कारोबार

Banks and other financial institutions across Pakistan will observe a three-day closure from August 14 to August 16 in connection with Independence Day and the regular weekend holidays. According to a circular issued by the State Bank of Pakistan (SBP), the central bank, commercial banks, financial institutions and the Pakistan Stock Exchange (PSX) will remain closed on Friday, August 14, which has been declared a public holiday on account of Independence Day. The closure will be followed by the regular weekend holidays on Saturday and Sunday, August 15 and 16, respectively. As a result, banking and stock market activities will remain suspended for three consecutive days. The holiday schedule is expected to affect routine banking operations, including branch-based customer services and other in-person transactions. Customers who need to visit bank branches or carry out services that require physical processing have been advised to plan their transactions accordingly. However, the closure will not affect digital banking facilities. The SBP said automated teller machines (ATMs), internet banking and other online banking services will continue to operate during the holidays. Customers will therefore be able to access cash through ATMs and use digital channels for eligible transactions throughout the three-day break. Regular banking and financial market operations are expected to resume on Monday, August 17, when banks, financial institutions and the stock market reopen after the Independence Day holiday and weekend.

ISLAMABAD: Electricity consumers across Pakistan may face higher power bills from next month as electricity distribution companies have approached the National Electric Power Regulatory Authority (NEPRA) seeking a quarterly tariff adjustment. According to sources, the proposed adjustment could result in an increase of around Rs1 per unit in electricity prices during the upcoming quarter. The distribution companies have submitted their adjustment request to NEPRA, which will examine the figures and determine the impact on consumers under the applicable quarterly tariff mechanism. Sources said the expected increase is linked to the expiry of the existing quarterly adjustment relief. Under the current arrangement, consumers are receiving a relief of Rs1.99 per unit, which is scheduled to expire at the end of the current month. With the relief ending, electricity tariffs are expected to rise for consumers across the country from next month, subject to NEPRA’s approval of the proposed adjustment. The quarterly tariff adjustment mechanism is used to pass on changes in electricity generation costs and other relevant expenses to consumers. Depending on the regulator’s assessment, the resulting adjustment can either increase or reduce electricity bills. The proposed increase is likely to add to the financial burden on households and businesses already facing elevated electricity costs. Consumers are now awaiting NEPRA’s decision, which will determine the final impact on electricity tariffs in the upcoming quarter. NEPRA is expected to review the distribution companies’ submissions before announcing its decision. The final adjustment may differ from the amount initially sought by the power distribution companies following the regulator’s scrutiny of the data and applicable costs.

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has imposed a fine of Rs77.8 million on China Mobile Pakistan (CM Pak) after determining that the operator failed to ensure compliance with mandatory geo-fencing rules governing biometric verification system (BVS) devices used for SIM sales. The regulatory action followed a field inspection in which the PTA found that an authorised sales representative linked to CM Pak’s Taxila franchise was selling SIMs from a location in Islamabad that fell outside the approved geographical area of the franchise. According to the PTA’s enforcement order, the inspection was carried out on March 30, 2026. During the inspection, the regulator discovered that a Data Sales Officer (DSO) associated with the Taxila franchise was conducting SIM sales at I-10 Markaz, Islamabad. The location was not within the authorised territorial jurisdiction or designated geo-location of the franchise. The PTA also found that the sales activity had been conducted without the required Door-to-Door/Kiosk approval from the regulator. Geo-fencing requirement The PTA’s regulatory framework requires BVS devices used for SIM issuance to remain within a prescribed distance of the approved sales location. Under the mandatory geo-fencing mechanism, such devices must operate within 100 metres of the designated geo-location of an authorised sales channel. The purpose of the requirement is to ensure that biometric devices are not moved to unauthorised locations for SIM issuance. The mechanism is also designed to strengthen oversight of SIM sales, prevent misuse of biometric verification equipment and improve the traceability of subscriber registrations. The regulator made it clear that SIM sales outside an approved geo-location are not permitted unless prior approval has been obtained from the PTA. CM Pak challenges regulatory action CM Pak contested the proposed enforcement proceedings, maintaining that the incident was an isolated operational lapse involving an individual DSO rather than evidence of a broader failure in the company’s compliance system. The operator argued that the SIMs concerned had been issued only after the required biometric verification process had been successfully completed. It further stated that the transactions were properly recorded and remained traceable through the prescribed systems. CM Pak also maintained that there had been no issuance of fake or anonymous SIMs, no bypass of biometric verification and no failure in the verification process conducted through the National Database and Registration Authority (NADRA). The company told the regulator that it had taken disciplinary and corrective measures after being informed of the violation. These measures included issuing a show-cause notice and warning letter to the concerned franchise and terminating the services of the DSO involved in the incident. CM Pak also said it had circulated compliance instructions across its network and strengthened internal monitoring mechanisms to prevent similar incidents in the future. PTA rejects defence The PTA, however, did not accept the company’s argument that successful biometric verification should be treated as sufficient compliance. The authority ruled that biometric verification and geo-fencing constitute separate regulatory requirements. While biometric verification is intended to establish the identity of a subscriber, geo-fencing controls where the SIM sale and verification process can legally take place. According to the regulator, compliance with one requirement does not eliminate the obligation to comply with the other. The PTA observed that allowing BVS devices to operate beyond their authorised locations could weaken the regulatory controls established for SIM issuance, regardless of whether the subscriber’s biometric verification was successfully completed. The regulator also rejected CM Pak’s position that responsibility for the incident could primarily be attributed to the franchise or individual sales officer. Under the applicable Subscribers Antecedents Verification Regulations and licence conditions, the PTA maintained that the licensed operator carries direct responsibility for ensuring that its authorised sales network complies with regulatory requirements. Corrective action not enough to erase violation The authority further noted that steps taken by an operator after a violation has been detected can potentially serve as mitigating factors but cannot remove the violation itself. The PTA stressed that geo-fencing is a substantive regulatory safeguard rather than a procedural requirement that can be overlooked if other verification mechanisms are functioning properly. It said allowing subsequent corrective measures to effectively neutralise an established breach could undermine the purpose of mandatory compliance requirements and weaken regulatory oversight of SIM issuance. After reviewing the show-cause notice, CM Pak’s written responses, compliance report and submissions made during the hearing, the PTA concluded that the operator had failed to maintain adequate supervision and regulatory control over its authorised sales channel. Rs77.8m penalty imposed Based on its findings, the PTA held CM Pak liable under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996. The authority subsequently imposed a penalty of Rs77.8 million (Rs77,800,000) on the company and directed it to deposit the amount within 10 days of receiving the enforcement order. The PTA warned that failure to pay the penalty within the specified period could result in further proceedings or action under the applicable law.

