used car schemes for overseas Pakistanis, imports of used cars have started surging again.

In the month of September, a total of 2,276 vehicles were imported under the Gift Scheme as the strict restrictions under the Baggage Scheme continue, according to data from the Commerce Ministry.

The figures show that in May, only 48 used cars were imported mainly through the baggage scheme. However, the situation started to change from June onwards.

In June, a total of 843 vehicles were imported, including 806 under the Gift Scheme. The figure reached 1,938 in July, with 1,876 cars under the Gift Scheme.

August saw a total of 1,445 vehicle imports, while 2,276 vehicles were imported in September, with 2,238 under the Gift Scheme.

A senior executive of the auto industry noted that the reduction in duties on completely built units (CBUs) by 20-25 per cent in the 2026-27 budget has reduced the import cost.

“We have reports that a one-year restriction on transfer of ownership is not being implemented in some cities, due to which this business is flourishing again, but at the cost of the domestic auto industry which consists of 13 assemblers and over 300 auto parts manufacturers,” the executive added.

Auto parts vendors expressed their concerns too, claiming that auto production had finally begun to show an increase after a gap of three years, which was also contributing to Pakistan’s growth in the large-scale manufacturing (LSM) sector.

“Locally produced cars contain up to 60pc local parts by value, amounting to an average of Rs1.5 million per vehicle, and import of 2,276 used vehicles meant loss of Rs3.4 billion of local parts production which creates jobs and operates in the documented economy,” said Abdul Rehman Aizaz, chairman of Pakistan Asso­ciation of Automotive Parts and Ac­­cessories Manufacturers (Paa­pam).

He termed it unfair that, on the one hand, the proposed auto policy was slashing import duties on new cars, while on the other hand, imports of used cars were being encouraged.

“Ultimately, Pakistan is moving towards a market dominated by imported new and used vehicles with no industrial activity,” the Paapam chairman said, terming the business of used cars completely unregulated.

Competition in auto sector

On the contrary, importers claim that Pakistan needs to have a competitive economy and that importing used cars was completely legal if done as per the government regulations.

“Currently, all imported vehicles are subjected to pre-shipment inspections by the accredited companies based in Japan as most of the used cars are imported from that country,” said Mian Shaoib Ahmed, chairman of All Pakistan Car Dealers & Importers Association.

Ahmed, also a member of the Federation of Pakistan Chambers of Commerce & Industry’s (FPCCI) executive committee, stressed there was a demand for used cars in Pakistan.

He contended that new Chinese entrants have yet to make their mark in Pakistani markets, while Japanese car assemblers in the country were not yet ready for the competitive environment.

The FPCCI member lauded the government for recent changes in the vehicle import regime and added that used car imports under the Gift Scheme and commercial imports will continue to rise in the coming months.

Ahmed referred to a notification by the Engineering Development Board (EDB), dated Sep 30, which would relax the criteria for imports of used vehicles.

The changes in the recent EDB notification against the earlier notification included the removal of a clause for the minimum capital requirement of a company importing used cars, and now, any tax-registered individual or firm not even registered with the Securities and Exchange Commission of Pakistan (SECP) can import vehicles.

The pre- and post-shipment inspection will be conducted through the Pakistan Standards and Quality Control Authority (PSQCA) instead of the EDB.

However, the PSQCA chief executive officer said that inspection was not done directly under or by the authority, but through its registered inspection agencies.

Currently, only two local inspection agents have been registered with the PSQCA; they are the representatives of firms accredited with the Japanese Foreign Principals Inspection Agencies.

The short-term inflation, measured by the Sensitive Price Index (SPI), rose by 0.21pc on a week-on-week basis, reflecting fluctuations in food and non-food prices.

Unwilling to reduce petroleum development levy, the government is steadily increasing petrol and diesel prices on a daily basis. The rising energy prices were also indirectly contributing to higher sales tax collection.

