कारोबार

ISLAMABAD: The government is considering a range of emergency measures, including the deployment of Pakistan National Shipping Corporation (PNSC) vessels, to keep Pakistan’s trade links with Gulf Cooperation Council (GCC) countries operational amid severe disruption to maritime traffic. The move comes as Pakistan’s exports to the GCC region declined significantly in July 2026, while imports also recorded a sharp fall compared with the same month last year, according to data shared by the Ministry of Commerce. The ministry’s figures show that exports to GCC countries dropped by around 12% year-on-year in July, reflecting the impact of heightened maritime security concerns and disruptions to established shipping routes. Exports to major Gulf markets decline Pakistan’s exports to the United Arab Emirates (UAE), its largest GCC trading partner, fell 9.5% in July 2026, reaching $144.6 million compared with $159.8 million recorded in July 2025. Exports to Saudi Arabia witnessed a steeper decline of 20.5%, falling to $42 million from $52.8 million a year earlier. Shipments to Oman decreased 3.7% to $15.8 million from $16.4 million. Pakistan’s exports to Bahrain suffered the sharpest percentage decline among the GCC markets, dropping 50.8% to $2.3 million from $4.2 million. Exports to Kuwait declined 7.4% to $7.4 million, while shipments to Qatar fell 4.2% to $8.7 million from $9 million in the corresponding month of 2025. The decline has raised concerns over the ability of Pakistani exporters to maintain regular deliveries to Gulf markets, particularly for goods that depend heavily on maritime transportation. GCC imports also fall sharply Pakistan’s imports from GCC countries also recorded a substantial decline during July. The Commerce Ministry reported that imports fell 32.5% year-on-year to $1.0009 billion from $1.4825 billion in July 2025. Imports from the UAE decreased 34.2%, falling to $380.7 million from $576.5 million. Imports from Saudi Arabia declined 4.7% to $295.3 million from $310 million, while purchases from Bahrain dropped 44.4% to $15.1 million from $27.2 million. The most significant declines were recorded in imports from Kuwait and Qatar. Imports from Kuwait plunged 92.8% to $9.5 million from $132.1 million, while those from Qatar fell 96.1% to $10.2 million from $261.8 million. Oman was the exception, with Pakistani imports from the country increasing 67.7% to $290.2 million from $173 million a year earlier. Month-on-month trade also weakens The trade slowdown was also visible on a month-on-month basis. Pakistan’s exports in July were 2.7% lower than in June 2026. However, the performance varied considerably across GCC destinations. Exports to the UAE increased 15.7%, while shipments to Kuwait and Qatar rose 19.4% and 88%, respectively. In contrast, exports to Saudi Arabia declined 34.5% during the month. Shipments to Oman fell 34.6%, while exports to Bahrain decreased 18.2%. Imports recorded an even sharper monthly decline, falling 32.5% in July compared with June. Imports from the UAE decreased 17.9%, while those from Saudi Arabia fell 41.4%. Imports from Oman declined 49.9%, and purchases from Qatar plunged 93.2%. Imports from Bahrain and Kuwait, however, increased during the month, rising 295.8% and 72%, respectively. Maritime security disrupts Gulf trade The Commerce Ministry linked the deterioration in trade flows to the worsening maritime security situation following the breakdown of an interim truce between the United States and Iran in July 2026. According to the ministry, the resulting security concerns severely affected international shipping movements through key maritime routes and created uncertainty for commercial vessels operating in and around the Gulf. The ministry said the waterway normally accommodates between 70 and 80 commercial vessel crossings each day. However, traffic reportedly dropped to as few as six vessels a day during the disruption, leaving hundreds of ships waiting outside the Strait of Hormuz. The ministry also referred to statements attributed to Iran’s Islamic Revolutionary Guard Corps (IRGC), according to which vessels were required to obtain permission to pass through the strategic waterway. Such developments, coupled with threats against shipping, significantly increased the risks and costs associated with maritime trade. Red Sea tensions add to shipping risks The Commerce Ministry also highlighted the impact of attacks attributed to Houthi militants on Saudi oil facilities and areas along the Red Sea coast. The resulting security threats to Saudi-linked vessels have increased concerns surrounding shipping through the Bab al-Mandab Strait, another critical maritime gateway connecting the Red Sea with the Gulf of Aden. With shipping operators facing heightened security risks, commercial maritime movement between Pakistan and GCC markets has been severely disrupted. The ministry said some Pakistani exports had consequently been shifted to air freight to ensure the delivery of goods to Gulf customers. However, air transport is considerably more expensive than sea freight, creating additional pressure