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IMF piles on 11 new conditions
The International Monetary Fund (IMF) has slapped Pakistan with 11 more stringent conditions to address corruption vulnerabilities, end elite capture of the sugar sector and unearth the true cost of foreign remittances. The new conditions have also been imposed to reduce losses in the power sector through private sector participation, improve governance and service delivery, and enhance the effectiveness of the highly inefficient Federal Board of Revenue (FBR).

The IMF on Thursday released the staff-level report for the second review of the $7 billion bailout package, which disclosed that the lender has imposed 11 additional conditions on Pakistan. With the fresh additions, the total number of conditions has risen to 64 in the short span of one and a half years.

According to the report, Pakistan will publish on a government website the asset declarations of high-level federal civil servants by December next year. The purpose is to identify mismatches between income and assets. The report stated that the government also plans to expand this obligation to high-level provincial civil servants and allow banks full access to their declarations. By October next year, Pakistan will publish an action plan to mitigate corruption vulnerabilities in 10 identified departments based on institutional-level risk assessments. The National Accountability Bureau will lead and coordinate the development of action plans for agencies identified as facing the highest risks.

To strengthen provincial capacities to mitigate corruption risks, provincial anti-corruption establishments will be empowered to receive financial intelligence and continue receiving capacity-development support for financial investigations of corruption offences within their jurisdiction. The IMF's new conditions followed the publication of the Governance and Corruption Diagnostic Assessment report, which exposed deep weaknesses in Pakistan's legal and governance systems.

The IMF has also instructed Pakistan to complete a comprehensive assessment of remittance costs and structural impediments to cross-border payments, complemented by an action plan by May next year. The condition comes after remittance costs were projected to rise to $1.5 billion in the next couple of years. Remittances remain the single largest source of financing Pakistan's contained imports.

By September next year, the government will conduct a comprehensive study of bottlenecks hindering local currency bond market development and publish a strategic action plan to address required improvements.

To break the elite capture of the sugar industry, the IMF has imposed a condition requiring the federal and provincial governments to agree and the federal cabinet to adopt a national policy for sugar market liberalisation by June next year. The policy must include recommendations on licensing, price controls, import and export permissions, zoning, and clear implementation timelines. The FBR's poor performance has also triggered new conditions. The IMF has asked the government to finalise a roadmap by end-December to prioritise reforms; assess staffing requirements and roles; set timelines and milestones; estimate revenue impacts; and determine key performance indicators (KPIs) to monitor progress.

Based on this roadmap, the government must complete all actions necessary to fully implement at least three priority areas agreed with IMF staff, including any required subordinate legislation, staff hiring and allocation, and initial KPI reporting.

By December next year, the government must also develop and publish a comprehensive medium-term tax reform strategy, including a sequenced roadmap of tax policy, administration and legal reforms, clear governance arrangements, and a resource plan for implementation.

By the same deadline, the government will finalise preconditions for private-sector participation in HESCO and SEPCO and sign public service obligation (PSO) agreements with each of the seven largest entities before the next budget is submitted to Parliament.

The government will also prepare and submit to Parliament amendments to the Companies Act, 2017 to strengthen compliance for unlisted firms, modernise corporate governance structures and align regulations with international best practices. It will also publish a concept note outlining the scope, objectives and expected outcomes of proposed amendments to the SEZ Act, including the rationale for reform and KPIs.

The government has agreed to the need for a mini-budget if revenues fall short of expectations by end-December 2025, according to the IMF. The measures would include raising federal excise duty on fertilisers and pesticides by 5%, imposing excise duty on high-value sugary items and broadening the sales tax base by moving select items to the standard rate. The IMF has also extended the deadline to publish an action plan to address vulnerabilities highlighted in the Governance and Corruption Diagnostic report.

Pakistan tells IMF tax rates on farm inputs will be hiked, uplift schemes reduced
In its recently released staff report, the IMF projected that the Balance of Payment gap will continue to widen from the current fiscal year, reaching $3.253 billion by 2029-30, after the existing programme concludes. This projection signals that Pakistan may require another IMF programme in the near future.

The staff report says that contingency measures provide an important safeguard against fiscal risks. If revenue were to fall short of expectations by end-December 2025, the Pakistan authorities plan to adopt additional measures to safeguard the fiscal targets, including increasing excises on fertilizers and pesticides by five percentage points, introducing excises on high-value sugary items, and broadening the sales tax base by moving select items to the standard rate. They are also prepared to reduce or postpone spending in response to lower revenues.

The government has also assured the Washington-based lender that it will fully deregulate the sugar sector, continue tariff adjustments in the power sector and reduce system losses and cut costs. A nationwide installation of point-of-sale systems for 40,000 large retailers will be completed over the next two years, while all the four provinces will move toward harmonised sales tax procedures.

The IMF report notes that during the current fiscal year, Pakistan will restrict spending on new development schemes to 10 percent of the PSDP and will prioritise completion of around Rs2.5 trillion worth of ongoing projects.

From the next fiscal year, greater focus will be placed on climate-related development schemes. Public procurement will shift to digital epads, with the Auditor General mandated to submit a compliance report to the president by March 2026. Under the social protection pillar, the Kafalat cash transfer under the BISP programme will increase to Rs14,500 per quarter from January 2026, while the number of beneficiaries will be expanded to 10.2 million families. Biometric verification for payments will remain mandatory, and the long-awaited e-wallet system will be launched by June 2026.

On energy reforms, the IMF has noted that the government has already decided to shift annual tariff rebasing from July to January 2026. Last fiscal year, the circular debt stock was reduced to Rs1.614 trillion. By January 2026, the government aims to settle Rs1.2 trillion owed to commercial banks, out of which Rs660 billion will go to Pakistan Private Holdings Limited and the rest to Central Power Purchasing Agency. The plan also includes eliminating Rs128 billion in interest payments owed to IPPs and keeping the circular debt at zero inflow until fiscal year 2031.

The Fund highlights that 5.2 million income tax returns were filed in FY2024, while the number is expected to reach 7 million in FY2025. It acknowledges Pakistan’s progress on stabilisation, noting improvements in foreign exchange reserves, which have risen to $14.5 billion, and a 1.3 percent primary surplus delivered in FY2025. Inflation is projected to ease to seven percent in the current fiscal year.

