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Investment steps lack transparency
A Ministry of Finance report has accepted that the absence of structured transparency in the Special Investment Facilitation Council's (SIFC) initiatives could undermine policy predictability and weaken the confidence of investors.

In its 240-page Prime Minister's Economic Governance Reforms Agenda, the finance ministry committed to bringing transparency in the SIFC affairs, showed the report released last week. The ministry prepared the report as part of an action plan of the International Monetary Fund's (IMF) Governance and Corruption Diagnostic Assessment.

"The absence of structured transparency around strategic investment initiatives, including those facilitated through the SIFC, creates informational asymmetries that can undermine policy predictability, elevate perceived governance risks and weaken investor confidence," read the report.

The report meets a condition of the $7 billion IMF loan package, which binds Pakistan to make public an action plan to address the governance and corruption-related vulnerabilities.

Pakistan had established the SIFC in 2023 with the goal of acting as a single window to facilitate investment and privatisation, promote cooperation among all government departments and fast-track project development. The body was set up after Gulf nations complained about the lack of coordination among various entities of Pakistan, which was blocking investment inflows. The SIFC did address the coordination-related issues and helped remove bottlenecks but the larger problems like undue heavy taxation, higher energy prices, weaker external sector stability and the lack of fiscal space remained unaddressed.

The SIFC had been assigned the task of increasing foreign direct investment in the areas of agriculture, defence, infrastructure development, strategic initiatives, logistics, information technology, telecommunication, energy, mining and minerals, and tourism.

During its two and a half years of life, the SIFC has not been able to bring any major foreign investment. Last month, SIFC National Coordinator Lt General Sarfraz Ahmed highlighted multiple issues, which were restricting the foreign direct investment.

The finance ministry's report underlined "Pakistan has made significant strides in attracting and facilitating investment, yet the public availability of consolidated information on concessions, fiscal implications and regulatory relaxations remains limited".

The ministry stated that without systematic disclosure, particularly regarding tax concessions, policy exemptions or regulatory relaxations, the stakeholders face uncertainty about the rationale, cost and outcomes of strategic investments. This can weaken efficiency, blur the distinction between facilitation and discretion, and constrain the credibility of investment governance mechanisms, it said.

As part of loan conditions, the government has assured the IMF that it will submit the first draft of the annual report on the SIFC by December this year and the final report will be submitted in March 2027, which will clear the air around the council.

A senior SIFC executive said that so far the council has not granted any concessions or exemptions.

The annual report will have consolidated information on all investments facilitated by the SIFC, including details of approved tax concessions, the rationale for concession decisions, the estimated fiscal value of concessions and the progress on facilitated projects, according to the finance ministry's report. The IMF had questioned the vast powers given to the SIFC under Article 10F of the Board of Investment Act, which governs the council.

In its Governance and Corruption Diagnostic Assessment, the IMF stated that Article 10F and Article 10G "raise concerns about the concentration of authority over federal and regulatory institutions through recommendations, advice and directions, including on exemptions, given the broad immunity granted under Article 10G, which may undermine accountability mechanisms".

The IMF emphasised that "greater transparency is needed to understand how these powers will be exercised and monitored in practice". It added that the provisions outlined in Articles 10F and 10G, along with subsequent clauses, appear to create a framework that prioritises facilitation of strategic projects by allowing exemptions from regulatory compliance and shielding officials from personal liability. While these measures may enhance efficiency and reduce bureaucratic delays, they also increase potential transactional risks, said the IMF.

In light of these observations of the IMF, the finance ministry's report said "addressing these vulnerabilities requires institutionalised transparency, regular publication of structured investment information and clarity regarding the implementation of Article 10F, which empowers the government to relax or exempt regulatory compliance requirements for strategic projects". The IMF's governance report also highlighted the issues arising out of the parallel existence of the Board of Investment and the SIFC. "While the SIFC was established to accelerate investment and privatisation efforts, the Board of Investment continues to exist," stated the IMF's report released six weeks ago.

The IMF said that coexistence of multiple institutions with overlapping mandates has created ambiguity regarding roles, responsibilities and accountability structures. Rather than creating new entities, authorities should prioritise addressing structural challenges and root causes that deter foreign direct investment, weaken the investment climate and hinder privatisation efforts, it added.

Foreign reserves rise $141m to $21.19b
Pakistan's total liquid foreign currency reserves stood at $21.19 billion as of January 2, 2026, reflecting a modest improvement in the country's external liquidity position, according to official data.

The State Bank of Pakistan (SBP) held $16.06 billion in foreign reserves, while commercial banks collectively maintained net foreign reserves of $5.14 billion, bringing the total liquid reserves to $21.19 billion.

During the week ended January 2, the SBP's foreign exchange reserves increased by $141 million, signalling a slight strengthening of the central bank's buffer amid ongoing external pressures.

Analysts at Arif Habib Limited (AHL) noted that Pakistan's reserves currently provide an import cover of 2.65 months, which indicates the number of months the country can sustain imports using its available liquid reserves.

