Gold prices surge sharply in Pakistan 

Pakistan’s petroleum product sales recorded a significant increase in July 2026, reflecting stronger economic activity, improved agricultural demand, and the impact of lower fuel prices. Industry data released on Monday showed that total petroleum sales reached 1.51 million tons, marking a 23% year-on-year (YoY) increase and the strongest July performance in several years. According to a report by brokerage firm Arif Habib Limited (AHL), the growth was fueled by declining domestic fuel prices, improving conditions in the agriculture sector, and a gradual rebound in economic and automobile-related activity. The report noted that farmers’ purchasing power improved due to better agricultural economics, while lower fuel costs encouraged higher consumption across the country. Excluding furnace oil (FO), sales by oil marketing companies (OMCs) increased 18.5% YoY, making July 2026 the strongest July for petroleum demand since July 2021. Petrol and Diesel Consumption Climbs Demand for motor spirit (MS), commonly known as petrol, remained robust during the month. Petrol sales rose 23% YoY to 0.73 million tons, reflecting increased transportation activity and higher vehicle usage. Meanwhile, high-speed diesel (HSD) sales climbed 19% YoY to 0.62 million tons. Diesel consumption was supported by greater agricultural operations, commercial transportation, and industrial activity as the economy continued its gradual recovery. Furnace Oil Registers Massive Growth Furnace oil sales posted the strongest percentage increase among all petroleum products, surging 406% year-on-year to 0.08 million tons. AHL attributed this sharp rise primarily to increased furnace oil consumption by the power sector, where seasonal electricity demand during the summer months led to greater fuel usage for power generation. Strong Month-on-Month Growth On a month-on-month (MoM) basis, overall petroleum sales also recorded impressive gains, rising 20% compared to June 2026. Analysts said the monthly increase was largely driven by lower domestic petroleum prices, which followed a decline in international crude oil prices as geopolitical tensions eased in global markets. During the month: Petrol (MS) sales increased 12% over June. High-speed diesel (HSD) sales rose 25%. Furnace oil demand jumped 89%, supported by higher electricity generation requirements during peak summer temperatures. PSO Strengthens Market Position Among Pakistan’s oil marketing companies, Pakistan State Oil (PSO) emerged as the strongest performer in July. The company’s total petroleum sales climbed 38% year-on-year to 702,000 tons. Petrol sales increased by 44.1%, while diesel sales rose 40.3%, enabling PSO to expand its presence in the domestic fuel market. According to the report, PSO gained market share at the expense of Gas & Oil Pakistan (GO). GO’s market share in petrol declined to 5%, its lowest level since June 2024, while its diesel market share fell to 7%, the weakest since May 2024. Government Levy Collections Remain on Track The report also estimated that the federal government collected approximately Rs134 billion through the Petroleum Development Levy (PDL) during July. Based on current trends, AHL believes the government remains on course to meet its FY2026-27 PDL collection target of Rs1.68 trillion, representing an increase of nearly 12% compared with the revised target for the previous fiscal year.

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: The Islamabad Chamber of Commerce and Industry (ICCI) has used a series of high-level engagements in Istanbul to promote Pakistan’s private sector, recognise leading entrepreneurs and strengthen commercial ties between Pakistan and Turkiye. The ICCI International Excellence Awards 2026 brought together Turkish government representatives, diplomats, business leaders and members of the Pakistani and Turkish business communities, providing a platform to highlight the contribution of Pakistani entrepreneurs while exploring opportunities for greater bilateral trade and investment. Around 40 Pakistani business leaders representing a range of sectors were honoured at the awards ceremony for their contributions to the country’s economy and private-sector development, according to a press release issued on Saturday. The event also provided an opportunity for business representatives from both countries to discuss the potential for expanded commercial cooperation, investment partnerships and joint ventures. Turkish officials stress stronger business links Addressing the ceremony, Istanbul Deputy Governor Mehmet Sulun said initiatives bringing together business communities from Pakistan and Turkiye could play an important role in expanding people-to-people and business-to-business contacts. He said stronger interaction between entrepreneurs could create fresh opportunities in trade, investment and joint ventures while contributing to deeper ties between the two countries. Sulun observed that business leaders played a role beyond commercial activity, describing them as important contributors to friendship and mutual understanding between the two nations. He expressed confidence that the longstanding relationship between Pakistan and Turkiye would continue to develop and remain strong for future generations. Pakistan’s Consul General in Istanbul Khawaja Khurram Naeem also emphasised the importance of expanding direct links between the private sectors of the two countries. He said political and fraternal relations needed to be complemented by stronger commercial engagement