At the same time, the IMF warns that the 2022 floods highlighted Pakistan’s deep climate vulnerability, having affected seven million people and claiming nearly 1,000 lives, while causing extensive losses to infrastructure, homes and livestock. The report urges stronger climate adaptation measures, improved water management and disaster preparedness.

The global lender has also stressed sustained reforms in taxation, governance, state-owned enterprises and energy to secure long-term growth. It says Pakistan must widen the tax net, simplify tax procedures, ensure data transparency, and maintain strict monetary policy to keep inflation stable. Strengthening forex market transparency and reducing policy uncertainty are also essential.

The report concludes that Pakistan’s economic recovery remains fragile but is moving in the right direction under the current programme. Stronger reforms and consistent policy implementation, it notes, will be critical for lowering debt, raising revenue and sustaining growth in the years ahead.

Forex reserves near $21b after IMF disbursement
Pakistan's foreign exchange reserves have crossed the $20 billion mark after the State Bank of Pakistan (SBP) confirmed the receipt of about $1.2 billion from the International Monetary Fund (IMF) under its Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).

In a statement issued on Thursday, the central bank said the IMF executive board, in its meeting on December 8, 2025, completed the second review of the EFF and approved a disbursement of SDR 760 million for Pakistan. The board also cleared the release of the first tranche of SDR 154 million under the RSF, aimed at supporting Pakistan's climate resilience and long-term macroeconomic stability.

Subsequently, the SBP received a total of SDR 914 million, equivalent to roughly $1.2 billion, on December 10, 2025. The inflows will be reflected in the central bank's foreign exchange reserves data for the week ending December 12, 2025.

Separately, the SBP reported that Pakistan's total liquid foreign reserves stood at $19.61 billion as of December 5, 2025. Of this, the central bank held $14.59 billion, while commercial banks' net reserves amounted to $5.03 billion. During the week ended December 5, the SBP reserves recorded a marginal increase of $12 million. The latest IMF inflows, however, are expected to deliver a material jump in the reserves to $20.81 billion for the subsequent reporting week.

Furthermore, the Pakistani rupee posted a slight uptick against the US dollar in the inter-bank market on Thursday, closing at 280.36, an appreciation of one paisa. A day earlier, the currency had closed at 280.37.

Meanwhile, gold prices in Pakistan increased, mirroring a strong global rally after the US Federal Reserve's latest rate cut weakened the dollar and lifted demand for precious metals. According to the All-Pakistan Gems and Jewellers Sarafa Association, gold rose by Rs500 per tola to Rs443,562, while the 10-gram rate increased by Rs428 to Rs380,282. A day earlier, the per-tola price had jumped by Rs1,200.

Internationally, spot gold climbed 1.2% to $4,275.39 per ounce, its highest level since October 21, while US gold futures advanced 1.9% to $4,303.90. The Fed's 25-basis-point rate cut boosted market sentiment, with investors now awaiting US non-farm payroll data due on December 16.

Silver outpaced gold, reaching an all-time high. Domestic silver prices rose by Rs85 to Rs6,452 per tola, while global prices hit a record $63.93 per ounce. Analysts expect continued volatility but strong support for precious metals.

FBR warns PM of Rs560b shortfall
The tax machinery on Thursday told Prime Minister Shehbaz Sharif that it may miss the first half-year's downward revised target by Rs560 billion without support from the office of the attorney general, amid a warning by the Ministry of Finance about the implications of a huge revenue shortfall for government expenditure.

The meeting on fiscal affairs came a day after the International Monetary Fund (IMF)'s Resident Representative, Mahir Binici, met PM Sharif and delivered a message from the executive board. There were no official details on the meeting between the IMF's country head and the PM, but one official said that Binici had been invited merely for a cup of tea.

PM Sharif had convened a regular meeting on the Federal Board of Revenue (FBR)'s matters, but it became evident that the FBR was relying on others to do its job, while the wider economy also remained unprepared for take-off. According to sources, participants opined that any reduction in interest rates could propel economic growth but could again put pressure on already thin foreign exchange reserves.

This discussion was linked to the upcoming monetary policy meeting, which will review interest rates. Higher interest rates have, however, benefited the Ministry of Finance through increased central bank income.

Some participants argued that a depreciation of the rupee could support both exports and the FBR's dwindling revenues. A nearly fixed exchange rate has eroded the competitive advantage of Pakistani exporters, and the IMF board has also asked Pakistan to implement a genuinely flexible exchange rate.

Sources said the FBR management informed the prime minister that estimated recoveries of Rs200 billion from court cases this month could reduce the tax shortfall to Rs362 billion against the downward revised target.

The management sought assistance from the Attorney General of Pakistan for expeditious decisions in these cases. Without settlement of these cases in favour of the FBR, the tax shortfall is expected to reach Rs562 billion against the downward revised target, the sources added.

The original tax target for July-December was Rs6.7 trillion, later cut to Rs6.49 trillion. The FBR now faces at least Rs560 billion in shortfalls against the revised target. Against the original target, the shortfall will exceed Rs775 billion. The FBR has already sustained Rs413 billion in shortfalls in the first five months.

According to the PM's Office, the premier was briefed on the progress of initiatives being taken to achieve revenue targets, digitise the economy, and curb tax evasion. He was also updated on pending tax cases in tribunals and various institutions.

The Federal Constitutional Court has scheduled the super tax case for next month, making it unlikely that the FBR will receive a ruling this month. The FBR has repeatedly assured the IMF that a super tax case could come at any time in its favour.

Sources said one participant warned that a major revenue shortfall may increase the chances of a mini-budget. The IMF approved the $1.2 billion loan package this week only after Pakistan assured it would introduce a mini-budget to compensate for revenue losses.

The finance ministry cautioned the PM that in case of a significant shortfall, expenses would have to be curtailed, as the IMF would not allow deviation from the primary surplus target.

Participants also objected to the FBR's practice of shifting responsibility to the central bank, the Power Division, the Petroleum Division and the Attorney General's office, questioning the FBR's own performance, said the sources.

The FBR chairman has provided 1,000 cars to his officers and authorised up to a fourfold increase in salaries in the hope of improving performance and achieving the original Rs14.13 trillion target for the year.

