At 10:35am, the benchmark index hovered at 172,268.78, down 373.38 points, or 0.22%.

Selling was observed in key sectors, including automobile assemblers, cement, commercial banks, fertiliser and OMCs. Index-heavy stocks, including MARI, PSO, HBL, MCB, NBP and UBL, traded in the red.

On Tuesday, bearish sentiment gripped the PSX as escalating US-Iran tensions and elevated global crude prices triggered profit-taking across index-heavy sectors. The benchmark KSE-100 Index declined by 993.92 points, or 0.57%, to close at 172,642.16.

Internationally, Brent crude rallied towards $100 per barrel on Wednesday, keeping the mood ​in Asian stock markets subdued, as attacks intensified in the Middle East, stoking inflation worries ahead of the release of closely watched ‌US consumer price data.

Iranian-backed Houthis in Yemen launched strikes ​on several Saudi cities on Tuesday, further embroiling a U.S. ally in the conflict, while U.S. forces ⁠hit multiple Iranian oil tankers and Iran struck a U.S. base in Jordan.

Oil prices jumped for a fourth straight session on Wednesday, gaining more than $1 ​in early trade.

Brent crude futures rose $1.57 to $99.49 a barrel, the highest level since late June. U.S. West Texas Intermediate crude was at $94.63 a ​barrel, up $1.60.

Stocks in Sydney slipped around 0.3%, while Hong Kong’s Hang Seng dropped 0.6% and mainland Chinese blue chips edged up 0.2%.

A rebound in chip and AI stocks helped some other regional benchmarks, though, with Japan’s Nikkei up 0.6% following Tuesday’s 1.7% tumble. South Korea’s KOSPI jumped 1.6%, and Taiwan’s TAIEX rose 0.6%.

Overnight, the Philadelphia SE semiconductor index jumped 1.3%, despite declines on Wall Street’s ​three main indexes.

U.S. S&P 500 futures added 0.1%, after the cash index sank 0.6% on Tuesday.

This is an intraday update

The development was disclosed by Oil and Gas Development Company Limited (OGDCL) and Mari Energies (MARI) in separate stock exchange filings on Wednesday.

“OGDCL, as a 30% working interest partner in the Sukhpur-II Block, is pleased to announce that Lundali-1 Well has been successfully commissioned, with first gas achieved on September 06, 2026,” read the notice.

The well is currently producing 10 million standard cubic feet per day (MMscfd) of gas, with a wellhead pressure of 2,000 pounds per square inch (psi).

“The gas is being supplied to Sui Southern Gas Company Limited (SSGC),” read the notice.

Prime Global Energies Limited operates the block with a 25% working interest, while the other joint venture partners are MARI with a 30% working interest and Turkish Petroleum Overseas Company Limited with a 15% working interest.

Sukhpur Block, now also designated as Sukhpur-II, is located in the Kirthar Foldbelt Basin in the Sindh province of Pakistan, approximately 270 kilometres north of Karachi.

OGDC shared that the Petroleum Concession Agreement and Exploration Licence for Sukhpur-II Block became effective on December 02, 2025.

“Lundali-1, which was drilled under the previous joint venture arrangement, has subsequently been brought on stream by the present joint venture,” it said.

“The commencement of production from the well is contributing additional indigenous gas to the national energy supply,” it added.

OGDC is Pakistan’s largest exploration and production (E&P) company. OGDCL holds the most extensive exploration acreage in Pakistan, covering over 40% of the country’s total awarded area with net hydrocarbons of oil and gas.

Spot gold was up 0.6% at $4,381.32 per ounce, by 0505 GMT.

US gold futures lost 0.3% to $4,424.70.

The US dollar remained muted, making dollar-priced metals more affordable for holders of other currencies.

“In the gold market, there is a tug of war in the short term between the bulls and the bears.

We may see this kind of movement until the end of this week, when the CPI report is released,“ said Kelvin Wong, senior market analyst at OANDA.

“While expectations of a hawkish Fed weigh on gold, the dollar debasement trade and concerns about fiscal deficits remain supportive for prices.”

Markets are awaiting US producer price index data due on Thursday, with consumer price index data set to follow on Friday.

Iran’s Revolutionary Guard said it fired ballistic missiles at a base in Jordan used by the US military and attacked 10 ships, after the US said it had destroyed five Iranian oil tankers, in a sharp escalation of the six-month-old war.

Brent crude prices jumped for a fourth consecutive session.

Rising crude prices tend to put upward pressure on inflation, as higher energy costs filter through the broader economy.

According to the CME FedWatch Tool, traders see about a 60% chance that the Federal Reserve will raise interest rates at its upcoming policy meeting.

Although gold is widely regarded as an inflation hedge, elevated rates weigh on the appeal of non-interest-bearing bullion.

“Precious metals face a near-term test, but another major selloff is unlikely,” said Kelly Xu, a commodities strategist at Alpine Macro.

“Physical market tightness remains a key issue, while structural supply deficits could persist amid inelastic mine production and ongoing demand from electrification, electronics and AI-related infrastructure, providing fundamental support for silver over the longer term.”

Spot silver gained 0.9% to $66.31, platinum rose 1.1% to $1,833.58, while palladium fell 0.1% to $1,347.82.

Brent crude futures rose 1.4%, to $99.33 a barrel by 0212 GMT, while US West Texas Intermediate crude was at $94.34 ​a barrel, up 1.4%.

Brent crude prices have jumped by ​a quarter since early August as hopes for a ⁠permanent resolution to the six-month-old war faded and as fighting flared ​again, with prices fast approaching the key $100-a-barrel mark.

The Middle East war intensified ​on Tuesday with Houthis in Yemen launching strikes on several Saudi cities, further embroiling a US ally in the conflict.

The US forces hit multiple ​Iranian oil tankers and Iran targeted a US base in ​Jordan.

Iran says will tackle economic problems created by sanctions

“Recent developments only reinforce the view that we are still some way from ‌a ⁠restart in (peace) talks. In the meantime, the market is likely to continue to price in a sizeable risk premium,” ING analysts said in a note.

The latest attacks threaten to deepen disruptions to Middle ​East oil supplies, ​already strained ⁠by strikes on regional energy infrastructure and key shipping lanes.

Iran threatens US with new ‘economic warfare’ and missiles as Houthis attack Saudi Arabia

While Saudi Arabia has diverted some exports away ​from the Strait of Hormuz, any sustained attacks ​on ⁠the kingdom could complicate efforts to keep crude flowing to global markets, analysts said.

“Iran’s attacks on Saudi energy facilities and the subsequent destruction ⁠of ​five Iranian tankers raised concerns about another ​prolonged disruption to oil supplies,” OCBC analysts said in a note.

The import bans, ​which go into effect on September 29 and were published on the White House’s website, came after Canada’s own retaliatory tariffs on US goods took effect after midnight on Tuesday.

Those Canadian levies themselves ‌followed 50% tariffs that the United States imposed on some $20 billion of Canadian goods last month, after several rounds of negotiations collapsed.

The breakdown has widened a rift between the longtime allies, who have blamed each other for the failed talks, spurred Canadian Prime Minister Mark Carney to urge a further shift away from Canada’s biggest trading partner, and cast doubt on the viability of the US-Mexico-Canada Agreement.

“We have everything we need to pivot and prosper,” Carney said on Tuesday in a video posted on YouTube.

“That pivot will come at a cost. There’s always ​a cost to action. But it doesn’t come close to the cost of standing still,” he said.

The US bans appeared to cover most alcohol products, including beer and various types of wine, whisky, bourbon, rum, ​vodka, vermouth, tequila, mezcal, and brandy. The dairy ban covers whey protein, invert molasses, cane molasses and non-alcoholic beer, per notices on the White House’s website.

Canada to retaliate for US tariffs, worsening ties after talks fail

In addition to the ⁠import bans, various cheese products were added to a list of products subject to a 50% tariff, but not banned outright. Some paper, aluminum, wood, furniture, lighting and other products were also added to the list.

A U.S. official said President ​Donald Trump’s pre-existing threat to increase tariffs on Canadian autos from 25% to 50% on January 1 remained in effect. The official added that US Trade Representative Jamieson Greer had spoken with Dominic LeBlanc, Canada’s minister responsible for bilateral US ​trade, over the past couple of days, and the pair were expected to speak again in the coming days to see if there was an alternative path for the two countries.

In a social media post on Tuesday night, LeBlanc criticized the latest US measures and said he was in contact with Greer regarding a path forward.

“As has been the case for the last 18 months, our first priority remains on protecting and supporting Canadian workers, farmers, families, and businesses from these unjustified actions,” he wrote.

Ottawa strikes back

Ottawa’s retaliatory measures, which in ​turn provoked Washington’s move on Tuesday night, were designed to put economic and political pressure on Washington, Canadian government officials said.

