AGP Executive Report

Sindh Finance: The World Bank approved $150 million to improve property-tax collection and municipal services, with Karachi’s annual collections targeted to rise tenfold to $85 million. Medicine Costs: The health minister says an audit found 50 pharmaceutical firms raised prices by as much as 2,000%; show-cause notices have been issued. Energy Pressures: OGRA raised November LPG prices, while Qatar’s extended LNG supply disruption threatens winter gas availability for households, industry and power generation. Business and Banking: The SECP marked 39,704 companies inactive for years of missed filings, while corporate debt issuance reached Rs291 billion and the State Bank opened consultation on draft open-banking rules. Trade and Growth: Pakistan’s exports rose 7.7% to $8.5 billion in the first quarter, though higher interest costs and development spending are straining public finances.

Energy Costs: Shehbaz Sharif formed a committee to review LPG reforms that would shift imports and price-setting to state-owned firms, as shortages have pushed market cylinder prices well above the notified rate. RLNG prices rose up to 15.3% for October, while diesel increased by Rs2.29 per litre. SME Exports: SMEDA and Alibaba.com will train 10,000 businesses and help up to 2,000 join the global platform, with grants of up to Rs150,000 each. The SBP has also launched a digital portal to simplify SME financing. Punjab Growth: The province’s PIVOT plan targets nearly Rs2 trillion in public and private investment, $6.8 billion in additional exports and 162,000 jobs over three years. Corporate Results: OGDCL’s first-quarter profit rose 53% to Rs58.5 billion; listed exploration firms’ earnings climbed 43% year on year. Trade and Investment: Pakistan and Singapore discussed stronger trade and investment ties and a possible resumption of direct flights. Pakistan also offered Saudi Arabia tax-neutral oil storage facilities. Economic Indicators: Weekly inflation dipped 0.35%, and the FBR received a record 7.5 million income tax returns by October 30.

Markets: The KSE-100 fell 784 points on Friday to close at 166,409, as investors booked profits after four sessions of gains; it still finished the week up 2.5%. Capital Markets: Corporate debt issuance reached Rs291 billion in January–September. The government is also considering a listed Sukuk programme of up to Rs100 billion for the National Grid Company. Trade and Investment: Pakistan and Singapore discussed boosting trade and investment, exploring direct flights and expanding cooperation in digital technology, logistics and SMEs. Singapore’s foreign minister said bilateral trade should be much higher. Energy Partnerships: Pakistan offered Saudi companies tax-free oil storage and discussed refinery upgrades, LPG supplies and investment in a proposed petroleum complex in Hub. Business Finance: The State Bank launched SMEConnect to simplify loan applications, while the government is working to expand export financing for small businesses. Manufacturing: Pakistan is preparing a mobile-phone policy targeting up to 50% local value addition, and has removed the five-year age limit for commercial imports of used vehicles.

Foreign Reserves: SBP-held reserves rose $33 million to $21.52 billion. SME Finance: From November 1, businesses must submit loan applications through the SBP’s SMEConnect portal, which will let applicants track progress and rejection reasons. Corporate Investment: Lucky Cement plans a Rs50 billion-plus investment to expand its Karachi plant and add wind power, lifting national capacity to 18.8 million tonnes a year. Green Business: GIZ will support 300 Sindh SMEs with environmental compliance advice and access to green financing. Trade: Pakistan’s exports grew 7.7% to $8.5 billion in the first quarter of FY27; FPCCI says halal trade with ASEAN offers further potential, though Pakistan’s exports to the bloc remain far below imports. Prices and Markets: October inflation is forecast at 9.5–10.5%; petrol prices are unchanged, while high-speed diesel rose 85 paise per litre. The KSE-100 gained 1,456 points to close at 167,193.

Markets: The KSE-100 rose 1,456 points to 167,193, extending its rally to four sessions as strong corporate earnings lifted heavyweight shares. Reserves and Currency: SBP-held reserves increased $33 million to $21.52 billion; the rupee edged up to 276.76 per dollar. Exports: Pakistan’s tyre industry is targeting $150 million in exports in FY27, up from $116 million last year, with the government working to address market-access barriers in Türkiye. Trade Links: Pakistan and China agreed to speed customs clearance for selected agricultural goods at the Sost-Khunjerab crossing, including perishables. Investment: Pakistan and Saudi Arabia discussed opportunities in agriculture, minerals and mining. Industry: PSO reported first-quarter profit of Rs25.6 billion, up 172% year-on-year, while Lucky Cement approved a 3.2-million-tonne capacity expansion at its Karachi plant. Business Costs: The State Bank’s recent increase in its policy rate to 12% drew criticism from business leaders concerned about borrowing costs and industrial growth.

