Morning News: Three firms announce temporary shutdowns – By WE Research

Nov 18 2024



  • Due to a scarcity of parts, Indus Motor Company (IMC) stated on Friday that manufacturing would be suspended from November 18 to 20. IMC stated in a public filing on Friday that it is now dealing with a lack of components and raw materials, which is made worse by continuous supply chain interruptions. "The business is having trouble finding the parts it needs, which has affected its capacity to meet production demands," it continued. Sales increased by 56 percent to 8,692 units in 4MFY25 from 5,558 units in the same period the previous year, despite facility closures. According to Balochistan Glass Ltd. (BGL), technical difficulties caused a temporary halt in production at Unit 1, which is situated in Hub District Lasbela. In a stock filing, the business stated that "production will resume once the technical issues are resolved." In order to effectively manage inventory in conjunction with the scheduled maintenance downtime, Lotte Chemical notified the PSX that plant activities would be suspended from November 16 to December 15.
  • Pakistan's climate minister, Romina Khurshid Alam, unveiled a new carbon market strategy at COP29 in Baku with the goal of luring green investments to help the nation achieve its climate resilience objectives. With an emphasis on industries like energy, forestry, waste management, and agriculture, Pakistan intends to create both voluntary and compliant carbon markets. Despite being in line with the Paris Agreement and intended to encourage greener technologies, the policy has drawn criticism from climate campaigners. Critics contend that carbon markets, which are perceived as a means for affluent countries to evade accountability, are inadequate for bringing about significant climate change and could instead increase dependency on fossil fuels instead of tackling the underlying causes of emissions.
Pakistan Economy: Aug’25 CPI likely to clock in at 4.1% - By Insight Research

Aug 29 2025


Insight Securities


  • Headline inflation is estimated at ~4.1% for Aug’25, compared to ~9.6% in SPLY and ~4.1% in preceding month. On MoM basis, inflation is expected to inch up by ~0.4%, amid increase in prices of food items the impact of which has been negated by lower electricity charges and decline in LPG price.
  • Within the SPI basket, items that recorded significant increase in prices during the period are as follows, Tomato (38.8↑%), Onions (21.5↑%), Eggs (9.9%↑), Fresh vegetables (4.0%↑) & Wheat (4.0%↑). On the flip side, prices of the following items eased off during the month, Fresh fruits (9.9%↓), LPG (9.8%↓), Potato (5.1%↓), Pulse moong (4.6%↓) & Sugar (4.1%↓).
  • We anticipate that the SBP will keep the policy rate unchanged in upcoming MPC, as the full impact of cumulative 1,100bps reduction in policy rate is still unfolding. The real sector remains in recovery mode following the strain of elevated inflation and sharp currency depreciation, both of which eroded purchasing power of masses. Furthermore, central bank’s tone in the last MPC suggested a pause for now, which will provide clarity to the market and encourage credit offtake in the coming months, given that no immediate cut in borrowing costs is expected. Hence, it appears prudent to maintain the policy rate at its current level and wait for the steep decline in interest rates to translate into real economic activity.
Bank Islami Pakistan Limited (BIPL): 2QCY25 Corporate Briefing – By Taurus Research

Aug 29 2025


Taurus Securities


  • BIPL is currently operating with 544 branches across Pakistan. Number of accounts as of Jun’25 are ~1.7Mn.
  • During CY25, the Bank launched AIK Digital App, which is one of its kind Islamic digital app, offering complete digital banking experience. The Bank is also planning to relocate its head-office, for which it has acquired a 32-storey building. Moreover, the Bank has also upgraded its core banking system to R-14 to enhance operational efficiencies and services.
Engro Holdings Limited (ENGROH): 1HCY25 Analyst Briefing Takeaways – By Foundation Research

Aug 29 2025


Foundation Securities


  • Engro Holdings Limited (ENGROH PA) held its Analyst Briefing to discuss the company’s financial/operational performance during 1HCY25 and prospects. The following are key takeaways of the session.
  • To recall, ENGROH’s PAT underwent a jump of 11.3x YoY in 2Q to PKR 69.3Bn due to thermal asset adjustments and re-measurements. However, excluding thermal asset adjustments, normalized PAT stood at only ~PKR 1.3Bn, reflecting the true underlying business performance. During 1HCY25, PAT reached PKR 73.3Bn versus PKR 13.8Bn in SPLY, recording a 5.3x YoY increase.
Morning News: ADB pledges $410m for Reko Diq project – By IIS Research

