Why investors should start looking beyond bad loans and into the government bond portfolios quietly reshaping bank balance sheets
Every side is telling the public the same thing, that this is a stabilizing, peace-building move, not a takeover. Nothing filed so far proves or disproves that. What comes next will show whether it holds.
‘We’re looking at the impact of removal of system loss, whether total or phased in, whether just the nontechnical, whether there’s a lowering of the cap,’ says ERC chair Francis Juan
Islamabad: A Senate subcommittee investigating cigarette smuggling and tax exemption misuse has raised serious questions regarding the possible recovery of Rs 1.12 trillion from the tobacco industry, alleged leakage of Customs data to private media, corruption complaints against officials and incomplete records provided by government departments. The committee ordered strict action, sought bank and asset details, and demanded a full investigation into the possible misuse of tax exemptions and consumption certificates. The committee strongly questioned how confidential Customs data reached private media organisations. Members observed that such information could not have been leaked without the involvement of Customs officials. The committee also questioned the conduct of media organisations regarding professional ethics. Federal Board of Revenue officials told the committee that an investigation into the data leak was already underway. The convener directed the FBR to take strict action against any official involved in leaking Customs data to the media and to submit a complete report. A major part of the meeting focused on the reported recovery of Rs 1.12 trillion linked to the tobacco industry’s consumption certificates. The committee questioned why complete details of consumption certificates issued for goods imported into tax exempt areas had not been provided. Officials informed the committee that the Peshawar High Court had ordered an audit before consumption certificates could be issued and had also stopped Pakistan Customs from cashing security cheques. The convener urged the FBR to challenge the court order before the Federal Constitutional Court and report back to the committee. The committee also reviewed the alleged misuse of tax exemptions by industries operating in tax exempt areas. Senator Talha Mahmood alleged that some industrialists were operating two or more factories, including one in a tax exempt area and another in a settled area. He further alleged that some Customs officials helped such businesses take advantage of the system. The Federal Investigation Agency told the committee that a team had been formed to investigate the matter. Senator Talha Mahmood said the FIA could help improve the process of issuing consumption certificates if the issue was handled seriously. He also recalled that Pakistan Customs had previously installed tracking chips on containers to check their movement and confirm whether goods reached their declared destinations. He called for stronger tracking and monitoring systems to stop smuggling and misuse of tax exemptions. The committee directed authorities to send letters to all factories operating in tax exempt areas, demanding complete details of imported materials, materials used, brand names and taxes paid during the last two years. Members were informed that Pakistan Customs had issued consumption certificates worth around Rs 378 billion. The committee also sought bank and account details of the companies in whose names those certificates were issued. The Chair observed that anyone refusing to provide required records or information could face legal action. The committee also examined serious allegations of corruption and theft involving officials. Three investigating officers identified as Shahzaib Ali, Fakhar Gondal and Christopher were presented before the committee regarding corruption allegations. The committee was informed that 22 people were allegedly involved in theft incidents and that 11 had been arrested. The committee directed authorities to provide details of assets allegedly beyond the known income of the accused officials. It also sought forensic examination reports of their mobile phones. Senator Talha Mahmood recommended that the Senate Standing Committee on Interior also take up the corruption case. The committee further examined tobacco industry consumption data and asked departments to provide records from earlier years in addition to the data already submitted. Officials briefed members about major raw materials imported by tobacco companies. The committee was told that around 20,002 metric tons of acetate tow had been imported. Around 97 percent of this quantity was reportedly used by two major companies, while the remaining 3 percent was linked to other companies. Officials also reported the import of around 15,639 metric tons of tobacco paper. Of this amount, around 10,840 metric tons was imported by Pakistan Tobacco Company, while Philip Morris imported around 3,118 metric tons. Other companies imported the remaining quantity. The committee was also told that around 533 metric tons of filter rods had been imported. Two major companies accounted for around 96 percent of this quantity, while other companies accounted for the remaining 4 percent. According to the briefing, Pakistan Tobacco