Furthermore, the Pakistani rupee edged slightly higher against the US dollar in the inter-bank market on Thursday. It closed at Rs280.05, marking a Rs0.01 gain versus the greenback. On Wednesday, the rupee had finished the session at Rs280.06.

Meanwhile, gold prices in Pakistan declined, reflecting cautious sentiment in global markets ahead of key US non-farm payroll data, which investors are closely watching for signals on the Federal Reserve's rate policy.

In the local market, gold per tola fell by Rs600 to Rs466,162, while 10-gram gold was sold at Rs399,658, down Rs515, according to the All-Pakistan Gems and Jewellers Sarafa Association. On Wednesday, gold per tola had already dropped by Rs1,200 to Rs466,762.

Internationally, gold eased by $6 to $4,438 per ounce (with a $20 premium). Spot gold in global markets showed a mild recovery later, trading up 0.2% at $4,460.36 per ounce as of 11:55 am ET, after touching the session low of $4,406.89. US gold futures for February delivery rose 0.2% to $4,470. Analysts noted that near-term pressure from commodity index adjustments continues to cap gains. Meanwhile, silver prices also fell, dropping Rs236 to Rs8,125 per tola.

The annual Bloomberg Commodity Index rebalancing, which is a periodic adjustment of commodity weightings to keep the index aligned with market conditions, begins this week.

"There's just going to be pressure for the next few sessions on gold and silver while that commodity index readjusts," said RJO Futures Senior Market Strategist Bob Haberkorn.

Despite the short-term dip, HSBC analysts remain optimistic on the precious metal, projecting gold could reach $5,000 per ounce in the first half of 2026, driven by safe-haven demand and ongoing macroeconomic uncertainties.

OGRA moves to scrap fixed returns in gas pricing
Following the government's plan to restructure gas utilities, the Oil and Gas Regulatory Authority (OGRA) has decided to review the existing gas pricing formula based on return on fixed assets, keeping in view current gas sector dynamics and market liberalisation.

The government had tasked the OGRA with restructuring the two public gas utilities by doing away with the fixed asset-based return. According to officials, the regulator hired consultancy firm KPMG to review the formula, and it has submitted its report.

The regulator has started consultations with stakeholders to change the gas pricing formula and has scheduled a public hearing here on Friday to consider the views of stakeholders.

Since 2018, OGRA has been allowing a market-based rate of return to the gas utilities, namely Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), on the value of their average net fixed assets in operation for each financial year.

OGRA said that, considering the latest gas sector dynamics, including demand and supply conditions, price volatility, market liberalisation and international benchmarking undertaken across the world, it has decided to review the existing gas pricing formula based on the rate of return (ROR) through an independent consultant, in line with the approved terms of reference.

"OGRA, after receipt of the first draft report as furnished by M/s KPMG, has decided to call a public consultation with all stakeholders as per its ToRs and the relevant legal provisions to ensure transparency and inclusive stakeholder engagement," the regulator said.

The gas utilities are opposing the proposal to shelve the guaranteed asset-based return formula and have asked the government to continue with the current pricing regime.

The gas pipeline network continues to expand, resulting in higher gas prices and increased profits for the utilities, but this expansion has also led to gas shortages across the country. SNGPL's operating cost surged from Rs66 billion in the financial year 2019-20 to Rs94 billion in 2023-24. At the same time, its earnings swelled from Rs19 billion to Rs38.9 billion, despite a drop in gas supply.

The utilities, SNGPL and SSGC, are of the view that the current asset-based return cannot be abandoned. They argue that several benchmarks, including unaccounted-for-gas (UFG), are linked to the asset-based return regime.

However, a number of industries have repeatedly criticised the fixed rate of return, arguing that the profits of the utilities are rising while gas supplies are shrinking due to continued expansion of the pipeline network.

At present, gas companies are facing a circular debt of Rs2.6 trillion, which has choked the entire energy chain. Liquefied natural gas (LNG) has been a major factor behind the accumulation of circular debt, as SNGPL has to pay billions of rupees for LNG supplies procured through Pakistan State Oil (PSO).

The present government has also opened the gas market by allowing gas utilities to allocate 35% of their gas to third parties. As a result, the regulator has received several applications from private parties seeking licences to market gas.

Oil and gas exploration companies had welcomed the government's decision to increase gas allocation to private parties from 10% to 35%, saying it would help improve their cash flows by enabling them to secure better prices from private buyers.

The exploration companies are also facing cash flow constraints due to the circular debt issue and are of the view that the mounting debt has slowed the pace of their development projects.

CCP to probe cooking oil industry
The government has directed the Competition Commission of Pakistan (CCP) to investigate the allegations of cartelisation in the cooking oil and ghee industry on a fast track. The National Price Monitoring Committee (NPMC), in a recent meeting, directed the CCP to submit its preliminary findings in the next meeting. The committee said that it had noticed that health issues were increasing due to the substandard quality of cooking oil and ghee. Furthermore, it stated that the issue may be taken up seriously by the relevant ministries and provincial departments.

The price control committee also reviewed the cooking oil price trend in compliance with the Economic Coordination Committee's (ECC) decision taken on July 25, 2025.