Those counter-tariffs cover some $20 billion of US goods, with duties ranging from 15% to 50% across products from steel and furniture ​to clothing and electronics, and are expected to hit sectors in some competitive states such as Michigan and Ohio, ahead of US midterm elections in November.

US trade envoy says acting ‘soon’ on new tariffs as 10% levy to expire

While the tariffs affect a small amount of exports compared with total trade between the US and Canada, ‌some analysts worry ⁠the standoff could destabilize the US-Mexico-Canada Agreement, the free-trade pact that succeeded NAFTA.

Together they have underpinned commerce across North America for decades.

“What we are worried about is an escalatory spiral,” said Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney’s advisory committee on bilateral US economic relations.

“But at the same time, we totally understand that the prime minister needs to find areas of leverage.”

Trump has been lobbing various attacks at Canada on Truth Social in recent days.

On Monday, he said Canadian private jet maker Bombardier would no longer be allowed to sell its planes in the United States unless it started manufacturing in the country.

He also shared a map of North America draped in the U.S. ​flag, including Canada and Mexico, and an AI-generated image ​reviving a running jab at Carney, calling him “Governor,” a ⁠reference to his repeated taunt that Canada should become the 51st US state.

On Tuesday, hours before the latest import bans, Trump directed the General Services Administration, a US government body responsible for providing services for the federal government, to coordinate with the US Trade Representative and “REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity ​for American Farmers and Companies.”

Various sectors hit

Trump’s tariffs implemented last month hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, covering $20 billion, or 5%, ​of Canadian exports to the US.

According ⁠to Canadian and US government data, Canada has shipped almost 68% of total exports to the U.S. this year, out of which roughly 80% moved duty-free due to exemptions under the USMCA pact. Protections under the agreement have provided the domestic economy some resilience.

Last month’s tariffs, imposed under a Depression-era US law, do not allow Ottawa to exercise USMCA exemptions.

Concerns about the USMCA’s future have fueled uncertainty about investment and growth, as Canada wages a trade war against an economy 13 times its size.

On Canada’s tariff frontline, business stalls over US trade deal jitters

Polls also show ⁠Carney has broad support ​from Canadians, but that could disappear within months as the consequences of the trade war sink in, according to political analysts.

A new poll from ​Angus Reid on Tuesday showed that approval of Carney’s performance jumped 11 points to 62% from an August poll.

Meanwhile, just 20% of Americans approved of Trump’s tariffs on Canadian goods, a Reuters/Ipsos poll found.

Trump threatened last month to raise U.S. tariffs on all cars, trucks and automotive parts from Canada ​to 50% starting January 1, and signed an executive order renaming Lake Ontario as Lake America.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 15 ringgit, or 0.3%, to 4,961 ringgit ($1,220.12) a metric ton by the midday break.

The market remains prone to intermittent profit-taking, but the broader trend remains bullish, driven by El Niño factors and the anticipated lack of rainfall, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari.

“The market is also waiting for Malaysian Palm Oil Board (MPOB) data for a clearer picture,” he said. MPOB is expected to release its August supply and demand data on Thursday.

Oil prices rose for the fourth straight session, gaining more than $1 in early trade on Wednesday after renewed attacks across the Middle East heightened worries about supply disruptions.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Dalian’s most-active soyoil contract fell 1.15%, while its palm oil contract shed 1.39%.

Soyoil prices on the Chicago Board of Trade were down 0.07%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

The ringgit, palm’s currency of trade, weakened 0.22% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Indonesia used 10.7 million kilolitres of palm oil-based biodiesel from January to early September, as it rolled out the B50 blend nationwide, an Energy Ministry presentation at a parliament hearing showed.

Palm oil may test a support at 4,930 ringgit per metric ton, a break below may trigger a fall into the 4,876-4,903 ringgit range, Reuters technical analyst Wang Tao said.

Houthis in Yemen launched strikes on several Saudi cities, further embroiling a US ally in the over six-month-long conflict, while US forces hit multiple Iranian oil tankers and Iran targeted a US ​base in Jordan.

That pushed Brent crude futures up over 1.48% to $99.37 per barrel, casting a shadow over global markets ​ahead of a US inflation report on Friday that will set the stage for central bank meetings ⁠next week in the U.S. and Japan.

The reaction in the currency market was to push the dollar modestly lower, although some ​analysts attributed that weakness to the rapid rise of the yen in the past week.

The euro was steady at $1.1631, while sterling last bought $1.3546.

​The dollar index , which measures the US currency against six of its key rivals, was at 98.15, close to its lowest level in almost two weeks.

OCBC strategists said the latest escalation keeps Fed policy implications from higher energy prices in focus, particularly after last week’s strong US payrolls report revived expectations of another ​rate hike.

“For now, higher oil and yields may help limit USD downside, but we suspect a more decisive move will require ​confirmation from the upcoming inflation data,” they said in a note.

The spotlight has been on the yen on the back of its 4% rise in ‌September ⁠that has shifted the calculus for the popular carry trade in which investors borrow in yen at a low cost to invest in other currencies and assets offering higher yield.

The yen was firmer at 153.65 per US dollar, close to the seven-month high of 152.89 it hit on Tuesday.

The rally has been broad-based, with the Japanese currency gaining against the euro and sterling, as well as popular carry-trade targets ​such as the Mexican peso and ​Turkish lira.

The move has been ⁠fuelled by expectations of faster Bank of Japan tightening, prospects of Japanese investors repatriating overseas funds, and pressure from Washington for a stronger yen.

Traders widely expect the BOJ to raise rates by 25 basis ​points at its September 17 to 18 meeting, but the rally will hinge on whether Governor Kazuo Ueda ​follows through with ⁠hawkish comments while the wild card will be the Federal Reserve.

“Much depends on the market’s pricing of the Fed’s trajectory of interest rates as well,” said Aninda Mitra, head of Asia macro and investment strategy at BNY Investments.

Oil nears $100 as fresh Middle East strikes raise supply risks

“‘Fair value’ for the yen is in the 140s in our ⁠estimation and ​a further move toward that area should not entirely come as a surprise ​after, what has clearly been, an overshoot to the side of excessive yen weakness.”

Across the Pacific, the Australian dollar rose 0.12% to $0.7225, just shy of the four-month high ​it touched in the previous session. The New Zealand dollar was 0.16% higher at $0.5862.

The Indian rupee is ‌expected to open in the 94.84 to 94.86 range, per traders, having settled at 94.8175 to the dollar in the previous session.

The South Asian currency fell the most ​in nearly a month on Tuesday with the rise in oil ​prices countering the Reserve Bank of India’s efforts to keep ⁠it anchored.

The RBI has used regular and, at times, forceful intervention in ​recent weeks to push the rupee higher, helping drive the currency to a ​two-month high late last week.

While the central bank was present in the market on Tuesday, traders said the intervention was not enough to prevent the rupee from weakening.

The decline ​marked a departure from the recent market action and could signal the ​RBI is becoming less inclined to support the currency aggressively when the underlying pressure is ‌driven ⁠by oil, a currency trader at a bank said.

RBI may be increasingly mindful of using its FX reserves to push the rupee higher in an environment that is becoming more negative for the currency, he said.

“It will not ​be a surprise” ​if the rupee ⁠falls to 95, he added.

Oil headwinds mount

Oil prices rose for the fourth straight session after Iran launched fresh attacks ​on US military assets in the Gulf. Worries over ​the war ⁠between Washington and Tehran spilling out across the region lifted Brent to $99.66 per barrel, the highest since late July.

Higher crude prices could strengthen the case for ⁠a Federal ​Reserve rate hike next week, adding to ​support for the dollar and leaving the rupee facing pressure from both higher import demand and ​a rise in U.S. Treasury yields.

The yen strengthened towards the nearly seven-month high touched against the dollar on Tuesday as traders exited short positions in the Japanese currency amid expectations for faster Bank of Japan interest rate hikes and a potential rush of repatriation of Japanese capital.

The euro edged higher ahead of the European Central Bank’s ​policy decision on Thursday, with markets widely expecting a hike amid inflationary pressures from the Iran war.

Iranian-backed Houthis in Yemen launched strikes ​on several Saudi cities on Tuesday, further embroiling a U.S. ally in the conflict, while U.S. forces ⁠hit multiple Iranian oil tankers and Iran struck a U.S. base in Jordan.

Oil prices jumped for a fourth straight session on Wednesday, gaining more than $1 ​in early trade.

Brent crude futures rose $1.57 to $99.49 a barrel, the highest level since late June. U.S. West Texas Intermediate crude was at $94.63 a ​barrel, up $1.60.