Aug 29 2025


Ismail Iqbal Securities


  • Out of the total $6 billion funding committed by all international lenders for Reko Diq, the Asian Development Bank (ADB) has committed to provide financing of $410 million.
  • Federal Minister for Petroleum Ali Pervaiz Malik on Thursday welcomed the interest of the Japan Bank for International Cooperation (JBIC) in Pakistan’s landmark Reqo Diq mining project, terming it a pivotal moment for strengthening bilateral cooperation in the mining and energy sectors.
Technical Outlook: KSE-100 targeting the 30-DMA; stay cautious – By JS Research

Aug 29 2025


JS Global Capital


  • The KSE-100 index witnessed range bound activity to close at 147,344, down 151 points DoD. Volumes stood at 935mn shares compared to 857mn shares traded in the previous session. The index is expected to test support between 146,700 and 147,210 levels as a fall below, will extend the decline towards 146,057, followed by the 30-DMA at 143,859 level. However, any upside will face resistance in the range of 148,040-148,370 levels. The RSI and the MACD are moving down, supporting a corrective view. We recommend investors to stay cautious at current levels. The support and resistance are at 147,021 and 147,854 levels, respectively.
Morning News: SBP forex reserves rise by USD 18mn to USD 14.27bn – By Alpha-Akseer Research

Aug 29 2025


Alpha Capital


  • Pakistan’s foreign exchange reserves held by the central bank rose for a third straight week and stood at USD 14.27bn as of August 22, the State Bank of Pakistan (SBP) said on Thursday.
  • Following the ongoing sugar crisis, Pakistan may now face a potential wheat flour crisis, as national wheat stocks stand at 33.47mn tons, slightly below the country’s annual consumption requirement of 33.58mn tons.
Morning News: RLNG arrears recovery: PD-private sector ‘alliance’ takes on Ogra – By HMFS Research

Aug 29 2025


HMFS Research


  • The Power Division and the private sector on Thursday appeared to have formed an undeclared alliance against the Oil and Gas Regulatory Authority (Ogra) over the recovery of RLNG arrears from 2015 to 2024 — a move that, if enforced, would impact both industry and power plants, with the ultimate burden shifting to electricity consumers. The joint position was evident during a public hearing at the National Electric Power Regulatory Authority (NEPRA) regarding uniform Fuel Charges Adjustment (FCA) for July 2025 across the country, including K-Electric’s service area.
  • Pakistan’s economic stability faces renewed challenges as the Finance Division warns that flood-related damages could intensify fiscal pressures and disrupt food supplies across affected areas as well as pose a risk in achieving agriculture sector’s targeted growth. The monthly economic update and outlook August 2025 noted that adverse climatic events (heavy rainfall and floods) pose a risk in achieving agriculture sector’s targeted growth.
D.G. Khan Cement Company Limited (DGKC): Result Review — Earnings rise on surging margins – By AKD Research

Aug 28 2025


AKD Securities


  • D.G. Khan Cement Company Ltd. (DGKC) announced its 4QFY25 financial results, reporting earnings of PkR3.2bn (EPS: PkR7.2), compared to a loss of PkR1.7bn (LPS: PkR3.9) in SPLY. The result is above our expectations, mainly due to im proved margins and lower ETR during the quarter. Additionally, company an nounced a final cash payout of PkR2.0/sh.
  • Revenue declined by 1%YoY to PkR16.8bn, compared to PkR17.0bn in SPLY, driven by 1.2%YoY decline in total offtakes to 1.28mn tons.
  • Gross margins improved to 31.8% from 7.9% in SPLY, supported by decline in coal prices and grid tariffs.
Pakistan Floods: Historical Impact – By CHASE Research