The CCP informed meeting participants that an investigation into alleged cartelisation in the palm oil and ghee sector had been initiated in November 2025. The CCP was in the process of collecting requisite information and would complete its preliminary report in a couple of months.

The committee decided that the Ministry of Industries and Production, in collaboration with the Ministry of Science and Technology (Pakistan Standards and Quality Control Authority), should coordinate with the provincial governments (food control authorities/ departments) to ensure compliance with prescribed standards for the vegetable oil and ghee supplied domestically and submit a report to the NPMC in the next meeting.

The committee agreed that the Ministry of National Food Security and Research and the food and agriculture section of the Ministry of Planning, Development and Special Initiatives, under the supervision of the consultant food and agriculture, may prepare a policy paper for the potential agri-products, such as tea, edible oil, processed products, pulses, juices, etc, which could be incentivised to reduce Pakistan's import bill and save foreign exchange. Additionally, it may include the impact of general sales tax on processed food that was impeding the development of value-added markets.

The committee said that the presentation to be made by the Islamabad Capital Territory (ICT) administration was deferred and the chair had given the directive that the ICT chief commissioner would give a detailed briefing on the movement of commodity prices and the administrative measures planned for Ramazan in the next meeting.

The NPMC decided that the Pakistan Bureau of Statistics (PBS) would prepare a weekly/monthly report on the ranking of districts in terms of price control and share it with the concerned ministry and provincial governments to enable them to effectively control price movements.

The chief statistician presented an analysis covering the inflation trends, impact of recent floods on food prices, wholesale-retail price differentials and national and international trends for cooking oil prices. He informed the meeting that prices of key commodities such as wheat, chicken, potatoes, onions, tomatoes and eggs were reviewed, with a particular focus on comparing the current rates with pre-flood levels.

The State Bank of Pakistan (SBP) presented a comprehensive report on loan disbursements to farmers for the sowing of Rabi crops in flood-affected areas, along with district-wise details. Meeting participants expressed the desire that the SBP may also provide a complete disaggregated breakdown of farm and non-farm credit and the types of credit disbursed under those categories, so that the NPMC may have a clearer picture of the effective utilisation of agri-credit.

The committee emphasised the need for stronger coordination between the provincial governments and the Ministry of National Food Security to accurately assess the situation. It was emphasised that the demand and supply of essential food items, especially ahead of Ramazan and festive seasons, be evaluated for their uninterrupted supply at stable prices. The food ministry apprised the meeting of consultations held with the Ministry of Industries and the provincial governments, and identified the measures to be taken before and during Ramazan to provide essential food items at stable prices.

The provincial departments added that they had asked the district administrations to take all possible measures to ensure the supply of essential food items during Ramazan. In that regard, the Sasta Ramazan Bazaar will also be organised.

Govt sets base prices for 5G spectrum auction in dollars
The federal government has notified the base prices and spectrum volumes for the auction of next generation mobile services (5G), issuing a formal policy directive through the Ministry of Information Technology and Telecommunication after approval by the auction supervisory committee, chaired by Finance Minister Muhammad Aurangzeb.

Under the directive, the Pakistan Telecommunication Authority (PTA) will conduct the auction through a transparent and competitive process, covering six spectrum bands. The auction will include 15 MHz of paired spectrum in the 700 MHz band, 36 MHz of paired spectrum in the 1800 MHz band, 20 MHz of paired spectrum in the 2100 MHz band, 50 MHz of unpaired spectrum in the 2300 MHz band, 190 MHz of unpaired spectrum in the 2600 MHz band, and 280 MHz of unpaired spectrum in the 3500 MHz band.

The base price for 1 MHz paired spectrum in the 700 MHz band has been fixed at $6.5 million. For the 1800 MHz and 2100 MHz bands, the base price for 1 MHz paired spectrum has been set at $14 million each. In the case of unpaired spectrum, the base price has been fixed at $1 million per MHz in the 2300 MHz band, $1.25 million per MHz in the 2600 MHz band, and $0.65 million per MHz in the 3500 MHz band.

The policy states that the spectrum fee will be reflected in the licence in equivalent Pakistani rupees, with the US dollar to Pakistani rupee conversion based on the National Bank of Pakistan (NBP) TT selling rate prevailing on the day preceding the auction date.

Under the notified payment terms, a one-year moratorium from the date of licence issuance will apply, during which no payment or markup will be payable. Upon completion of the moratorium, licensees may either pay 100 per cent of the spectrum fee by the first anniversary of licence issuance or opt for a deferred payment plan. Under the deferred option, at least 50 per cent of the total spectrum fee must be paid by the first anniversary, while the remaining 50 per cent will be payable in five equal annual instalments starting from the second anniversary.

The deferred amount will carry a cumulative markup at the rate of one-year KIBOR plus three per cent per annum, with the applicable KIBOR determined as per rates prevailing on the relevant payment dates, as published by the State Bank of Pakistan. Early repayment of the outstanding balance, in full or in part, will be permitted without any prepayment penalty, though markup at the prescribed rate will apply up to the date of final payment.