Stocks in Sydney slipped around 0.3%, while Hong Kong’s Hang Seng dropped 0.6% and mainland Chinese blue chips edged up 0.2%.

A rebound in chip and AI stocks helped some other regional benchmarks though, with Japan’s Nikkei up 0.6% following Tuesday’s 1.7% tumble. South Korea’s KOSPI jumped 1.6% and Taiwan’s TAIEX rose 0.6%.

Japanese ​cable makers surged after Verizon and Corning signed a deal on high-density optical fibre.

Overnight, the Philadelphia SE semiconductor index jumped 1.3%, despite declines on Wall Street’s ​three main indexes.

U.S. S&P 500 futures added 0.1%, after the cash index sank 0.6% on Tuesday.

“Across several of the major macro markets, we see indecision ‌in the ⁠price action – tight ranges and a general holding/consolidation pattern,” Chris Weston, head of research at Pepperstone, wrote in a client note.

Brent crude is currently “one of the clearest real-time signals for sentiment” for the overall market, and $100 “now feels like a highly achievable level,” he said.

Inflation worries have weighed on global equities in recent weeks and lifted bond yields as traders price higher odds for central bank tightening.

US CPI data is due on ​Friday.

Traders assign close to even odds ​for a quarter-point hike or ⁠a hold from the U.S. Federal Reserve on Wednesday of next week, while being all but certain of a quarter-point increase from the BOJ two days later.

The yen strengthened around 0.2% to 153.66 per dollar , ​edging back towards its high of 152.89 from the previous session.

It had surged around 4% ​over the last ⁠five sessions, with hawkish comments from BOJ officials ostensibly initiating a move that then snowballed as breaks of key levels triggered additional buying, market players said.

The ECB is all but certain to raise euro zone rates by a quarter point on Thursday.

The euro added 0.1% to $1.1629, putting it in the ⁠middle of ​its tight range of the past three weeks.

Sterling was little changed at $1.3545, with the ​Bank of England due to announce its latest policy decision on Thursday of next week, with economists predicting the key rate will be on hold for the remainder of this ​year.

The Aussie rose 0.1% to $0.7222.

Bitcoin drifted higher to change hands at $78,680.60.

Gold gained 0.3% to around $4,368 an ounce.

The Middle ‌East war intensified on Tuesday with Houthis in Yemen launching strikes on several Saudi cities, further embroiling a US ally in the conflict, while US forces hit multiple Iranian ​oil tankers and Iran struck a US base in Jordan.

Brent crude futures ​jumped 1.5% to $99.5 per barrel.

Higher oil prices threaten to ⁠widen the trade deficit, fuel inflation, and weigh on growth in India, ​which imports most of its energy needs.

GIFT Nifty futures were at 23,652.5 points ​as of 7:46 a.m. IST, indicating a muted start for the Nifty 50 index, which closed at 23,635.1 on Tuesday.

The 50-stock index and BSE Sensex have lost 2.2% each over ​the past seven sessions, closing lower in six of them. They closed ​at their lowest levels since June 12 on Tuesday.

Investors globally remain focused on US inflation ‌data ⁠expected later this week, a key factor in determining the Federal Reserve’s rate action next week.

Higher US interest rates are negative for emerging market equities, as they could slow foreign flows while the dollar and Treasuries become more attractive ​under tighter monetary ​policy.

Foreign investors net ⁠sold Indian shares worth 1.23 billion rupees ($12.97 million) on Tuesday, as per provisional data. They have offloaded $1.33 billion worth ​of shares so far in September.

According to the World Bank’s document, the project has a total revised financing of USD 69.16 million, of which USD 60.80 million remains undisbursed. The project was approved in March 2024 and became effective in May 2024, with its closing date set for July 31, 2028.

The Bank, however, maintained that its overall assessment of the project is “Moderately Satisfactory”, both for progress towards the development objective and overall implementation progress, while the overall risk rating remains “Moderate”.

The project aims to enhance the government’s capacity for digitally enabled public service delivery to citizens and businesses. It comprises four components, including improving digital economy, governance, and service delivery capabilities with an estimated cost of USD 58 million, development of the Pakistan Business Portal costing USD 15 million, and project management costing USD 5 million.

Despite the slow financial progress, the Bank acknowledged important advances in establishing digital public infrastructure.

The National Database and Registration Authority (NADRA) has issued 2.3 million Digital IDs, while 6.5 million transactions have been processed through the National Data Exchange Layer. The PakID Vault has also enabled 11 types of verifiable credentials, while the Enterprise Architecture Framework has been completed and the Data Governance Policy has been disclosed for public consultation.

However, the World Bank said the Ministry of Information Technology and Telecommunication (MoITT), working under the institutional arrangements created through the Digital Nation Pakistan Act 2025, needs to prepare a time-bound service prioritisation and onboarding strategy with the Pakistan Digital Authority (PDA), federal and provincial governments.

The strategy is required to cover the next six months, one year, and two years.

The ministry also needs to publish the Enterprise Architecture Framework along with an adoption roadmap and formally adopt and operationalise the Data Governance Policy and Interoperability Framework. Completion of the feasibility study for the National Fiberisation Plan is another outstanding requirement.

The report shows that transactions through the National Data Exchange Layer stood at 650,000 in August 2026, against a closing-period target of 13.333 million. Six entities have so far been integrated with the national data exchanger, against a target of 40 by November 2027.

Private-sector integration also remains at an early stage, with only one private-sector entity integrated with the national data exchange layer against a target of 13.

Meanwhile, 11 verifiable credentials can currently be stored in the digital vault, against a target of 40, while 18 services are available on the national citizen services portal against a target of 20.

The Pakistan Business Portal is also yet to process any Registration, Licenses, Certificates and Other (RLCOs) transactions, whereas the project targets 4,000 annual transactions by November 2027. Similarly, B2G payments and RLCO services made online remain at zero against a target of 50 percent.

The documents further noted that women accounted for 9.2 percent of users of digitally enabled services, against a closing-period target of 30 percent, while data on youth users was not currently available.

Copyright Business Recorder, 2026

The SBP is scheduled to hold the MPC meeting of 2026 on Sep 14, 2026 for celebration on the key economic issues to take a decision on key policy rate. The committee in its last meeting held on Jul 27, 2026, unanimously kept the policy rate unchanged at 11.5 percent, in line with market expectations.

In a poll conducted by Topline Securities, 84 percent of respondents expect the policy rate to remain unchanged on Sep 14, 2026 MPC meeting. Meanwhile, 14 percent expect policy rate to rise by 50bps and 2 percent expect policy rate to rise by 100bps.

READ MORE: SBP holds key policy rate at 11.5pc

Market participants expectations are largely driven by annual inflation expectations which at current oil prices USD 95 per barrel remains largely below 9 percent (FY27 avg), suggesting positive real spread of over 250bps, in line with historic real rates. Furthermore, improving reserves and contained current account balance are also augmenting the status quo view of participants.

According to Topline Securities, since the last meeting, market expectations for interest rates have broadly remained stable, however, risk outlook has increased amidst elevated oil prices.

Recent hike in tensions between the US and Iran have renewed uncertainty in oil prices. The domestic petrol prices since last monetary policy have also increased by Rs24 per liter. While diesel prices have declined by only Rs2 per liter despite capping the crack margins at USD 41.9 per barrel.

Status quo expectations also evident from current secondary market yields of 3M and 6M T-bills, which are trading at 11.41 percent and 11.68 percent, largely unchanged from last MPC.

Analysts at Topline also expecting the State Bank to maintain the policy rate at 11.5 percent in its Sep 14, 2026 MPC meeting mainly due to sufficient real spread, and improving external outlook specially after recent USD 3 billion Eurobond launch.

However, if oil prices and food inflation remains sticky, this could also warrant a rate hike of 50-100 in upcoming MPC meetings i.e. Oct or Dec 2026.

Topline Research also conducted a poll of key market participants on their expectations for the policy rate, average inflation, and PKR/USD parity. “We also expect the policy rate to remain unchanged at 11.5 percent until Mar 2027. However, if oil prices remain above USD95 per barrel and food inflation stays elevated, we may see a 50-100bps hike in subsequent meetings”, the report said.

Copyright Business Recorder, 2026

He also directed the tax authorities to review the proposal to allow the super tax exemption for exporters having less than 80 percent of export proceeds.

The directives came during a meeting with a delegation of the country’s prominent industrialists and business leaders, who presented proposals relating to taxation, energy costs, regulation, trade and industrial activity.

Welcoming the proposals, the prime minister said the government wanted to work with the business community to promote exports and strengthen economic activity.

READ ALSO: Rs3bn risk pool: PM says step to help boost export volume

He noted that several recommendations submitted by the private sector during the budget-making process had been incorporated into the budget.

