Farm Egg Prices Hit Two-Year High As Production Costs Rise Across Thailand

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 government has proposed a new financial structure for the privatisation of three major power distribution companies. The plan covers Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).The proposal is based on the restructuring model used during the privatisation process of Pakistan International Airlines (PIA). Under the proposed plan, selected assets and liabilities of the three companies will be separated from their balance sheets.The government plans to establish a Special Purpose Vehicle (SPV) for this purpose. The SPV will be owned by the government. It will hold specific assets and liabilities removed from the DISCOs. The restructuring is aimed at making the companies more attractive to private investors. The government wants to offer financially stronger entities to potential buyers.Land assets are among the items expected to be separated from the DISCO balance sheets. Liabilities related to retired employees and pension benefits will also be shifted to the SPV.These pension-related liabilities were worth around Rs312 billion for the three companies as of June 2025. The final amount could change after the companies’ balance sheets are restructured. The government plans to use audited financial results for March 2026 as the basis for the final calculation.The three DISCOs had combined assets of around Rs1.2 trillion in June 2025. Their combined liabilities stood at approximately Rs1.05 trillion.The companies together reported net positive equity of around Rs145 billion. However, the financial position of the three companies varies considerably.GEPCO had negative equity of around Rs14.4 billion as of June 2025. The final figures may be different because the government is using March 2026 audited accounts for the restructuring process. The Privatisation Commission board has recommended that the Cabinet Committee on Privatisation approve the restructuring plans. The plans cover the first group of DISCOs selected for privatisation.The proposed arrangements have been prepared using audited financial statements for the period ending March 31, 2026. Officials believe the new structure could increase the value of the companies for the government.It is also intended to make the transactions commercially viable for private-sector investors. The government hopes the approach will attract stronger interest from domestic and international buyers.The strategy closely resembles the model adopted for PIA. During the airline’s privatisation process, the government separated more than Rs650 billion in liabilities from PIA’s balance sheet.The move was designed to leave the airline in a stronger financial position before its transfer to new owners. A similar approach is now being considered for the three DISCOs.The Privatisation Commission has been informed that both local and foreign investors have shown interest in the companies. The government has already announced deadlines for Expressions of Interest.Investors interested in FESCO must submit their Expressions of Interest by August 7, 2026. The deadline for GEPCO is August 21, 2026.For IESCO, the deadline has been set for September 7, 2026. FESCO has a relatively stronger financial position among the three companies.Its assets stood at around Rs410.3 billion as of June 2025. Its liabilities were approximately Rs347 billion.The company reported positive equity of around Rs63 billion. The equity position was supported by deposits for shares and gains from asset revaluation.FESCO also recorded a profit after tax of around Rs9.4 billion. Its non-current liabilities stood at approximately Rs217.6 billion.Staff retirement benefits accounted for around Rs123 billion of these liabilities. The company’s current liabilities were estimated at about Rs130 billion.Trade payables made up around Rs118 billion of the current liabilities. GEPCO reported a profit after tax of around Rs13.7 billion.Its total assets stood at approximately Rs238 billion. However, its equity remained negative at around Rs14.4 billion.The company’s total liabilities were around Rs252.5 billion. Staff retirement benefits accounted for approximately Rs79 billion.IESCO reported a loss after tax of around Rs1.42 billion during the same period. The company had total assets of approximately Rs547 billion.Its liabilities stood at around Rs450 billion. Despite recording a loss, IESCO had positive equity of around Rs97 billion. The company’s equity position was supported by a share deposit of approximately Rs67 billion. It also benefited from a surplus revaluation of around Rs158 billion.IESCO’s liabilities included staff retirement benefits worth around Rs110 billion. The company also carried deferred tax liabilities.The proposed privatisation is part of Pakistan’s wider power-sector reform programme. It is also linked to commitments made under Pakistan’s agreement with the International Monetary Fund (IMF).Pakistan has repeatedly pledged to reduce government involvement in the power distribution sector. The commitment to privatise at least three DISCOs has been made several times since 2013.Previous attempts, however, failed to reach completion. The IMF has urged Pakistan to implement structural reforms in the power sector.The broader objective is to reduce electricity costs for households and businesses. The reforms also aim to improve the operational efficiency of power distribution companies.The IMF has previously noted delays in the private-sector participation process for DISCOs. The first group, consisting of FESCO, GEPCO and IESCO, faced delays after potential investors raised concerns about the proposed transaction structure.The government has now said that those concerns have been addressed. Officials expect the privatisation process to move forward.The government is targeting completion of the first phase by early 2027. The proposed SPV will be an important part of the process.It is intended to separate selected financial burdens from the three companies before they are offered to private investors. The government hopes the restructuring will improve investor confidence and make the DISCO transactions more commercially attractive.