There were also discussions on the impact of lower fuel and electricity prices on FBR revenues.

The PM asked the FBR to clear refunds owed to oil marketing companies, but the FBR chairman sought funds from the finance ministry. The request was rejected.

An official handout from the PM's Office said PM Sharif directed the FBR to intensify efforts to achieve the 11% tax-to-GDP ratio target. He appreciated the Customs Department for significantly reducing the duration of customs clearance through modern technology and artificial intelligence and directed that clearance times for imports and exports be further reduced.

He also instructed that tax enforcement be ensured across all sectors of the economy and commended the FBR and law enforcement agencies for their action against illegal cigarette factories. The PM directed provincial governments to maintain full cooperation with the FBR in actions against tax evaders and illegal factories, as well as to ensure timely payment of sales tax refunds.

It was disclosed that a large cache of illegal cigarettes has been seized in recent days as a result of these actions.

Cabinet approves diversion of 45 LNG cargoes
The federal cabinet has approved the diversion of 45 liquefied natural gas (LNG) cargoes because of shrinking consumer demand in the country.

The Economic Coordination Committee (ECC) has already approved the diversion of LNG cargoes. Its decision was tabled before the cabinet in a recent meeting, where the proposal was ratified.

Sources told The Express Tribune that summaries titled "Update on Negotiation with State of Qatar for Mitigation of Surplus LNG" and "Operation of Two SNGPL-Based Urea Manufacturing Plants (Fatima Fertiliser and Agritech)" were placed before the cabinet for approval.

During discussion, the Petroleum Division apprised the forum that owing to persistently thin demand for gas in the country, Pakistan State Oil (PSO) had surplus stock of imported LNG. It revealed that after negotiations with Qatar, an optimal and mutually agreed solution was reached, which allowed sale of up to 24 LNG cargoes on a net proceeds differential (NPD) basis in 2026. The meeting was informed that another agreement was struck with energy major Eni for the sale of 11 cargoes during 2026 and 10 cargoes during 2027 on a NPD basis. The cabinet, after carefully deliberating the matter, gave the go-ahead for the decision taken by the ECC.

Regarding the urea manufacturing plants connected to Sui Northern Gas Pipelines Ltd (SNGPL) network, the cabinet gave directives that since long-term arrangements for the provision of gas to the fertiliser industry were being finalised, further deliberations by the cabinet committee on the pricing of gas supplied to the fertiliser industry would not be required.

Discussing the supply of gas to two SNGPL-based urea plants, namely Fatima Fertiliser and Agritech, it was highlighted that the cabinet had on August 22, 2025 allowed the supply of gas to the two fertiliser manufacturers under the existing arrangements up to October 30, 2025.

The cabinet was apprised that the ECC had recommended that gas supply to the two fertiliser plants should continue till December 31, 2025 and that long-term arrangements for the provision of gas to the fertiliser industry were being finalised.

After considering the matter in detail, the cabinet ratified the decision taken by the ECC.

Reko Diq’s $7bn deal deepens Pakistan-US economic links
Finance Minister Muhammad Aurangzeb said on Thursday that the US is re-establishing itself as a major economic partner, pointing to the $7 billion financial close of the Reko Diq copper project backed by the International Finance Corporation and the US EXIM Bank.
Speaking at a panel discussion in Riyadh, Aurangzeb said the relationship with Washington has strengthened across minerals, mining and advanced technologies, including AI, blockchain and digital infrastructure. The session, titled ‘Climate Adaptation and Resilience: How do we secure the capital we need?’ was held at the Global Development Finance Conference -- Momentum 2025 and attended by senior finance officials from Jordan, Tajikistan and the West African Development Bank.

Aurangzeb described Reko Diq as a “transformative development” for Pakistan’s economic future. He said the mine is expected to generate export revenues equivalent to 10 per cent of the country’s current export base in its first commercial year in 2028, positioning it as a major source of growth and foreign exchange. Pakistan anticipates strong investor interest from the US, China, the GCC and others as the project expands, he added.

Asked about geopolitical competition between major powers, Aurangzeb said Pakistan maintains an “and-and” approach. He noted China remains a longstanding partner, particularly through the China-Pakistan Economic Corridor, whose second phase now aims to commercialise infrastructure through business-to-business cooperation.

Aurangzeb also highlighted the mounting economic impact of climate change. Citing the 2022 floods that caused $30 billion in losses and renewed flooding this year, he said Pakistan expects to forfeit around half a percentage point of GDP growth, adding further pressure on the economy. While macroeconomic stability has allowed Pakistan to build some fiscal and external buffers for immediate relief efforts, he said rehabilitation and reconstruction require substantial external financing.

He pointed to the rollout of an AI-enabled early warning system at Pakistan’s National Emergency Centre, which provides month-by-month climate forecasts, but said domestic resources alone cannot meet the scale of adaptation needs. Aurangzeb emphasised the importance of multilateral partnerships and private capital, noting Pakistan’s 10-year Country Partnership Framework with the World Bank Group, which allocates about $20 billion, a third of it for climate resilience and decarbonisation.

The minister criticised global climate finance channels such as the Green Climate Fund and the Loss and Damage Fund for slow and bureaucratic processes. In contrast, he noted progress through other avenues, including the recent receipt of a $200 million first tranche from the IMF’s Climate Resilience Fund.

Aurangzeb said Pakistan will continue directing domestic fiscal resources toward climate adaptation, but external financing from development partners and international markets remains essential.

PM meets Turkmen president, offers Karachi, Gwadar ports
Prime Minister Shehbaz Sharif met Turkmenistan President Serdar Berdimuhamedov here on Thursday and discussed matters of mutual interest.

He reaffirmed Pakistan’s desire to enhance connectivity with Turkmenistan through land and sea routes and said that Karachi and Gwadar ports were ideally located to be utilised by the Turkmen side to enhance their outreach to South Asia and beyond. During their warm and cordial meeting, he congratulated the Turkmen president on the 30th anniversary of Permanent Neutrality of Turkmenistan and on the UN designation of 2025 as the International Year of Peace and Trust.

