AGP Executive Report

Energy & Fuel Costs: Hyderabad Chamber of Small Traders says daily petrol/diesel price swings are “unacceptable” for planning costs and budgets, urging a steadier mechanism that reflects global rates without dumping volatility on consumers. Power Sector: IESCO issued a scheduled power suspension programme for parts of Islamabad/Rawalpindi and apologised for temporary inconvenience. Labour & Utilities Restructuring: WAPDA Hydro Electric Workers Union demands discos be re-merged into WAPDA and vows to challenge compulsory service and CBA bans in court/ILO. Tax Administration: FBR sets stage-wise timelines to clear deferred sales tax refund claims under its FASTER system, targeting document delays and backlog. Investment Policy: Cabinet forms a committee to review Pakistan’s BIT framework and draft a new BIT policy amid global economic shifts. Refining Policy: Govt plans penalties for oil refineries that miss Oct 1, 2026 deadlines to sign upgradation agreements. Rail & Trade Finance: ADB is considering up to $1.1bn for ML-1 Karachi–Rohri upgrades. Digital Payments: P2G payments are accelerating, with 1LINK reporting Rs13.5tn in 2025 government collections. Agriculture Prices: Sindh Abadgar Board says wheat/sugarcane deregulation has harmed growers by leaving them to middlemen. Health & Society: WHO-backed data highlights obesity as a major challenge; SIUT appoints Dr Azhar Rashid as chief of oncology services. Politics & Economy: JI sit-in against petroleum levy enters day 22, with talks slated to begin Monday.

Export Finance Boost: PM Shehbaz backed a Rs3bn risk-pool under the Export Development Fund and EXIM Bank to expand export insurance for SMEs, aiming to lift Pakistan’s export volumes. Energy Procurement: Pakistan issued its third LNG tender for September after rejecting earlier bids over high prices, seeking spot cargo delivery between Sept 12-16. PSL Calendar Talks: PCB and franchise owners discussed shifting the next PSL to January, with Walee Technologies citing weaker April-May advertising prospects and teams seeking clarity on broadcast revenue shares. Security & Justice: PTI leader Hammad Azhar was arrested in Multan over May 9, 2023 riots cases and handed to Lahore Police for proceedings. Drugs Crackdown: NDLEA arrested a convicted cocaine trafficker allegedly posing as a herbal tea merchant and linked to a 1.2kg cocaine shipment to Riyadh; separate reports also mention broader seizures. Human Rights Watch: UN rapporteur warned of a deepening Afghanistan crisis under Taliban rule, citing education bans, hunger, child labour and forced/child marriage. Regional Diplomacy: Pakistan and seven Arab and Islamic states condemned Israeli ministers’ calls for forced displacement of Palestinians from Gaza as violations of international law.

Court Orders JIT: Islamabad High Court has formed a joint investigation team to trace missing Aisha Fatima, directing police, FIA and IB to probe all angles including social media, finances and possible travel abroad. Defence Day Messages: PM Shehbaz Sharif and President Asif Zardari paid tribute to martyrs and veterans, linking 6 September’s resolve to national unity and security. Export Boost: Shehbaz welcomed a Rs3bn export insurance risk pool by EDF and EXIM Bank to expand credit insurance access for SMEs and raise export volumes. EU GSP+ Warning: EU Ambassador Raimundas Karoblis said Pakistan’s next GSP+ phase will hinge on measurable progress on human rights, labour, environment and governance, not just laws on paper. Trade & Security Debate: Economic activists renewed calls to reopen Afghanistan-Pakistan trade routes after reported losses from suspension of crossings. Power Sector Update: Power Division says 11,695 net metering applications have been cleared, with direct consumer contact via digital channels. SECP Insurance Rule Move: SECP recommends adding Credit and Suretyship business into restricted insurance classes to strengthen prudential safeguards. PSX Sentiment: Pakistan Stock Exchange ended the week down 1.3% WoW as US-Iran tensions and higher crude prices weighed on investors.

Export Finance Boost: PM Shehbaz Sharif backed a Rs3bn SME risk pool with EDF and EXIM Bank to expand export credit insurance for small exporters. Fisheries Push: Pakistan set a record $570m fisheries exports in FY2026, with officials aiming to reach $3bn by shifting to value-added products and rebuilding EU confidence. Crypto Deadline: PVARA’s Sept 5 deadline is live for VASPs to file a No-Objection Certificate or face a halt in covered services. Court Challenge to PIA Sale: Islamabad High Court issued notices over a petition contesting the privatization process of Pakistan International Airlines, with proceedings adjourned to late October. Local Governance Debate: Interior Minister Mohsin Naqvi reiterated support for new provinces/administrative units based on public will, while Ahsan Iqbal linked poor social outcomes to lack of grassroots power after the 18th Amendment. Energy Costs Pressure: Record petroleum levies and rising petrol/diesel prices are deepening public gloom, while Karachi saw shutdowns over fuel costs and petroleum levy protests. Karachi Fire Case: Gul Plaza fire charge sheets were filed, with police blaming mall management for negligence and noting no explosive material found. Security & Trade Ties: Defence Day reception in Ankara highlighted Pakistan-Turkiye cooperation; separately, Australia is set to explore space deals with India, signalling broader regional tech trade momentum.