Aug 28 2025



  • Pakistan is currently at the cusp of widespread floods due to its eastern rivers overflowing as a result of monsoon rains and release of water from Indian dams. As such, we believe it is important to assess the impact of past floods to determine whether equity markets will be impacted.
  • In this report, we look over the KSE100 index performance and impact on different sectors during flooding years to determine whether these floods will impact broader market sentiment and growth in fertilizer and cement demand.
Archroma Pakistan Limited (ARPL): 9MSY25 Corporate Briefing Takeaways – By Taurus Research

Aug 28 2025


Taurus Securities


  • Archroma Pakistan Limited is primarily engaged in the manufacture, import, and sale of dyes and other specialty chemical solutions. It is a subsidiary of the Switzerland-based company, Archroma Textiles GmbH. ARPL has two business divisions: textile effects and packaging technologies with a combined portfolio of between 300-400 products. APRL’s products are used in the pre-treatment, dyeing, printing, and finishing of textiles, and coloration and coatings of packaging materials. The Company’s products help enhance both the optical as well as the functional properties of its clients’ end products.
  • The textile effects division has four markets with several segments within each. These are: apparel (denim, casual wear, performance apparel, and formal war), home textiles (home and institutional, automotive), specialized textiles (technical textiles, protection textiles), and home care (personal care, plastics, and leather). This division serves customers from a wide range of industries such as textile, healthcare, cosmetics (anti-perspirant agents), construction (protective clothing), and producers of household care products such as detergents, dishwashing liquids, and other cleaning products.
Morning News: Experts warn subsidy cuts could slow remittances - By WE Research

Jul 23 2025



  • The Pakistani government’s reduction of remittance-related subsidies, including eliminating funding for the Pakistan Remittance Initiative (PRI) in FY26, has raised concerns that official remittance inflows could decline, potentially shifting more transactions to informal channels. Experts stress the need for direct incentives to remitters, digitalisation, and affordable payment systems to maintain flows through formal banking channels. While critics argue that subsidies disproportionately benefit banks, financial institutions defend the high costs of maintaining official channels. Recent changes to the Telegraphic Transfer rebate structure and growing concerns over circular debt further complicate the issue. Despite these challenges, experts believe that with strong governance, macroeconomic stability, and continued efforts to formalise the economy, remittance flows—vital to Pakistan’s current account and foreign exchange reserves—could remain robust, with FY26 projections ranging from $35 billion to $41 billion.
  • Bilateral trade between Pakistan and the UAE surged to $10.1 billion in FY25, reflecting a 20.24% yearon-year increase and signaling a revival in economic ties, though the trade balance remains heavily tilted in the UAE’s favor. While Pakistan’s exports stayed flat at $2.1 billion, imports from the UAE rose to nearly $8 billion. The renewed momentum in relations was underscored by the revival of the Pakistan-UAE Joint Ministerial Commission after 13 years, with discussions spanning trade, energy, IT, and manpower. Experts advocate for extending visa exemptions to genuine investors and improving business facilitation to attract UAE investments, especially in renewable energy, logistics, and fintech. With the UAE already a top trading partner and second-largest remittance source for Pakistan ($7.83 billion in FY25), analysts believe bilateral trade could double within five years through customs harmonisation, reduced red tape, and strengthened private-sector partnerships.
  • Vietnam’s Ambassador to Pakistan, Pham Anh Tuan, announced that bilateral trade between the two nations is approaching $1 billion, with a long-term goal of reaching $10 billion, reflecting both countries' commitment to a comprehensive economic partnership. Trade between Pakistan and Vietnam rose to $850 million in 2024, with Pakistan exporting goods like cereals, cotton, leather, and pharmaceuticals, while importing electronics, coffee, and synthetic materials from Vietnam. Both sides see strong potential due to their complementary economies and have identified key sectors for cooperation, including textiles, agriculture, IT, and energy. The 5th Pakistan-Vietnam Joint Trade Committee meeting in July 2025 marked renewed engagement, with plans to initiate Preferential Trade Agreement (PTA) talks within the year. Both nations aim to deepen trade ties through regular dialogue, institutional collaboration, and improved market access.
Morning News: Oil settles down; build in US fuel inventories offsets signs demand growing - By WE Research