on exporters and potentially reducing the competitiveness of Pakistani products in GCC markets. Government considers alternative shipping routes To reduce the impact of the disruption, the Commerce Ministry has proposed establishing dedicated feeder links between Karachi and safer maritime nodes outside the immediate Hormuz chokepoint. The proposed connections include Fujairah and Khor Fakkan in the UAE, as well as suitable Omani ports located outside the affected maritime corridor. Such routes could provide Pakistani exporters with alternative channels for moving cargo to the Gulf while reducing their exposure to disruptions around the Strait of Hormuz. The ministry has also recommended accelerating the operationalisation of multi-purpose passenger and cargo ferry services between Gwadar and GCC ports. The proposed ferry network is intended to provide another avenue for transporting commercial goods and passengers while strengthening Gwadar’s role as an alternative regional logistics hub. PNSC vessels under consideration Another option being examined by the government is the use of vessels operated by the Pakistan National Shipping Corporation to maintain trade connectivity with GCC destinations. The deployment of national-flag shipping capacity could provide greater control over cargo movement at a time when private commercial operators are facing security and logistical constraints. Officials believe that maintaining reliable access to Gulf markets is important because GCC countries remain a major destination for Pakistani exports and a key source of energy and other imported commodities. The proposed measures are therefore aimed

Gold prices advanced for a third consecutive session on Tuesday as expectations of a US interest rate hike in the coming months weakened, while investors turned their attention to the minutes of the Federal Reserve’s latest policy meeting for indications about the future direction of monetary policy. Spot gold gained 0.2% to $4,424.28 per ounce by 0130 GMT. US gold futures for December delivery also increased 0.2%, reaching $4,480.90 per ounce. The precious metal has received support from growing expectations that the US Federal Reserve may maintain its current interest-rate stance following a series of weaker-than-expected economic indicators. The US dollar remained close to multi-month lows against a basket of major currencies, providing additional support to gold and other dollar-denominated commodities. A weaker greenback generally makes gold more affordable for buyers holding other currencies, potentially boosting demand in international markets. IG market analyst Tony Sycamore said gold’s recent advance was being supported by softer US economic data released last week. The data has strengthened expectations that the Federal Reserve could leave borrowing costs unchanged rather than move towards another rate increase. Gold typically benefits from lower interest rates because the metal does not generate interest or dividends. When yields on interest-bearing assets decline, the opportunity cost of holding bullion becomes comparatively lower, making gold more attractive to investors. According to a recent Reuters poll of economists, most analysts expect the US central bank to keep its benchmark interest rate unchanged at its next meeting and maintain the rate through the end of the year. Market expectations have also shifted significantly. The probability of a quarter-point rate increase in September has fallen sharply, with traders now assigning nearly a 65% probability that the Federal Reserve will keep rates unchanged. The change followed unexpected job losses in July, softer-than-anticipated consumer price inflation and weaker retail sales data. Investors are now closely watching the release of the Federal Reserve’s meeting minutes, scheduled for Wednesday. The minutes could provide further insight into policymakers’ views on inflation, employment and the timing of any potential future rate adjustments. Geopolitical developments are also contributing to demand for gold as a traditional safe-haven asset. Sycamore said bullion appeared to be regaining some of its safe-haven appeal despite higher bond yields, particularly amid renewed tensions surrounding Iran and the United States. A senior Iranian official told Reuters that Tehran would move towards a “fully offensive” military posture after efforts to negotiate a permanent end to the conflict with Washington stalled. The development came as the United States ruled out extending a temporary ceasefire arrangement, adding to uncertainty in financial markets. Higher geopolitical risks can encourage investors to increase exposure to traditionally defensive assets such as gold, particularly when uncertainty surrounding economic and monetary policy is already elevated. Other precious metals also recorded mixed movements during Tuesday’s session. Spot silver climbed 0.9% to $66.40 per ounce, extending gains in the broader precious-metals market. Platinum edged 0.2% higher to $1,772.75 per ounce, while palladium moved in the opposite direction, declining 0.3% to $1,330.05 per ounce.