Successful bidders will be issued new spectrum licences for a period of 15 years. The licences will also incorporate provisions for spectrum trading and spectrum sharing in line with the approved regulatory framework.

Following the completion of the spectrum auction, all existing Cellular Mobile Operators (CMOs) will be required — within a timeframe to be determined by the PTA — to comply with a spectrum rationalisation plan. The plan, to be issued by the PTA in consultation with the Frequency Allocation Board (FAB), aims to ensure optimal utilisation of contiguous spectrum holdings in the 1800 MHz and 2100 MHz bands.

The PTA will issue an Information Memorandum (IM) detailing the auction mechanism, including eligibility criteria and procedural steps for participation. The auction will be conducted within the minimum reasonable time following the issuance of policy directive.

The spectrum assignment will be technology-neutral, allowing its use for all existing and future advanced mobile technologies in line with the Government of Pakistan’s policy framework. Both existing CMOs and new entrants will be eligible to participate, subject to an overall spectrum cap of 40 per cent of the total spectrum available post-auction. Additionally, a cap of 55 MHz (2×27.5 MHz) will apply to aggregate low-band IMT spectrum holdings — comprising the 700 MHz, 850 MHz, and 900 MHz bands — including both existing and newly acquired spectrum. Further band-specific caps of 140 MHz in the 2600 MHz band and 200 MHz in the 3500 MHz band will also be enforced.

Terms and conditions relating to phased Next Generation Mobile Services (NGMS) network rollout — covering parameters such as the number of cities, sites, fibre-to-the-tower connectivity, and enhanced Quality of Service (QoS) standards — will be incorporated into the licences by the PTA, as recommended by the advisory committee. These measures are aimed at accelerating mobile broadband penetration and improving service quality nationwide.

Existing CMOs that participate in and secure spectrum through the auction will have their current network rollout obligations replaced with new obligations, along with revised financial instruments, in accordance with the mechanism outlined in the Information Memorandum.

Govt seeks Nepra’s nod for uniform power tariff for Discos, K-Electric
Following Nepra’s determination of base tariff, the federal government has submitted a motion seeking the regulator’s nod for uniform consumers end tariff for XWDiscos and K-Electric.

As per the motion, the government wants to keep tariff of up to Rs47.69 per unit for various categories of domestic consumers during the calendar year 2026.

As per the Nepra determination, the National Average Tariff for CY2026 has been determined at Rs33.38/unit, which is Rs0.62/unit lower than the previously determined tariff of Rs34.00/unit for FY2025-26. The proposed electricity base rates for various categories of domestic consumers will remain from Rs3.95 per unit to Rs47.69 per unit for the ongoing fiscal year. The federal government has proposed to maintain the rate for domestic consumers using electricity above 700 units per month at Rs47.69 per unit. Similarly, the tariff for protected domestic consumers using 1-100 units per month be Rs10.54 per unit while for protected domestic consumers using 101-200 per unit per month, the tariff will be Rs13.01 per unit.

For the non-protected domestic consumers using 1-100 units, the tariff will be Rs22.44 per unit and for consumers using 101-200 units per month it will be Rs28.91 per unit. The tariff for 201-300 units per month will Rs33.10 per unit, while for 301-400 units per month it will be Rs39.05 per unit to Rs37.99 per unit. The tariff for 401-500 units per month will stay at existing Rs40.22 per unit. The tariff for 501 to 600 units per month will be Rs41.62 per unit and tariff for 601 to 700 units per month will stay Rs42.76 per unit. The tariff for more than 700 units per month will be Rs47.69 per unit.

For the life-line domestic consumers using 1 to 50 units per month and 51 to 100 units per month the tariff will remain unchanged at Rs3.95 per unit and Rs7.74 per unit respectively. For commercial consumers, the tariff will be Rs45.43 per unit, for general services Rs43.17 per unit, agriculture Rs30.75, while for the industrial consumers the tariff will be Rs33.48 per unit.

Multinationals flag refund delays, seek super tax cut
Multinational companies operating in Pakistan on Thursday raised concerns over delayed tax refunds, alleged harassment and the collection of advance taxes by the Federal Board of Revenue (FBR) during a meeting with the newly inducted director-general of the Tax Policy Office (TPO) at the Finance Division.

The Overseas Investors Chamber of Commerce and Industry (OICCI), which represents more than 200 multinational companies operating in the country, also urged the government to reduce the super tax rate from 10 per cent to 6.0 per cent in the federal budget for 2026-27 and to abolish it gradually over a three-year period.

In addition, OICCI members called for a reduction in the corporate tax rate by one percentage point each year over the next four years.

According to an official statement issued on Thursday, OICCI hosted Dr Najeeb Memon, director general at TPO (Finance Division) for an interactive session with its members. The engagement was aimed at fostering constructive dialogue on tax policy challenges and reform priorities affecting Pakistan’s investment climate.

During the session, OICCI members shared broader business and investment-related tax concerns, deliberately focusing on systemic and structural issues rather than operational or case-specific matters. While acknowledging progress on macroeconomic stabilisation, participants underscored the need for greater predictability, consistency and transparency in tax policy and its implementation.