Jul 22 2025



  • Oil prices dipped slightly on Wednesday as a surprising rise in U.S. gasoline and distillate inventories, along with economic concerns linked to U.S. tariffs, overshadowed signs of increasing crude demand. Brent crude fell by 19 cents to $68.52 per barrel, while U.S. West Texas Intermediate dropped 14 cents to $66.38. The Energy Information Administration reported gasoline stocks rose by 3.4 million barrels and distillates by 4.2 million—both well above expectations—despite a larger-than-expected 3.9 million -barrel decline in crude inventories. Analysts attributed the inventory buildup to high refinery activity nearing 94% of capacity.
  • A World Bank delegation led by Husam Mohamed Beides, Practice Manager for Energy in the MENAAP region, is visiting Pakistan from July 20–26, 2025, for introductory meetings following Pakistan's transition to the MENAAP region on July 1. The team aims to assess ongoing energy projects and support future development. Concurrently, another World Bank team will visit from July 21–29 to prepare for Phase 1 of the "Best-Pak" program, focused on boosting energy security through improved power transmission. This includes evaluating the installation of STATCOM technology by the National Grid Company to enhance voltage stability and integrate renewable energy. This would mark the first largescale deployment of STATCOMs in Pakistan.
  • Pakistan, Afghanistan, and Uzbekistan signed a Trilateral Framework Agreement in Kabul to launch a joint feasibility study for the Naibabad–Kharlachi rail link under the UAP (Uzbek–Afghan–Pak) Railway Corridor, marking a key step toward enhancing regional connectivity. Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar, accompanied by a high-level delegation, attended the signing and held talks with Afghan leadership to reinforce bilateral ties. The UAP Railway Project aims to link Central Asian countries to Pakistani seaports via Afghanistan, promoting regional trade, transit, and economic integration. Dar’s meetings with Afghan leaders also focused on deepening cooperation in peace, security, and trade, emphasizing the shared commitment to regional development and connectivity.
Morning News: Oil settles down; build in US fuel inventories offsets signs demand growing - By WE Research

Jul 18 2025



  • Oil prices dipped slightly on Wednesday as rising U.S. fuel inventories and economic concerns tied to U.S. tariffs outweighed signs of stronger global demand. Brent crude settled at $68.52 and U.S. West Texas Intermediate at $66.38. U.S. gasoline and distillate stocks saw larger-than-expected builds, while crude inventories dropped more than forecast. Analysts noted disappointment over weakening gasoline demand during peak driving season. Meanwhile, global economic outlooks improved, with OPEC citing strength in China, India, and Brazil. Chinese refiners are boosting output, and Iraqi oil production has been disrupted by drone attacks. Tariff tensions and speculation over interest rate cuts are adding uncertainty to the market.
  • The European Union and Pakistan reaffirmed their commitment to the 2019 Strategic Engagement Plan (SEP) during the 10th Political Dialogue held on July 17 in Brussels, aiming to deepen cooperation across all SEP areas. Both sides pledged continued collaboration under the GSP+ framework and highlighted progress in migration cooperation, planning a third Comprehensive Migration and Mobility Dialogue in 2025. They discussed regional and global issues, including Ukraine, Jammu and Kashmir, and Gaza, stressing peaceful conflict resolution, respect for international law, and support for a two-state solution in Palestine. Security cooperation, including counter-terrorism and counter-narcotics, was emphasized. The two parties agreed to hold the 7th Strategic Dialogue in 2025 and the next Political Dialogue in 2026 in Islamabad.
  • A World Bank delegation led by Husam Mohamed Beides, Practice Manager for Energy in the MENAAP region, will visit Pakistan from July 20–26, 2025, marking the country's recent transition into the MENAAP portfolio. The visit aims to introduce the team to local energy sector stakeholders and review the World Bank’s ongoing energy projects. A second World Bank team will be in Pakistan from July 21– 29, 2025, to prepare for Phase 1 of the Best-Pak program, which focuses on enhancing energy security through the installation of STATCOM technology by the National Grid Company (formerly NTDC). This initiative, the first large-scale STATCOM deployment in Pakistan, aims to improve voltage stability, enable reliable grid operations, and support renewable energy integration. The mission will consult with key stakeholders including ISMO, the Ministry of Energy, and the Ministry of Economic Affairs.
Morning News: IMF representative calls Pakistan’s EFF performance 'strong' - By WE Research