LAHORE: Pakistan’s automobile industry is witnessing growing divisions over the government’s taxation policy for vehicles, with local manufacturers warning that the current framework unfairly benefits expensive imported and premium new energy vehicles (NEVs) while placing a heavier tax burden on affordable cars purchased by middle-income families. The controversy has intensified following the government’s decision to introduce a range of fiscal incentives for new energy vehicles, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) and range-extended electric vehicles (REEVs). While the policy is designed to accelerate Pakistan’s transition towards cleaner transportation and reduce reliance on fossil fuels, established local assemblers argue that the incentives are skewed in favour of luxury vehicle buyers instead of promoting affordable green mobility. Industry representatives say the taxation gap between conventional locally assembled vehicles and premium electric vehicles has widened considerably, raising concerns over fairness, competitiveness and the long-term sustainability of Pakistan’s domestic automobile manufacturing sector. According to industry estimates, a locally assembled Suzuki Alto—one of the country’s most affordable passenger vehicles priced at around Rs3 million—bears nearly Rs550,000 in taxes, including sales tax, federal excise duty (FED) and the recently introduced New Energy Vehicle (NEV) levy. In contrast, a premium REEV costing close to Rs10 million reportedly attracts sales tax of only around Rs100,000 while remaining exempt from both the federal excise duty and the NEV levy. The tax disparity has triggered criticism from domestic manufacturers, who argue that the current structure effectively penalises middle-income consumers while offering generous incentives to buyers of high-end imported vehicles. Local Assemblers Raise Concerns Pak Suzuki Motor Company spokesperson Ikhlaq Virk said the taxation framework has created an uneven competitive environment that disadvantages affordable vehicles widely used by Pakistani families. He said entry-level models such as the Alto and Cultus serve as essential transportation for the country’s middle class but receive no meaningful tax relief despite their affordability. Virk further noted that premium hybrid and electric vehicles, valued at nearly Rs10 million or more, continue to enjoy substantial concessions under the government’s clean mobility policy. He also pointed to reports suggesting that the sales tax on certain plug-in hybrid and hybrid electric vehicles could be reduced from 25 percent to 18 percent after changes introduced through the Finance Bill, arguing that such relief would primarily benefit affluent consumers rather than encouraging mass-market adoption. IMF Programme Adds Complexity The debate comes at a time when Pakistan remains under an International Monetary Fund (IMF) programme, which has required the government to increase tax revenues, rationalise subsidies and implement fiscal reforms to stabilise the economy. Against this backdrop, industry stakeholders argue that taxation policies should strike a balance between environmental objectives and economic realities, ensuring that clean energy initiatives do not disproportionately favour a small segment of wealthy consumers. The discussion has also reopened a broader policy debate over whether Pakistan’s green mobility strategy should focus solely on reducing emissions or also safeguard domestic manufacturing, employment and industrial investment. Analysts Call for Balanced Incentives Automobile industry experts believe Pakistan’s transition towards cleaner transportation is necessary, but they stress that government incentives should encourage widespread adoption instead of being concentrated in the luxury vehicle segment. Yousuf M. Farooq, Director Research at Chase Securities, said environmental goals should be pursued alongside industrial development and economic sustainability. He noted that while encouraging cleaner transportation is an important national objective, incentive programmes should also consider vehicle affordability, localisation, environmental benefits and the contribution of manufacturers to Pakistan’s economy. Farooq emphasised the need for a consistent taxation framework across all vehicle categories, including conventional internal combustion engine vehicles, hybrids, plug-in hybrids and range-extended electric vehicles, while maintaining adequate protection for local assembly operations and the domestic auto parts industry. He added that environmental incentives should not undermine the competitiveness of local manufacturers or threaten employment generated by Pakistan’s automotive sector. Local Industry Fears Investment Slowdown Pakistan’s automobile industry has invested billions of rupees over the past three decades in assembly plants, localisation programmes and vendor development. The sector supports hundreds of component manufacturers and provides employment to thousands of skilled workers across the country. Industry stakeholders warn that if imported premium electric vehicles continue to enjoy significantly lower taxation than locally assembled conventional vehicles, future investment in domestic manufacturing could slow, weakening Pakistan’s automotive supply chain and localisation efforts. Manufacturers believe a prolonged imbalance may discourage further expansion by existing assemblers while affecting the viability of local parts suppliers that have developed alongside the country’s automobile industry. Government’s Green Mobility Vision Supporters of the government’s policy argue that Pakistan cannot afford to lag behind the global transition towards electric mobility. Many countries are offering tax incentives, subsidies and policy support to encourage electric vehicle adoption, reduce dependence on imported petroleum products and lower carbon emissions. Pakistan, which spends billions of dollars annually on fuel imports, could also benefit from increased electrification of its transport sector by reducing its import bill and improving environmental sustainability over the long term. However, industry observers believe the core issue is not whether electric vehicles deserve policy support but how those incentives should be structured.

ISLAMABAD: Gold prices continued their upward trend in Pakistan on Monday, with the price of one tola increasing by Rs800 in the local market. According to data released by the All Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold rose to Rs457,336 per tola, following the latest increase. The price of 10 grams of gold also moved higher, climbing by Rs685 to Rs392,091. The fresh increase in domestic gold prices came as international bullion rates also recorded gains. In the global market, gold was trading at around $4,349 per ounce, up by $8 from the previous level. Market participants continue to closely monitor movements in international bullion prices, exchange rates and investor demand, all of which influence gold prices in Pakistan. Gold remains a popular investment and a traditional store of value in the country, particularly during periods of economic uncertainty and currency fluctuations. Changes in international prices are generally reflected in the local bullion market after adjustments for the rupee-dollar exchange rate and other market factors.