Energy: Pakistan and Qatar are close to revising their LNG supply deal, with Doha’s final offer setting prices at 11.96% of Brent for 66 cargoes a year; cabinet approval is pending. Petrol and diesel prices also rose for October 29. Business climate: The government aims to rank among the world’s 10 easiest places to do business, proposing 30-year leases on 6,409 acres at Pakistan Steel Mills’ planned special economic zone and reviewing rules to cut costs and delays. Finance: The State Bank’s rate increase to 12% has drawn criticism from exporters, while officials are urging faster SME and farm lending; outstanding financing stands at Rs1.148 trillion and Rs1.329 trillion, respectively. Exports & agriculture: Textile net exports rose about $930 million in FY26 after Export Facilitation Scheme reforms, but the World Bank forecasts a 6% drop in Pakistan’s cotton output this season.

Markets: The KSE-100 rose 1,269 points to 165,737 on Wednesday, extending its rally for a third session. Energy Costs: LPG prices have surged, with cylinders reaching Rs26,000 and some rates topping Rs600 per kg, squeezing households, hotels and small businesses amid supply shortages. Farm Finance: Punjab plans a farmers’ bank and subsidised loans, while Finance Minister Muhammad Aurangzeb urged faster delivery of SME and agriculture financing; outstanding credit stands at Rs1.148 trillion for SMEs and Rs1.329 trillion for agriculture. Business Climate: The State Bank’s recent rate increase to 12% has drawn strong criticism from business groups, who warn higher borrowing costs could weigh on investment. External Financing: Pakistan is planning a $500 million Panda bond without multilateral guarantees, while foreign exchange reserves have reached a record $21.5 billion.

Monetary Policy: The State Bank’s 50-basis-point hike to 12% drew sharp criticism from business groups, who warn higher borrowing costs will hurt investment and exporters already facing steep energy and operating costs. Fuel Relief: The government and Jamaat-e-Islami agreed to form a committee on petroleum relief and the levy. Petrol fell Rs3.19 to Rs376.06 per litre, while diesel rose Rs2.25 to Rs398.07. Trade Reforms: A World Bank-linked $600 million financing package is tied to reforms in wheat and sugar trade. TDAP also announced export support, including digital tools to help businesses use trade concessions across 93 countries. Investment: Pakistan is planning a private-equity framework to attract up to $15 billion, while the Karachi Industrial Park has been approved as a federal special economic zone. Business: FCEPL reported a 10.1% rise in nine-month revenue to Rs88.4 billion; IPAK’s first-quarter revenue grew 9.2% to Rs11.13 billion.

Markets: The KSE-100 rose 1,429 points to 164,467, extending its winning streak despite the State Bank’s 50-basis-point rate hike to 12%. The rupee edged up to 276.80 per dollar. Household Relief: The government is considering ending six months of higher electricity charges for households that just exceed 200 units, and may raise the relief threshold to 250 units. Energy and Trade: Pakistan and the US discussed long-term energy supply deals and refinery upgrades as conflict disrupts regional oil and gas flows. Iran-Pakistan trade has partly resumed, but truck backlogs and LPG shortages persist. Investment and Reform: Pakistan’s foreign exchange reserves reached a record $21.5 billion, while officials say up to 75% of business regulations could be removed to improve the investment climate. Financial Oversight: The government approved AML-CFT rule changes, including updates to transaction-reporting thresholds and oversight of virtual assets.

Monetary Policy: The State Bank raised its policy rate by 50 basis points to 12% from October 27, citing energy costs and inflation risks. Business groups warned higher borrowing costs will squeeze industry and investment. External Buffers: Foreign exchange reserves climbed 52% year-on-year to a record $21.5 billion in the first quarter of FY27; the SBP also raised its remittance forecast to $45 billion for the year. Energy Costs: Petrol rose Rs1.54 to Rs379.25 per litre and diesel Rs2.16 to Rs395.82, adding to pressure on households and businesses. Pakistan is also seeking US investment in refinery upgrades and longer-term energy deals. Trade and Agriculture: Iran-Pakistan trade partially resumed after a week-long border suspension, though truck backlogs persist and LPG supplies remain strained. Sindh is expanding mustard, sesame and canola cultivation to reduce edible-oil imports. Public Finances: The National Assembly was told tax exemptions and concessions totalled Rs2.35 trillion in FY25; a broader cost-benefit review is due by June 2027.

Monetary Policy: The SBP raised its policy rate by 50 basis points to 12%, citing energy-driven inflation risks from the Middle East conflict. Industrialists warned higher borrowing costs could further squeeze manufacturers. Markets: The KSE-100 recovered from an early drop of more than 1,000 points to close up 663.6 points at 163,038.5. Trade and Energy: Iran-Pakistan trade has partially resumed, but thousands of trucks remain stranded and LPG prices have reached Rs650 per kilogram in some cities. Pakistan and the US also discussed long-term energy supply contracts and investment in refinery upgrades. Exports: In the first quarter of FY27, the US remained Pakistan’s top export market at $1.72 billion, followed by China at $664 million and the UK at $612 million; exports to China rose nearly 18% year on year.