Company and Philip Morris together accounted for around 94 percent of imported material consumed by the tobacco industry. Local companies accounted for the remaining 6 percent. The Chair expressed concern that government departments had still failed to provide complete and combined information to the committee. Officials informed the committee that Pakistan Tobacco Company and Philip Morris did not fall under the jurisdiction of RTO Peshawar. Pakistan Tobacco Company was under LTU Islamabad, while Philip Morris was under LTU Karachi. The committee directed the concerned tax offices to provide full details of taxes collected and imported material linked to both companies. The committee was also informed that four illegal cigarette manufacturing companies operating in Khyber Pakhtunkhwa had recently been sealed. Authorities were directed to provide full details of all companies operating under RTO Peshawar. The convener also asked officials to provide the formula used to calculate taxes on cigarettes. Senator Bilal raised concerns that Balochistan was still not receiving enough industrial development. He also complained that legal goods were sometimes being treated as smuggled items even when borders in Balochistan were sealed. Another controversy emerged over conflicting figures related to people arrested in theft cases. One briefing told the committee that 22 people were involved and 11 had been arrested. However, the Inspector General of the National Highways and Motorway Police also reported that 11 people had been apprehended. The committee sought clarification over the figures and demanded one accurate and complete position. Members expressed serious concern over what they described as a misleading statement made before the committee. The committee directed that a letter be sent to the Ministry of Communications and ordered that the matter also be referred to the Privileges Committee. The FBR representative told members that the department
KARACHI: Pakistan received $3.6 billion in workers’ remittances from overseas Pakistanis during July 2026, marking a significant increase compared with the same period last year, according to data released by the State Bank of Pakistan (SBP). The central bank reported that remittance inflows increased by 13% year-on-year in July and also recorded a 4.5% rise compared with the previous month. The latest figures highlight the continued importance of overseas Pakistanis in supporting the country’s foreign exchange position and overall economic stability. Saudi Arabia remained the largest source of remittances during the month, sending $913.9 million to Pakistan. The United Arab Emirates (UAE) followed with $737.3 million, while overseas Pakistanis in the United Kingdom contributed $555.5 million. The United States also remained an important source, accounting for $317.2 million in remittance inflows. Prime Minister Shehbaz Sharif welcomed the increase and expressed satisfaction over the $3.6 billion received in July. In a statement issued by the Prime Minister’s Office, he said the 13% year-on-year increase in remittances was encouraging and reflected the continued contribution of overseas Pakistanis to the national economy. The prime minister also highlighted the 4.5% month-on-month growth, saying that the consistent financial support provided by overseas Pakistanis was playing an important role in strengthening Pakistan’s economy. He described overseas Pakistanis as a valuable and integral part of the country’s economic mainstream. The latest figures have also generated positive expectations regarding Pakistan’s remittance outlook for the ongoing financial year. Topline Research estimated that remittances could reach around $40.1 billion during FY27 if the current trend continues. Economist Dr Khaqan Najeeb said remittances were becoming increasingly important as a source of foreign exchange, particularly at a time when Pakistan’s export sector continued to face difficulties. According to him, the country’s weak domestic economic conditions, limited employment opportunities and significant differences between local and international wages were encouraging more Pakistanis to seek employment abroad. He noted that the movement of workers overseas was resulting in a corresponding flow of foreign exchange back into Pakistan. The economist said these inflows were helping the country manage its balance of payments and reduce pressure on its external accounts. However, he also warned that the growing dependence on remittances highlighted deeper structural weaknesses within the domestic economy. Dr Najeeb pointed out that Pakistan’s increasing reliance on overseas employment reflected the country’s inability to generate enough productive and well-paying jobs at home. While remittances provide valuable financial support and strengthen foreign exchange reserves, he argued that sustainable economic growth requires stronger domestic employment opportunities and a more competitive export sector. The July figures therefore present both an encouraging development and a broader economic challenge. Rising remittances are providing Pakistan with much-needed foreign exchange, but policymakers also face the task of improving domestic economic conditions so that overseas employment becomes a choice rather than a necessity for a growing number of Pakistanis.