The items whose prices increased the most over the previous week included chicken (7.25pc), garlic (1.85pc), pulse gram (1.30pc), LPG (1.17pc), eggs (0.72pc), rice IRRI-6/9 (0.55pc), onions (0.39pc), washing soap (0.33pc), wheat flour (0.29pc), long cloth and lawn printed (0.19pc) each.

The items whose prices saw a decline week-on-week included diesel (3.43pc), bananas (1.52pc), sugar (1.05pc), potatoes (0.96pc), petrol (0.65pc), pulse moong (0.63pc), tomatoes (0.51pc), pulse masoor (0.42pc), gur (0.12pc) and powdered milk (0.10pc).

However, on an annual basis, the items whose prices increased the most included onions (114.20pc), LPG (66.59pc), electricity for Q1 (58.59pc), diesel (44.50pc), petrol (44.05pc), wheat flour (32.65pc), chilli powder (15.55pc), mutton (15.07pc), chicken (13.60pc), beef (12.90pc), bread plain (8.96pc) and milk fresh (8.10pc).

In contrast, the prices of tomatoes dropped 45.52pc, followed by potatoes (39.54pc), sugar (21.95pc), eggs (17.47pc), salt powder (14.81pc), pulse masoor (10.92pc), pulse gram (9.90pc) and pulse moong (8.20pc).

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.

Published in Dawn, October 3rd, 2026

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday ordered the modernisation of the country’s regulatory authorities as part of efforts to reduce bureaucratic hurdles and create a more transparent and business-friendly environment to attract domestic and foreign investment.

Presiding over a high-level meeting to review ongoing economic reforms, the prime minister dir­e­cted officials to establish a comprehensive regulatory registry to consolidate all existing requirements, rules and regulations under a single framework.

At the meeting, officials said the Cabinet Comm­i­ttee on Regulatory Refo­rms okayed 557 reforms across seven multi-sector areas with expected Rs460 billion savings ann­ually.

The prime minister also called for nationwide implementation of the Easy Business Act to harmonise regulatory systems across provinces and ensure uniform facilities for businesses.

He ordered that regulatory reforms undertaken by the Special Investment Facilitation Council (SIFC) be effectively publicised so the business community is aware of available facilities and can benefit from them.

He directed an SIFC delegation led by Haroon Akhtar Khan, adviser to the PM on industries, to visit all provinces and take provincial governments into confidence on the reform process to promote business facilitation.

The PM instructed the SIFC and Punjab chief secretary to complete the integration of the eBiz Punjab system with Islamabad business facilitation centre by March 2027.

Published in Dawn, October 3rd, 2026

In absolute terms, export proceeds stood at $8.43 billion in July-September, up from $7.59bn in the corresponding period last year.

Officials noted that the impact of budgetary measures on the export sector may become more apparent in the months ahead. Export proceeds grew despite Prime Minister Shehbaz Sharif’s clear displeasure with exporters’ performance.

In September, exports rose by 17.61pc to $2.94bn, from $2.49bn in the same month last year, suggesting a revival of the export sector.

Trade gap widens 15.13pc to $10.79bn in July-Sept

On a month-on-month basis, export proceeds rose 16.07pc.

In FY26, Pakistan’s merchandise exports not only missed the annual target by $4.87bn, but also contracted, reflecting the PML-N-led coalition government’s failure to achieve visible improvement over the last four years. Export proceeds also contracted by 5.97pc to $32.04bn.

The planning ministry had earlier projected that export proceeds would climb to $60bn by 2030 — a target that has largely remained confined to official documents. More recently, however, the same ministry revised the projection upward, setting a new target of $100bn by 2035.

Jawed Bilwani, Coordinator of the All Pakistan Exporters Association Forum, said exporters were struggling for survival amid unprecedented challenges, including high manufacturing costs, lack of competitiveness, and the absence of a level playing field.

