Second-Hand Home Sales Lead Thailand’s Real Estate Market Recovery

Pakistan has formally approached China to refinance a $1.3 billion commercial loan, as the government continues efforts to strengthen the country’s foreign exchange reserves and meet its external financing obligations. According to officials familiar with the matter, negotiations between Pakistani and Chinese authorities are currently in progress to finalise the terms and conditions of the refinancing arrangement. Once the discussions are completed, the funds are expected to be disbursed later this month. The anticipated inflow is expected to provide much-needed support to Pakistan’s foreign exchange reserves, which remain under pressure due to significant external debt repayments and ongoing financing requirements. The refinancing would also help ease short-term liquidity pressures while supporting the country’s broader macroeconomic stability. Sources revealed that Pakistan repaid approximately $2.2 billion in external debt during July, including the settlement of the $1.3 billion Chinese commercial loan. The government’s request for refinancing is aimed at replacing the repaid amount, ensuring that reserve levels remain stable without placing additional strain on the country’s external account. The move comes as Islamabad continues to pursue a strategy of securing rollover agreements and refinancing facilities from friendly countries and international partners to meet its debt servicing commitments. Maintaining adequate foreign exchange reserves has remained a key priority for economic managers as Pakistan seeks to strengthen investor confidence and sustain financial stability. Economic experts believe that successful refinancing of the Chinese loan would provide temporary relief to the country’s external financing position while allowing policymakers greater flexibility in managing upcoming debt obligations. Officials said talks with Chinese financial institutions are progressing positively, although the final timeline will depend on the completion of documentation and agreement on financing terms. The refinancing request also reflects Pakistan’s ongoing efforts to manage its external debt profile prudently amid global economic uncertainties and higher financing costs in international markets.

ISLAMABAD: The federal government has proposed recovering around Rs34 billion from consumers of distribution companies (Discos) and K-Electric through the quarterly tariff adjustment (QTA) for April-June 2026, translating into an estimated increase of Rs1.34 per unit. The proposed adjustment has been attributed largely to higher capacity-related costs resulting from a decline in electricity consumption during the quarter. However, representatives of the industrial sector have strongly opposed the proposed increase, arguing that businesses are already facing high electricity costs and cannot absorb another financial burden. The National Electric Power Regulatory Authority (NEPRA) held a public hearing on Wednesday to examine the QTA request, during which representatives of industries, power distribution companies and the government presented their positions. Initially, the power distribution companies had requested an adjustment of Rs23.031 billion for the second quarter of fiscal year 2026 under the QTA mechanism. The amount was later revised upward to Rs33.778 billion. According to the figures presented before NEPRA, the largest component of the proposed adjustment is related to capacity charges, amounting to Rs46.280 billion. Variable operation and maintenance costs account for another Rs4.936 billion. The calculation also includes a negative adjustment of Rs13.517 billion related to Use of System Charges (UoSC) and the Market Operator Fee (MOF), which partially offsets the overall increase. Similarly, Rs3.040 billion has been included to account for the impact of transmission and distribution losses on monthly Fuel Charges Adjustments (FCA). A further negative adjustment of Rs21.175 billion has been made under the incremental consumption package. The distribution companies have also claimed Rs14.211 billion for costs relating to Small Power Producers (SPPs) and Captive Power Producers (CPPs) that they say remained unrecovered. Industrial sector voices concern During the hearing, industrial representatives raised strong objections to the proposed QTA adjustment, warning that another increase in electricity prices could further weaken the competitiveness of Pakistan’s manufacturing sector. Rehan Javed, Aamir Sheikh and Tanveer Barry conveyed their concerns to NEPRA officials in the presence of representatives from the Ministry of Energy and the distribution companies. The representatives argued that industries were already operating under considerable cost pressures and that any additional increase in electricity tariffs would raise production expenses and make it more difficult for local businesses to compete in domestic and international markets. Tanveer Barry, representing the Karachi Chamber of Commerce and Industry (KCCI), particularly questioned the sharp rise in capacity-related charges. According to Barry, capacity charges had increased from around Rs36 billion in the first quarter to more than Rs50 billion in the period under review. He said the increase could ultimately translate into a much larger financial burden for consumers. He estimated that the combined impact could place an additional burden of approximately Rs3.50 per unit on consumers, depending on the final adjustment approved by the regulator. Barry also pointed out that eight distribution companies had reported positive capacity charges, while three had recorded negative adjustments. He urged NEPRA to examine the calculations and underlying reasons for the variations before approving any additional burden on consumers. Lower electricity demand Officials of the Peshawar Electric Power Company (Pesco) told the hearing that electricity consumption had fallen by approximately five per cent during the period under review. They attributed much of the decline to weaker demand from domestic and commercial consumers. Increasing adoption of solar energy was also cited as one of the factors reducing demand from residential consumers. NEPRA Member Maqsood Anwar Khan questioned Pesco officials about whether load-shedding was also being carried out in areas where consumers regularly paid their electricity bills. The Pesco representatives acknowledged that load-shedding was taking place. Maqsood Anwar Khan observed that interruptions in electricity supply could themselves contribute to lower electricity sales, as consumers would naturally use less grid electricity when supply was unavailable. Solarisation becomes key point of debate The growing use of solar power also featured prominently during the hearing. The NEPRA member noted that the expansion of solar generation had provided relief to the national electricity system by reducing daytime demand from the grid. He observed that without the contribution of solar energy, pressure on the power system and the need for daytime load management could have been considerably greater. He further noted that increasing solarisation was shifting the pattern of load-shedding, with pressure becoming more visible during night-time hours when solar generation was unavailable. The NEPRA member also disagreed with the assertion that solarisation alone was responsible for a decline in electricity sales, maintaining that the impact of rooftop and distributed solar generation should be assessed in a broader context. Industry questions capacity payments Industrial representatives also questioned why consumers should continue to shoulder substantial capacity payments when many areas were still experiencing load-shedding. Barry argued that consumers were effectively being asked to pay for electricity generation capacity while not receiving uninterrupted power supply. He further raised concerns about capacity payments being made to older and relatively inefficient power plants. According to him, the under-utilisation of generating units was contributing to higher capacity-related costs and ultimately increasing the price of electricity for consumers. The industrial sector also questioned whether the dispatch of power plants was fully aligned with the Economic Merit Order (EMO), arguing that deviations from the merit order could contribute to unnecessary costs. The representatives called on NEPRA to undertake a detailed review of the QTA calculations before reaching a final decision. They urged the regulator to defer the proposed increase, warning that higher electricity costs would place additional pressure on industries, increase production expenses and potentially undermine Pakistan’s export competitiveness. NEPRA is expected to examine the claims and objections raised during the public hearing before determining the final quarterly tariff adjustment applicable to consumers.

