Pakistan Business & Finance News

Pakistan plans $500mn ADB loan for pension reforms

September 28, 2026 by Business Desk

ISLAMABAD: Pakistan plans to borrow $500 million from the Asian Development Bank to finance pension reforms, a loan equivalent to about 138.48 billion Pakistani rupees, according to sources in the Finance Ministry.

The program, titled the Transforming Public Sector Pension Program, will be structured as a three-year program loan, the sources said.

The ADB financing will also include $15.92 million in technical assistance, they said.

According to the sources, the program is scheduled to begin Nov. 1, 2026, and conclude in November 2029.

The new loan program will be linked to the achievement of specified reform results, the sources said.

Pakistan’s existing pension system has become a major burden on the national treasury, with the federal government’s annual pension bill reaching 1.169 trillion rupees, according to the sources.

The planned reforms are aimed at addressing the growing fiscal pressure from pension expenditures and improving the sustainability of the public sector pension system.

Pakistan receives second LNG cargo from Qatar this month

September 24, 2026 by Business Desk

KARACHI: Pakistan has received its second liquefied natural gas (LNG) cargo from Qatar this month under a long-term supply agreement.

The LNG carrier Shandong Redwood, which sailed from Qatar, berthed at the Pakistan GasPort Limited (PGPL) terminal on Wednesday morning.

The cargo was procured under a long-term LNG agreement at a price equivalent to 13.37% of the Brent crude oil price.

Pakistan contacted Iran to ensure safe passage of the LNG shipment, while the cargo is expected to provide some relief to the power sector.

The Strait of Hormuz remains a key route for LNG supplies to Pakistan.

Oil prices fall as US-Iran talks show signs of progress

September 23, 2026 by Business Desk

ISLAMABAD: Oil prices fell Wednesday as signs of progress in talks between the United States and Iran and improving crude supplies eased concerns over disruptions.

Brent crude fell about 4% to around $99 a barrel, while West Texas Intermediate crude was trading at about $89 a barrel. Murban crude stood at around $108 a barrel.

Meanwhile, Iran announced that restoration work had begun at the Pars gas field, which was damaged in U.S. strikes in March.

Iranian Deputy Oil Minister said about half of the field’s capacity had been restored, according to reports.

Pakistan restricts supplementary grants under IMF conditions

September 22, 2026 by Business Desk

ISLAMABAD: Pakistan’s Finance Ministry has decided to restrict supplementary budget grants beyond the limits approved by Parliament, except in cases involving severe natural disasters, as part of efforts to comply with conditions under the International Monetary Fund’s $7 billion Extended Fund Facility.

The ministry’s Budget Wing has developed a strategy for reallocating funds and providing additional financing during the current fiscal year.

Under the new guidelines, funds that cannot be provided through re-appropriation or technical supplementary grants will require the relevant principal accounting officer to submit a strong justification and acceptable reasons for seeking a supplementary grant.

The Finance Ministry said the measures are aimed at ensuring greater budgetary discipline and controlling unplanned expenditures during the implementation of the IMF program.

The guidelines will apply during the current and future financial years to all principal accounting officers, government departments, institutions, subordinate offices and accounting organizations and offices.

Under the policy, requests for additional spending beyond the budget approved by Parliament will generally not be considered, with severe natural disasters identified as an exception.

Pakistan’s textile exports reach four-year high of $18 billion

September 21, 2026 by Business Desk

KARACHI: Pakistan’s textile and apparel exports rose 0.3% to $18 billion in fiscal year 2025-26, reaching their highest level in four years, according to the Pakistan Textile Council’s first annual Export Performance Report.

The increase came despite a 5.9% decline in Pakistan’s overall exports, which fell to $30.14 billion during the fiscal year. Textiles accounted for nearly 60% of the country’s total exports.

The report said the growth in textile exports was driven entirely by apparel and home textiles and made-ups. Exports under Chapters 61 to 63 rose 1.1% to $14.98 billion, accounting for 83.2% of total textile exports, compared with 77% in fiscal year 2021-22.

Exports of raw materials and intermediate textile products declined 3.4% to $3.03 billion, their lowest level in five years.

Non-knit apparel exports increased 3.9% to a record $4.295 billion. Exports of men’s cotton trousers rose 19%, while women’s cotton trousers increased 54%.

Home textiles and made-ups remained the largest single textile export category at $5.705 billion, although growth was limited to 0.6%. Knitwear exports declined 0.7% to $4.979 billion.

The European Union remained Pakistan’s largest textile export market at $7.103 billion, down from $7.248 billion previously. Textile exports to the United States reached $4.853 billion, while exports to the United Kingdom stood at $1.730 billion.

Exports to China increased to $644 million, while those to Bangladesh remained broadly stable at about $620 million. The report attributed the increase in exports to China and Bangladesh mainly to cotton yarn and fabric.

Pakistan Textile Council CEO Muhammad Hassan Shafqat said the modest growth in textile exports demonstrated the sector’s ability to remain globally competitive, but warned that the availability of raw materials, particularly cotton, remained a concern.

He said cotton production stood at just 5.5 million bales in the latest season, the lowest level in three decades, compared with a record 14.8 million bales in 2011-12. The shortfall is increasingly being met through imports, according to the report.

Textile and apparel exports stood at $1.27 billion in June 2026, down 17% from a year earlier and 23% from the previous month. The decline indicated weaker order flows at the start of fiscal year 2026-27, the report said.