He highlighted that Pakistani exporters operate on narrow profit margins compared to regional competitors, face higher taxes than other businesses, and endure prolonged delays in refund payments without compensation. He added that arbitrary FBR deductions, liquidity pressures, and high operational costs were crippling the sector.

The export sector had already been under pressure since February due to the Middle East conflict. The disruptions in the Strait of Hormuz have pushed up shipping costs for exporters and disrupted supply chains. Similarly, exports to Afghanistan have been suspended since October 2025, which is also one of the major export markets.

Trade deficit

According to PBS data, imports rose 13.21pc to $19.22bn in 1QFY27 from $16.97bn in the corresponding quarter last year.

In September, import value rose 11.05pc to $6.49bn from $5.84bn in the corresponding month last year. Month-on-month, imports increased 11.05pc.

In FY26, the import bill grew by 7.89pc to $69.59bn against $64.51bn in FY25.

The trade deficit rose 15.13pc to $10.79bn in 1QFY27 from $9.37bn over the corresponding quarter last year. In September, the trade deficit rose 6.15pc to $3.55bn from $3.35bn in the corresponding month last year.

Published in Dawn, October 3rd, 2026

KARACHI: Bears tightened their grip on the stock market on Friday as sluggishness amid geopolitical and economic challenges left equity investors on edge, prompting some to offload positions and pushing the benchmark KSE-100 index below 168,000 intraday. The index settled lower for the second consecutive session.

Topline Securities Ltd said the index traded mostly in negative territory during the session and settled at 168,155 points, down 0.29 per cent. Investor participation remained subdued amid a lack of fresh triggers, elevated crude oil prices, and the ongoing stalemate in US-Iran relations. Market activity stayed muted, with traded volume and value recorded at 492m shares and Rs17.45bn, respectively.

The top negative contributors to the index were Systems Ltd, Meezan Bank, Lucky Cement, National Bank, and Habib Bank, which cumulatively weighed on the index by 269 points.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the benchmark index carried forward yesterday’s fragile momentum but opted to remain on the sidelines due to geopolitical uncertainty.

According to media reports, France has proposed releasing 50 million barrels of diesel from Europe and 50 million barrels of crude oil across IEA members. As a result, international oil prices fell by more than 2pc. However, this did not lure bulls back to the PSX, ultimately leading to a negative close.

On the macro front, the Sensitive Price Index (SPI) for the week ended Oct 1 rose 11.53pc year-on-year and 0.21pc week-on-week. In addition, PBS reported that Pakistan’s trade deficit widened to $3.6bn in September, as exports rose 17.6pc year-on-year to $2.9bn, while imports increased 11pc to $6.5bn.

Analysts expect market sentiment to remain volatile, with selective buying likely if geopolitical tensions continue to ease and oil prices trend lower. However, elevated energy prices, external-sector risks, and the ongoing IMF review will continue to shape market direction.

Published in Dawn, October 3rd, 2026

The government on Friday raised the price of petrol by Rs2.10 per litre and that of high-speed diesel (HSD) by Re0.30 per litre.

Following the revision, petrol will retail at Rs392.76 per litre, while HSD will cost Rs399.64 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division’s notification, the new prices are applicable from Oct 3 (Saturday) to Oct 5 (Monday).

The price of HSD 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.

Meanwhile, the government has reintroduced a raft of austerity measures in response to rising fuel prices amid the ongoing Middle East conflict. Under these measures, markets are required to close by 9pm and fuel allocations for official vehicles has been cut by 50 per cent for three months.

On September 13, Prime Minister Shehbaz Sharif also announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.

Deputy Prime Minister and Foreign Minister Ishaq Dar on Sept 29 appreciated the success of the scheme, saying that it reflected a “whole of government” approach.

Chairing a meeting of the National Steering Committee on Fuel Subsidy to review the implementation of the scheme, the deputy premier noted that the information, IT and petroleum ministries, as well as the Oil and Gas Regulatory Authority (Ogra), the State Bank of Pakistan (SBP) and all provinces, had made “concerted” efforts for the scheme.