Pakistan’s total government debt stock climbed to a record level of nearly Rs84 trillion by the end of June 2026, highlighting the growing financial burden facing the country amid continued reliance on domestic and external borrowing. According to the latest data released by the State Bank of Pakistan (SBP), the federal government’s total debt increased by 7.4% on a year-on-year basis during the fiscal year ended June 2026. The central government’s debt stood at Rs83,642 billion in June 2026, compared with Rs77,888 billion recorded in June 2025. The debt stock also increased significantly on a monthly basis, rising from Rs81,955 billion in May 2026. The latest figures indicate that the government’s debt increased by around Rs5,754 billion, or Rs5.75 trillion, over the course of the fiscal year. Domestic debt remains major component Domestic borrowing accounted for the largest portion of the government’s total debt. According to SBP data, the federal government’s domestic debt rose by 9.1% year-on-year to Rs59,441 billion by June 2026. The increase reflects continued dependence on the domestic financial market to meet the government’s financing requirements, including budgetary needs and debt-servicing obligations. Meanwhile, the federal government’s external debt increased by 3.3% during the year, reaching Rs24,201 billion by June 2026. Although the growth in external debt remained comparatively lower than domestic borrowing, the foreign-currency component continues to place pressure on the country’s external financing position, particularly when debt repayments coincide with periods of weak foreign exchange inflows. Debt servicing poses growing challenge The continued rise in the debt stock is also raising concerns about the government’s ability to manage debt-servicing costs while creating fiscal space for development spending and public services. A growing share of government revenues is required to meet interest and principal repayment obligations, limiting the resources available for infrastructure, social development and other productive investments. Economic experts have warned that if the debt trajectory is not brought under control, the rising burden could turn into a “debt trap” for the economy. They argue that reducing dependence on borrowing would require stronger revenue mobilisation, greater fiscal discipline, higher exports and sustained economic growth. Improving the efficiency of public spending and reducing reliance on debt-financed expenditures could also help contain the pressure.

ISLAMABAD: South Korean core banking and financial technology company Bankware Global has secured a contract worth 7.98 billion South Korean won, equivalent to approximately Rs1.57 billion, to develop a banking and financial services system and provide software for Pakistan Post Office Department (PPOD). The Seoul-based technology company disclosed the development in a notice submitted to the Korea Exchange on Tuesday, marking a significant expansion of its presence in Pakistan’s financial technology and public-sector digitalisation market. According to the company, the project will be implemented from August 7, 2026, to March 6, 2028. The value of the contract represents around 12.6% of Bankware Global’s total sales recorded during 2025. The company said the project would be executed through a joint venture, with the arrangement covering the development and supply of the required technology infrastructure and software solutions for the Pakistan Post Office Department. Bankware Global also outlined the payment mechanism for the project. Under the agreed terms, 20% of the contract amount will be paid upfront, while the remaining 80% will be released in phases. Subsequent payments will be linked to project implementation, sector-wise inspection and the commencement of operations and maintenance services. Pakistan Post seeks digital transformation The contract comes as Pakistan Post continues efforts to modernise its operations and introduce greater use of digital technologies across its extensive network. The Pakistan Post Office Department is one of the country’s largest public-sector service networks, with approximately 13,000 post offices operating across Pakistan. Besides traditional postal services, the department provides a range of financial and public services, including domestic and international mail, remittance facilities, utility bill collection and selected identity-related services such as CNIC renewals. With the growing demand for faster and technology-driven financial services, Pakistan Post has been seeking to upgrade its systems and integrate modern digital platforms into its operations. The introduction of a modern core banking and financial technology system is expected to support more efficient processing, improve service delivery and strengthen the department’s ability to manage financial transactions through its widespread network. Bankware Global expands international footprint Bankware Global has been operating in the financial technology sector for more than 17 years. The South Korean company specialises in core banking platforms and other technology solutions designed for financial institutions. Its portfolio includes component-based and cloud-native core banking systems, financial enterprise resource planning (ERP) solutions, card-processing platforms and software-as-a-service (SaaS) banking products. The company has supplied technology solutions to financial institutions in several Asian markets, positioning it as a regional player in the digital banking and fintech sector. The Pakistan Post project is expected to further strengthen Bankware Global’s international business portfolio while providing the company with an opportunity to participate in Pakistan’s ongoing digital transformation efforts. For Pakistan Post, the project could represent an important step toward upgrading its technological infrastructure and improving the delivery of financial and public services through its nationwide network. The contract will remain in force until March 6, 2028, with implementation and payments scheduled according to the agreed project milestones.