Jul 14 2025



  • The International Monetary Fund (IMF) has praised Pakistan’s economic performance under the Extended Fund Facility (EFF), describing it as “strong” and highlighting the successful completion of the first review in May 2025. IMF Representative Mahir Binici credited early policy measures for restoring macroeconomic stability and investor confidence, while emphasizing the need for ongoing structural reforms to ensure long-term sustainability. He also noted regional growth prospects and outlined risks such as geopolitical tensions and trade disruptions. On climate resilience, Binici commended Pakistan’s progress under the Resilience and Sustainability Facility (RSF), which includes reforms in disaster preparedness, water management, and climate data transparency. A new 28-month RSF arrangement worth $1.3 billion aims to support these efforts, with commitments from Pakistan to maintain fiscal discipline, prioritize climate-resilient infrastructure, improve intergovernmental coordination, and promote green initiatives. The session concluded with calls for continued cooperation and dialogue to advance inclusive and sustainable growth.
  • Pakistan is experiencing a long-awaited period of economic optimism and stability, marked by the KSE100 index reaching historic highs above 134,000 and a surge in investor confidence. Once written off due to fears of default and political instability, the country is now benefiting from years of strategic foresight, including investments from the China-Pakistan Economic Corridor (CPEC) under the Belt and Road Initiative. Diplomatic ties have improved regionally and globally, while economic indicators such as interest rates, inflation, and foreign reserves show positive trends. The government's fiscal tightening efforts and structural reforms have begun to yield results, attracting foreign investment in sectors like mining, IT, agriculture, and tourism. Investors are advised to maintain focused, well-researched portfolios to capitalize on potential returns, with the stock market poised for sustained growth. Looking ahead, expectations from policymakers include sustained tax reforms, energy tariff reductions, and the development of key sectors to boost exports, job creation, and foreign exchange reserves, aiming for $100 billion in reserves over the next decade.
Morning News: Govt raises Rs1.62 trillion via T-bill, bond auctions - By WE Research

Jul 10 2025



  • The State Bank of Pakistan (SBP) raised approximately Rs1.62 trillion through recent government securities auctions, primarily from Market Treasury Bills (MTBs), which accounted for Rs1.413 trillion, and Rs208.42 billion from 10-year Pakistan Investment Bonds Floating Rate (PFL). The MTB auction showed strong investor demand across all tenors, particularly the 12-month bills, signaling a shift toward longer durations amid falling yields. Non-competitive bids totaled Rs379.78 billion, mostly concentrated in the three-month tenor. While the total fell slightly short of the Rs1.7 trillion target, analysts noted increased interest in longer-term securities and a flattening yield curve. Meanwhile, the Pakistani rupee slightly weakened to Rs284.47 against the dollar, and local gold prices dropped Rs3,000 per tola to Rs351,500 due to a stronger US dollar and lower international gold rates.
  • From July 7 to 11, 2025, Pakistan’s Ministry of Finance conducted a non-deal investor roadshow (NDR) in Beijing to prepare for its first-ever Panda Bond issuance. Shared by Advisor to the Finance Minister Khurram Shehzad, the meetings involved technical discussions with Chinese investors, underwriters, legal advisors, and rating agencies, focusing on Pakistan’s economic outlook, debt management reforms, and the structure of the upcoming bond. The NDR garnered strong initial interest, reflecting investor confidence in Pakistan’s reform path and signaling its readiness to access China’s onshore capital market. The government aims to finalize the bond launch later this year, backed by credit guarantees from multilateral partners—marking a strategic step toward diversifying funding sources and expanding Pakistan’s presence in international capital markets.
  • The National Electric Power Regulatory Authority (Nepra) has approved provisional negative fuel cost adjustments (FCA) for April and May 2025: Rs4.043/kWh for K-Electric (KE) consumers and Rs0.50 per unit for Discos. These adjustments will reflect in July 2025 bills and exclude lifeline, protected, EV charging stations, and pre-paid consumers. Although the Ministry of Energy (MoE) requested to delay the KE FCA decision, citing workload and ongoing efforts to implement uniform FCAs nationwide, Nepra rejected the request due to lack of formal Cabinet approval or policy guidelines. Nepra emphasized that FCA proceedings cannot be indefinitely deferred without legal grounds and noted that the current framework permits monthly fuel cost adjustments. The Authority also reaffirmed its commitment to calculating individual Disco FCAs while moving toward a uniform national FCA regime as mandated by law. Concerns were raised during hearings about the high cost of furnace oil-based generation, and CPPA-G was instructed to manage inter-Disco settlements to reflect actual energy costs.
Morning News: $350m loan agreement signed with ADB to boost women’s financial inclusion - By WE Research