It was noted that to date, around 7.60 million registrations have been successfully made, and the token redemption process has entered the second week. Moreover, 7.71m tokens have been redeemed.

Previously, on July 17, 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.

Prior to this, 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.

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 high-speed diesel (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.

The World Bank group launched the 10-year country partnership framework 2025-35 in January last year, with a total blended financing of about $20bn, involving concessionary and commercial lending facilities. It is now pursuing the implementation phase of the agreed reform agenda.

A bank delegation, led by its country director Bolormaa Amgaabazar, had a meeting with Finance Minister Muhammad Aurangzeb on Friday to review progress under the ongoing economic reform partnership, said a statement issued by the Ministry of Finance.

The delegation discussed implementation priorities across growth, jobs, fiscal management, revenue mobilisation, capital-market development, trade and investment, and institutional reforms.

According to the ministry, the meeting reviewed the World Bank’s support for Pakistan’s broader economic reform agenda, with particular emphasis on translating reform priorities into targeted, implementable actions and strengthening coordination among relevant ministries, provincial governments and implementing agencies.

The two sides agreed on moving from reform design to effective implementation, with a focus on practical measures capable of delivering measurable improvements in economic activity, investment, jobs and the overall business environment, the statement said.

The meeting discussed the proposed World Bank growth and jobs operation, including interventions aimed at improving the investment climate, access to finance, sectoral productivity and labour-market outcomes.

During the meeting, the World Bank outlined proposed measures relating to the investment framework, reduction of regulatory and business constraints, access to finance for small and medium enterprises (SMEs), and development of export-finance products for the EXIM Bank of Pakistan to support incremental trade flows, the statement said.

The ministry said that the discussion also covered reforms to strengthen the Prime Minister’s Access to Finance initiative, including a unified insolvency framework, factoring legislation and regulations to support SME financing, as well as measures to expand commercial financing and greater private-sector participation.

On sectoral reforms, the World Bank highlighted proposed interventions in pharmaceuticals and medical products, and agriculture, including improvements in seed registration, deregulation of selected commodities and strengthening of international accreditations to facilitate participation in international procurement and markets.

“The meeting also reviewed initiatives to strengthen skills development and labour-market alignment, including improvements in the national vocational qualifications framework, greater international recognition of skills and development of formal overseas migration pathways supported by digital platforms,” it said.

According to the statement, the finance minister and the World Bank delegation reviewed implementation of the National Tariff Policy and ongoing analytical support for tariff reforms, including work relating to the automotive sector and future tariff reforms.

“The discussion emphasised the importance of supporting competitiveness, productivity, investment, exports and Pakistan’s greater integration into global value chains.”

On fiscal and revenue reforms, the meeting reviewed World Bank technical assistance to strengthen tax-policy capacity, including support for the medium-term revenue strategy and revenue-policy modelling, the statement said. It added that discussions also covered general sales tax harmonisation, including greater alignment of rules, definitions and classifications for services, improved federal-provincial coordination and stronger data-sharing arrangements.

The ministry said that the meeting between two sides also reviewed progress on agricultural income tax reforms, including implementation of amended provincial laws and rules and digital systems for registration, filing and payment.

“The importance of strengthening compliance and federal-provincial data sharing was also discussed.”

It added that the discussion further covered provincial property-tax reforms, including efforts to improve and harmonise property-valuation approaches, strengthen digital systems and progressively move towards more market-based valuation frameworks.

On domestic capital markets, the meeting discussed World Bank’s support for developing a roadmap for capital-market reforms through the Capital Markets Development Council, aimed at deepening domestic capital markets, broadening financing avenues and strengthening the ecosystem for investment and capital formation, the ministry said.