While thanking the Turkmen President for the hospitality extended to him and his delegation, the PM conveyed his warm wishes for Gurbanguly Berdimuhamedow, National Leader of the Turkmen People and reiterated his most cordial invitation to him as well as to President Serdar Berdimuhamedow to undertake official visits to Pakistan next year, on mutually convenient dates, to be worked out by the two sides.

Earlier, the PM arrived in Ashgabat on a two-day official visit to participate in the International Forum dedicated to the International Year of Peace and Trust (2025), International Day of Neutrality and the 30th anniversary of the Permanent Neutrality of Turkmenistan from 11-12 December 2025. He is accompanied by Deputy Prime Minister & Foreign Minister Senator Ishaq Dar, Energy Minister Awais Ahmad Khan Leghari, Information Minister Attaullah Tarar and other members of the cabinet and senior government officials.

Meanwhile, Prime Minister Shehbaz Sharif will have an important meeting with Russian President Vladimir Putin in Ashgabat, today (Friday). Highly placed diplomatic sources told The News here that the meeting has an added significance in the wake of the recently concluded visit of President Putin to India.

The sources revealed that the visit to Turkmenistan was not originally in the schedule, but ever since President Putin, Turkish President Recep Tayyip Erdogan, and Iranian President Masoud Pezeshkian, confirmed their attendance at the 30th anniversary of the Permanent Neutrality of Turkmenistan, Islamabad also opted to attend it at the level of head of government.

Earlier in the day, PM Shehbaz Sharif directed the Federal Board of Revenue (FBR) to intensify efforts to achieve the target of increasing tax-to-GDP ratio up to 11pc. Chairing a weekly review meeting regarding matters of FBR, he also instructed to further expand the tax net in order to meet the tax revenue targets.

He appreciated the FBR authorities for significantly reducing the duration of customs clearance through the use of modern technology and artificial intelligence and directed to further reduce the duration of customs clearance of imports and exports. The PM also stressed ensuring tax enforcement in all sectors of economy to increase the government revenues. Appreciating the FBR authorities and law-enforcing agencies for taking effective actions against illegal cigarette manufacturing factories, the prime minister asked the provincial governments to continue their coordination with the FBR in taking measures against tax evaders, and illegal factories. He also instructed to ensure timely payment of sales tax refunds.

Refineries warn of fuel supply disruptions as OMCs cut diesel offtake
The country’s major oil refineries have warned of serious operational disruptions due to a sharp slowdown in high-speed diesel (HSD) upliftment by oil marketing companies (OMCs), saying the situation is threatening the stability of the national oil supply chain.
In a joint letter sent on December 10, 2025 to Chairperson of Oil and Gas Regulatory Authority (Ogra) Masroor Khan, the five refineries -- Attock Refinery Limited (ARL), Pak-Arab Refinery Limited (PARCO), Cnergyico PK Limited (CPL), National Refinery Limited (NRL) and Pakistan Refinery Limited (PRL) -- said OMCs were not lifting the diesel quantities committed during the Product Review Meeting (PRM) for December 2025.

They said that decisions taken in PRMs regarding product allocation and upliftment were being consistently disregarded, leaving the refining sector in a difficult position. They added that the slowdown in the upliftment of MS and HSD this month had created serious operational challenges.

Local refineries projected total HSD sales at 675,000 tonnes for December and offered 504,500 tonnes through local production. However, actual upliftment stood at 108,523 tonnes from December 1 to 9, against the prorated target of 146,468 tonnes. Refineries said this shortfall raised questions about the effectiveness and enforceability of PRM allocations.

The refineries noted that while they were already struggling to maintain operations due to reduced HSD upliftment, they were simultaneously under pressure to increase jet fuel production to meet rising airport demand. They warned that this balance would become increasingly difficult to maintain unless HSD upliftment was streamlined.

The refineries also referred to Rule 35(g) of the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules, 2016, which requires that locally produced refinery products be prioritised before imports are considered. They claimed that excessive imports allowed by OGRA had worsened the situation and left large volumes of locally produced fuel unsold.

Copies of the letter were also sent to the minister for energy (Petroleum Division), secretary of the Petroleum Division and director-general (Oil), underscoring the seriousness of their concerns. The refineries urged Ogra to take urgent action to ensure timely and prioritised upliftment of local refinery products to keep the national supply chain running smoothly.They expressed hope that Ogra would intervene promptly to address the situation.

Passenger car sales up 56pc in November, down MoM
Passenger car sales (PAMA members) in the country increased by 56 per cent year-on-year (YoY) in November 2025, data showed on Thursday. On a month-on-month (MoM) basis, sales decreased by 8.0 per cent against 13,513 units sold in October.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales (PAMA member cars) increased by 56 per cent to 12,408 units in November 2025 compared with 7,972 units sold during the same month the previous year.

For the first five months of FY26 (July-November 2025), passenger car sales rose by 43 per cent to 55,239 units against 38,597 units last year.Mashood Ali Khan, an auto expert, said that the auto sector had performed well after a long time. Tractors have made a comeback. There is a need to support industrial policy and discourage the import-base policy. He said that there is a need to increase the localisation. “We hope that the situation will further improve next year, as the government is also considering localisation an important aspect,” he said.

Sales of 1300cc and above cars were recorded at 7,270 units, up 80 per cent compared with November 2024 sales of 3,930 units.During this period, 1,000cc cars recorded sales of 485 units against 381 units during the same month last year. Below 1,000cc vehicles recorded sales of 4,641 units, up 29 per cent against 3,598 units in November 2024.

In November, only 12 units of Dewan Honri-Ve electric vehicle were also sold, down from 63 units sold during the same period last year.Sales of buses and trucks increased to 530 units in November 2025 from 328 units in November’24. Sales of jeeps and pick-ups increased to 3,034 units from 2,191 units sold during the same period in 2024.

Sales of tractors slightly increased to 3,663 units from 3,428 units in November 2024. Tractor sales fuelled by the government tractor scheme and improving farm economics.The sale of rickshaws and motorbikes increased to 165,753 units during November’25 against 120,484 units in the same period in 2024. Atlas Honda (ATLH), the maker of the popular CD70 bike, recorded the monthly sales yet again near to all-time monthly high reaching at 140,382 units in Nov 2025.