Jun 25 2025



  • The Government of Pakistan and the Asian Development Bank (ADB) have signed a $350 million loan agreement for the “Women Inclusive Finance Sector Development Program (Subprogram-II),” aimed at advancing women’s economic empowerment. The agreement, signed by representatives from the Economic Affairs Division, ADB, and the State Bank of Pakistan, underscores Pakistan’s commitment to fostering inclusive growth. Building on reforms from Subprogram I, the initiative focuses on enhancing policy and regulatory frameworks, increasing access to finance for women, supporting women’s entrepreneurship, and promoting equitable workplaces in the financial sector. The financing includes a $300 million policy-based loan and a $50 million Financial Intermediary Loan.
  • In Q4 FY2024-25, Pakistan's Consumer Confidence Index (CCI) rose by 9.2% from the previous quarter and 24.6% year-on-year, reaching 96.2 points—the highest level since tracking began in 2022. The report, jointly issued by Dun & Bradstreet Pakistan and Gallup Pakistan, highlights improved public sentiment regarding both current financial conditions and future economic prospects. Notably, the Future Confidence Index crossed the 100-point mark for the first time, indicating a shift toward optimism. Key improvements were seen in household income expectations, financial outlook, and savings sentiment. However, concerns about rising unemployment persist, with 61% noting job losses in the past six months. Confidence gains were broad-based, with the most significant increases among individuals under 30. The findings underscore a cautiously optimistic economic outlook, though continued reforms are needed to address labor market challenges.
  • The Power Division has requested a positive adjustment of 10 paisa per unit in electricity tariffs for May 2025 under the monthly Fuel Charges Adjustment (FCA) mechanism to recover Rs 1.255 billion from consumers of Distribution Companies (Discos). This request, submitted by CPPA-G, will be reviewed in a public hearing by NEPRA on June 29, 2025. In May 2025, total electricity generation rose by 1.2% yearon-year to 12,755 GWh, with a basket price of Rs 7.7739 per unit. Hydel power contributed 37% of total generation, increasing 24% from the previous year. Local coal and imported coal generation rose by 3% and 108% respectively, while RFO-based generation declined by 68%. Nuclear power and gas-based generation both fell, while RLNG contributed 17% at a high cost of Rs 23.73 per unit. Renewable sources like wind and solar contributed modestly. Overall, generation costs and energy mix shifts have prompted the proposed tariff adjustment.
Morning News: UK trade envoy visits Pakistan to advance investment and commercial ties - By WE Research

Jun 24 2025



  • UK Trade Envoy Mohammad Yasin MP embarked on a three-day visit to Karachi and Islamabad to strengthen UK-Pakistan trade ties and promote long-term investment ahead of the upcoming UK Pakistan Trade Dialogue. The visit aligns with the UK's Invest 2035 initiative, focusing on high-growth sectors like clean energy and digital technologies. Yasin emphasized the strong existing commercial relationship and the potential for deeper cooperation. With over 200 UK companies active in Pakistan and the UK being its largest European trading partner, the visit includes meetings with senior government officials and business leaders to explore new collaboration opportunities. The mission is expected to lay the groundwork for enhanced trade, investment, and regulatory reforms, reinforcing Pakistan’s role as a key UK trade partner.
  • Finance Minister Muhammad Aurangzeb, in his address to the National Assembly on the Finance Bill 2024-25, announced the withdrawal of sales tax and duty exemptions on imported cotton and yarn to support local farmers and revive the textile industry. He outlined Rs36 billion in additional tax measures to offset revenue losses from a reduced solar panel tax and emphasized a “balanced budget” focused on expanding the tax base, digitalization, fiscal responsibility, and easing burdens on salaried individuals. Key initiatives include boosting BISP funding, launching digital loans for small farmers, expanding affordable housing, and enhancing women's financial inclusion. The minister revised several proposals, such as lowering income tax for lower earners and reducing the sales tax on solar components. Amendments were also made to FBR powers and e-commerce taxation, with exemptions provided for nonfilers on smaller-scale transactions. Aurangzeb highlighted regional instability risks and stressed the need for national unity and consensus to ensure sustainable economic recovery.
Morning News: Pakistan gets $20bn in external assistance - By WE Research