Debt Market Push: Finance Minister Aurangzeb said the MoF is working on a rupee-denominated, dollar-settled bond and exploring tokenisation of parts of existing Eurobond debt, aiming to cut reliance on domestic banks while supporting exports. Digital Economy & Payments: SBP moved to correct a misleading claim that Raast was flagged by FATF for money laundering, while JazzCash onboarded 1.7m merchants to Raast QR and targets 2m by end-2026 to document informal trade. Energy Costs: Petrol prices fell by Rs3.13, but HSD rose by Rs3.74; NEPRA also raised power tariffs by about Rs2 per unit, adding billions to consumer bills. Trade & FX Pressure: FPCCI warned the July-August trade deficit widened 18.1% to $7.1bn as imports outpaced exports, threatening reserves. Infrastructure & PPPs: PM Shehbaz urged early groundbreaking of ML-1 with ADB; Senate panel flagged delays and irregularities in the Dasu-Islamabad 765kV line. SME Finance: SMEDA and SBP discussed cluster-based lending to expand formal credit for SMEs. Agri & Markets: Punjab ordered digitalisation of horticulture revenue collection; PAMRA launched “Mandi Mart” in key cities. Governance & Courts: IHC summoned an FIA official over offloading a citizen without reasons; FBR revised sales tax refund processing and proposed updated ADR remuneration.

Sovereign Finance: Pakistan’s record $3bn junk-rated Eurobond sale drew strong investor demand via a dual-tranche structure, with the government aiming to cut refinancing risk by extending maturities. ADB & Infrastructure: PM Shehbaz met ADB VP Yingming Yang and pushed for early groundbreaking of the ML-1 railway upgrade, linking it to freight logistics and regional trade connectivity. Corporate & Markets: SECP registered 4,761 new companies in August (311,765 total), while the PSX saw volatility with the KSE-100 swinging between gains and losses. Energy & Industry Deal: Lotte Chemical Pakistan agreed to acquire Engro Polymer’s 56.19% stake in EPCL in a Rs19.7bn transaction, with plans to merge and expand petrochemical capacity. Regulation & Telecom Fraud: PTA fined Jazz PKR 38.9m over corporate SIM violations and is considering tougher measures like facial verification and tighter controls on SIM issuance. Skills & Jobs: PEC launched a Rs50,000 monthly stipend skills programme for 1,400 graduate engineers across major cities. Pakistan-Russia Creative Links: Pakistan proposed deeper creative economy cooperation with Russia’s Far East, spanning film, fashion, crafts and gems. Security & Rights: A Karachi inquiry blamed SSP Korangi for administrative negligence in a DHA assault case, while a rights group alleged enforced disappearances during military operations in Balochistan’s Zehri.

IMF & Debt Strategy: IMF Managing Director Kristalina Georgieva pointed to Pakistan as a working example of its three-pillar push with the World Bank—sustainable debt, growth reforms, and better domestic resource mobilisation. Trade Facilitation: PM Shehbaz approved a Trade Facilitation Board to streamline cross-border trade, tackle non-tariff barriers, and boost port efficiency via working groups and pre-arrival clearance. External Sector Pressure: Pakistan’s trade deficit widened 18.11% in Jul-Aug FY26-27 to about $7.116bn as imports rose faster than exports, keeping the external account under strain. Eurobond Confidence: Finance Minister Aurangzeb said Pakistan’s successful $3bn dual-tranche Eurobond reflected investor confidence and supports efforts to deepen long-term financing. Banking Test: An editorial urged SBP’s push for banks to grow retail deposits and private-sector lending, warning Pakistan’s financial depth still lags peers. Policy & Compliance: FBR notified amended income tax return forms for tax year 2026, while traders flagged persistent IRIS glitches disrupting sales tax filings. Energy & Industry: A committee recommended a June 2027 target for petrol deregulation and rules for emergency diesel interventions; meanwhile, Sindh is considering DAP subsidies for Rabi 2026-27. Governance & Corruption: Punjab CM Maryam Nawaz launched a zero-tolerance drive with a confidential cell and helpline 1350, and ordered DGPR restructuring. Tech Economy: IT exports hit a record $4.6bn in FY25-26, but hiring is cooling as AI shifts entry-level work. Markets: PSX closed slightly higher amid cautious sentiment tied to oil prices and geopolitics, even as Eurobond news supported demand.