if Pakistan and Turkiye were to significantly increase bilateral trade and investment. Naeem assured Pakistani business representatives that Pakistan’s diplomatic mission would continue supporting initiatives aimed at improving commercial cooperation and facilitating interaction between entrepreneurs from both countries. ICCI seeks expansion in trade and investment In his opening remarks, ICCI President Sardar Tahir Mehmood highlighted the longstanding historical, cultural and fraternal relationship between Pakistan and Turkiye. He said the two countries had strong political and people-to-people relations, but the economic relationship had considerable room for further expansion. Mehmood reaffirmed the ICCI’s commitment to supporting efforts aimed at increasing bilateral trade and investment in line with the ambitions of the leadership of both countries. He said the chamber was working to establish itself as an international platform connecting Pakistani businesses with global markets and partners. According to Mehmood, the ICCI is focusing on promoting Pakistani exports, attracting investment and developing international business partnerships while coordinating with government departments and other relevant institutions to improve the business environment. He stressed that greater ease of doing business and stronger institutional support would help Pakistani companies compete more effectively in international markets. Turkish chamber backs institutional cooperation Munir Ustun, a member of the Executive Board of the Istanbul Chamber of Commerce, welcomed efforts to bring the Pakistani and Turkish business communities closer. He stressed the importance of stronger institutional relationships between chambers and private-sector organisations in both countries. Ustun said regular business delegations, business-to-business meetings and joint commercial initiatives could help identify areas where cooperation could be expanded. He noted that significant untapped potential existed in bilateral trade and investment and that closer engagement between businesses could help turn that potential into concrete commercial projects. Faisal Town Group Director Zohair Majeed said the international recognition given to Pakistani entrepreneurs demonstrated the capability and resilience of the country’s private sector. He said Pakistani companies had the potential to compete in international markets and argued that stronger partnerships with Turkish businesses could create opportunities in investment, technology transfer and exports. According to Majeed, greater cooperation between businesses could also contribute to sustainable economic growth and help Pakistani companies gain access to new markets and technologies. Pakistan-Turkiye economic ties discussed at Independence Day event The ICCI delegation also participated in a separate event in Istanbul to mark Pakistan’s 79th Independence Day, where Pakistani and Turkish business representatives reaffirmed their commitment to strengthening bilateral economic cooperation. Speaking at the gathering, Mehmood said Pakistan’s independence had been achieved after enormous sacrifices by the country’s founding generation. He called on citizens and the business community to contribute to national development by promoting economic growth, investment and entrepreneurship. Mehmood said Pakistan and Turkiye shared decades of historical, cultural and fraternal ties, adding that the longstanding relationship should increasingly be reflected in stronger economic cooperation. He called for greater participation by the private sectors of both countries in trade, investment and joint ventures. The ICCI president said the chamber would continue to provide platforms where Pakistani and Turkish entrepreneurs could meet, explore commercial opportunities and develop long-term partnerships. Turkish business representatives also reiterated their commitment to deepening the relationship with Pakistan, particularly through increased trade, investment and direct business-to-business engagement. Business conference explores investment opportunities The economic engagement was further strengthened through a Business Opportunity Conference in Istanbul, which brought together business leaders from both countries to examine potential areas for cooperation. Participants discussed opportunities for expanding bilateral trade, establishing joint ventures, attracting investment and creating stronger business-to-business connections. Pakistan’s Consul General in Istanbul Khawaja Khurram Naeem participated actively in the discussions, responding to questions from Turkish business representatives and outlining Pakistan’s trade and investment potential. He also highlighted developments in the country’s business and investment environment and encouraged Turkish companies to examine opportunities in Pakistan. A significant number of Turkish companies participated in the conference and expressed interest in exploring commercial and investment prospects in Pakistan. During an interactive session, ICCI President Sardar Tahir Mehmood, along with former ICCI presidents Aamir Waheed Sheikh and Mohammad Ejaz Abbasi, and Dr Adeel Sami, Founder and President of the Pakistan-Turkiye Investment & Development Council, responded to questions from Turkish entrepreneurs. The discussion focused on practical mechanisms for strengthening commercial links and identifying sectors where Pakistani and Turkish companies could work together. Focus shifts from friendship to economic partnership The events in Istanbul underscored a