“The meeting also reviewed World Bank support for public-sector efficiency and the government’s rightsizing agenda, including technical assistance to strengthen institutional effectiveness and improve the efficiency of public resources,” it stated.

During the meeting, the finance minister highlighted the importance of strengthening debt-management capacity and domestic bond markets.

“Discussions covered ongoing technical cooperation on financial instruments for managing market risks, domestic bond-market development and strengthening investor-relations capacity.”

Meanwhile, the meeting also discussed the World Bank’s analytical support on Pakistan’s sovereign credit profile and the pathway towards further rating improvements.

Per the statement, the finance minister said the government would work diligently to strengthen both the quantitative and qualitative drivers of sovereign ratings, including fiscal and debt sustainability, external buffers, sustainable growth, institutional effectiveness and continued structural reforms, while deepening engagement with relevant stakeholders to support further improvement in Pakistan’s sovereign credit standing.

The World Bank delegation also briefed the finance minister on analytical work on governance and institutional effectiveness, with discussions focused on practical and measurable reforms to strengthen government effectiveness, regulatory quality, transparency, accountability and the overall business environment.

“Both sides reaffirmed their commitment to continued cooperation under the economic reform partnership, with a shared focus on implementation, institutional strengthening, private-sector-led growth, improved public-resource management, stronger investment and enhanced economic opportunities,” the statement concluded.

ISLAMABAD: The International Monetary Fund (IMF) has appreciated Pakistan’s handling of the oil crisis without supply disruptions or an additional budgetary burden despite regional challenges during six months of the US-Iran conflict, but it asked the authorities to expedite groundwork for managing the rising gas sector circular debt and providing targeted subsidies to consumers below the poverty line.

Informed sources told Dawn that initial discussions on a proposed plan to shift gas-sector subsidies from consumer tariffs to BISP-based direct transfers had concluded that the “gas sector is far from ready given data and ownership-related challenges”.

As a result, the application of a uniform tariff linked to the average prescribed gas price of around Rs1,700 per million British thermal units (mmBtu), worked out by the Oil and Gas Regulatory Authority (Ogra), appeared premature.

The Petroleum Division, led by Minister Ali Pervaiz Malik, has been advocating uniform gas rates, as advised by Ogra, to cover the actual cost of supply, which is around Rs1,700-1,750 per mmBtu for the two gas utilities, reduce cross-subsidies from the industrial sector and curtail gas-sector debt.

The debt has now risen to around Rs3.6 trillion, including principal payables of about Rs1.8tr and an almost equivalent amount in accrued interest and late payment surcharges.

Another Petroleum Division proposal to increase the petroleum levy by a couple of rupees to finance part of the gas-sector circular debt has not found favour at relevant government forums and therefore has not been taken up with the IMF.

The introduction of a protected category for domestic consumers, involving gas prices of Rs200-350 per mmBtu, had widened the pricing gap and resultantly added to circular debt, the division suggested.

Only four of the 12 consumer slabs covered the cost of gas supply during winter, while rates remained below breakeven levels for around eight months of the year even after the imposition of substantial fixed charges.

Sources said discussions with the visiting IMF staff mission showed that documentation of gas-meter ownership and premises remained a serious problem in a large number of cases.

Consumers often avoid reporting changes in names or property ownership for decades to avoid fresh security charges and other formalities, making it difficult to identify households below the poverty line on the basis of meter data.

The problem was even more prono­unced in the commercial sector, where titles often remained unchanged while premises changed hands on “pagri”.

In contrast, documentation in the power sector was considerably more advanced despite its substantially larger consumer base.

Therefore, the IMF staff is not yet convinced by the workability of the groundwork done so far, although the Fund has consistently been insisting on targeted gas subsidies and has advised further deliberations with consultants to develop a more workable mechanism over the longer term.

The Fund also acknowledged Pakistan’s management of petroleum prices without creating an additional burden on the budget or facing product shortages.