Reducing energy costs remained a key government priority, Sharif said, while efforts were also being made to improve the ease of doing business.

He said the recently established Trade Facilitation Board (TFB) would be strengthened into an effective institution for promoting trade and invited the business community to suggest measures for improving its performance and expanding its role.

Sharif also pointed to the Special Investment Facilitation Council (SIFC), saying it had provided investors and businesses with a one-window platform aimed at facilitating investment and resolving administrative issues.

Work was also under way on a regulatory “guillotine” to eliminate unnecessary regulations, simplify procedures and reduce compliance costs for businesses, he said.

The prime minister cited progress in the digitisation of the Federal Board of Revenue (FBR), saying the tax authority had collected Rs800 billion through enforcement during the last fiscal year.

He said the country’s macroeconomic conditions had improved considerably following measures taken by the government’s economic team.

However, he cautioned that more work was needed at the microeconomic level to ensure the benefits of economic stabilisation reached the wider population.

Sharif also stressed the need to align workforce training with industry requirements, saying young people needed skills that matched changing market demand.

The business delegation was briefed on measures aimed at improving trade infrastructure and reducing transportation bottlenecks.

Port charges had been reduced and operational capacity at the country’s ports improved, officials said.

Work is under way on the upgradation of Motorway M-10 and the Pipri Freight Corridor to improve inland connectivity from Karachi’s ports.

The construction of Motorway M-13 between Kharian and Rawalpindi is expected to improve connectivity between Lahore and Islamabad.

The government is also upgrading Pakistan Railways to strengthen freight infrastructure and facilitate faster movement of commercial goods.

Officials told the delegation that government measures had contributed to a record increase in IT exports.

They said one million people were being trained in information technology and artificial intelligence as part of efforts to expand the country’s digital workforce.

The government was also taking steps to support small and medium-sized enterprises (SMEs), particularly by facilitating their entry into the export sector and improving access to financing.

Business leaders welcomed what they described as improved macroeconomic stability and expressed confidence in the government’s economic reforms.

They particularly appreciated the Export Development Fund, timely payment of tax refunds and FBR digitisation.

They also welcomed Pakistan’s successful issuance of a USD 3 billion bond, saying it reflected improved macroeconomic stability and growing business confidence.

The participants expressed their willingness to continue cooperating with the government to promote export-led growth and welcomed its privatisation and deregulation policies.

The business leaders also raised sector-specific concerns and put forward proposals for addressing issues affecting their respective industries.

The delegation included Mian Muhammad Mansha, Arif Habib, Saqib Shirazi, Atif Bajwa, Muhammad Ali Tabba, Musaddiq Zulqarnain, Umar Saeed, Samad Dawood, Ashraf Mokaty, Shahid Soorti, Shehzad Asghar, Ziad Bashir, Shehzad Saleem, Asif Peer, Aamir Ibrahim, Javed Bilwani, Siddiq Bhatti, Fawad Anwar, Khurram Mukhtar and Yousaf Hussain.

Copyright Business Recorder, 2026

The FBR has explained that the Clause (1AA) has been inserted in Section 2 to define “algorithmic settlement mechanism” with reference to the new Section 134B.

Section l34B empowers the Board to establish a digitally operated algorithmic settlement mechanism for settlement of tax proceedings at any stage before any assessment or amendment of assessment under sections 121, 122 or 122E, through revision of return under sub-section (6) of Section 1.14. Where the mechanism calculates and presents a settlement offer to the taxpayer - computed on the basis of the stage of proceedings, the taxpayer’s compliance history. the nature and character of the discrepancy and such other basis as the Board may consider relevant the taxpayer may, within ten days, accept the offer on IRIS, deposit the settlement amount along with the revised return and revise “the relevant return of income.”

On such acceptance, the issues confronted through the notice of selection for audit, notice under Section 111, audit report under Section 177(6) or notice under Section 122(9), as the case may be, shall stand abated without precluding proceedings on any other issue or tax year.

Consequential amendments have been made in section 114: sub-section (6) now recognizes a revision of return where a taxpayer avails a settlement offered by the mechanism, and a new sub-section (68) provides that in such a case the approval of the Commissioner shall not be required and no separate penalty or default surcharge shall be payable, the FBR added.

Through the Finance Act, 2026, a comprehensive faceless regime has been introduced in the Ordinance. The definition of “assessment” in clause (5) of Section 2 has been expanded to include “faceless assessment,” and a new clause (3 5) (1A) has been inserted to define “National faceless centre.” Section 227D has been substituted to empower the Board to establish a National faceless centre (the centre) for conducting proceedings under the Ordinance in a faceless manner and to specify its jurisdiction, powers and functions.

The centre shall comprise a Director General and such Chief Commissioners, Commissioners and other Income Tax Authorities and support staff as the Board may deem fit, organized into such wings and units as may be prescribed. The functions of audit, assessment and quality control for a specific case and tax year are required to be performed by separate officers, and all communications, whether among the units or with the taxpayer or his authorized representative, shall be through electronic means, the FBR added.

Copyright Business Recorder, 2026

Similarly, the price of High-Speed Diesel (HSD) has also been increased by Rs4.18 to Rs385.95 per litre.

Global refined product prices continue to climb amid escalating regional geopolitical tensions, rising from USD 111.50 per barrel during September 5–7 to USD 113.61 on September 8, and now reaching USD 116.22 per barrel.

The ex-refinery import price of petrol has surged by Rs5.58, rising from Rs248.32 to Rs253.90 per litre, while HSD saw an increase of Rs4.18, moving from Rs274.90 per litre to Rs279.08 per litre.

A Petroleum Division notification confirms that levies and profit margins remain largely steady across both products.

According to the notification, government levies and fixed profit margins for petrol and high-speed diesel (HSD) remain unchanged. Both fuels carry a Petroleum Levy of Rs80 per litre, a Climate Support Levy of Rs5 per litre, and profit margins of Rs9.98 per litre for dealers and Rs7.87 per litre for oil marketing companies.

Meanwhile, customs duties stay fixed at Rs21.15 per litre for petrol and Rs15.68 per litre for HSD, while the Inland Freight Equalisation Margin (IFEM) has been adjusted at Rs7.60 on petrol and Rs4.02 per litre on HSD.

According to latest data, Pakistan’s crude/POL imports declined by 11 percent YoY to 1.24 million tonnes in July 2026, driven by a sharp 35 percent YoY fall in MS imports, while HSD and JP-1 imports were nil, amid higher refinery utilisation levels.

Copyright Business Recorder, 2026

The PAMA, while expressing serious concerns regarding the future and sustainable growth of Pakistan’s automotive industry, has requested that the new Auto Policy be announced at the earliest, with measures that support the long-term interests of the automotive sector and promote industrialization in Pakistan.

The industry remains fully committed to supporting your efforts and stands ready to contribute toward the growth, development, and strengthening of Pakistan’s industrial base. Pakistan’s automotive industry holds the rare distinction of being among the largest CKD vehicle-producing bases in the world, with over 100 models manufactured locally.

Over the last three automotive policy periods, the sector has attracted billions in investment, from OEM’s and parts manufacturers alike, generating billions of rupees in revenue for the national exchequer. This is a proven pillar of national industrial capacity, built through sustained investment and policy continuity.

While the industry is not aware of the final contours of the forthcoming policy, the industry stakeholders urge that it should continue to prioritize and encourage local manufacturing and value addition rather than create incentives for the import of Completely Built Units (CBUs). Pakistan’s automotive industry has already established substantial production capacity through significant long-term investments in manufacturing facilities, vendor development, technology, and human resources.

In this context, any policy measure that makes the import of CBUs more commercially attractive than local manufacturing could adversely affect capacity utilization, localization, employment, investment, and the broader industrialization objectives of the country. Under reduced and subsidize tariff, the liberalized used car import will further hamper domestic manufacturing and value-addition activity and will shut down local vehicle and parts manufacturing affecting thousands of factories and millions of jobs. The industry requested that the policy framework be structured in a manner that safeguards and promotes domestic manufacturing, particularly where adequate local production capacity already exists.

The government’s objective of enhancing exports is highly commendable and fully supported by the industry. However, sustainable export growth requires a competitive and enabling environment, including reasonable input and energy costs, efficient infrastructure, and improved access to international markets through favourable trade arrangements. We respectfully submit that additional fiscal burdens on the domestic industry, particularly alongside measures that may encourage imports, could affect its competitiveness.

A balanced policy framework that strengthens local manufacturing and export capability would better support the government’s long-term industrial and export objectives. Given the gravity and urgency of this matter, we respectfully request an audience with you at the earliest opportunity to place before you the complete facts underlying our concerns and to explore, together, a policy path that safeguards this critical industry. The industry expressing hopes for the continued governments support has reiterated the commitment of continuing serving the country as it has served in the past.