Jun 23 2025



  • Pakistan secured nearly $20 billion in foreign loans and grants during the first 11 months of FY2024-25, surpassing its $19.2 billion annual target. This total includes $6.89 billion in fresh inflows—9% lower than the same period last year—and significant rollovers from China, Saudi Arabia, and the UAE. The rollovers, amounting to $8 billion, and about $2 billion from the IMF, played a major role in reaching the target. Despite delays in the IMF programme affecting commercial lending and bilateral disbursements, multilateral lenders contributed $3.37 billion. Project financing stood at $2.98 billion, while $3.9 billion was used for budgetary support. Additionally, $1.77 billion was raised through Naya Pakistan Certificates, reflecting a boost from overseas Pakistanis, and international bond targets and commercial borrowing remained underachieved due to economic challenges and credit concerns.
  • China, Pakistan, and Bangladesh have launched their first trilateral forum, marking a significant shift in regional diplomacy and signaling emerging alignments in South Asia. The inaugural meeting took place on June 19 in Kunming, China, bringing together senior diplomats from all three nations, including Pakistan’s Foreign Secretary who joined virtually. The initiative follows recent improvements in PakistanBangladesh ties and China’s increased regional engagement post-Sheikh Hasina’s exit from power. While the countries emphasized that the forum is not aimed at any third party, it is expected to raise concerns in India. The trilateral discussions focused on wide-ranging cooperation in areas like trade, industry, climate change, education, and maritime affairs. A joint working group was formed to implement agreed proposals, with all sides committing to principles of mutual trust, inclusivity, and development. China framed the forum as part of its vision for a “shared future” and deeper Belt and Road cooperation, positioning the alliance as a platform for peace, prosperity, and modernization in the region.
  • Amid rising tensions between Iran and Israel, Pakistan’s Oil and Gas Regulatory Authority (Ogra) has directed oil marketing companies to maintain a minimum 20-day fuel reserve and expedite imports to safeguard the country’s fuel supply. Authorities have ordered the immediate import of 140 million litres of petrol and rescheduled the arrival of a vessel to June 26, ahead of its original July 6 date. Pakistan State Oil expects another 140 million litres to arrive by July 1. While current reserves are sufficient, officials warn that any disruption in Gulf shipping routes—particularly through the Strait of Hormuz— could seriously impact Pakistan, which heavily depends on regional oil imports. Freight rates and insurance premiums for oil tankers have already surged due to instability, and operational issues such as GPS outages in the strait have been reported. The government has ruled out reducing the Petroleum Development Levy despite a 16% increase in global oil prices, indicating that domestic prices may rise. Finance and opposition leaders alike have expressed concern over the economic impact, prompting the formation of a high-level committee to monitor the evolving situation.
Morning News: In meeting with Pakistan’s COAS, Trump shows interest in long-term trade partnership - By WE Research