Sources said it noted that some other regional countries had faced supply shortages, additional burdens on national budgets or state-owned corporations, or both higher fiscal costs and supply disruptions.

The IMF had initially raised questions over an increase of Rs65-70bn in power-sector circular debt, which stood at Rs1.675tr at the end of June 2026.

However, it recognised that the power sector had actually “overperformed” on efficiency targets, including bill recoveries and loss reduction, while the overall increase in debt was caused by around Rs95bn in lower disbursements by the Ministry of Finance on account of tariff differential subsidy, based on the ministry’s own subsidy calculations.

The Ministry of Finance also endorsed these figures but reported that the budgeted subsidy was higher than the actual requirement calculated on the basis of units supplied.

It was also noted that power-sector circular debt could have declined further had K-Electric paid around Rs200bn on time instead of holding up disbursement through litigation.

It was reported that the high court and appellate tribunal had upheld Nepra’s decision envisaging around Rs200bn in savings to power companies, although KE could still pursue further legal remedies.

The IMF staff was reportedly convinced, at least as far as the comparable numbers were concerned.

The two sides are expected to finalise practical plans during policy-level discussions next week for providing subsidies directly in cash to poor power consumers through the Benazir Income Support Programme, instead of through subsidised tariffs.

Published in Dawn, October 2nd, 2026

The government on Thursday raised the price of petrol by Rs3.26 per litre, but reduced that of high-speed diesel (HSD) by Rs1.01 per litre.

Following the revision, petrol will retail at Rs390.66 per litre, while HSD will cost Rs399.34 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division’s notification, the new prices are applicable for Oct 2 (Friday).

The price of HSD 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.

Meanwhile, the government has reintroduced a raft of austerity measures in response to rising fuel prices amid the ongoing Middle East conflict. Under these measures, markets are required to close by 9pm and fuel allocations for official vehicles has been cut by 50 per cent for three months.

On September 13, Prime Minister Shehbaz Sharif also announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.

Deputy Prime Minister and Foreign Minister Ishaq Dar on Sept 29 appreciated the success of the scheme, saying that it reflected a “whole of government” approach.

Chairing a meeting of the National Steering Committee on Fuel Subsidy to review the implementation of the scheme, the deputy premier noted that the information, IT and petroleum ministries, as well as the Oil and Gas Regulatory Authority (Ogra), the State Bank of Pakistan (SBP) and all provinces, had made “concerted” efforts for the scheme.

It was noted that to date, around 7.60 million registrations have been successfully made, and the token redemption process has entered the second week. Moreover, 7.71m tokens have been redeemed.

Previously, on July 17, 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.

Prior to this, 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.

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 high-speed diesel (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.

Steep nervousness amid elevated oil prices remained the key factor threatening macroeconomic stability, as costly energy imports continued to weigh on the cost of doing business.

Topline Securities Ltd said the KSE-100 index endured a volatile, predominantly negative session, opening higher and briefly moving above the 170,000 level. However, the early momentum failed to hold as profit-taking and broad-based selling intensified in the latter part of the session, resulting in a 1,332.47-point decline, or 0.78 per cent, to close at 168,636.85.

Pakistan Petroleum, United Bank, Hub Power, Oil and Gas Development Company, and Fauji Fertiliser remained the major drags, collectively wiping out around 470 points. Selling pressure was seen across banks, E&Ps, cements, and OMCs, reflecting a cautious trading environment.

Index briefly tops 170,000 before closing at 168,636 on subdued volumes

Market sentiment weakened further as elevated crude oil prices and persistent geopolitical uncertainty prompted investors to adopt a more cautious stance.

Investor participation remained subdued as trading volume fell 7.24pc to 548.4 million shares and turnover value dipped 15.54pc to Rs17.05 billion.

According to Arif Habib Ltd (AHL), market breadth was distinctly negative, with 14 shares rising and 86 falling. Kohinoor Textile Mills (1.02pc), Service Industries (0.26pc) and Attock Refinery (0.21pc) contributed most to index gains.