The Pakistan Textile Council proposed 11 measures across six areas to improve the sector’s export competitiveness. The recommendations include reducing corporate income tax to 15%, automating and speeding up sales and income tax refunds, ensuring competitive and reliable energy supplies, improving access to financing and making credit more accessible to small and medium-sized enterprises.

The council also recommended facilitating indirect exporters, ensuring the long-term continuity of GSP+ benefits, pursuing free trade agreements with the United States and United Kingdom, securing competitive freight rates, reducing transit times and strengthening the capacity of Pakistan National Shipping Corp.

For the cotton sector, the council called for an integrated national strategy focused on quality seeds, farmer digitalization and traceability.

The council said the recommendations would form the basis of its policy advocacy agenda for fiscal year 2026-27.

Edible oil tanker association fined Rs60m for fixing transport rates

September 19, 2026 by Business Desk

ISLAMABAD: The Competition Commission of Pakistan has fined the All Pakistan Edible Oil Tankers Owners Association Rs60 million for collectively fixing transportation rates for edible oil and ghee and allocating business among tanker operators.

The CCP said the association was fined Rs30 million for collective determination of transport rates and another Rs30 million for allocating business through a token and rotation system.

According to the commission, the association had agreed to increase transport rates by 0.75% whenever diesel prices rose by Rs1, while reducing rates by only 0.5% when diesel prices fell by Rs1.

The CCP said transport rates were collectively revised 89 times over six years, including 52 increases and 37 decreases. Tanker owners offering discounted rates were allegedly threatened with blacklisting, while mills seeking lower rates were threatened with suspension of edible oil supplies.

The commission said tankers were allocated business through a token and rotation system rather than through free competition. A penalty of Rs500,000 was prescribed separately for each tanker and its owner for violating certain conditions.

Despite a show-cause notice, the association issued a new rate circular in August 2026 covering transportation to 81 locations, the CCP said. It warned that higher transportation costs could further increase the prices of essential commodities such as ghee and edible oil.

The CCP said about 2,362 tankers and 1,700 owners were registered with the association, while 250 to 300 association tankers visited ports daily. The association accounted for about 83% of the market when compared with the National Logistics Corporation’s 50 to 60 tankers, it added.

The commission said the association had an agreement with the Pakistan Vanaspati Manufacturers Association for determining transport rates. Representatives of the tanker association acknowledged that rates were fixed through a mutual agreement.

The transport-rate agreement was initially reached in 2011 and updated in 2022, according to the CCP.

During a search, the commission seized six years of rate circulars, agreements and computer records. It said its earlier proceedings had also uncovered agreements between PVMA and oil tanker associations for fixing transport rates.

In that earlier case, the CCP had fined PVMA Rs50 million for violating Section 4 of the Competition Act by fixing prices.

The CCP has ordered the immediate termination of collective rate fixing and the token-and-rotation system.

Pakistan’s foreign exchange reserves reach record $21.4 Billion

September 18, 2026 by Business Desk

ISLAMABAD: Pakistan’s foreign exchange reserves have reached a record $21.4 billion, Prime Minister Shehbaz Sharif said, describing the development as a historic milestone toward economic stability.

Sharif expressed gratitude over the increase in the country’s reserves and said the stronger economic position would open new avenues for investment and sustainable economic growth.

He said the rise in foreign exchange reserves would enhance Pakistan’s ability to withstand global economic challenges and strengthen its capacity to meet external payment obligations.

The prime minister also praised Finance Minister Muhammad Aurangzeb, the economic team and overseas Pakistanis for their contributions to strengthening the country’s foreign exchange position.

Federal govt raises petrol, diesel prices again

September 16, 2026 by Business Desk

ISLAMABAD: The federal government has increased the prices of petrol and diesel again, the Petroleum Division said Wednesday.

The price of petrol has been raised by 6.88 rupees per liter, taking the new price to 391.22 rupees per liter.

The price of high-speed diesel has increased by 5.62 rupees per liter to 421.45 rupees per liter.

According to a notification issued by the Petroleum Division, the new prices will take effect from September 17.

Earlier, the government has announced revised prices of petroleum products.

The price of petrol has been increased by Rs4.10 per liter, while high-speed diesel has raised by Rs6.41 per liter.

According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the new price of petrol has been set at Rs384.34 per liter, while the new price of high-speed diesel is Rs415.83 per liter.

According to the notification, the new prices will be applicable on September 16 (Wednesday).

Pakistan wins award for sustainable sovereign Panda bond

September 16, 2026 by Business Desk

ISLAMABAD: Pakistan has won an international award for issuing its first sustainable sovereign Panda bond, Adviser to the Finance Ministry Khurram Shehzad said Wednesday.

Shehzad said in a statement that investor demand for the bond was five times higher than the amount offered, reflecting strong interest in Pakistan’s debut sustainable Panda bond.

Pakistan issued the three-year bond worth 1.75 billion Chinese yuan in May 2026, with a coupon rate of 2.5%.

Shehzad said the Panda bond gave Pakistan access to a broader pool of institutional investors and further strengthened financial ties between Pakistan and China.

He said proceeds from the bond would be used to finance projects in the water, energy and health sectors.

The issuance is also expected to create new opportunities for green and socially inclusive investment in Pakistan, he said.

The award recognizes Pakistan’s entry into China’s domestic capital market through a sustainable sovereign bond and its efforts to diversify sources of external financing.