According to a report of Topline Research, the yearly growth numbers are fuelled by new entrants alongside lower interest, easing inflation, and improving macroeconomic sentiments.However, MoM sales were down due to seasonality, wherein generally, before the year-end delivery of vehicles is deferred to the first month of next year for the latest model registration.

Company wise: Honda Atlas Cars (HCAR) posted the highest YoY growth of 135 per cent YoY and remained flat on MoM basis to 2,609 units in Nov 2025. City and Civic models rose 134 per cent YoY and 5 per cent MoM to 2,359 units, while BRV & HRV models rose 145 per cent YoY and down 31 per cent MoM to 250 units in Nov 2025.

Indus Motor Company (INDU) posted the YoY growth of 75 per cent to 3,833 units. Corolla, Yaris and Cross sales together rose 78 per cent YoY and down 14 per cent MoM to 3,236 units, whereas Fortuner and IMVs rose 60 per cent YoY and down 24 per cent MoM to 597 units.

Hyundai Nishat reported YoY growth of 38 per cent, amid 89 per cent & 75 per cent YoY rise in Elantra & Tucson models.Sazgar Engineering (SAZEW) reported sales of 1,109, up 90 per cent YoY but down 20 per cent MoM.

PSMC saw the surge of 23 per cent YoY reaching 6,615 units mainly due to 171 per cent rise in cultus sales followed by 48 per cent rise in alto sales reaching 485 and 4,069 units in Nov 2025. However, on MoM basis, PSMC witnessed a downtick of 11 per cent in sales due to the notable declines in majority vehicle segments. This took cumulative sales to 33,849 units up 31 per cent YoY in 5MFY26 as compared to 25,812 units in SPLY.

Discos burden consumers with over Rs8bn overbilling, PAC told
The Public Accounts Committee (PAC) Thursday examined audit objections related to the Ministry of Energy for Fiscal Year 2023-24 and expressed strong dissatisfaction at unjustified refunds and large-scale overbilling by the power distribution companies (Discos).

JUIF MNA Shahida Akhtar Ali presided over the committee meeting after members unanimously decided to run the committee proceedings through a rotational acting chair in the absence of Chairman Junaid Akbar.

Audit officials briefed the committee that the consumers were burdened due to errors in billing segregation, resulting in over Rs8 billion in unjustified refunds. “For a whole year, all we have heard is that the matter will be fixed ‘next time’,” remarked committee member Syed Hussain Tariq. “There should have been action against the officials responsible. How much recovery has actually been made?”

Secretary Power Division informed the committee that nearly half of overbilling pertained to Lesco alone, but Hussain Tariq expressed dissatisfaction with the company’s response. Audit authorities further disclosed that credit was issued on running meters and meter readers “do not even visit to take readings.”

Shahida Akhtar Ali told officials that what was meant for new connections was wrongly applied to ongoing ones. Mepco representatives were unable to satisfy inquiries raised by committee member Syed Naveed Qamar. The committee’s frustration deepened as two major DISCOs failed to provide convincing explanations.

Tariq Fazal Chaudhry rebuked the corporations, saying they had taken the PAC proceedings lightly. The committee granted the companies concerned two months to complete verification of records.

Recruitment issues in Discos were also discussed, with officials informing the committee that Pesco had a sanctioned strength of 24,000 but operated with barely 10,000 employees. Audit officials disclosed that eight power distribution companies collectively overbilled consumers by more than Rs8 billion, prompting strong condemnation from the committee.

According to the audit briefing, Fesco overbilled Rs750 million, Gepco Rs520 million, Hesco more than Rs1.73 billion, Iesco Rs1 billion, Lesco over Rs1.8 billion, Mepco Rs70 million, Pesco Rs2.39 billion and Qesco more than Rs90 million.

According to the audit officials, 293,572 consumers were given slab or tariff relief between 2018 and 2023, despite the facility being permitted only for disconnected consumers — not for active ones.

PAC member Syed Hussain Tariq questioned what action had been taken against officers involved in wrong billing, and how much recovery had been made. Lesco CEO informed the committee that an internal audit report had been submitted. The auditor general remarked that meter readers often do not visit for actual readings.

Secretary Power Division said all DISCOs now display photographic meter readings on bills, and consumers can also upload their own readings through a mobile app. Secretary power stated that some of the overbilled amounts had been refunded to consumers. The committee ultimately referred the overbilling matter to a sub-committee for further examination.

Transporters’ strike hurts manufacturing
The country’s business community has expressed grave concerns over the nationwide transporters’ strike, now in its fifth consecutive day, which has brought Pakistan’s export manufacturing sector to a standstill.

In a letter to the Chief Minister of Punjab, Chairman Pakistan Textile Council (PTC) Fawad Anwar highlighted the severe disruption caused by the ongoing strike. According to the PTC, since December 8, 2025, thousands of trucks and containers have remained stranded across Punjab and other provinces, halting the movement of raw materials, industrial inputs, and finished goods. The textile sector—Pakistan’s largest export contributor—has been particularly hit, with factories facing shortages of raw materials, rising demurrage and detention charges, missed shipping windows, and an increasing risk of export order cancellations.

He further stated that the strike has paralyzed the broader national supply chain, posing a serious threat to the continuity of economic activity. Food supply, industrial production, exports, and inflationary stability have all been impacted. The PTC attributed the crisis to recent regulatory changes under the Traffic Ordinance 2025, which have triggered widespread unrest among transporters.

PTC members warned that prolonged disruption would shut down production lines, delay shipments, and damage Pakistan’s credibility as a reliable global supplier—ultimately undermining critical foreign exchange earnings.

 “Given the gravity of the situation, we request that the Government of Punjab intervene at the highest level to facilitate immediate negotiations between the authorities and transporters associations, ensuring the swift restoration of uninterrupted goods movement within the province,” Anwar stated. He emphasized that stable, predictable, and efficient logistics are essential for maintaining industrial operations and safeguarding Pakistan’s export commitments. The Pakistan Textile Council, he said, stands ready to support all government efforts to protect the export sector’s contribution to the economy.

Meanwhile, Patron-in-Chief of the Pakistan Textile Exporters Association (PTEA), Khurram Mukhtar, said in a statement that the nationwide transport shutdown has brought export manufacturing to a halt. The breakdown of inbound and outbound logistics has disrupted production cycles, delayed shipments, and crippled the entire supply chain of export-oriented industries.