Jun 20 2025



  • During a cordial and extended meeting at the White House, U.S. President Donald J. Trump and Pakistan’s Chief of Army Staff, Field Marshal Syed Asim Munir, discussed expanding bilateral cooperation across various domains including trade, economic development, AI, energy, and counter-terrorism. Both sides emphasized strategic convergence and mutual interests, with President Trump expressing strong interest in a long-term trade partnership and praising Pakistan’s regional peace efforts. The leaders also addressed tensions between Iran and Israel, highlighting the need for conflict resolution. The meeting, which included high-level officials from both countries, reflected the warmth of ties and concluded with an invitation for President Trump to visit Pakistan.
  • Attock Refinery Limited (ARL) has signed an agreement with Italian engineering firm STP Studi Tecnologie Progetti for Front End Engineering Design (FEED) and Project Management Consultancy (PMC) as part of its refinery upgradation project, estimated to cost up to US$ 600 million. This major investment marks a significant milestone in ARL’s strategy to enhance value addition and environmentally friendly fuel production. The upgrade includes a Continuous Catalyst Regeneration (CCR) unit and the revamp of the Diesel Hydro Desulfurization Unit, following licensor FEED studies with UOP/Honeywell. The project aims to improve product quality, reduce environmental impact, and align ARL’s operations with international fuel standards.
  • The Special Investment Facilitation Council (SIFC) has approved a revenue-sharing agreement between Sui Southern Gas Company Limited (SSGC) and Jamshoro Joint Venture Limited (JJVL), allowing the JJVL LPG-NGL extraction plant to become operational by July 31. Under the agreement, revenue will be shared at a 66:34 ratio in favor of SSGC, which will also receive a 25% share of LPG based on Ogranotified producer prices, generating an estimated Rs2 billion annually. While both parties have initialed the deal, formal signing will follow the issuance of SIFC meeting minutes. SSGC sought SIFC’s endorsement to ensure transparency and avoid future scrutiny by NAB.
Morning News: Pakistan to unveil Rs100bn EV policy today - By WE Research

Jun 19 2025



  • The federal government is set to unveil its National Electric Vehicle (NEV) Policy 2025-30, marking a significant move toward clean mobility, energy efficiency, and industrial self-reliance in Pakistan. The policy allocates over Rs100 billion in subsidies, introduces a levy on internal combustion engine (ICE) vehicles to fund the transition, and launches with Rs9 billion in FY2025-26 to support over 116,000 ebikes and 3,000 e-rickshaws through a digital platform, with 25% reserved for female riders. Aimed at achieving 30% EV sales by 2030, the policy seeks to cut 4.5 million tons of CO2 emissions, save $1 billion in annual fuel imports, and utilize the country’s electricity surplus. It also promotes domestic EV manufacturing, targeting 90% localization in two- and three-wheelers by 2026 through tariff protections.
  • The Senate Standing Committee on Finance, during its review of the Finance Bill 2025, recommended a zero-rated tax on incomes up to Rs1.2 million and rejected a proposed tax on individuals running small online businesses. While endorsing taxes on high-earning online academies and teachers, the committee opposed levies on exclusive clubs like the Islamabad Club, despite the FBR's argument that such clubs serve only a select elite. The FBR outlined plans to expand digital taxation to a wide range of online services, including streaming platforms, e-learning, telemedicine, and cloud services, but faced resistance on taxing small-scale digital entrepreneurs. Additionally, the committee debated restrictions on property purchases by tax non-filers, with a proposal to raise the allowable purchase limit from 130% to 500% of declared income. Finance Minister Muhammad Aurangzeb reaffirmed the government's intent to broaden the tax base by bringing non-filers into the net.
  • The government has introduced a bold National Tariff Policy aimed at reducing average import duties by 52% over five years to boost exports, reduce the trade deficit, and promote industrial modernization. Relying heavily on the World Bank's GTAP model, the policy projects exports will grow faster than imports, with a potential 7–9% revenue gain despite an estimated Rs500 billion static revenue loss. However, opposition lawmakers raised concerns about the policy's assumptions, lack of localized analysis, and potential impacts on inflation, reserves, and struggling domestic industries. Immediate tariff reductions have been proposed in the FY25 budget, including elimination of additional duties and lowering customs duties on thousands of tariff lines. While officials claim the reforms will drive export-led growth, enhance technology adoption, and increase employment, critics warn of economic disruption, particularly for inefficient industries, and called for greater transparency and scrutiny of the underlying models. A monitoring committee led by the finance minister will oversee implementation, with a new auto policy and further tariff rationalizations set to begin in July 2026