Members highlighted key considerations for the Tax Policy Board, including the importance of a stable and predictable tax framework, reduced policy uncertainty and closer alignment between tax policy intent and on-ground implementation. Persistent challenges such as prolonged delays in tax refund settlements, frequent changes in tax measures and the rising cumulative cost of doing business were identified as areas requiring policy-level intervention.

The OICCI also stressed the need to strengthen institutional coordination, simplify tax procedures and adopt a more consultative approach to future tax reforms to restore investor confidence and support sustainable foreign direct investment (FDI) inflows.

Addressing the session, Memon appreciated the quality of engagement with OICCI members and assured participants that stakeholder input remained central to effective tax policymaking.“Engagements such as this with key economic stakeholders help the government understand investor perspectives at a strategic level. The Tax Policy Office values evidence-based input from the OICCI and its members, which will be carefully considered as we work towards a more coherent, predictable and growth-oriented tax policy framework,” he said.

OICCI President Yousaf Hussain said the real value of proposed tax policy reforms lay in how they were translated into improved predictability, consistency and meaningful stakeholder engagement.

“Businesses plan over long horizons, and frequent changes, unclear interpretations and retrospective measures undermine confidence and raise the cost of capital. A consultative, well-signalled, medium-term tax policy framework focused on broadening the tax base, simplifying compliance and aligning taxation with national priorities such as investment, exports and job creation would significantly improve investor sentiment and support sustainable economic growth,” he said.

OICCI Secretary General M Abdul Aleem emphasised the importance of tax reforms in sustaining investor confidence. “Foreign investors are increasingly looking beyond short-term stabilisation towards structural reforms. A predictable tax regime, timely settlement of pending tax refunds and consistent policy implementation are essential to improving Pakistan’s competitiveness and positioning it as an attractive investment destination,” he said.

The session concluded with both sides agreeing to maintain regular engagement to ensure that investor perspectives continue to inform tax policy discussions, with the shared objective of improving predictability, consistency and investor confidence in Pakistan’s tax framework.

In a separate meeting, the Pakistan Business Council (PBC) on Thursday welcomed Dr Najeeb Ahmed Memon, during a meeting with business leaders as part of the government’s outreach on tax reforms.

According to a statement, the engagement focused on separating tax policy from revenue administration and developing a more predictable, growth-oriented tax framework. Dr Memon outlined the TPO’s mandate and stressed the importance of structured consultation with industry to address distortions in the tax regime and support investment, competitiveness and economic formalisation.

The PBC reiterated its long-standing support for separating tax policy from tax administration, maintaining that tax policy should be long-term, consistent and predictable to facilitate investment, exports and sustainable growth, while ensuring a level playing field for compliant businesses.

PBC Chairperson Dr Zeelaf Munir described the creation of the TPO as a positive institutional step and welcomed the consultative approach. She said tax reform was essential for documentation and long-term growth, and that industry engagement was critical to designing workable, evidence-based policies.

Dr Memon said consultations with industry stakeholders were vital to building a credible tax policy framework that supports growth, investment and economic documentation, adding that input from the PBC would help shape pragmatic and sustainable reforms.

The PBC emphasised that a transparent and equitable tax system remained central to improving Pakistan’s investment climate and supporting long-term economic growth.

FBR drafting plan to rationalise duties, taxes on import of mobile phones
The Federal Board of Revenue (FBR) is preparing a detailed plan for rationalizing duties and taxes on the import of mobile phones.

In this regard, the FBR is drafting a proposal for National Assembly Standing Committee on Finance.

The Cellular Mobile Operators (CMOs) had proposed to the FBR withdrawal of regulatory duty rates on telecom power equipment which are not locally manufactured. It also proposed rationalizing of duties on telecom equipment. Moreover, telecom services sector should be excluded from retail price list because they don’t import the goods for direct sale.

On Thursday, the FBR sources told Business Recorder that tax rates on the import of mobile phones should be rationalized. The FBR will also consult Pakistan Telecommunication Authority (PTA) in this regard.

The FBR has collected Rs82 billion in taxes on the import of mobile phones during 2024-25, whereas Rs18 billion was collected from high-end mobile phones (23 to 24 percent of the total collection from mobile phones).

Only a five percent duty is imposed on the import of mobile phones in CKD/SKD kits condition, which are assembled locally. Some local assembly lines are manufacturing mobile phones at prices starting from Rs15,000.

Tax authorities opined that if any valuation was found higher than market levels, it would be revised.

The average smartphone prices had recently decreased and said FBR could work with the Ministry of IT to rationalize taxes proportionate to actual market trends. Ninth Schedule of the Sales Tax Act directly deals with the mobile phone taxation.

According to FBR data, Rs82 billion in total mobile-related taxes and Rs18 billion specifically from smartphones were collected in the last fiscal year.

The NA committee members had argued against “the excessive taxes,” which had pushed even mid-range smartphones out of reach. They stressed that smartphones were no longer a luxury item but a “basic necessity” and said the long-used justification of being “in an IMF programme” could no longer be used to continue burdensome duties.

