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Pakistan recorded a strong increase in exports at the start of the new fiscal year, providing a positive signal for the country’s external trade performance despite continued regional uncertainty and global economic challenges. According to the latest trade data released by the Pakistan Bureau of Statistics (PBS), the country’s exports witnessed a sharp month-on-month increase during July 2026, reflecting improved demand for Pakistani products in international markets and stronger export activity across key sectors. The official figures show that exports reached $2.939 billion in July 2026, compared with $2.242 billion in June 2026, representing a 31.09% increase on a monthly basis. The substantial rise marks a promising beginning to the fiscal year 2026-27 and is being viewed as an encouraging development for the country’s economy. On a year-on-year basis, exports also recorded healthy growth. Compared with July of the previous year, Pakistan’s exports increased by 9.54%, indicating sustained improvement in export performance despite geopolitical tensions and volatility in international markets. Economic observers believe the rise in exports reflects the impact of government efforts to support exporters, improve industrial production, and expand access to international markets. Higher shipments from sectors such as textiles, food products, leather goods, sports equipment, surgical instruments, and information technology services are expected to have contributed to the overall increase. The latest trade figures are likely to strengthen the government’s confidence in its export-led growth strategy, which aims to reduce the trade deficit, improve foreign exchange earnings, and support macroeconomic stability. However, analysts caution that maintaining this momentum will require continued policy support, competitive energy prices, stable exchange rate management, and greater diversification of export products and destinations.

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 oil refineries have agreed to move ahead with long-delayed agreements for upgrading their ageing plants, even as they continue to raise objections over a new financial penalty linked to the petroleum policy. Under the revised arrangement, refineries will be required to surrender 2.5 percent of the deemed duty retained on diesel for the period of delay. Industry representatives have termed the condition unfair, arguing that the delays were largely beyond their control and should not result in a financial burden on the refineries. Despite the disagreement over the penalty, refinery companies have indicated that they do not intend to hold up the signing of the agreements and are prepared to proceed with the modernization programme. The government’s Brownfield Refinery Policy, originally approved in August 2023, was introduced to encourage investment in the modernization and expansion of Pakistan’s existing refining capacity. The policy has subsequently been amended twice in an effort to address implementation issues and facilitate investment in the sector. Petroleum Minister Ali Pervaiz Malik has indicated that the long-pending agreements will be finalized shortly, while officials in the Petroleum Division are expecting the documents to be signed by the end of August. Agreements to Be Signed With ISGS A key change under the revised mechanism is that the upgrade agreements will now be executed with Interstate Gas Systems (ISGS), which operates under the Petroleum Division. Previously, the agreements were expected to be concluded through the Oil and Gas Regulatory Authority (Ogra). The change in the implementing entity is part of the government’s efforts to move the refinery-upgrade programme forward after delays in finalizing the contractual framework. Industry representatives, however, have maintained that refinery companies had already taken substantial steps to comply with the earlier arrangements and should not be penalized for delays that occurred afterward. Refineries Object to 2.5% Penalty Adil Khattak, Chief Executive Officer of Attock Refinery Limited and Chairperson of the Energy Committee of the Overseas Investors Chamber of Commerce and Industry, said Attock Refinery and National Refinery had completed several important formalities ahead of the previous deadline of October 22, 2024. According to Khattak, the companies had initialed agreements with Ogra, secured approval from their respective boards and arranged Rs1 billion bank guarantees each as part of the requirements. He said the companies were nevertheless being asked under the revised arrangement to surrender 2.5 percent of the deemed duty retained on diesel for the period between the previous deadline and the signing of the new agreements. The financial implications could be substantial. Khattak said Attock Refinery alone could face a penalty of around Rs7.5 million for every day of delay, increasing the industry’s concerns over the cost of the prolonged implementation process. Refineries argue that imposing the financial charge is inappropriate because they had already completed the required formalities within the earlier timeframe and were not responsible for subsequent delays in finalizing the agreements. Draft Agreements Circulated The Petroleum Division has now circulated draft upgrade agreements among the refineries, marking another step towards implementation of the long-delayed modernization programme. Officials are expected to hold further consultations with the Ministry of Finance, Controller of Accounts and ISGS before the agreements are finalized. Although refinery companies have reservations about the penalty clause, industry representatives have indicated that the disagreement will not prevent them from signing the agreements. The refineries are instead seeking a resolution of the financial issue separately while allowing the broader modernization programme to proceed. Upgrade Seen as Critical for Energy Security The modernization of Pakistan’s refining sector has gained greater importance as the country remains heavily dependent on imported petroleum products to meet domestic demand. Khattak estimated that delays in upgrading local refineries are costing Pakistan approximately $1.5 billion annually through additional fuel imports and the resulting foreign exchange outflows. Industry officials argue that upgrading domestic plants would allow refineries to produce a greater proportion of higher-value petroleum products while reducing dependence on imports. The issue has also acquired greater significance amid repeated disruptions and uncertainty in international energy markets. Greater domestic refining capacity and improved processing technology could provide Pakistan with an additional buffer against external supply shocks and volatile global fuel prices. Attock Refinery Moves Toward Financing Attock Refinery has already made considerable progress on the technical side of its proposed modernization project. The company has largely completed its front-end engineering and design work and has begun discussions with banks to arrange financing for the planned investment. The next stage will depend on the finalization of the government agreement and the completion of financing arrangements. For Pakistan, the successful implementation of the brownfield refinery upgrade programme could help improve domestic fuel production, reduce import dependence and ease pressure on foreign exchange reserves. However, industry stakeholders say timely decisions on the remaining contractual and financial issues will be essential if the government wants to avoid further delays in a programme that was originally launched several years ago.