Lahore – Under the vision of Punjab Chief Minister Maryam Nawaz Sharif for a “Safe Punjab,” the Civil Defence Resilience Corps is being modernized in line with contemporary requirements to help establish a safer society and respond effectively to emergencies. In this regard, Punjab Home Secretary Dr. Ahmed Javed Qazi visited the Civil Defence Headquarters where a smartly turned-out Civil Defence contingent presented him with a guard of honour. The Home Secretary inspected a display of modern equipment and also inaugurated a renovated block of the headquarters. On the occasion, Director Civil Defence Tasneem Ali Khan and Zigham Nawaz briefed the Punjab Home Secretary on the capacity, modern equipment and rescue capabilities of Civil Defence. The modern equipment displayed by Civil Defence included aerial-lift drones, IED bomb-disposal drones, bomb-disposal robots, anti-drone guns, electric sirens, bomb-disposal suits, bomb blankets, mine detectors, snake cameras, hook-and-line kits, mobile bomb-disposal bikes and advanced firefighting equipment. Speaking on the occasion, Punjab Home Secretary Dr. Ahmed Javed Qazi said that the Civil Defence Resilience Corps is an important step toward a safe, capable and responsible Punjab. He said the Punjab government is taking practical measures to bring Civil Defence in line with the requirements of the modern era. He said that modern equipment worth Rs500 million has been purchased to modernize Civil Defence. He added that the advanced aerial-lift drones are capable of rescuing people trapped in difficult-to-access areas and can carry loads of up to 200 kilograms. Dr. Ahmed Javed Qazi said that Civil Defence is equally important during both peace and wartime and serves as the first line of response for district administrations during any emergency situation. The Punjab Home Secretary said that the Chief Minister has increased the honorarium of Civil Defence volunteers in recognition of their services and performance. He urged citizens to join Civil Defence as volunteers according to their abilities. According to him, more than 350,000 citizens have so far registered as Civil Defence volunteers. The Home Secretary said that all Civil Defence volunteers are being provided with Basic Life Support (BLS) training so that they can provide timely assistance to save lives during natural disasters, accidents and medical emergencies. He appealed to citizens to become part of Civil Defence by registering as volunteers through the online portal VCD.HOME.GOP.PK.
Federal Minister for Finance Muhammad Aurangzeb met US Chargé d’Affaires Natalie Baker on Monday to discuss ways to strengthen Pakistan-US economic relations, trade and investment cooperation. According to the Finance Ministry, Aurangzeb briefed the US diplomat on his recent visit to Washington and meetings with senior American officials, including the US Treasury secretary. He also shared details of discussions with officials from the International Monetary Fund (IMF), US International Development Finance Corporation (DFC) and US Export-Import Bank. The meeting focused on increasing US investment and financing for commercially viable projects in Pakistan. Both sides also discussed improving Pakistan’s access to US markets and expanding Pakistani exports. The two sides agreed to advance a framework aimed at increasing bilateral trade and investment. They also discussed Pakistan’s participation in international capital markets and efforts to diversify the country’s sources of financing. According to the ministry, discussions also covered measures to strengthen foreign exchange reserves and improve Pakistan’s credit profile. Opportunities for greater investment by US financial institutions in Pakistan were reviewed. Cooperation in key sectors, including ports, logistics, energy and telecommunications, also came under discussion. The two sides explored potential collaboration in digital technology and artificial intelligence. Aurangzeb said significant progress had been made in negotiations on a bilateral trade framework between Pakistan and the United States. He said the government was working to create a more favourable environment for private-sector investment. The finance minister welcomed the interest of US companies and investors in Pakistan. He said the government was continuing reforms aimed at improving the business and investment climate. Aurangzeb also briefed the US chargé d’affaires on Pakistan’s new system for daily adjustments in petroleum product prices. He explained that the mechanism was designed to align domestic prices more closely with developments in the international market. He said the government’s priorities included maintaining fiscal discipline, strengthening foreign exchange reserves and increasing exports. He added that reforms were underway to improve economic stability and attract investment. Natalie Baker appreciated Pakistan’s efforts to manage its economic situation during a period of regional tensions. She also praised the country for maintaining economic and financial stability despite rising energy prices.
HYDERABAD: The prices of wheat and flour have witnessed a fresh increase in Hyderabad, putting additional pressure on household budgets and raising concerns among consumers already struggling with rising food costs. According to market sources, flour is currently being sold at prices ranging between Rs135 and Rs145 per kilogram in different parts of the city. The increase has triggered concern among citizens, particularly low- and middle-income families, who rely on flour as a staple food item. Flour mill owners said the price of a 10-kilogram flour bag has risen from Rs1,350 to Rs1,450, marking an increase of Rs100. They attributed the latest rise primarily to higher wheat prices in the open market. The price of wheat has also recorded a significant increase. According to grain market traders, the price of a 100-kilogram wheat sack has climbed from Rs10,800 to Rs11,800, reflecting an increase of around Rs1,000. Traders said fluctuations in wheat prices in the open market were directly affecting flour prices, leaving millers with little option but to revise their rates. Citizens have expressed frustration over the continued increase in the prices of essential food items. They urged the authorities to monitor wheat and flour markets and take effective measures to prevent unnecessary price hikes. Consumers also called for stronger market oversight and action against profiteering so that essential food commodities remain available at affordable prices.
So far, what has actually changed hands is one family branch’s stake in the private company at the very top of the Lopez empire. Whether it leads to a direct ABS-CBN rescue is a question about what Ang, and the Lopez family, do next.
Mitsubishi is also betting that its decades-old brand loyalty and established customer base can hold their own against newer rivals such as BYD, as it targets a 20% market share this year