 “Thousands of export containers remain stranded across the country, resulting in massive demurrage charges, missed vessel sailings, production stoppages, and a rapidly increasing risk of international order cancellations,” he said. Madding “this situation is causing irreparable damage to Pakistan’s reputation as a reliable sourcing destination and poses a direct threat to our already fragile economic stability.”

Compliance costs crush Pakistan’s small manufacturers: World Bank
Pakistan’s small manufacturers are being crushed by soaring global compliance costs, with a new World Bank report revealing that meeting European Union (EU) standards alone can drain up to €200,000 in a single year — an amount that surpasses the annual sales of most local firms.

In its latest report, “World Development Report 2025: Standards for Development,” the World Bank stated that one of the challenges that firms in low- and middle-income countries face is the cost of compliance with standards, especially when these firms are trying to access export markets. Compliance costs disproportionately affect small and medium enterprises, because fixed expenses represent a larger share of their total costs.

Small and medium manufacturers of surgical instruments in Pakistan report that compliance costs for the European Union (EU) Medical Device Regulation can reach up to €200,000 in the first year of compliance and €30,000 in subsequent years. These costs can be very high for small firms, which usually have no more than 20 employees and average annual sales ranging between €20,000 and €300,000.

The report noted that firms must often redesign products or repeat costly testing and certification to satisfy buyers in different markets, discouraging small and medium exporters in particular. A textile manufacturer in Pakistan reports spending about US$5,000 per year for each of 15 sustainability standards and labels required by international buyers, many of which cover similar social and environmental criteria but demand separate audits. Over the past two decades, both the number and complexity of standards and technical regulations have grown sharply.

The report also noted that in Punjab, Pakistan, performance pay for tax collectors increased revenue collection by about 40 percent in just two years. A study conducted in the province of Punjab, Pakistan, found that the introduction of performance pay for tax collectors based on revenues generated led toan increase in the collection of tax revenue by around 40 percent after two years.

A separate study on public procurement in Pakistan found that a policy intervention that increased the autonomy of procurement officers lowered prices of procured goods by 9 percent, reduced procurement delays, and had no observable impact on the quality of purchased goods or likelihood of corruption. The positive effects were particularly great when the senior officers responsible for overseeing procurement were likely to be corrupt.

A proliferating set of international standards—covering everything from food labeling to the specifications of 5G cellular networks—is steadily reshaping the global economic order, delivering hefty benefits to the wealthy nations and large multinational companies that set them while leaving many developing countries on the sidelines, according to the Bank report. Today, standards are foundational economic infrastructure, as vital to prosperity as roads or ports, according to the report, which provides the first comprehensive analysis of the landscape of global standards. By making the transportation of goods seamless, the standardization of the shipping container boosted global trade to a greater extent than all of the trade agreements of the last 60 years, the report notes. Since the turn of the century, however, standards have also become weapons in trade wars: non-tariff measures such as pesticide specifications or labeling requirements, for example, now affect 90 percent of global trade, up from just 15% in the late 1990s.

 “Standards are both central and unsung today,” said Indermit Gill, Chief Economist of the World Bank Group and Senior Vice President for Development Economics. “When they’re set right, they go unnoticed: the ship sails through the canal, the building withstands an earthquake, a kilogram weighs the same in Kenya as in Canada, and no one gives the gains that come a second thought. The standardized shipping container might well have catalyzed more trade in manufactured goods than all the trade deals put together. Digital standards could do the same for the services trade. When countries are active in adapting, aligning, and authoring standards, they are a powerful tool for growth and poverty reduction. This report is the first assessment of the role of standards in economic development—and a call to developing nations to make them a core component of their development strategies.”

 “The World Bank’s decision to dedicate the 2025 World Development Report to standards sends a powerful signal: international standards are no longer invisible infrastructure - they are critical enablers of sustainable, inclusive development,” said Sergio Mujica, Secretary-General of the International Organization for Standardization (ISO), the world’s largest standard-setting body, which surveyed 173 national standards bodies in support of the data-gathering work for the report. “Unlocking the full development potential of standards means ensuring all countries can participate in their creation and implement them. This report is a timely call to action to strengthen global participation and cooperation in standardization.”

Business community rejects electricity package, demands rate cuts
The business community has rejected the government’s incremental electricity package and demanded an immediate reduction in interest rates and power tariffs to prevent further industrial shutdowns.

Addressing a press conference on Thursday at the Federation House, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said electricity in Pakistan is the most expensive in the region.

Meanwhile, SM Tanveer, patron-in-chief of the United Business Group (UBG), stated that due to expensive electricity and high interest rates, factories and industrial units across the country are shutting down. So far, 140 textile units and paper mills, along with other factories, have closed, and if the situation continues, more will shut down, increasing unemployment. He said the government is taking decisions regarding electricity and interest rates without consulting the industrial sector, resulting in negative consequences.

SM Tanveer said the transporters’ strike is harming exports and causing losses to the country. He said electricity prices are once again being increased. Currently, the cost is 13 cents per unit, which is about to rise to 15 cents. Despite rising inflation across the country, the interest rate remains excessively high, forcing the government to pay Rs2 trillion annually in debt servicing -- costs which are ultimately being collected through electricity bills. He added that no work has been done on producing electricity through wind and hydel resources. By 2035, an additional 20,000MW will enter the system, raising total capacity to 64,000 MW -- where will this electricity go, he questioned.

Ikram said the national economy is at a difficult crossroads. With such high energy costs, GDP growth is impossible, as Pakistan has the most expensive electricity in the region. He said that in the first five months of fiscal year 2026, the trade deficit has increased by 37 per cent to reach $15 billion.

Atif Ikram Sheikh said Pakistan stands at a critical economic juncture and efforts are being made to revive the economy. Unfortunately, energy prices and interest rates are major problems at the moment. Immediate measures are required. The country’s economic improvement depends on affordable energy, lower interest rates and competitive tax rates.

Saqib Fayyaz Magon, senior vice president of FPCCI, said numerous foreign delegations visit Pakistan with an interest in investing, but they complain about high interest rates, heavy tax burdens and expensive energy tariffs. He said Pakistan has the capacity to keep the wheels of the economy turning.