During the last meeting, the National Assembly Standing Committee on Finance further directed the Federal Board of Revenue (FBR) to prepare a comprehensive report on reducing the heavy taxes imposed on smartphones, amid growing criticism that current duties have made mobile phones unaffordable for ordinary citizens.

Standing Committee on Finance and Revenue chairman Syed Naveed Qamar had advised the Federal Board of Revenue (FBR) and the Tax Policy Office to revisit the prevailing tax rates applicable to mobile phone imports under the personal baggage and registration system.

In the past said meeting, representatives from the Pakistan Telecommunication Authority (PTA) rejected claims that the authority imposed any direct taxes, stating all duties were collected by the FBR.

The PTA Chairman added that 94 percent of smartphones used in Pakistan were locally assembled, while only 6 percent — primarily higher-end models — were imported. “Except for Apple, all major smartphone brands are now being manufactured in Pakistan,” tax officials added.

National sugar output surges by 11pc
The national sugar production has increased by 0.18 million tonnes or 10.91 per cent compared to the same period last year, driven by higher sugarcane crushing and recovery rates.

According to the latest data, sugar mills across Punjab, Sindh and Khyber Pakhtunkhwa (KP) have crushed about 20.84 million tonnes of sugarcane till December 31, 2025. This is a big jump of 3.22 million tonnes, or an increase of 18.27 per cent, compared to the 17.62 million tons processed during the same time in the previous 2024-25 season.

As industry crushed more cane, they produced more sugar. Total production reached 1.93 million tonnes, which is 10.91 per cent higher than the 1.74 million tonnes manufactured last year.

However, the most important improvement is the rising ‘recovery rate’ -- the amount of sugar extracted from the cane. This rate rose from about 9.2 per cent to 9.5 per cent, representing an improvement of 3.26 per cent.

As per the breakup of provincial data, Punjab, the heart of the country’s sugar production, has shown strong results. It crushed 15.06 million tonnes of cane compared to last year’s 13.92 million tonnes -- an increase of 1.14 million tonnes or 8.19 per cent. As a result, Punjab’s sugar output rose from 1.21 million tonnes to 1.36 million tonnes, a gain of 12.39 per cent.

More importantly, its recovery rate improved from 9.01 per cent to 9.43 per cent.Sindh’s performance was even more impressive in terms of recovery. The province processed 4.65 million tonnes of cane, almost at last season’s level. Its sugar production jumped to 0.43 million tonnes and its recovery rate climbed from 9.19 per cent to a very high 9.76 per cent.

In KP, Der Ismail Khan Division is doing good. It has a standout recovery rate of 10.17 percent, which suggests that the mills there are working at their best possible level. Lone sugar mill in Mardan however showed recovery rate of just 8.08 per cent.

While the higher recovery rate could be because farmers are growing better types of cane and mills are using better machinery, insiders attribute the improved sugar production data to the active monitoring of sugar mills by government institutions, particularly the Federal Board of Revenue (FBR).

They believe that close surveillance of sugarcane purchases and inventory management has led to more accurate reporting of key sugarcane crushing statistics, providing a clearer picture of the industry’s performance. This enhanced oversight is seen as a key factor in the recent surge in sugar production, giving a boost to the industry’s overall growth.

Based on the 2025-26 season data, the top-performing individual sugar mills in terms of recovery rate highlight exceptional operational efficiency across various provinces. At the national level, Al-Moiz Sugar Mills (Cane) in DI Khan, KP, leads the industry with the highest recovery rate of 10.75 per cent, setting a formidable benchmark for technical performance.

In Punjab, unlike general perception about efficient mills in South Punjab, the standout mill is Darya Khan Sugar Mill located in Bhakkar, Sargodha Division, which achieved a leading provincial recovery rate of 10.6 per cent, surpassing other strong performers like JDW-I in Rahim Yar Khan (10.33 per cent).

Meanwhile, in Sindh, Mehran Sugar Mills recorded the province’s top recovery rate of 10.48 per cent, demonstrating that high-efficiency operations are present in multiple regions and collectively contribute to the national average improvement.

Power sector: World Bank urges need for credible marginal price determination
The World Bank has underscored the need for credible marginal price determination in Pakistan’s power sector, backed by transparent data, robust systems, and independent scrutiny, as the country grapples with mounting structural challenges driven by rapid solar adoption and persistent circular debt.

The issue was discussed during a meeting between World Bank Country Director Bolormaa Amgaabazar and Minister for Power Sardar Awais Leghari, where both sides reviewed ongoing World Bank–supported projects and reform efforts in the power sector.

The meeting also served as an opportunity for the government to express appreciation for the World Bank’s analytical support, particularly its engagement in power sector reform discussions under the IMF programme.

Reaffirming the government’s commitment to reforms, the Minister highlighted key initiatives including DISCO privatisation, competitive procurement, and measures to strengthen investor confidence.