ISLAMABAD: The National Assembly is expected to consider the Gas Infrastructure Development Cess (Amendment) Bill, 2026, a proposed legal change aimed at resolving more than Rs400 billion in disputed and outstanding Gas Infrastructure Development Cess (GIDC) payments currently tied up in litigation. The proposed legislation seeks to amend the Gas Infrastructure Development Cess Act, 2015, and comes after years of legal disputes between the government and major gas consumers, including industrial, fertiliser and CNG sectors. The Cabinet Committee for Disposal of Legislative Cases (CCLC) approved the proposed amendments in principle earlier this year, paving the way for the government to move forward with the legislative process. The GIDC was originally introduced to generate funds for major gas infrastructure projects, including the Iran-Pakistan (IP) gas pipeline, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, LNG-related projects and other associated infrastructure. However, progress on several of these projects has remained slow, while the collection and utilisation of the cess became the subject of prolonged litigation. Legal history of GIDC According to a briefing provided by the Petroleum Division to the CCLC, the original Gas Infrastructure Development Cess Act, 2011, and the GIDC Ordinance, 2014 were struck down by the Supreme Court in 2014. The government subsequently enacted the GIDC Act, 2015, in May that year. The new legislation also provided retrospective legal cover to the cess that had been charged and collected under the 2011 Act and the 2014 ordinance. Section 4(1) of the 2015 law specifies that the cess is to be utilised by the federal government for infrastructure development related to the IP pipeline, TAPI pipeline, LNG projects and other ancillary schemes. The constitutional validity of the 2015 legislation was subsequently challenged by consumers from the industrial, fertiliser and CNG sectors before different high courts. The disputes eventually reached the Supreme Court. In its judgment of August 13, 2020, the Supreme Court dismissed the civil appeals and connected petitions and upheld the constitutionality of the GIDC Act, 2015, including its retrospective application. The court, however, did not permit the government to impose a fresh cess under the disputed arrangements. Instead, it allowed recovery of outstanding arrears through instalments. Supreme Court links cess to infrastructure projects A significant aspect of the Supreme Court’s ruling was its observation that GIDC constituted a fee rather than a conventional tax. As a fee, the court noted, there must be a corresponding benefit or service associated with the amount collected. The infrastructure projects identified under Section 4 of the Act therefore formed an important basis for the continuation and utilisation of the cess. The court also observed that failure to pursue the specified gas infrastructure projects could undermine the purpose for which the cess had been imposed. Despite the Supreme Court judgment, the dispute did not come to an immediate end, as consumers continued pursuing related matters before the high courts. This resulted in a substantial amount of GIDC remaining locked in prolonged litigation. Government forms high-powered committee In an attempt to find a solution, Prime Minister Shehbaz Sharif constituted a high-powered GIDC Committee on November 8, 2022, to examine the issue of outstanding amounts exceeding Rs400 billion. The committee held several meetings following its formation, but progress remained limited because of continuing litigation in different high courts. The matter was again taken up on March 19, 2025, when the committee met under the chairmanship of the federal Minister for Finance and Revenue. The meeting was attended by the Minister for Petroleum Division, the Attorney General for Pakistan and senior officials from the Petroleum, Finance and Law divisions. During the meeting, participants agreed in principle that Section 4 of the GIDC Act, 2015 should be amended to help address the long-running legal disputes. Following the committee’s recommendations, the Petroleum Division prepared a proposal for amendments and submitted a summary seeking approval of the draft GIDC (Amendment) Act, 2025. First amendment proposal rejected The initial proposal, however, was not approved by the CCLC at its meeting on September 3, 2025. The committee directed the Petroleum Division to revisit the draft and ensure that the proposed changes remained within the original scope and objectives of the GIDC Act, 2015. The Petroleum Division subsequently revised the draft after consultations with the relevant government departments. The amended draft was sent to the Law and Justice Division for legal scrutiny, which gave its concurrence on December 15, 2025. The Petroleum Division then sought formal approval of the revised GIDC amendment bill under the relevant provisions of the Rules of Business, 1973. The Finance Division had also been consulted during the process and conveyed that it had no objection to the proposal contained in the summary submitted to the CCLC. CCLC gives approval to revised proposal The CCLC considered a Petroleum Division summary dated January 1, 2026 concerning amendments to the GIDC Act, 2015. The committee approved the proposal, subject to the incorporation of amendments recommended by the CCLC into the draft legislation by the Law and Justice Division before the bill was submitted to the federal Cabinet. The approval represents another attempt by the government to break the deadlock surrounding billions of rupees in GIDC dues and bring a degree of finality to disputes that have continued for more than a decade. TAPI project remains slow The government’s original justification for GIDC included financing major regional gas infrastructure projects. However, the implementation of these projects has remained challenging. The TAPI pipeline, envisioned to transport natural gas from Turkmenistan through Afghanistan and Pakistan to India, has faced repeated delays because of financial, security and geopolitical challenges. Although work has reportedly begun on an initial 153-kilometre section extending from Serhetabat on the Turkmenistan-Afghanistan border towards Herat in western Afghanistan, the broader project remains far from completion. The slow progress of the pipeline and other proposed infrastructure projects has also remained relevant to the broader debate over the purpose and utilisation of GIDC collections. The proposed amendment is therefore being viewed as an effort to address both the legal complications surrounding outstanding dues and the government’s