 

In historic first, ex-ISI chief Faiz Hameed handed 14-year rigorous imprisonment
The Field General Court Martial (FGCM) has sentenced former Inter-Services Intelligence (ISI) director general Faiz Hameed to 14 years rigorous imprisonment.

The accused was tried on four charges related to engaging in political activities, violation of Official Secrets Act detrimental to safety and interest of the State, misuse of authority & government resources, and causing wrongful loss to persons, the Inter-Services Public Relations (ISPR) in a statement said on Thursday.

 “After lengthy and laborious legal proceedings, the accused has been found guilty on all charges and sentenced to 14 years rigorous imprisonment by the court which has been promulgated on December 11, 2025,” the ISPR statement said.

On August 12, 2024, process of FGCM was initiated against Lieutenant General (retd) Faiz Hameed after he was taken into military custody under the provisions of Pakistan Army Act spreading over 15 months. The FGCM complied with all legal provisions and the accused was afforded with all legal rights, including rights of defence team of his choice. “The convict has the right of appeal at the relevant forum,” the Pakistan Army media wing said.

It said the involvement of the convict in fomenting vested political agitation and instability in cahoots with political elements and in certain other matters is separately being dealt with. The ISPR said that complying with the orders of Supreme Court of Pakistan, a detailed court of inquiry was undertaken by the Pakistan Army, to ascertain correctness of complaints in Top City case made against Faiz Hameed. Consequently, appropriate disciplinary action has been initiated against the accused under the provisions of Pakistan Army Act.

In addition, it had stated that multiple instances of violation of Pakistan Army Act post-retirement have also been established and the process of FGCM has been initiated. The Supreme Court in November, 2024, had observed that allegations of an “extremely serious nature” against the ex-spymaster “cannot be left unattended” as they would undermine the reputation of the country’s institutions if they were proven to be true.

The ISPR on December 10, 2024 had announced that Faiz Hameed was formally arraigned on charges engaging in political activities, violations of Official Secrets Act detrimental to safety and interest of the State, misuse of authority & government resources, and causing wrongful loss to a person(s). It also stated that during the process, involvement of Lt Gen (retd) Faiz Hameed, in events related to creating agitation and unrest, leading up to multiple incidents including but not limited to May 9, 2023 incident for fomenting instability; at the behest of and in collusion with vested political interests, is also being separately investigated.

Faiz Hameed now has the right to appeal with the Court of Appeals within 40 days of promulgation of the rigorous imprisonment. The Section 133B of the Army Act, 1952 provides that any person to whom a court-martial has awarded a sentence of death, imprisonment for life, imprisonment exceeding three months, or dismissal from the service after the commencement of the Pakistan Army (Amendment) Act, 1992, may, within 40 days from the date of announcement of finding or sentence or promulgation thereof, whichever is earlier, prefer an appeal against the finding or sentence to a Court of Appeals.

The Court of Appeals shall consist of the [Chief of the Army Staff concurrently the Chief of the Defence Forces] or one or more officers designated by him in this behalf, presided by an officer not below the rank of brigadier in the case of General Court-Martial or FGCM or District Court-Martial or Summary Court Martial convened or confirmed or countersigned by an officer of the rank of brigadier or below as the case may be, and one or more officers, presided by an officer not below the rank of Major General in other cases, hereinafter referred to as the Court of Appeals. The convict on rejection of his appeal by the Court of Appeals can file mercy petition with the Chief of the Army Staff concurrently the Chief of the Defence Forces. Meanwhile, political leaders belonging to the ruling alliance have reacted to the conviction of former ISI chief. Defence Minister Khawaja Asif said that the nation will face the consequences of decisions made under former army chief General (retd) Qamar Javed Bajwa and the ex-spymaster. In a post on X, Asif wrote, “The country will keep reaping the harvest of seeds sown by Faiz Hameed and General [retd] Bajwa for years. May God forgive us. May those in power recognise that authority is a divine trust and use it for the welfare of His creation. May the fear of God guide the rulers. Ameen.”

Federal Information Minister Atta Tarar, while speaking to Geo News, described the verdict as a “historic” and “landmark” decision, saying that the decision strengthens the rule of law and accountability mechanisms in Pakistan. Tarar said that red lines had been crossed and political interference had taken place. He said that the former ISI chief had acted as a political adviser to Pakistan Tehreek-e-Insaf (PTI) and provided the party with “full political support.” The information minister said that the decision would reinforce the rule of law and the country’s accountability mechanisms. He added that the trial was fair, saying Faiz Hameed was given a full opportunity to defend himself, including the chance to present evidence and witnesses in his favour. Tarar further revealed that investigations into Faiz Hameed’s alleged involvement in political matters were still ongoing and would continue.

Meanwhile, Adviser to the Prime Minister on Political Affairs Rana Sanaullah said the politicians who sided with the former ISI chief should also be tried in military court. His interference in politics has been proved. Internal accountability system of army is robust. Those who joined hands with Faiz Hameed should also be put to trial, he said.

He held the former spymaster kept on misusing his official and military status. “He was directly involved in case against me. I am not expressing delight over the sentence. The institution like army has enormous importance.” A strong system of accountability and severe action against the violators of discipline is in place in the army. Faiz Hameed was involved in political activities. He could not do this job alone. Some politicians were also with him, the PM’s adviser said.

Meanwhile, talking to the media in Rawalpindi, PTI leader and Khyber Pakhtunkhwa Chief Minister Sohail Afridi said that Faiz Hameed was an employee of an institution; if he has been punished in any matter, it is an internal affair of that institution.

Asim Javed adds: In a statement, Pakistan Ex-Servicemen Society’s chief organiser Aziz Ahmed Awan welcomed the decision to sentence former DG ISI Lieutenant General (retd) Faiz Hameed to 14-year imprisonment by the Field General Court Martial, saying that this decision is not just against an individual, but a clear message that the institutions of the State of Pakistan do not consider themselves above the law.

 “Personality or position does not matter, whoever will undermine the foundation of this country, it will be brought to an end,” he said. Aziz Ahmed Awan said that General Faiz Hameed gave priority to personal interests in state affairs and damaged the prestige of the state by misusing power. “The entire credit for this accountability process goes to Chief of Defence Forces Asim Munir. This decision has set the right direction for the future,” he said. Awan further said that the cases of May 9 against Faiz Hameed are still pending. On May 9, a big conspiracy was hatched against Pakistan, which is being investigated.