However, he cautioned that the rapid expansion of off-grid and on-grid solar capacity—estimated at around 25,000 MW—has significantly increased fixed-cost pressure on the national grid. This trend, he noted, is accelerating the risk of grid defection, which could intensify further with the growing adoption of battery storage systems.

“Without tariff stabilisation, future policy responses may unintentionally discourage renewable energy deployment,” the Minister warned.

Both sides also discussed a proposed financing plan involving international financial institutions to retire the remaining circular debt of Rs 1.7 trillion, a long-standing challenge undermining the financial viability of the power sector.

Sardar Awais Leghari emphasised that the World Bank could play a pivotal role in promoting local investment in battery storage, which he described as essential for improving energy efficiency and ensuring grid stability amid changing consumption patterns.

He further noted that Pakistan is currently developing dozens of power sector projects, some of which are facing delays. World Bank teams, he added, regularly visit Pakistan to review progress, particularly on hydropower, transmission, and distribution projects.

The Power Minister acknowledged the World Bank’s technical assistance and stressed the importance of expanding collaboration through future projects to accelerate reforms and strengthen Pakistan’s energy infrastructure.

On the occasion, the World Bank Country Director praised the ongoing reform efforts and reaffirmed the Bank’s commitment to supporting initiatives aimed at sustainable, reliable, and financially viable energy development.

The meeting highlighted the shared resolve of Pakistan and the World Bank to deepen cooperation in the energy sector while exploring new avenues for investment and technical collaboration.

Foster investment inflow: Policymakers urged to remove power sector hurdles
Energy sector experts and industry executives on Thursday urged policymakers to remove bottlenecks, including over-regulation, extend fiscal incentives and ensure faster decision-making and implementation to attract both local and international investment.

These views were expressed during discussions and presentations at the Pakistan Energy Conference, hosted by the Petroleum Institute of Pakistan (PIP) under the theme “Transforming Pakistan’s Energy Sector.”

The conference opened with a welcome address by the Chairman PIP, Mr. Syed Muhammad Taha, MD Pakistan State Oil, followed by a video message from the Federal Minister for Energy (Petroleum Division), Ali Pervaiz Malik, who underscored the government’s commitment to energy sector reforms, sustainability, investment facilitation, and long-term energy security.

Federal Minister for Petroleum Ali Pervaiz Malik did not attend the conference in person but conveyed his message through a recorded video.

However, Managing Director Oil and Gas Development Company Limited (OGDCL) Ahmed Hayat Lak, Chairman Oil and Gas Regulatory Authority (OGRA) Masroor Khan, along with chief executives and senior officials from the energy sector, participated in the event. Chief Executive Officer of the Petroleum Institute of Pakistan, Shehryar Omar, also addressed the conference.

Experts and private sector executives acknowledged the government’s efforts to develop the energy sector but pointed out several persistent challenges hindering investment, including excessive regulation and lack of access to reliable data for investors.

They stressed the need for swift decision-making and execution, along with fiscal incentives for both local and foreign investors in the oil and gas sector. The participants also called for easing regulations related to tight gas and offshore exploration and development.

According to experts, energy consumption has declined by nearly 50 percent over the past three years, as energy demand is more sensitive to income levels than prices, with the residential sector being an exception. Currently, almost 80 percent of energy supply is derived from oil, coal, and gas, though this share is expected to decline over time.

Sector experts further noted that demand for hydropower, LPG, and renewable energy is likely to increase, while the share of oil and gas in the energy mix may decrease. Energy demand from the residential sector is expected to grow more rapidly compared to other sectors.

Experts warned that the energy import bill is likely to rise both in absolute terms and as a proportion of GDP, adding that a reform-oriented scenario appears to be the most viable option for the country.

To increase per capita primary energy supply and demand, participants emphasized the need for measures to improve energy efficiency. They suggested substituting imported coal with domestic coal, which could help reduce the import bill by up to $8 billion by 2050.

It was also recommended that gas be utilized more effectively to minimize imports, while imported natural gas used for electricity generation could gradually be replaced with renewable energy resources over the next 10 years. Similarly, imported coal used by the industrial and power sectors could be gradually substituted with domestic coal during the same period.

Participants noted that imported electricity would continue as per existing plans, with no further additions proposed, while non-power use of oil and gas may not be easily substituted with other energy forms. They further recommended expansion of renewable energy-based power generation in the coming years.

The experts also called for the use of modern technology to improve energy efficiency and the development of an updated energy database portal to provide instant and accurate information on the energy sector.

 “Pakistan needs a comprehensive vision for exploration, refining, and petrochemicals for the next 20 to 25 years. Local production of biofuels and biodiesel should be encouraged to reduce reliance on imported fuels,” the experts said.

Oil and Gas Development Company Limited (OGDCL) served as the Lead Partner of PEC, while Pak Arab Refinery Ltd (PARCO), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), and United Energy Pakistan Ltd (UEPL) joined as Gold Partners. Universal Gas Distribution Company (UGDC) participated as the Silver Partner, reflecting strong industry support for the conference and its objectives.

A key highlight of the event was the presentation on the Pakistan Energy Outlook 2025, which provided strategic insights into energy demand, supply dynamics, and the need for integrated planning in light of economic and environmental considerations.