Energy & Trade: Pakistan brought in more than 11,600 tonnes of seaborne LPG in a week as Iran-border supply disruptions drove prices sharply higher; reopening the Gabd-Rimdan crossing could ease pressure. Industry officials also urged refinery upgrades and more domestic oil and gas exploration. Economic Outlook: The IMF projects a 1.3% contraction in Pakistan and the wider region in 2026, while the World Bank is urging reforms to shift from stabilisation to growth. Business Climate: Pakistan and Qatar reviewed trade and investment opportunities, with Islamabad seeking faster progress on a GCC free-trade agreement. A new ministerial committee will devise targeted power subsidies linked to BISP, with reforms proposed from January 2027. Industry & Investment: Business leaders warn a policy-rate increase could further squeeze firms and threaten jobs. Separately, the government approved Karachi Industrial Park as a federal special economic zone, while business-rule changes aim to reduce barriers to investment.

Digital Skills: Prime Minister Shehbaz Sharif launched a scheme to distribute 500,000 Chromebooks and internet devices to students over two years, aiming to widen access to digital learning. Cotton and Textiles: Cotton output has fallen more than 60% in a decade, increasing reliance on imports and pressure on foreign exchange reserves; industry leaders called for stronger research and crop protections. Energy and Prices: LPG shortages have pushed prices higher and added to food costs. Iran says exports remain unrestricted, but hundreds of LPG trucks are awaiting clearance amid Pakistani import-paperwork hurdles; a 4,000-tonne shipment has also arrived at Port Qasim. Trade and Investment: Pakistan and Qatar pledged to deepen trade and investment, with Islamabad pressing for an early Pakistan-GCC free trade agreement and exploring agricultural cooperation. Industrial Growth: A government task force met export-sector representatives to identify barriers and develop measures to revive industry and improve competitiveness.

Banking: The SBP has set separate equity-investment caps for banks’ holdings in companies, startups and funds; startup investments are limited to the lower of 5% of Tier-I capital or Rs500 million. Trade and investment: A Chinese business delegation has pledged deeper trade and joint ventures, while Pakistan and Canada concluded a third round of talks on an investment treaty. Growth agenda: Finance Minister Muhammad Aurangzeb says Pakistan must focus on exports, productivity and private investment, warning that a return to consumption-led growth could set recovery back four to five years. Markets and energy: The KSE-100 fell 4,045 points over the week as oil prices and regional tensions weighed on investors. The government says energy supplies are stable through November but acknowledges work remains to meet winter gas and LNG needs. Industry: Textile exporters warn that new EU and UK trade deals with India could erode Pakistan’s GSP+ advantage. Infrastructure: WAPDA signed a Rs133.18 billion contract for hydro-mechanical works at the Diamer-Basha Dam.

Business Reform: Finance Minister Muhammad Aurangzeb urged companies to improve productivity, expand exports and create jobs, warning that growth must benefit workers as well as lift headline figures. Auto Investment: Bestway Group launched Geely in Pakistan with three new-energy vehicles; it plans to begin local assembly at its Port Qasim plant next year, with capacity for up to 25,000 vehicles annually. Clean Energy: Sindh has proposed a $30 million biogas project across five cities, converting livestock waste into energy and fertilizer. Infrastructure: WAPDA awarded a Chinese-led joint venture a Rs133.18 billion contract for key equipment at the Diamer-Bhasha Dam. Markets: Gold fell Rs2,500 per tola on Saturday to Rs422,036, after dropping Rs7,000 the previous day.

Markets: The KSE-100 fell 1,549 points to 162,374 as selling pressure continued. Industry and investment: Karachi Industrial Park has been approved as a federal special economic zone. The government also says it has removed or plans to remove up to 75% of unnecessary regulations, with 170 Companies Act amendments sent to Parliament. Energy and prices: Disrupted supplies from Iran have pushed LPG prices sharply higher, while weekly inflation rose 0.65%. Petrol remains unchanged; diesel is up Rs1.91 per litre. Economic outlook: The World Bank says faster reforms could triple incomes by 2050 but warns growth is not yet creating enough jobs. The IMF projects 3.5% growth and 9.9% inflation for Pakistan. Capital flows: Pakistan paid foreign investors $2.305 billion in profits and dividends in FY26—about 41% more than net FDI inflows. Trade: Pakistan and the Maldives exchanged 20 cooperation agreements, with a two-year target to lift bilateral trade to $200 million. Agriculture: The government set an indicative wheat price of Rs4,500 per maund for the 2027 crop, up Rs1,000 from last year.