The sell-off coincided with fresh inflation data. Headline inflation in September rose to 10.3pc year-on-year, up sharply from 5.8pc in September 2025. As a result, average inflation for the first quarter of FY27 has jumped to 10.21pc, up from 4.30pc recorded in the same period last year.

On the energy front, the government is in discussions with its counterparts in Iran to secure safe passage for two October shipments of Qatari liquefied natural gas through the Strait of Hormuz.

AHL further noted that with sentiment turning cautious, the bias remains to the downside, with the 166,000 level clearly in sight.

Published in Dawn, October 2nd, 2026

The issue came into the public spotlight on Thursday when Prime Minister Shehbaz Sharif, addressing the Pakistan Stock Exchange via video link, categorically expressed dissatisfaction with exporters’ performance despite what he described as “several incentives” extended in the budget.

“We have given incentives to the export sector, but its performance remains unsatisfactory,” the premier said, adding that while he did not wish to single anyone out, exporters had failed to deliver.

He noted that the government had provided extensive support long sought by the sector, including measures that raised unit prices, yet overall performance remained below expectations. Mr Sharif also said he had briefed the IMF managing director on Pakistan’s economic performance.

Soon after, former president of the Karachi Chamber of Commerce and Industry Jawed Bilwani issued a statement placing responsibility on the federal government to implement export-friendly policies. “Policy formulation and its operations are in the hands of the federal government — not the exporters,” he said.

Mr Bilwani, Coordinator of the All Pakistan Exporters Association Forum, said exporters were struggling for survival amid unprecedented challenges, including high manufacturing costs, lack of competitiveness, and the absence of a level playing field.

While supporting the prime minister’s call for higher exports and sustainable growth, he stressed that exporters could not be held accountable for structural problems beyond their control.

He highlighted that Pakistani exporters operate on narrow profit margins compared to regional competitors, face higher taxes than other businesses, and endure prolonged delays in refund payments without compensation. He added that arbitrary FBR deductions, liquidity pressures, and high operational costs were crippling the sector.

Mr Bilwani also criticised the imposition of taxes and duties on imported yarn under the Export Facilitation Scheme, saying it created additional liquidity pressures without benefiting the local yarn industry. He noted that several exporting industries had shifted operations abroad due to such hardships. Expressing grave concern over transporters’ strikes, he said the recent nine-day nationwide disruption caused massive losses, vessel shutouts, detention charges, and mounting demurrage.

He urged the government to establish an emergency cell at the Prime Minister’s Office to ensure reliable and competitive export logistics.

He further pointed to costly utilities, frequent outages of electricity, gas, and water, and capacity charges for IPPs as factors slowing export growth. He added that labour productivity was hampered by a lack of public transport and prolonged loadshedding.

Despite these challenges, Mr Bilwani emphasised that Pakistan’s export-oriented industries had invested heavily in modern technology, quality control, certifications, skilled manpower, and value addition to meet stringent global standards.

Published in Dawn, October 2nd, 2026

The new front-month December Brent crude futures contract settled at $102.31 a barrel, up 4.37 per cent or $4.28. US West Texas Intermediate crude futures finished at $92.87 a barrel, up 2.71pc, or $2.45.

A Wall Street Journal report said the US was sending a third aircraft carrier and up to 10,000 more troops to the Middle East as President Donald Trump weighed resuming strikes on Iran after the US midterm elections.

The comments, coupled with China’s suspension of fuel exports, contributed to a volatile trading session. Oil prices fell 1pc early but reversed course after Reuters reported that Chinese refiners had suspended exports of oil products beyond Hong Kong and Macau until further notice, citing four people familiar with the matter.

While crude supplies continue to reach the market, diesel and other refined products remain in short supply following damage to refinery infrastructure in the Gulf and Russia.

Published in Dawn, October 2nd, 2026