Petroleum Pricing & Protests: Pakistan’s government and Jamaat-e-Islami agreed to form committees to propose relief on the petroleum levy, but JI’s nationwide shutter-down strike still shut hundreds of markets and petrol pumps in Karachi, with unrest reported near Korangi. Trade Facilitation Push: PM Shehbaz approved a Trade Facilitation Board to tackle non-tariff barriers, streamline cross-border processes, and boost port capacity, with him to chair the body. External Sector Pressure: Pakistan’s trade deficit widened 18.1% YoY to $7.12bn in 2MFY27 as imports rose faster than exports. Eurobond & Market Signalling: Pakistan raised $3bn via a dual-tranche Eurobond, while a “Not For Release” disclaimer on the issuance post drew attention online. Fuel Deregulation Roadmap: A phased plan is being discussed that could move petrol pricing toward market-based mechanisms, with a possible target of June 2027. Digital Payments & Mobility: A new ride-hailing app, Drivver, is set to enter Pakistan via Jazz connectivity and JazzCash payments.

Aviation & Trade: PIA will ramp up London service from Oct 27 to daily flights—five weekly from Islamabad and two from Lahore—plus it has floated a tender to appoint a Paris freight-handling agent for three years. Health Reform & Accountability: PM Shehbaz Sharif ordered health reforms to be expedited after the PIMS fire, demanding no leniency for officials found criminally negligent and directing the health minister and secretary to personally oversee safety and upgrades. CPEC 2.0 Agriculture: China donated livestock vaccines for lumpy skin disease and brucellosis as Pakistan pushes CPEC 2.0 projects to modernise agriculture and protect rural livelihoods. Energy Diplomacy: Pakistan and Uzbekistan flagged “significant scope” for deeper energy cooperation, including electricity connectivity, renewables and hydropower, alongside a push to boost business links. Markets & Fuel Costs: PSX slid 1,690 points amid US-Iran and Hormuz-linked energy worries; meanwhile OGRA notified higher petrol and HSD prices for Sept 3. Public Finance: Govt raised Rs680bn via T-bills (bids Rs2.77tn), showing strong demand but a softer take-up in longer tenors. Legal/Infrastructure: IHC overturned a 2022 order affecting Pakistan Naval Farms and the Sailing Club on Rawal Lake, scrapping demolition directions. Local Governance: Islamabad’s local setup will shift to three town corporations with three mayors and six deputy mayors. Business Networking: PBC Dubai launched a mobile app to expand digital business connectivity across Dubai. Regional Security: SCO summit in Bishkek adopted a Bishkek Declaration and transferred the chairmanship to Pakistan for 2026-27.

Tech & Consumer Electronics: HONOR wrapped up LEAP 2026 in Riyadh with its “ALPHA PLAN” and the world’s first Robot Phone, pushing a renewed “Dare to Be” identity beyond smartphones. Nutrition & Human Capital: Pakistan held the “Act for Nutrition” conference in Islamabad, warning malnutrition and stunting are underfunded despite “catastrophic consequences” for children and the economy. Trade Diplomacy: Pakistan and Kyrgyzstan signed multiple accords in Bishkek, including a plan to lift bilateral trade to $200m in two years, alongside cooperation on climate, education, and virtual assets regulation. Market Watch: PSX slid sharply as the KSE-100 fell 1,690 points to close at 174,776 amid broad-based selling. Business Hours Debate: A Senate panel recommended a 30-minute extension to business hours, but the Power Division opposed it citing higher electricity demand and fuel costs. Mobility & Payments: Jazz-backed ride-hailing platform “Driver” is set to launch, offering app access without mobile data consumption and using JazzCash for payments. Energy Crunch: Pakistan LNG Ltd reissued its LNG tender after rejecting an expensive offer, as shortages risk continued evening load shedding. Gold Prices: Gold in Pakistan dropped Rs11,300 per tola to Rs454,036, tracking weaker international bullion and a firmer dollar. Capital Markets/Fintech: QistBazaar raised PKR 500m via a privately placed Sukuk, signaling growing institutional funding for BNPL and installment finance. Public Sector Digital Services: Radio Pakistan became the first SOE to integrate with NADRA’s digital pensioner verification app for remote biometric checks.