ISLAMABAD: The Federal Board of Revenue (FBR) has demonstrated several features of its digital income tax return system to the Karachi Tax Bar Association (KTBA), including mechanisms for reporting investments in immovable property, declaring multiple business capital accounts, recording inheritance assets and calculating tax under relevant provisions of the law. The demonstration was held during an online consultation between the FBR Domain Team and representatives of the KTBA as part of the tax authority’s efforts to obtain feedback from taxpayers and tax practitioners on the design and functionality of the income tax return system. The meeting focused on improving the digital filing experience and identifying areas where the online return could be made simpler, more efficient and easier for taxpayers and professionals to use. KTBA President Mehmood Bikiya welcomed the FBR’s prompt response in arranging the session and appreciated the efforts made by the Domain Team to develop a responsive and user-friendly return system. According to the participants, the existing system is operating satisfactorily, with no major technical problems or significant glitches reported during the discussion. Instead, the meeting primarily focused on clarifications, suggestions for improvement and practical issues faced by tax practitioners while completing returns. The FBR officials addressed a number of queries through live demonstrations, allowing participants to better understand the available options and procedures within the digital system. During the session, the Domain Team demonstrated how taxpayers can report investments in immovable property, enter details of more than one business capital, declare tax under applicable sections and include inherited property in their tax records. Officials also clarified that certain information fields are optional. In particular, the chassis number required in the vehicle-related section does not have to be entered where it is not applicable or available. The consultation also covered several policy-related matters raised by the KTBA. These included the timing of refund applications, deemed assessment orders and procedures for revising income tax returns. The FBR Domain Team explained that such matters are governed by existing policy provisions, including the 15-day rule relating to deemed assessments. The concerns and proposals raised by the tax bar were also forwarded to the FBR’s Policy Wing for examination. Both sides agreed that continued consultations between tax officials and tax practitioners could help address implementation-related concerns and improve taxpayers’ understanding of the digital filing process. The KTBA also submitted several proposals for future versions of the income tax return system. One of the key suggestions was to introduce an option for uploading data through Excel files, which could reduce the time required to manually enter large volumes of information. Other proposals included reconsidering the requirement to enter certain financial information in subsequent years and introducing a system-generated PDF explaining the relevant legal provisions concerning residence status. The FBR Domain Team recorded the suggestions and indicated that they would be considered for possible incorporation into future versions of the return system. Most of the technical and operational questions raised during the meeting were resolved through on-screen demonstrations and explanations by the FBR team. The exercise also provided practitioners with a clearer understanding of the functions already available on the digital platform. KTBA Vice President Saud ul Hasan appreciated the FBR’s willingness to engage directly with representatives of the tax community. He said continued interaction between tax practitioners and the revenue authorities could promote greater understanding of taxpayers’ concerns and strengthen confidence in the digital filing mechanism. The FBR, meanwhile, reiterated its commitment to maintaining regular consultations with the business community, tax practitioners and their representative organisations. The tax authority said feedback received through such engagements would remain important in improving the income tax return system and making the filing process more transparent, straightforward and taxpayer-friendly.

KARACHI: Gold prices in Pakistan remained unchanged on Tuesday, with the price of one tola of 24-karat gold holding at Rs461,936, according to the latest rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The local bullion market remained relatively calm after gold recorded a notable increase in the previous trading session. On Monday, the price of gold had risen by Rs2,000 per tola, bringing it to Rs461,936. The price of 10 grams of 24-karat gold also remained unchanged at Rs396,035 on Tuesday. In the international market, gold prices showed little movement, with the benchmark rate standing at $4,395 per ounce, including a $20 premium. The stability in global bullion prices contributed to the lack of significant movement in domestic gold rates. Market participants continue to closely monitor international developments, particularly movements in the US dollar, expectations surrounding global interest rates and geopolitical developments, all of which can influence demand for the precious metal. Meanwhile, silver prices moved in the opposite direction in the domestic market. The price of silver declined by Rs43 per tola, settling at Rs6,986 per tola.