PIA to resume direct Lahore-London flights by March 30
Pakistan International Airlines (PIA) is going to resume direct flights between Lahore and London by March 30, 2026. According to the details, PIA said the airline will gradually increase its UK operations to seven weekly flights by the end of March.

The announcement comes after PIA recently resumed flights to Manchester and confirmed the launch of Islamabad-London services from March 29. The consecutive launch dates for Islamabad and Lahore routes have been strategically scheduled to meet high demand and align with the airline’s operational readiness.

“The flights are being increased keeping in view the high demand and long-standing requests of Pakistanis and expatriates residing in the UK,” the spokesperson said, adding that all flights to the United Kingdom are currently operating at full capacity.

According to the flight schedule, PIA will operate three weekly flights from Islamabad to London and one weekly flight from Lahore to London. The airline has finalized all arrangements for the Lahore-London route, which will provide direct connectivity for passengers in Punjab and surrounding regions.

The spokesperson revealed that PIA is planning to add more flights from other Pakistani destinations to various UK cities in the future. The airline previously operated more than 22 weekly frequencies to the United Kingdom before the suspension of its European operations and expects to exceed that number as it expands its network.

The resumption of UK flights follows the European Union Aviation Safety Agency’s decision to lift the ban on PIA operations in European airspace, ending a restriction that had been in place since 2020. The move has been welcomed by the Pakistani diaspora in Britain, one of the largest expatriate communities in Europe.

PIA’s expanded UK operations are expected to boost passenger traffic, strengthen people-to-people connections, and provide more affordable travel options between Pakistan and the United Kingdom. The airline has been working to rebuild its international operations and restore confidence among travellers following years of regulatory challenges.

PM vows to fast-track Balochistan’s development
Prime Minister Muhammad Shehbaz Sharif has reaffirmed his government’s commitment to ensuring peace and prosperity in Balochistan, calling the province the geographical heart of the country.

Addressing political leaders, parliamentarians and provincial ministers in Quetta on Thursday, he emphasized that national unity and strong federal-provincial cooperation were vital to overcoming Balochistan’s security and economic challenges.

The Prime Minister paid tribute to the sacrifices of the Armed Forces, Police, Frontier Corps and civilians in the fight against terrorism. He condemned Fitna-al-Khawarij and expressed regret over the support extended to terrorists by certain neighbouring countries.

Praising military leadership, he lauded Field Marshal Syed Asim Munir for his professional excellence, recalling his decisive command during the events of May 2025. “The government and the military will not rest until terrorism is completely uprooted,” he declared.

Reflecting on the 2010 National Finance Commission (NFC) Award, PM Sharif recalled the consensus achieved under the leadership of Asif Ali Zardari and Yousaf Raza Gilani.

He noted that Punjab had voluntarily contributed Rs 11 billion annually from its share to Balochistan, amounting to Rs 175 billion to date, in recognition of the province’s vast distances and unique needs. He added that committees were currently working on a new NFC Award to ensure equitable resource distribution and strengthen the federation.

The PM laid the foundation stone for the expansion of Karachi–Quetta–Chaman National Highway into a modern four-lane carriageway. He said the Rs 300 billion project would be funded through savings from fluctuating international petroleum prices, describing it as a gift from the people of Pakistan to Balochistan.

Once dubbed the “Killer Highway” due to frequent accidents, the Prime Minister announced its expansion to reduce traffic incidents and provide safer travel facilities to the people of Balochistan.

He said that five Danish schools would be established from Killa Saifullah to Turbat, offering free, world-class education to underprivileged children. The initiative will later be expanded across the province to educate the new generation to play a vital role in development and in eliminating terrorism, he added.

The PM expressed satisfaction over the successful conversion of agricultural tube wells to solar power, ensuring sustainable energy for farmers. Utilizing 400 million dollars from the World Bank following the 2022 floods, the government continues to construct houses across the province, with inaugurations planned for flood-affected families, he said.

PM Shehbaz Sharif stressed that former Prime Minister Mian Nawaz Sharif had always prioritized Balochistan’s prosperity. He urged all stakeholders to adopt a joint strategy to ensure that the journey of development reaches every corner of the province.

The meeting was attended by Deputy Prime Minister Ishaq Dar, Governor Balochistan Sheikh Jaffar Khan Mandokhail, Chief Minister Sarfraz Bugti, Dr. Malik Baloch, and Maulana Abdul Wasey.

Speaker of the National Assembly Sardar Ayaz Sadiq, Deputy Chairman Senate Syedaal Khan, Federal Ministers Ahsan Iqbal and Abdul Aleem Khan, Advisor to the Prime Minister Rana Sanaullah, Leader of the Opposition in the Balochistan Assembly Mir Younis Aziz Zehri, Balochistan Provincial Ministers Mir Saleem Khosa, Mir Shoaib Nosherwani, and Mir Zahoor Ahmed Buledi, Provincial Advisor Nawabzada Zareen Magsi, Members of Assembly, Senator Abdul Qadir and representatives of all the political parties were also present.