 

Pakistan hails Kabul’s 5-point declaration on cross-border attacks
Pakistan Thursday welcomed a five-point joint declaration from Kabul, banning any military operations beyond the Afghan borders, but insisted on a full written assurance from the neighbouring country.

 “If the leadership of the Afghan Taliban regime or certain segments of the Afghan society realise the gravity of the matter that their soil is being used not just by TTP/FAK/FAH but also by their own nationals to perpetrate terrorism in Pakistan, such realisation is positive. We welcome it. We will wait, see and evaluate this document. But certainly, we would require written assurances from the leadership of the Afghan Taliban regime on this issue,” said the Foreign Office spokesperson Tahir Andrabi.

He was responding to questions at the weekly media briefing on a five-point joint declaration adopted by over 1,000 Afghan scholars in Kabul. The declaration stated that whoever would “conduct military operations beyond Afghanistan’s borders, would be considered a rebel against the state.” It would also be considered “as a violation of the Emir’s orders” and would be a punishable offence.

Surprisingly, the spokesperson admitted that he had not seen the full text of the resolution, but made it clear that one important aspect was that the commitments made in the past by the Afghan Taliban regime had not been fulfilled and this was exactly why during the mediation efforts of the brotherly countries, Pakistan insisted on written assurances from the Afghan side.

Explaining the state of a “ceasefire” between the two countries even though attacks by the TTP continue and recently heavy arms were also used by the Afghan Taliban on the Pak-Afghan border in Chaman, the spokesperson clarified, “As I have stated before, this ceasefire is not a traditional ceasefire that takes place between the two states. We gave a detailed response on this in the briefing two weeks ago. The ceasefire is violated when terrorist attacks continue from Afghanistan, the onus of which lies on Afghanistan. There is no material change in the last two weeks whereby I can say that the situation with regard to ceasefire has improved. In fact, it may have deteriorated over time”.

With UN essential humanitarian aid in limbo as the Taliban regime refuses to open its borders to allow this emergency aid to be brought in by trucks parked at the border, the spokesperson clarified that Pakistan was willing to provide humanitarian assistance, primarily as part of its affinity and its care for the brotherly people of Afghanistan to whom Pakistan intended no harm.

“From our end, the aid convoy has been cleared for movement. In fact, we have also demonstrated our willingness to provide a seamless movement of humanitarian assistance. Whether the Afghan Taliban regime wishes to receive this humanitarian assistance or not, is up to them. It would be quite an unprecedented event in the international annals that a state, which is in need of humanitarian assistance, is refusing it,” Andrabi said.

To a query about the defence cooperation between Israel and India, the spokesperson responded, “Whether Israeli drones and other equipment were handed over by India to Afghanistan, particularly the terrorist elements there, is a matter of investigation. Considering there is an active support to TTP/FAK/FAH by India, such transfer of weapons cannot be ruled out”.

The spokesperson did not feel perturbed over dozens of American lawmakers writing a letter, expressing concern over the situation of human rights in Pakistan and urging for formation of a policy with regard to the protection of human rights. “You are referring to this certain letter by the members of the US legislature. These developments have taken place in the past as well. Our embassy in Washington and our ambassador are seized of this matter. He has met over 100 US senators, Congresspersons over the past year and a half. So, we have an open dialogue and communication with the US legislature, and in that context, the position of Pakistan, with respect to its own domestic laws, is fully explained. This particular letter you referred to, is being followed up in the same vein,” he said.

Turning to the Indian MEA’s statements on the state of democracy in Pakistan, the spokesperson was of the view that India’s own sources had criticised their democracy, their democratic system, the level of parliamentarians that are elected to the Indian legislatures, the electoral malpractices, and so on and so forth. “So, this is a never-ending debate, which I do not wish to prolong further,” he said.

In a first official response to the US $686 million package for upgradation of Pakistan’s F-16 fleet, the spokesperson said this was part of regular defence cooperation between the two governments which had been welcomed and Pakistan continued to look forward to expanding its multifaceted ties with the US.

Commenting on the situation in the Indian Illegally Occupied Jammu and Kashmir (IOJK), he pointed out hundreds, if not thousands, of Kashmiris facing arbitrary arrests and prolonged detentions. He said the defence cooperation with Indonesia comprised a variety of sectors, including cooperation in particular equipment, training and joint exercises.

Giving his views on reports about Pakistan, China and Bangladesh setting up an alternative to Saarc, he said Pakistan supported multilateralism and was unwaveringly committed to it. Pakistan welcomes any initiative that aims to strengthen development, prosperity and regional connectivity in South Asia and beyond, he said.

The spokesperson clarified that there was no formal extradition treaty between Pakistan and the UK, and in its absence, the extradition cases could be processed on case-to-case basis. Some of these cases, were submitted to the British High Commission in Islamabad for their consideration.

When asked for comments on Chief of Army Staff and Chief of Defence Forces Field Marshal Syed Asim Munir’s statement that India supported terrorism in Pakistan, the spokesperson said India’s support for terrorism in Pakistan was significant. Pakistan has documented evidence on India’s support to terrorism in Pakistan, which has also been shared with international organizations and individual countries. Kulbhushan Jadhav is a living example of this support. The other tangible examples of Indian involvement are Jaffar Express and bombing elsewhere in Balochistan.

Responding to the media queries about the demarche made to the Norwegian ambassador to Pakistan over his attendance at a court case in Islamabad, Andrabi said the ambassador was Thursday summoned to the Ministry of Foreign Affairs regarding his unwarranted attendance at a court proceeding in Islamabad, which constituted a breach of diplomatic protocol and relevant international law. Noting that his actions amount to interference in the internal affairs of the country, the ambassador was urged to adhere to the established norms of diplomatic engagement, as outlined in the relevant articles of the Vienna Convention.

According to Geo News, the Norwegian envoy was reported to have attended a Supreme Court hearing in the case concerning lawyer Imaan Mazari and her husband, Advocate Hadi Ali Chattha, over their controversial tweets.