SCO Tech & AI: Pakistan proposed an SCO sovereign AI infrastructure and governance framework as it assumes the 2026-27 chairmanship, aiming to keep AI responsible and inclusive across the bloc. Eurobond Push: The finance ministry has started the process for a US dollar benchmark dual-tranche Eurobond (five- and 10-year), signalling renewed access to global capital markets. Inflation Watch: August CPI inflation rose to 11.1% YoY, up from 9.2% in July, keeping cost pressures in focus. Fuel & Costs: Petrol increased by Rs1.08 and HSD by 51 paisa per litre for Sept 2, as Hormuz-linked oil price moves feed into domestic rates. Energy Sector Governance: A Senate panel flagged delays in the SSGC LPG Board and MD-related appointments, while another panel discussed extending business hours—opposed by Power Division due to LNG stock limits and higher electricity costs. Corporate Moves: Engro agreed to sell its entire 56.19% EPCL stake to Lotte Chemical Pakistan for about Rs19.7bn, pending approvals. Markets: PSX opened September cautious; KSE-100 closed down about 509 points amid geopolitical and oil-price worries. Trade/Tax Enforcement: RTO Hyderabad recovered untaxed goods after cracking down on digital invoicing non-compliance. Food Security: Punjab said there is no flour shortage, citing ongoing supply from government and private wheat. Environment & Compliance: EPA Punjab stepped up pre-smog inspections and enforcement, including brick kiln compliance checks. Livestock Exports: Parliament heard that concrete steps are needed to curb FMD to protect meat export competitiveness. Real Estate Finance: Naya Nazimabad Apartment REIT’s book-building was fully subscribed within an hour, ahead of its PSX listing. Digital Assets: PVARA briefed the finance minister after Hong Kong talks on stablecoins, compliance and tokenisation use cases for Pakistan.

SCO Summit & Regional Security: PM Modi urged SCO to dismantle the “ecosystem of terrorism” and reject double standards, while PM Shehbaz Sharif stressed water must never be weaponised and called for unconditional honour of the Indus Waters Treaty. Indus Waters Treaty: The Hague tribunal largely backed Pakistan, ruling India can’t unilaterally suspend the treaty and ordering interim limits on Ratle works pending a neutral expert’s final technical call. Pakistan Capital Markets: Pakistan has kicked off the process for a dual-tranche benchmark US$ Eurobond (5- and 10-year tenors) after credit upgrades and improved investor confidence. Telecom Power Costs: Telecom operators pushed for lower electricity tariffs and protection from load-shedding, submitting data on site power use, outage durations and generator costs. Manufacturing Pulse: HBL’s PMI rose to 51.8 in August, the highest since the war began, with orders and exports improving. EV Incentives (Sindh): Sindh extended EV tax/registration concessions for two years, keeping low registration and annual taxes for non-commercial EVs. Food Affordability: Rising costs are pushing households to cut nutrient-rich foods, worsening “hidden hunger” even when calories are met. Digital Nation: IT Minister Shaza Fatima Khawaja highlighted Pakistan’s Digital Nation Act and 5G push at LEAP 2026. Crypto & Regulation: Senate panel heard Pakistan has about 40m crypto-linked accounts, raising calls for tighter oversight.

Indus Waters Treaty: The Hague arbitration court ruled India cannot unilaterally put the Indus Waters Treaty in abeyance and ordered it to uphold obligations, while restricting work beyond set levels at Ratle Hydro-Electric Plant pending a neutral expert’s review. Fuel & power costs: OGRA adjusted September fuel prices—petrol up 77 paisa and HSD down Rs1.03—while the government apologised for night load shedding blamed on LNG supply constraints; LPG rates also rose for September. Tax administration: FBR collected about Rs1.72trn in the first two months of FY27 and tightened income tax assessment selection by requiring CRM-based assignment from Sept 1. Business & trade: Shipping to the US jumped over 200% on some routes amid Iran-war disruptions; FPCCI urged realistic diesel pricing, while LCCI launched a 2026 directory covering 51,708 firms. Agriculture policy: A committee reached broad consensus on a transition framework for GM and non-GM maize coexistence. Digital economy & telecom: TOA demanded repeal of a procurement rule enabling direct G2G contracting that it says crowds out private IT/telecom firms. Regional geopolitics: Pakistan, Iran and Uzbekistan pushed cooperation talks on SCO sidelines, while Pakistan also moved to institutionalise the Makkah Defence Alliance with a permanent secretariat in Saudi Arabia.

