कारोबार

KARACHI: Buying activity dominated trading at the Pakistan Stock Exchange (PSX) on Thursday, with the benchmark KSE-100 Index rising more than 500 points during the early session. At around 9:45am, the benchmark index was trading at 180,864.26 points, recording an increase of 553.05 points, or 0.31%, from the previous close. The positive trend reflected renewed investor interest in several major sectors. Strong activity was witnessed in cement, commercial banking, fertiliser, oil marketing companies (OMCs) and power generation stocks. Several index-heavy companies also contributed to the upward movement. HUBCO, Fauji Fertilizer Company (FFC), MCB Bank, National Bank of Pakistan (NBP) and United Bank Limited (UBL) were among the stocks trading in positive territory during the early hours. The latest gains come after the stock market staged a recovery in the previous session. On Wednesday, the PSX rebounded as investors returned to buying after two consecutive sessions of profit-taking. Market sentiment also improved toward the end of Wednesday’s trading session following reports regarding an extension of the US-Iran ceasefire, which helped ease some concerns among investors about geopolitical developments and their potential impact on regional markets. The KSE-100 Index ultimately closed Wednesday’s session at 180,311.22 points. Global markets provide positive cues The positive momentum at the domestic bourse was also supported by a broadly upbeat trend in Asian equity markets. Asian stocks advanced on Thursday after fresh US inflation data broadly matched market expectations. The figures reduced some expectations of an immediate tightening move by the US Federal Reserve and provided support to investor sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.97%, while South Korea’s benchmark market climbed sharply, gaining 4.4%. Japan’s Nikkei index also advanced 1.86%. US stock futures remained relatively stable, with S&P 500 E-mini futures up 0.02% during the Asian trading session. US inflation remains in focus According to data released on Wednesday, US consumer prices increased by 0.1% in July, broadly matching economists’ expectations. The modest increase in consumer prices has lowered expectations of an immediate interest-rate hike by the Federal Reserve. Market participants are closely monitoring inflation figures as they assess the central bank’s next policy move. According to CME Group’s FedWatch tool, financial markets were pricing in around a 40% probability of a rate hike next month, down from approximately 54% a week earlier. Oil prices remain near $80 Meanwhile, international oil prices remained close to the $80-per-barrel level, as diplomatic efforts between Washington and Tehran remained unresolved. Developments in oil prices remain important for Pakistan’s economy and financial markets because changes in global crude prices can influence the country’s import bill, inflation outlook, exchange-rate pressures and corporate earnings. Investors at the PSX are expected to closely monitor both domestic economic developments and international market cues as trading progresses on Thursday.

The nationwide strike by goods transporters has entered its sixth consecutive day after negotiations with the federal and provincial governments failed to produce a breakthrough. President of the Goods Transporters Association Nabil Mahmood Tariq said the talks had reached a deadlock, with no agreement reached on the key demands of the transport sector. He warned that the strike would continue indefinitely unless the government addressed the concerns raised by transporters. Speaking to Geo News by telephone, Nabil Mahmood Tariq said the negotiations failed because of what he described as the government’s rigid stance. According to him, transporters are particularly concerned about frequent changes in diesel prices, which they say make it difficult to manage transportation costs and business operations. He said the government had also refused to reduce toll taxes or guarantee that existing toll rates would remain unchanged for at least one year. Transporters have maintained that rising operating expenses, including fuel and toll charges, are putting increasing pressure on the sector. The association president said the government had offered limited concessions on customs-related matters and axle-load restrictions, but the proposals were not sufficient to end the strike. He further alleged that authorities had not yet fully assessed the economic consequences of the ongoing shutdown. According to him, the impact would become more visible in the coming days if the dispute remained unresolved. The strike has already begun affecting the movement and supply of essential commodities in several parts of the country. Disruptions in the transportation of fruits and vegetables have raised concerns about shortages and further increases in prices. In Balochistan, the strike has reportedly contributed to higher prices of several food items. In Quetta, for instance, the price of chicken meat has increased from around Rs500 to Rs550 per kilogram amid supply disruptions. Meanwhile, efforts are continuing in Karachi to maintain the supply of vegetables through smaller vehicles. However, transport-sector representatives warn that such arrangements may not be sufficient to meet normal market demand if the strike continues for an extended period. The prolonged protest has raised concerns among traders, consumers and businesses that rely heavily on road transportation. Any further delay in resolving the dispute could increase pressure on supply chains and potentially push up the prices of essential goods.