Pakistan’s petroleum product sales recorded a significant increase in July 2026, reflecting stronger economic activity, improved agricultural demand, and the impact of lower fuel prices. Industry data released on Monday showed that total petroleum sales reached 1.51 million tons, marking a 23% year-on-year (YoY) increase and the strongest July performance in several years. According to a report by brokerage firm Arif Habib Limited (AHL), the growth was fueled by declining domestic fuel prices, improving conditions in the agriculture sector, and a gradual rebound in economic and automobile-related activity. The report noted that farmers’ purchasing power improved due to better agricultural economics, while lower fuel costs encouraged higher consumption across the country. Excluding furnace oil (FO), sales by oil marketing companies (OMCs) increased 18.5% YoY, making July 2026 the strongest July for petroleum demand since July 2021. Petrol and Diesel Consumption Climbs Demand for motor spirit (MS), commonly known as petrol, remained robust during the month. Petrol sales rose 23% YoY to 0.73 million tons, reflecting increased transportation activity and higher vehicle usage. Meanwhile, high-speed diesel (HSD) sales climbed 19% YoY to 0.62 million tons. Diesel consumption was supported by greater agricultural operations, commercial transportation, and industrial activity as the economy continued its gradual recovery. Furnace Oil Registers Massive Growth Furnace oil sales posted the strongest percentage increase among all petroleum products, surging 406% year-on-year to 0.08 million tons. AHL attributed this sharp rise primarily to increased furnace oil consumption by the power sector, where seasonal electricity demand during the summer months led to greater fuel usage for power generation. Strong Month-on-Month Growth On a month-on-month (MoM) basis, overall petroleum sales also recorded impressive gains, rising 20% compared to June 2026. Analysts said the monthly increase was largely driven by lower domestic petroleum prices, which followed a decline in international crude oil prices as geopolitical tensions eased in global markets. During the month: Petrol (MS) sales increased 12% over June. High-speed diesel (HSD) sales rose 25%. Furnace oil demand jumped 89%, supported by higher electricity generation requirements during peak summer temperatures. PSO Strengthens Market Position Among Pakistan’s oil marketing companies, Pakistan State Oil (PSO) emerged as the strongest performer in July. The company’s total petroleum sales climbed 38% year-on-year to 702,000 tons. Petrol sales increased by 44.1%, while diesel sales rose 40.3%, enabling PSO to expand its presence in the domestic fuel market. According to the report, PSO gained market share at the expense of Gas & Oil Pakistan (GO). GO’s market share in petrol declined to 5%, its lowest level since June 2024, while its diesel market share fell to 7%, the weakest since May 2024. Government Levy Collections Remain on Track The report also estimated that the federal government collected approximately Rs134 billion through the Petroleum Development Levy (PDL) during July. Based on current trends, AHL believes the government remains on course to meet its FY2026-27 PDL collection target of Rs1.68 trillion, representing an increase of nearly 12% compared with the revised target for the previous fiscal year.