Power & Energy: Power Minister Awais Leghari apologised for night-time loadshedding, blaming a surge in demand and gas shortages, while warning high-loss areas face extra cuts due to theft recovery efforts. Markets: PSX opened weak and stayed choppy, with KSE-100 down in early trade as investors stayed cautious amid the US-Iran flare-up and higher oil prices. Trade Costs: Exporters say shipping to the US has jumped 200% on some routes after Iran-war disruptions, with Karachi–New York quotes rising to $8,000–$9,000 and threatening competitiveness. Indus Waters Treaty: The Hague’s Permanent Court of Arbitration ordered India to uphold the Indus Waters Treaty and suspend work on a Kashmir hydro project, with a neutral expert to assess compliance by July 2027; India rejected the ruling. Legal/Family Law: Lahore High Court ruled that in khula, a husband can reclaim only what he personally paid as dower, not gold funded by the wife’s father. Public Safety & Accountability: PM Shehbaz ordered suspension of eight officials and criminal proceedings over the PIMS neonatal ward fire that killed 14 newborns, citing missing fire alarms/sprinklers and weak emergency procedures. Security/Regional: Bangladesh signalled no immediate obstacle to joining the Makkah Joint Defence Agreement, keeping the door open for a wider security bloc. Digital Economy: Senate was told about 40 million Pakistanis holding crypto accounts opened without formal oversight, as regulators move to bring the sector under rules.

Energy & Power Sector: The Power Division invited international bids to rehabilitate Guddu 747MW’s steam turbine (ST-16), aiming to cut generation cost from Rs13.87 to Rs9.68 per unit and restore an extra 297MW; bids close Oct 7, 2026 with commissioning targeted for Dec 2028. Privatisation & Circular Debt: The Cabinet Committee on Privatisation asked Power and Finance divisions to craft an alternative to Circular Debt Financing for DISCO restructuring, to avoid equity increases post-privatisation, including a GoP-owned SPV for retirement benefits and lease-back arrangements. Trade & Industry: PAAPAM proposed a rationalised Auto Policy 2026-31 tariff structure—higher duties on CBUs and localised parts, with minimal/zero duty on raw materials—to protect jobs and localisation. Tax & Compliance: President Asif Ali Zardari rejected an FBR representation against a Federal Tax Ombudsman order, reinforcing taxpayers’ right to full transparency and access to assessment records. Business Climate: Pakistan Business Forum warned that recurring load management persists despite ~49,651MW installed capacity, blaming RLNG shortages and delayed LNG arrivals. Agriculture Exports: Pakistan and Saudi Arabia agreed to lift agri and food exports to $3bn within two years, prioritising rice, red meat, fruits, green fodder and water-efficient tech. Regional Deals: Turkey, Saudi Arabia and Pakistan will hold the first committee meeting under the Makkah Joint Defence Agreement in Istanbul, with defence industry cooperation on the agenda. Women’s Mobility: Sindh will distribute Pink Electric Scooties to women in Mirpurkhas in the next phase, expanding training and safe mobility across districts. Digital Finance: SBP-approved HugoBank completed licensing, while Pakistan’s virtual assets regulator said the country built its crypto framework in under six months with most budget unused.

AJK Governance Push: Nawaz Sharif and Shehbaz Sharif met newly elected AJK PM Iftikhar Gillani, sharing a 100-day reform plan focused on healthcare, education, sanitation and infrastructure, with Maryam Nawaz also present. Power Sector Reform: NEPRA rolled out new performance standards for electricity distribution companies, replacing rules from 2005 and adding consumer-focused “guaranteed” service benchmarks plus outage, complaint handling, safety and digitalisation metrics. IMF Procurement Pressure: The IMF urged Pakistan to stop routine direct contracting by government agencies to state-owned entities, pushing tighter public procurement rules and limiting such deals to exceptional, justified cases. Hospital Fire Accountability: After a maternity ward blaze in Islamabad killed 14 newborns, PM Shehbaz suspended eight officials and ordered criminal proceedings over alleged negligence, following a preliminary committee report. Energy Supply Strain: Power Division reported temporary nighttime load management after an RLNG cargo shortage cut generation, with furnace-oil plants used to balance demand, hitting Punjab hardest. Oil & Gas Mix: Pakistan’s crude output fell 1% week-on-week while gas production rose 1%, with OGDCL leading crude and gas contributions. Defence Pact Talks: Turkey, Saudi Arabia and Pakistan will hold the first committee meeting in Istanbul under the Makkah Joint Defence Agreement, aiming to boost deterrence, interoperability and defence industry cooperation. Inflation Hit in Lahore: Residents in Lahore say rising prices are forcing low-income families to struggle for even two meals a day. Tech & Trade Signals: Google formally entered Pakistan with a country office, while Alibaba Cloud showed interest in investing in Punjab’s AI and IT ambitions.