ISLAMABAD: Electricity consumers may face higher power bills for the next three months as the National Electric Power Regulatory Authority (Nepra) considers a proposal seeking to recover an additional financial burden from consumers through the quarterly tariff adjustment mechanism. Nepra has reserved its decision on a request submitted by electricity distribution companies seeking to pass on around Rs34 billion in additional costs to consumers. According to sources, the proposed adjustment could increase the electricity tariff by approximately Rs1.34 per unit each month for three months. If approved, the additional charge would be reflected in consumers’ electricity bills during the applicable period. The quarterly tariff adjustment is used to account for changes in various costs incurred by power distribution companies, including fluctuations in generation and other sector-related expenses. The adjustment is subsequently passed on to consumers after regulatory scrutiny. Sources said Nepra has not yet issued its final decision on the request. The regulator will examine the financial details and relevant data submitted by the distribution companies before determining whether the proposed increase should be approved in full, partially accepted or rejected. The final decision is expected to clarify the exact amount to be recovered from consumers and the period over which the additional charges will apply. Until Nepra announces its decision, the proposed Rs1.34 per-unit increase remains under consideration and should not be treated as a final tariff hike.

Global crude oil prices fell by more than $1 a barrel on Thursday after a period of gains, as concerns over weaker oil consumption in 2026 outweighed ongoing supply risks linked to the conflict in the Middle East. Brent crude futures declined by $1.29, or around 1.5%, to $87.69 per barrel, while US West Texas Intermediate (WTI) crude dropped $1.30, or about 1.6%, to $81.97 per barrel. Market sentiment was pressured by fresh estimates indicating that global oil demand could grow more slowly than previously expected next year. The weaker demand outlook has encouraged investors to reassess the strength of the oil market despite continued uncertainty over supplies from the Middle East. The latest decline came after the Organisation of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth in 2026 to 580,000 barrels per day in its monthly oil market report. This marks the fourth consecutive reduction in the organisation’s demand-growth projection. The ongoing conflict involving Iran and the United States and Israel has disrupted energy supplies and shipping routes, creating significant uncertainty in international oil markets. However, analysts say the economic and logistical disruptions are also weighing on fuel consumption and broader global demand. Despite the latest decline, supply concerns continue to provide some support to crude prices. Traders remain focused on developments in the Middle East, particularly the impact of the conflict on oil production, exports and major shipping routes. Analysts are therefore expecting continued volatility in global oil prices as markets balance two opposing factors: the risk of supply shortages caused by geopolitical tensions and the possibility of weaker demand resulting from disruptions to economic activity. The latest OPEC forecast is likely to remain an important factor for investors in the coming sessions, particularly as traders assess whether weaker demand can offset the supply risks currently affecting the global energy market.

ISLAMABAD: The federal government has increased the price of high-speed diesel after raising the Petroleum Development Levy (PDL) on the fuel by Rs1 per litre, adding further pressure on consumers and transport-related costs. Following the latest adjustment, the price of high-speed diesel has gone up by 54 paisas per litre, reaching Rs382.89 per litre. The increase comes despite a decline in the ex-refinery price of diesel, with the higher petroleum levy pushing up the final price paid by consumers. The government has raised the diesel levy by Rs1 per litre as part of the latest petroleum price adjustment. The PDL on high-speed diesel now stands at Rs76.28 per litre. The latest increase follows another adjustment made on August 12, when the government raised the petroleum levy on diesel by Rs2 per litre. The successive increases have resulted in a significant rise in the levy component of the retail price. Petrol price reduced In contrast to diesel, the government has reduced the price of petrol by 94 paisas per litre. The price of petrol has now been fixed at Rs324.98 per litre. The Petroleum Development Levy on petrol, however, has remained unchanged at Rs80 per litre. The differing price movements for petrol and diesel are largely linked to changes in their respective pricing components. While the ex-refinery price of diesel declined, the increase in the government levy more than offset the reduction, resulting in a higher retail price. The latest adjustment is expected to have an impact on transportation and logistics costs because diesel is widely used by commercial vehicles, buses, trucks, agricultural machinery and other heavy transport. Higher diesel prices can also influence the cost of goods and services by increasing transportation expenses across supply chains. Meanwhile, the reduction in petrol prices provides limited relief to motorists using petrol-powered vehicles. The government periodically reviews petroleum prices based on international oil prices, exchange-rate movements, taxation and other components of the domestic pricing mechanism. The latest changes reflect the impact of adjustments in the petroleum levy and ex-refinery prices on consumers.