Copyright Business Recorder, 2026

In a letter to Petroleum Minister Ali Pervaiz Malik, the OCAC chairman expressed deep concern over repeated changes to the High-Speed Diesel (HSD) pricing mechanism in recent months, the latest of which was introduced on August 20, 2026.

The OCAC also referred to reports that the government is contemplating another intervention in the HSD pricing mechanism. According to the industry, the proposed measure would reduce the HSD crack ceiling from USD 41.89 per barrel to USD 30 per barrel, potentially resulting in a further reduction of around Rs18-20 per litre in the HSD price.

According to OMCs, the existing HSD pricing mechanism does not reflect the premium currently prevailing in the market. The Aramco premium for October stands at minus USD 2 per barrel, which is the same premium reflected in the existing HSD pricing formula, whereas cargoes are reportedly being offered and booked at premiums ranging between USD 15 and USD 20 per barrel.

The industry said this was creating significant challenges for refineries in booking October cargoes, warning that any abrupt reduction in the HSD price could make the booking of high-premium cargoes uneconomical.

“This could force refineries to reduce throughput instead of increasing it in anticipation of seasonal demand,” the OCAC chairman said.

The industry further argued that it had consistently supported the government during challenging periods and could not reasonably be expected to repeatedly absorb the financial cost of policy interventions.

Copyright Business Recorder, 2026

SITE Association of Industry President Abdul Rehman Fudda questioned whether the government wanted industries to remain operational and employment opportunities to be preserved, or whether the industrialists were being left with no option but to shut their plants and sit at home.

He urged the government to abandon the policy of revising petroleum prices on a daily basis and introduce a 15-day pricing cycle, saying greater stability in fuel prices was essential for industrialists, exporters and businesses to accurately assess production costs and enter into commercial agreements.

Fudda said representatives of the public, business and industrial sectors had repeatedly urged the government to reduce petroleum prices and reconsider the daily pricing mechanism. However, diesel and petrol prices had once again been increased by Rs3.72 and Rs12.90, respectively, placing an additional burden on businesses and industry.

He said the repeated increases were particularly damaging at a time when the government was claiming to be working towards boosting exports, attracting investment and improving the ease of doing business.

“On the one hand, committees are being formed to increase exports and facilitate businesses; on the other, policies are being pursued that are making it increasingly difficult for industries to remain operational,” he said.

The SAI chief said Pakistani manufacturers and exporters were already under severe competitive pressure because of high production costs compared with regional competitors. Frequent changes in petroleum prices were making it increasingly difficult for businesses to calculate production costs, quote prices and enter into new commercial contracts.

He said small and medium-sized enterprises (SMEs), already struggling with difficult operating conditions, were being pushed further into distress, while large-scale manufacturing units were also facing growing challenges to their survival.

Fudda warned that a decline in industrial activity would have a direct impact on employment. Shrinking job opportunities, particularly for young people, could aggravate social problems and contribute to rising crime and insecurity.

He pointed out that industries were already grappling with high electricity and gas costs, inadequate water availability, law-and-order concerns and heavy taxation. In such an environment, he said, announcements aimed at attracting new and foreign investors would have limited impact unless existing industries were first stabilized and made competitive.

According to SAI chief, ensuring the uninterrupted operation of existing industries should be the government’s immediate priority, as a functioning industrial base was essential for generating employment, increasing exports, supporting economic growth and creating an environment conducive to foreign investment.

“If existing industries are forced to close, efforts to attract new investment and increase exports will lose their effectiveness,” he said, urging the government to take immediate measures to contain industrial costs and provide a stable policy environment.

Copyright Business Recorder, 2026

A three-member bench, headed by Chief Justice of Pakistan Yahya Afridi, on Tuesday heard petitions filed by 40 employees seeking the FBR Headquarters Allowance on the basis of time-scale promotion. The bench upheld the verdict of the Federal Service Tribunal.

The Tribunal, on 26-02-26, through a consolidated judgment, set aside the impugned U.O/clarification dated 17.11.2023 of the Finance Division regarding grant of FBR HQs Allowance, 2023 being in deviation from the Prime Minister’s office letter dated 11.10.2023.

It declared that the respondents (FBR employees) are eligible for the grant of the FBR-HQ Allowance as sanctioned for BS-17 to BS-22 officers posted in the FBR-HQ, Islamabad, on the basis that they have been awarded time scale BS-17 which entitles them for the grant of pay and allowances of BS-17 despite that he being an officer of BS-16 and despite the said allowance extended only to the regular officers of BS-17 and above stationed in the FBR HQs.

During the proceedings, Afnan Karim Kundi, representing the FBR, argued that the consolidated judgment dated 26.02.2026 passed by the Federal Service Tribunal, Islamabad, does not align with the law applicable to the case and the facts discernible from the record.

He contended that the Tribunal erred in law by holding that the Finance Division “has deviated from the summary approved by the Prime Minister by inserting paragraph “D” on its own initiative”.

Speaking during the hearing, counsel for the FBR said that executive allowance was given to the Board employees. “Headquarters allowance cannot be given to time scale employees,” he added.

The Chief Justice questioned whether the Prime Minister had given approval for the timescale allowance. Justice Miangul Hassan Aurangzeb, a member of the bench, asked the counsel to produce the allowance’s summary so that the bench could get to the truth. The counsel then provided a copy of the summary.

FBR’s lawyer said that the allowance was meant for grade-17 employees, while the petitioners in the case were not grade-17 officers.

The chief justice replied that there was nothing in the summary that could support the lawyer’s assertion. The grant of time-scale to BPS-01 to BPS-16 officers was formulated vide O.M. F.No.9(7)R-1/2014-233/2022 dated 28.05.2022 pursuant to Government’s Policy for Grant of Time-Scale to Civil Servants of BPS-1 to BPS-16.

CJP Afridi then asked the FBR counsel to contact the relevant authority if the department wanted to separate the time-scale employees from the rest.

Kundi stated that the Tribunal was not authorised to hear the case under review. He requested the Court to issue a notice to the Finance Division. However, the bench did not entertain his request.

The FBR petition raised questions: “whether a civil servant posted at FBR Headquarters, Islamabad holding substantive/presumptive payscale of BPS-16 who is only granted higher “timescale” of BS-17 would be entitled to the payment of FBR HQ Allowance at 140 percent of Basic Pay which is specifically and exclusively admissible to the “officers of BS-17 and above” at FBR Headquarters, Islamabad as per the Finance Division’s U.O. No. F.14(1)R-3/2012-478, dated 17.11.2023, read with the Prime Minister’s approval contained in letter dated 11.10.2023?

“Whether the phrase “officers of BS-17 and above” employed in the Prime Minister’s approval of FBR HQ Allowance contained in letter dated 11.10.2023 includes someone whose substantive pay-scale is BS-16 but has only been granted higher timescale of BS-17 under the Time Scale Policy?

“Whether the Tribunal erred in declaring the requirement of “substantive payscale” contained in Finance Division’s U.O. No. F.14(1)R-3/2012-478, dated 17.11.2023, as without lawful authority, being in excess of the Prime Minister’s approval conveyed vide letter dated 11.10.2023?

“Whether the Finance Division’s U.O. No. F.14(1)R-3/2012-478, dated 17.11.2023 has rightly interpreted the Prime Minister’s approval contained in letter dated 11.10.2023 to be confined to officers holding “substantive payscale” of BS-17 and above, since grant of timescale of BS-17 does not make the incumbent of a BS-16 post an “officer of BS-17” as envisaged in the Prime Minister’s approval?”

Copyright Business Recorder, 2026

A single-judge bench of Justice Arbab Tahir heard a petition, filed by Khushhali Microfinance Bank, seeking exclusion of its employees from the ambit of the EOBI and the applicable old-age benefits laws.

In 2019, the EOBI issued a notice to the petitioner bank, seeking recovery of approximately Rs 1 billion on account of unpaid contribution towards old-age benefits for its employees. The bank, however, assailed the demand notice in the Islamabad High Court, relying on Section 47(e) of the EOBI Act, 1976, which expressly excludes employees of banks and banking companies from the application of the Act.

Relying on this provision, the bank contended that the notices had been issued without jurisdiction. The operation of the notices has remained suspended for approximately seven years.

During the proceedings, Barrister Umer Ijaz Gilani, appearing on behalf of the EOBI, argued that Microfinance Bank employees are not excluded from EOBI protection. He argued that since the Act 1976 does not define the terms “bank” and “banking company”, they must be interpreted in light of the principle of “contemporaneous exposition”.

He submitted that, at the time of enactment, the term “bank” was defined by the Banks Nationalization Act, 1975, which referred primarily to nationalized banks, whose employees were already entitled to generous employment protections. It was therefore argued that the legislature intended to exclude only such employees from the ambit of EOBI who were already enjoying vast statutory rights; therefore, this exclusion should not automatically be extended to employees of microfinance banks, whose employees have no such alternative statutory protections.

At that point, counsel for the petitioner bank, Advocate Asim Imdad, contended that his client was already providing generous benefits to its employees. He also maintained that microfinance banks are also banks within the meaning of the relevant legislation. Although the Microfinance Institutions Ordinance, 2001, initially did not provide sufficient clarity on the issue, subsequent amendments have clarified that microfinance banks are akin to banks. Accordingly, the petitioner argued that the exemption from the EOBI regime enjoyed by banks should also be extended to microfinance banks.

After hearing the preliminary arguments of both the parties, the bench directed the counsels to advance further arguments on the next date of hearing, and adjourned the case until 15th October.

Copyright Business Recorder, 2026

Brent futures rose 92 cents, or 0.9 percent, to settle at USD97.92 a barrel, while US West Texas Intermediate (WTI) crude rose USD1.55, or 1.7 percent, to settle at USD93.03.

That kept both crude benchmarks in technically overbought territory and was the highest close for Brent since July 23 for a second day in a row and the highest close for WTI since June 4.

Oil prices rise to six-week highs

The Houthis attacked four cities in the south of Saudi Arabia, which is a US ally, on Tuesday, wounding more than 70 people and setting oil installations on fire.

Houthi-controlled media reported later on Tuesday that Saudi warplanes had carried out airstrikes in Yemen’s Jubah district, east of the capital Sanaa, and Taiz province in the southwest.

Oil exports from the Gulf region have been severely impaired since Iran attacked energy infrastructure in the region and ships passing through the Strait of Hormuz following joint strikes from the US and Israel in late February.

Saudi Arabia, the world’s second-biggest crude producer behind the US, has been circumventing the strait by shipping oil west to the Red Sea. But Tuesday’s attacks appear to be among the largest carried out against that nation, and threaten to worsen the war’s global economic effect by disrupting Middle East energy supplies beyond the blockaded Strait of Hormuz.

Wall Street is also coming to grips with the likelihood that Middle East shipping disruptions will continue into 2027. Goldman Sachs, HSBC and other banks raised their crude price forecasts for the rest of 2026 and 2027.

The number of commodity vessels sailing through the Strait of Hormuz totaled seven on Monday, compared with eight on the previous day, Kpler data showed on Tuesday.

Before the US and Israel attacked Iran in February, about 20 percent of world oil supplies passed through the Strait of Hormuz.

Fuel prices high around the world

Oil futures, however, did pare earlier gains on increasing worries that high fuel costs will stoke inflation and force central banks around the world to raise interest rates, which could reduce economic growth and demand for energy.

Global fuel prices were high due primarily to disruptions at refineries in the Middle East, Russia and elsewhere. In the US, diesel prices reached record highs last week and Americans faced record-high gasoline prices over the Labor Day holiday weekend.

Senior industry executives predicted global diesel supply will remain tight through winter due to a lack of spare refining capacity, Russia’s ban on exports following attacks by Ukraine and the approach of peak winter demand.

Those high prices, coupled with comments from US Federal Reserve Governor Christopher Waller and a stronger-than-expected US jobs report, caused some investors to change their US rate-hike expectations.

Traders are now pricing in about a 60 percent chance of an interest rate hike at the Fed’s September 15 to 16 policy meeting, according to the CME FedWatch Tool, up from about 50 percent before the jobs data.

Russia and Ukraine

Crude futures also pared some early gains after US President Donald Trump told Russian President Vladimir Putin by phone on Tuesday that he wanted a swift end to the war in Ukraine, which would allow US-Russia ties to be fully restored, the Kremlin said, adding that Putin had supported the US president’s view.

An end to the Russia-Ukraine war could allow Russia to export more energy. Russia was the world’s third-biggest crude oil producer behind the US and Saudi Arabia in 2025, according to US energy data, and is a member of the OPEC+ group of producing countries.

In China, the world’s second-biggest economy behind the US, crude oil imports in August improved from July but volumes were down 23.4 percent from a year earlier, according to customs data released on Tuesday.

China has restricted refined oil product exports since March to safeguard domestic supplies even as domestic consumption fell because of higher prices.

The Sub-Committee of the Senate Functional Committee on Devolution, chaired by Zamir Hussain Ghumro, observed that the federal government was proceeding with the privatisation of distribution companies under its jurisdiction despite recovery rates of 100 per cent in Islamabad, 98pc in Faisalabad and 99pc in Lahore.

The committee was informed that the issue had previously been considered by the CCI in 2011.

Ghumro questioned the relevance of that decision, while Senator Jan Muhammad Buledi pointed out that the CCI had been reconstituted several times since then.

The panel recommended that the proposed privatisation be referred to the CCI for fresh consideration and an appropriate decision, saying power distribution should be dealt with within the constitutional framework of devolution.

Citing Article 157 of the Constitution, Ghumro said provincial governments had powers relating to electricity distribution within their respective provinces, including matters concerning tariffs, consumption taxes and the establishment of power houses and grid stations.

The committee also took strong exception to the continued existence of 24 federal ministries and institutions dealing with subjects devolved to the provinces under the 18th Constitutional Amendment.

It unanimously rejected the Cabinet Division’s argument that the bodies were required for coordination and international commitments, saying the justification had already been rejected at its previous meeting.

Ghumro said retaining the 24 ministries and institutions at the federal level was a financial burden, citing federal government expenditure of around Rs19 trillion against total tax and non-tax revenue of about Rs20 trillion.

He directed the Cabinet Division to bring the matter to Prime Minister Shehbaz Sharif’s notice and submit a fresh compliance report.

The committee said only ministries dealing with genuinely federal responsibilities should remain at the Centre and sought compliance within two weeks.

The panel also directed the Establishment Division to transfer police-related service matters to the provinces, observing that police had become an exclusively provincial subject after the relevant entry was omitted from the Concurrent Legislative List.

It further pressed for implementation of provincial rights under Article 172(3), particularly the provinces’ equal and joint ownership of mineral oil and natural gas.

The committee took serious exception to the reported failure to seek provincial nominations for the board of directors of Pakistan Petroleum Ltd (PPL), describing the move as a possible breach of privilege.

Meanwhile, the committee was briefed that six Thar coal-based power plants were operational. Four were running entirely on Thar coal, while the other two were using Thar coal for 33pc and 20pc of their fuel requirements, respectively.

Copyright Business Recorder, 2026

He warned that successive international oil shocks — compounded by high domestic levies — are crippling the country’s export competitiveness, widening the trade deficit, and threatening widespread industrial closures.

Atif Ikram Sheikh emphasized that with the prices of high-speed diesel (HSD) and furnace oil significantly inflating inland logistics, supply chains, cost of electricity generation, and manufacturing overheads, the country’s flagship export sectors are rapidly losing their footing against regional competitors.

The FPCCI chief explained that the country urgently needs a dedicated, strategic safety net for exporters to prevent widespread de-industrialization. Passing on the full brunt of global oil price escalations directly to the industrial sector will be completely unsustainable.

He said that the ripple effects of exorbitant freight and transportation costs are eroding the narrow profit margins that exporters rely on to secure international orders.

Atif Ikram Sheikh said that to successfully hedge the economy and industrial sector against these external shocks, FPCCI has proposed a multi-pronged approach. Foremost, the trade body demands an immediate suspension of the Petroleum Development Levy (PDL) for export-oriented manufacturing. This targeted safety net is essential to provide a critical financial buffer and preserve the country’s foreign exchange earnings.

Furthermore, President FPCCI called for a fast-tracked national transition towards alternative and renewable energy sources. In addition to fuel-specific interventions, the FPCCI leadership stressed the absolute necessity of rationalizing overall energy tariffs.

Bringing electricity and gas tariffs at par with regional competitors, such as Bangladesh, Vietnam, and India, is crucial, as these nations have successfully utilized strategic mechanisms to shield their core industrial bases from massive economic shocks.

To complement these efforts and ease the ongoing liquidity crisis, Sheikh also urged an aggressive reduction of the central bank’s exceptionally high policy rate to provide affordable working capital for industrial production.

Atif Ikram Sheikh highlighted that Small and Medium Enterprises (SMEs) — the backbone of the export supply chain — lack the financial muscle of larger corporations and will be the hardest hit.

He cautioned that SMEs are facing an immediate liquidity crisis as their operational costs surge sharply. Without targeted intervention, inevitable factory closures, shift reductions, and mass unemployment will follow.