ISLAMABAD: Pakistan and Belarus have agreed to strengthen agricultural and food-sector cooperation by facilitating online business-to-business (B2B) engagements between companies from the two countries. The understanding was reached during a meeting between Federal Minister for National Food Security and Research Rana Tanveer Hussain and Belarusian Deputy Minister of Agriculture and Food Yakovchits Aleksander. The discussions focused on expanding bilateral trade, improving business-to-business connectivity and creating new opportunities for cooperation in agriculture and food-related sectors. Under the proposed initiative, businesses and relevant organisations from Pakistan and Belarus will be encouraged to participate in online B2B meetings. The sessions are expected to connect exporters, importers and other industry stakeholders and help them explore potential commercial partnerships. The two countries identified a number of products with potential for increased bilateral trade, including seafood, citrus fruits, mangoes, fruit puree, potatoes, seeds and dairy products. Greater business connectivity in these areas could help companies explore new markets and diversify trade opportunities. Focus on Agricultural Exhibitions Pakistan and Belarus also agreed to encourage greater participation by businesses and agricultural stakeholders in food exhibitions, trade fairs and other industry events held in both countries. Such events will provide companies with opportunities to showcase their products, establish business contacts, develop partnerships and explore investment opportunities. The initiative is also expected to help strengthen direct commercial links between businesses operating in the agricultural and food sectors. The two sides further agreed to facilitate reciprocal visits by agricultural trade and business delegations. These exchanges are aimed at encouraging investment, sharing technical expertise and identifying areas where companies and institutions from both countries can work together. Cooperation in Fish Farming The meeting also discussed prospects for cooperation in fisheries, particularly fish farming and aquaculture. Both sides agreed to promote the exchange of knowledge, technology and best practices in the sector. Cooperation in this area could support the adoption of modern aquaculture techniques while providing opportunities for technical collaboration and investment. The initiative is expected to contribute to the development of more efficient fish-farming practices and strengthen cooperation between relevant institutions and businesses in Pakistan and Belarus. Proposal for Agricultural Machinery Testing Centre During the meeting, Rana Tanveer Hussain proposed the establishment of a universal agricultural machinery testing facility or centre at the Pakistan Agricultural Research Council (PARC), with financial and technical assistance from Belarus. The proposed centre would provide a platform for testing agricultural machinery and assessing its suitability for use in Pakistan’s farming sector. The Belarusian side took note of the proposal and agreed to examine the initiative further. As part of the process, the two sides agreed to conduct a detailed assessment of the proposed facility. This will include identifying the machinery and equipment required for the centre and evaluating locations suggested by Pakistan for establishing machinery testing stations. Pakistan and Belarus also agreed to facilitate exchange visits by highly qualified technical experts by the end of 2026. The visits are expected to help specialists assess technical requirements, exchange expertise and explore practical mechanisms for implementing the proposed cooperation. Pakistan Seeks Practical Outcomes Rana Tanveer Hussain emphasised the need to transform bilateral cooperation into practical commercial, technological and institutional results. He said Pakistan was interested in expanding its engagement with Belarus in emerging areas of agriculture and food security, while creating greater opportunities for farmers, businesses, investors and technical experts. The minister highlighted the importance of stronger institutional and private-sector linkages to ensure that agreements between the two countries translate into tangible economic benefits. Both sides expressed satisfaction with the growing cooperation between Pakistan and Belarus and reaffirmed their commitment to expanding collaboration in agriculture, food trade, fisheries, technology and agricultural machinery.