Copyright Business Recorder, 2026

He said high-speed and reliable internet had become a fundamental requirement for exports, investment, education and healthcare diagnosis.

Pakistan is emerging as an important information-technology export hub, with exports of telecommunications, computer and information services reaching $4.6 billion in FY2025–26, approximately 21 percent higher than $3.8 billion a year earlier. July 2026 receipts increased by around 18 percent to $417 million, compared with $354 million in July 2025, he said.

These achievements demonstrate the room for Pakistani IT companies, freelancers and educated youth to earn foreign exchange and generate employment.

Hussain said reliable, high-speed internet was indispensable for sustaining this progress and taking the sector to the next level. Electricity load-shedding, slow internet and connectivity disruptions affect online meetings with international clients, software delivery, e-commerce, cloud services and digital transactions.

He said that internet usage among individuals aged ten and above stood at 57 percent nationally, compared with 69 percent in urban areas and 49 percent in rural areas—a gap of 20 percentage points.

He said satellite internet should be developed as an additional source of connectivity alongside submarine cables, terrestrial networks and fibre-optic expansion.

He said artificial intelligence has further increased the importance of digital access. AI has made valuable contributions to early disease detection, clinical care and medical research. Internationally, connected healthcare facilities are enabling doctors to share scans and medical images with specialists, obtain expert opinions and use clinically validated technologies to assist accurate diagnosis, including cancer detection at its initial stage.

He noted that NHS England reported the use of teledermatology—remote assessment through medical images—in 41 percent of skin-cancer referrals during the final quarter of FY2024–25. Pakistan could similarly connect healthcare centres with advanced international hospitals under specialist supervision to expand access to quality medical services.

Online consultations with medical experts abroad, treatment planning and remote follow-up could reduce patients’ travel costs and difficulties, while preserving clinical oversight, patient privacy and access to necessary physical care.

He urged the government to introduce pilot projects in less-developed districts, industrial centres and urban and rural healthcare facilities.

Pakistan, he concluded, must develop and use its digital infrastructure to provide dependable connectivity, strengthen productive activity, create employment and deliver better public services.

Copyright Business Recorder, 2026

Askari Bank is the first commercial bank to integrate its system with SECP’s corporate registry under the initiative. The integration allows the bank to securely access authenticated corporate information directly from SECP, reducing manual verification and the repeated submission of company documents.

The agreement was signed by SECP Commissioner Muzaffar Mirza and Askari Bank’s Group Head Retail Banking, Shaikh Rashid Rauf.

The ceremony was attended by SECP Chairman Dr. Kabir Ahmed Sidhu, Commissioners Muzaffar Mirza and Zeeshan Khattak, Executive Director Mubashir Saddozai, Registrar of Companies Arsalan Zafar, Askari Bank President and CEO Zia Ijaz, Group Executive Operations Aslam Sadaruddin, and other officials.

The integration will allow Askari Bank to securely obtain authenticated company information directly from SECP, reducing manual verification, repeated submission of documents and customer on boarding time. It will enable newly incorporated companies to swiftly operationalize by opening bank accounts and commencing business operations.

“This integration is part of SECP’s ongoing digitalization and B-READY reforms aimed at simplifying business processes, improving access to reliable corporate information and making it easier to establish and operate businesses in Pakistan,” Dr. Kabir Ahmed Sidhu said.

SECP plans to extend similar digital integrations to other banks and financial institutions.

Copyright Business Recorder, 2026

According to the documents, this auction lot, comprising smartphones, tablets, and electronic accessories, was allegedly removed from the state warehouse in Karachi on August 26, 2025, without paying any government dues.

The department received credible information that the auction lot had been moved out of the warehouse against fake and fabricated documents, causing revenue loss to the national exchequer.

In response, the department constituted an inquiry team to investigate the matter. The inquiry team reportedly found that the lot’s case file was missing from the auction section, with no corresponding entry, acknowledgment, or movement record on file.

A search of related records subsequently produced a delivery challan bundle purporting to include a delivery order, a pass, a copy of a CNIC, a Computerized Payment Receipt (CPR-IT), and a challan. Cross-verification of these documents against official registers found that the certificate issued under Rule 72, the delivery order, the CPR-IT, and the challan were all fake and fabricated, with no matching entries in departmental records and no evidence that any competent officer had issued or authenticated them. Similarly, no record of the payment slip ID or receipt numbers was found, confirming that neither the bid amount nor the applicable income tax was ever deposited into the kitty.

The documents further alleged that the department’s own staff posted in the customs auction section engineered the scheme. The FIR names the accused person as the principal accused, who is currently an absconder. It said that the accused allegedly leaked confidential details of the auction lot to another customs staff member, who in turn connected the alleged buyer through an intermediary.

Later, the customs staff allegedly forged the computerized payment receipt and challan to make it appear that the required bid value and income tax had been paid, while separately obtaining a token pay order of Rs3 million from the buyer to push the paperwork through internal approval channels.

Once the fabricated documents were approved, they were allegedly used to secure a release order, and the goods were handed over from the state warehouse. After delivery, the buyer allegedly paid roughly Rs15 million in cash.

The documents said the revenue loss is estimated at roughly Rs.5.5 million, while the total market value of the goods ranges between approximately Rs13.4 million and Rs18.4 million. Meanwhile, a top customs official confirmed that the buyer and one customs staff member have been arrested, while efforts continue to nab the mastermind.

He said the department has already taken disciplinary action against several staff members for negligence in failing to verify the authenticity of the documents used to secure the release of the goods, admitting that the auction process currently has no online verification system, and that auctions remain a time-consuming and cumbersome process that is, so far, run manually, a gap officials acknowledge made the alleged fraud possible.

Furthermore, he said the department is now auditing all auction proceedings carried out over the past year to determine whether this was an isolated fraud or whether the accused carried out similar schemes during their entire tenure at the post.

“We have also circulated details of the case to other Collectorates across the country, advising them to review their own auction proceedings from the past year as a precaution,” he said.

Copyright Business Recorder, 2026

Speaking at an Awareness and Facilitation Session on Aasan Tax Return Filing organised by the Karachi Chamber of Commerce & Industry (KCCI), Zubair Bilal said that during his 31 years of service, he had witnessed various schemes aimed at bringing traders into the tax system, but the present initiative was exceptionally liberal and offered small traders a valuable opportunity to regularise their tax affairs through a much simpler mechanism.

Bilal assured the traders that they should not view the initiative with fear or suspicion. Rather, it should be seen as an opportunity to become part of the documented economy through an easier system backed by a grievance-redressal and facilitation mechanism.

He stressed that the objective should not be to force small traders into compliance through intimidation but to convince them why becoming part of the tax system was beneficial for them and for the country.

Drawing an analogy, he said that just as a child cannot be encouraged to study by constantly standing over him with a stick, traders cannot be sustainably brought into the tax system merely through coercion.

They have to be properly guided, facilitated and convinced about the advantages of compliance. Once traders understand the system and have confidence in it, they will voluntarily become part of it and contribute towards making it successful.

He particularly encouraged shopkeepers and market representatives attending the KCCI session to spread awareness among their fellow traders and persuade them to avail themselves of the facility. He maintained that traders should approach the initiative positively, as becoming part of the formal system would provide them greater certainty and enable them to conduct their businesses with confidence.

Member IR further assured that a proper grievance-redressal mechanism was available for addressing genuine difficulties faced by traders.

He emphasised that the tax authorities would remain accessible and that complaints and difficulties brought to their attention would be addressed.

He also assured the business community of continued cooperation and facilitation, stating that officials would remain available to deal with complaints and concerns.

Highlighting Karachi’s extraordinary importance to the national exchequer, Bilal paid glowing tribute to the city and its business community for their enormous contribution to Pakistan’s revenue generation.

He observed that Karachi occupies an exceptional position in the country’s taxation landscape and acknowledged that a very substantial share of tax collection comes from the metropolis.

He pointed out that even a single Large Taxpayers Office accounts for roughly one-third of the country’s tax collection, while Karachi’s contribution becomes even more significant when collections through its other tax offices are taken into account.

He said this demonstrated the immense contribution being made by Karachi’s businesses and taxpayers towards sustaining the national economy.

Bilal also expressed his admiration for Karachi and its people, describing the metropolis as a uniquely diverse, multicultural and industrious city whose people possess a strong work ethic and welcoming character.

He said his experience in Karachi had given him enormous respect for the megacity and its business community.

Referring to the philosophy behind voluntary tax compliance, Member IR said taxpayers must appreciate that the revenue they contribute ultimately belongs to Pakistan and is utilized for the country.

“Our common identity and reference is Pakistan,” he observed, emphasising that every contribution made by taxpayers ultimately serves the nation.