ISLAMABAD: The European Union (EU) is set to introduce a revised mechanism for extending its Generalised Scheme of Preferences Plus (GSP+) trade facility from January 2027, under which beneficiary countries will no longer receive an automatic extension. The Commerce Ministry informed the National Assembly Standing Committee on Commerce on Wednesday that Pakistan would have to formally seek continuation of the GSP+ facility and submit an action plan covering its commitments under 32 United Nations conventions. Commerce Secretary Jawad Paul briefed the committee that the new GSP+ framework would come into force in January 2027, followed by a two-year transition period. During this period, countries benefiting from the scheme will be required to prepare and submit their respective plans, which will subsequently be assessed by the European Union. According to the secretary, the EU’s assessment of Pakistan contains both positive observations and areas of concern. Among the issues highlighted by the European bloc is the human rights situation in Pakistan, along with security and climate-related challenges. The briefing was given during a meeting of the National Assembly Standing Committee on Commerce chaired by Jawad Hanif. Members including Asad Alam Khan Niazi, Khurshid Ahmed Junejo, Shaista Pervaiz, Dr Ramesh Kumar Vankwani, Tahira Aurangzeb, Mir Amir Magsi, Dr Mirza Ikhtiar Baig and Kiran Haider attended the meeting. EU concerns discussed The committee asked the Commerce Ministry to explain the concerns raised by the European Union in its latest assessment of Pakistan and their possible implications for the country’s trade interests. Jawad Paul said the EU report had acknowledged the difficult circumstances Pakistan was facing, particularly in terms of security challenges, economic pressures and climate-related disasters, including floods. These factors, he said, had affected the country’s capacity to fully implement various commitments. He urged members of parliament to present Pakistan’s perspective during their engagements with European Parliamentarians and other EU representatives. The secretary maintained that Pakistan’s circumstances should be taken into account while evaluating the country’s performance under the GSP+ framework. He said the government needed to undertake fundamental measures to address the challenges identified by the EU while also ensuring that Pakistan’s position was effectively communicated to European stakeholders. The committee also expressed concern over the repeated absence of the Commerce Minister from its meetings and conveyed its displeasure over the matter. Tariff reforms aimed at boosting exports The meeting also reviewed the government’s tariff reforms and their impact on industrial competitiveness and exports. Committee members questioned whether exporters would be required to commit to specific export targets in return for government support. The committee chairman clarified that the measures being introduced should not be viewed simply as incentives for exporters, arguing that reductions in duties and taxes were intended to lower production costs and improve Pakistan’s competitiveness in international markets. Officials from the Commerce Ministry said the government had been pursuing a policy of reducing tariff protection and lowering the cost of imported raw materials. The objective, they said, was to enable domestic industries to become more competitive and increase their presence in international markets. As part of the reforms, tariffs on around 2,000 tariff lines were reduced last year to make raw materials and other industrial inputs available at lower prices. The secretary said tariff reforms were being implemented under the National Tariff Policy and that the government had provided an estimated Rs160 billion benefit to industry and exporters during the previous year. For fiscal year 2026-27, another Rs120 billion has been earmarked under the relevant support measures. According to the Commerce Ministry, the previous Rs120 billion package was associated with a $1.27 billion increase in exports during 2025-26. Jawad Paul acknowledged that the tariff changes could initially result in higher imports as industries gained access to cheaper inputs and machinery. However, he argued that the trade imbalance could gradually improve as increased industrial production translated into stronger exports. Committee seeks review of Pakistan-China trade agreement The standing committee also raised concerns over Pakistan’s trade deficit with China and identified the China-Pakistan Free Trade Agreement (CPFTA) as an issue requiring closer examination. Members asked the Commerce Ministry to provide a detailed presentation on the agreement’s impact on Pakistan’s exports, imports and overall trade balance. The committee also sought an update on the latest trade discussions between Pakistan and the United States. The Commerce Secretary assured members that a detailed briefing on the matter would be provided in an in-camera session. Export Development Fund restructuring reviewed The committee separately examined the restructuring of the Export Development Fund (EDF). Officials told the meeting that the management and decision-making structure of the fund had been moved towards greater private-sector participation, with leading exporters being given a more significant role in determining spending priorities. The committee welcomed the shift towards projects that have a direct and measurable connection with export growth rather than conventional infrastructure-focused initiatives. Members also reviewed the allocation of 40% of the Export Finance Scheme (EFS) portfolio for small and medium-sized enterprises (SMEs). They stressed that smaller businesses should have fair and sufficient access to export financing so that they can participate more effectively in international trade. Pakistan Reinsurance Company performance discussed The committee also reviewed the performance and investment strategy of Pakistan Reinsurance Company Limited (PRCL). Members were informed that the company retained nearly 30% of its risk domestically, while approximately 70% was placed in international reinsurance markets, including London, Dubai and Singapore. The committee chairman called for careful management of the company’s financial resources and urged officials to explore opportunities to improve returns without compromising risk-management standards. Proposed amendments for Karachi Chamber examined The committee considered the Trade Organizations (Third Amendment) Bill, 2026, a Private Member’s Bill seeking amendments to the Trade Organizations Act in relation to the Karachi Chamber of Commerce and Industry (KCCI). During the discussion, members examined the special status of KCCI and proposed exemptions from certain district-related provisions. The chairman directed that the proposed amendments be drafted in appropriate legal language in consultation with the Ministry of Commerce and the Ministry of Law and Justice