He stressed that the success of the Aasan Tax Return initiative would ultimately depend on building trust between the tax administration and the trading community. Instead of creating apprehension among small shopkeepers, the emphasis must remain on education, facilitation, accessibility and confidence-building so that traders willingly become compliant.

Bilal further explained that the system incorporates verification features, including QR Code-based verification, enabling taxpayers to check the authenticity of relevant documentation through their mobile phones.

Such measures, he indicated, were aimed at improving transparency and giving taxpayers greater confidence while interacting with the system.

He urged the traders present at KCCI to act as ambassadors of the initiative in their respective markets and encourage fellow shopkeepers to understand and use the simplified mechanism rather than remaining outside the tax system because of apprehensions or misconceptions.

Vice Chairmen Businessmen Group (BMG) Anjum Nisar and Jawed Bilwani, President KCCI Muhammad Rehan Hanif, Senior Vice President Muhammad Raza, Vice President Muhammad Arif Lakhani, Chairman KCCI Federal Taxation Subcommittee Abu Bakar Siddique Ahmed Shamsi, along with other members of the business community, were also present.

Copyright Business Recorder, 2026

The PAEC is described as Pakistan’s first official Securities and Exchange Commission of Pakistan (SECP)-authorized and registered Africa entrepreneurship platform.

It will connect Pakistani and international entrepreneurs, investors and businesses with project-specific opportunities and joint ventures in Pakistan and selected African countries.

With Africa’s population standing at approximately 1.59 billion, the Council aims to unlock greater trade engagement between Pakistani businesses and African economies by connecting capital, production capacity and entrepreneurial expertise with viable projects, said a release issued here on Tuesday.

The PAEC’s initial focus will be on East Africa, particularly Rwanda, Ethiopia, Uganda and Djibouti, followed by engagement with Somalia, Sudan and South Sudan.

The Council intends to facilitate partnerships that can support economic growth, industrial development, employment and regional connectivity.

According to the PAEC, its strength lies in its network of experienced production and business partners in Pakistan combined with established relationships with African businesses, local partners and government stakeholders.

As part of its international outreach, the Council has scheduled two business opportunity trips to East Africa during the last quarter of 2026, in collaboration with local partners and host governments.

The missions will provide entrepreneurs and investors with opportunities to explore projects, meet potential partners and assess investment prospects directly in the region.

The PAEC aims to move beyond traditional trade promotion by facilitating the implementation of high-impact projects and sustainable joint ventures.

Its broader vision is to become an effective bridge between Pakistan and Africa, connecting capital, capacity and entrepreneurs with tangible opportunities.

Through stronger private-sector cooperation and project-based investment, the Council seeks to contribute to deeper economic and trade ties between Pakistan and the African continent.

Speaking at a gathering organized by the Islamabad Chamber of Commerce and Industry (ICCI) to celebrate ASEAN Day, they said Pakistan’s trade with ASEAN was around USD 10 billion but had substantial potential for expansion. They emphasized the need to strengthen trade and investment linkages between Pakistan and ASEAN and underscored the importance of greater private-sector engagement, improved market access and stronger institutional cooperation.

Speaking on the occasion, Philippine Ambassador and ASEAN Committee Chair Dr Emmanuel R Fernandez appreciated ICCI for hosting the ASEAN Day celebration and said ASEAN-Pakistan friendship was no longer simply a relationship between governments but was increasingly a relationship between businesses, institutions, communities and people. Referring to the Philippines’ 2026 ASEAN chairmanship theme, “Navigating Our Future Together,” he said the rapidly changing global economy, technological transformation, restructuring of supply chains and climate challenges made cooperation more important than ever. He urged Pakistani and ASEAN chambers, companies and entrepreneurs to work together, saying that governments and embassies could open doors, while chambers such as ICCI could bring the right people together, but businesses must convert opportunities into partnerships.

ICCI President Sardar Tahir Mehmood said the most enduring partnerships are built on trust and described ASEAN as a powerful bridge between people, economies and nations. He said ASEAN’s remarkable journey demonstrates that countries with different histories, cultures and levels of development can transform diversity into cooperation and shared prosperity. He stressed that the next chapter of Pakistan-ASEAN relations should increasingly be written in the language of trade, investment, technology, entrepreneurship and business-to-business partnerships.

Former President and Chairman of the ICCI Standing Committee on Diplomats, Zafar Bakhtawari, congratulated the ASEAN Secretariat, ASEAN peoples and ASEAN diplomatic missions in Islamabad on the occasion of ASEAN’s anniversary. He highlighted the remarkable achievement of ASEAN in bringing diverse nations together under a common regional framework and said Pakistan viewed ASEAN as an important economic partner.

High Commissioner of Brunei Darussalam Colonel Pengiran Haji Kamal Bashah (R) said ASEAN had demonstrated that countries of different sizes, cultures and contexts could build a strong community through mutual respect, cooperation and understanding. He emphasized that doing business with one ASEAN member could provide opportunities across the wider ASEAN market. Referring to ICCI’s engagement with ASEAN countries, he appreciated the Chamber’s business delegations and B2B initiatives and said the objective should be to make the ASEAN-ICCI bridge more practical and effective. He disclosed that Brunei was conducting a feasibility study to bring its national airline to Pakistan, which, he said, could significantly improve connectivity and facilitate trade, tourism and movement of commodities between the two sides.

Ambassador of Vietnam Pham Anh Tuan said Vietnam was determined to work with Pakistan and viewed Pakistan’s strategic geographical location and large market as important assets for expanding bilateral and regional economic cooperation.

Ambassador of Indonesia Chandra Warsenanto Sukotjo highlighted the longstanding friendship between Indonesia and Pakistan and recalled the spirit of solidarity between the two countries. He said ASEAN was one of the world’s most dynamic economic regions, while Pakistan, with its large market, strategic location and entrepreneurial private sector, was an important economic partner for ASEAN in South Asia. He supported efforts to upgrade the Indonesia-Pakistan trade framework into a comprehensive economic partnership agreement and invited ICCI and Pakistani businesses to participate in the 41st Trade Expo Indonesia 2026, scheduled for October 14–18, adding that around 100 Pakistani businesses had already applied.

The Thai Ambassador highlighted key challenges and opportunities in Pakistan-ASEAN economic relations, particularly the relatively low trade volume compared with the enormous potential of the two sides. He called for tariff reforms and stronger trade facilitation, while emphasizing that ICCI could play a key role in identifying practical solutions. He also stressed that ease of doing business, including simpler company registration, licensing and investment procedures, would be critical in attracting ASEAN investors to Pakistan. The Myanmar Ambassador appreciated ICCI for organizing the ASEAN Day celebration and for its consistent attention to ASEAN-Pakistan relations, saying the ASEAN community in Islamabad enjoyed strong relations with the Pakistani business community and valued the friendship and cooperation between the two sides.

Deputy Chief of Mission of Malaysia Mohamad Alif Syafiq Bin MohdFaudzi said ASEAN, with a combined population of more than 680 million people, offered significant opportunities for trade, investment and business partnerships. He said Pakistan had always been an important and valued partner for Malaysia, with strong people-to-people ties and longstanding friendship. He identified food and agriculture, automotive, textiles, information technology, digital services, tourism, renewable energy and manufacturing as promising areas for closer cooperation and emphasized that governments could create the right environment, but businesses ultimately convert opportunities into trade and investment.

The ceremony was attended by Dr Emmanuel R. Fernandez, Ambassador of Philippines and Chair of the ASEAN Committee in Islamabad; Colonel Pengiran Haji Kamal Bashah (R), High Commissioner of Brunei Darussalam; Pham Anh Tuan, Ambassador of Vietnam; Wunna Han, Ambassador of Myanmar; Rongvudhi Virabutr, Ambassador of Thailand; Chandra Warsenanto Sukotjo, Ambassador Indonesia; Mohamad Alif Syafiq Bin Mohd Faudzi, Deputy Chief of Mission of Malaysia, along with senior ICCI office-bearers, members of the diplomatic corps and business leaders.

Copyright Business Recorder, 2026

According to a notification issued by the Ministry of Energy (Petroleum Division), the Oil and Gas Regulatory Authority (OGRA) on Tuesday revised the ex-depot prices of petroleum products under the government’s petroleum pricing mechanism.

The price of Motor Spirit (petrol) was raised by Rs5.58 per litre, taking it from Rs358.77 to Rs364.35 per litre.

HSD saw a hike of Rs4.18 per litre, rising from Rs381.77 to Rs385.95 per litre.

The new prices will remain in effect until Wednesday, in line with the government’s ongoing practice of adjusting fuel prices based on international oil markets and other cost factors.

In the previous review on Tuesday, the government increased the price of petrol by Rs12.90 per litre and diesel price by Rs3.72 per litre.