Category: Business

Gold prices in Pakistan increased on Friday as gains were recorded in the international market, rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) revealed.

In the local market, the cost of gold per tola rose by Rs500, bringing it to Rs473,362 for the day. Similarly, the price for 10-gram gold went up by Rs429, reaching Rs405,831.

Earlier this week, gold prices on Wednesday reached a new all-time high, with the per tola rate increasing by Rs2,000 to hit Rs472,862.

In the international market, gold prices rose by $5 and now stand at $4,510 per ounce, which includes a premium of $20.

Meanwhile, silver prices also experienced a rise, with the per tola rate increasing by Rs240 to close at Rs7,945.

Pakistan and the Asian Development Bank (ADB) have signed two financing agreements worth a combined $730 million to strengthen the country’s power transmission network and push forward reforms in state-owned enterprises (SOEs), officials said on Thursday.

An official statement released after the signing ceremony stated that the agreements include a $400 million program to speed up SOE transformation and a $330 million second power transmission strengthening project.

The initiatives aim to encourage long-overdue governance reforms across important public-sector enterprises, enhance operational efficiency, and relieve pressure on overburdened transmission lines.

ADB Country Director Emma Fan welcomed the latest agreements, praising Pakistan’s commitment to structural reforms and underscoring the strategic importance of investment in the power sector. She said the SOE transformation programme comes at a critical time and would further strengthen reform efforts, according to the statement.

As part of broader efforts to stabilize and modernize the national grid, the ADB approved two loans totaling $330 million last month for the building of a new transmission line connecting Islamabad with Faisalabad, a significant industrial hub in Punjab.

However, analysts warn that until underlying structural concerns are addressed, finance and project design alone might not be sufficient.

The $730 million package, according to Dr. Khalid Waleed of the Sustainable Development Policy Institute (SDPI), is a significant step, but he cautioned that its success will depend on addressing long-standing inefficiencies across SOEs.

He cited the Bi-Annual Report on Federal SOEs for FY2025 from the Ministry of Finance, which reveals cumulative losses of more than Rs5.8 trillion. The National Highway Authority accounts for nearly Rs2 trillion of these losses, largely due to debt-driven expansion and an unsustainable toll-revenue model.

“This is not a sector-specific problem; it is systemic,” Dr Waleed said.

In infrastructure, NHA’s rising debt stock reflects asset creation divorced from cash-flow realism. In energy, the situation is arguably worse. Once subsidies are stripped out, power distribution companies (DISCOs) are estimated to be bleeding close to Rs600 billion annually due to high technical losses, poor recoveries, and governance failures, losses that feed directly into circular debt and escalating capacity payment obligations upstream.

Analysts argue that while strengthening transmission infrastructure is necessary, it risks being only a partial solution if distribution-level problems remain unresolved. Dr Waleed likened reforming generation or transmission without fixing distribution to “installing a smart meter on a leaking pipe”.

There have also been complaints that the SOE Transformation Program’s current scope may be too limited. While reforming the NHA is seen as a logical starting point, experts say it must go beyond incremental efficiency improvements to include deeper restructuring, such as asset recycling, toll securitisation and concession-based highway operations.

Similarly, analysts argue that energy-sector SOEs particularly DISCOs need to be explicitly incorporated into the reform framework through options such as privatisation, long-term concessions or performance-based management contracts, supported by aggressive loss-reduction targets.

The discussion also touches on Pakistan’s more general energy transition challenges. The power industry is dealing with rising capacity payments and growing underutilization of generation assets, which is made worse by rooftop solar’s explosive rise. This dynamic is expected to intensify as export-oriented industries seek cleaner power in response to the European Union’s Carbon Border Adjustment Mechanism.

According to experts, ADB should support an energy transition mechanism in addition to grid upgrades. Dr. Waleed proposed that an organized, financially supported early transition of loss-making thermal plants, beginning with the Jamshoro coal power plant sponsored by the ADB, might reduce the strain on circular debt and future capacity payments.

“The transmission project strengthens the backbone of the grid, but it does not resolve the contradiction between surplus capacity and mounting fiscal stress,” he said.
Analysts warn that without politically difficult but economically necessary reforms, the $730 million package risks adding new assets to a system still burdened by losses, debt and weak governance.

Suzuki Pakistan has announced the latest prices for its popular hatchback, Cultus.

As per the details, the top-of-the-line Suzuki Cultus VXL Auto Gear Shift (AGS) variant now carries a price tag of Rs4,591,460. The variant features automatic gear shift system, two airbags, Anti-lock Braking System (ABS), alloy wheels, fog lights, power windows, power steering and power side mirrors.

Suzuki Cultus VXR (manual) will now cost Rs4,089,490, while the Suzuki Cultus VXL (manual) will retail at Rs4,359,160.

All three variants run on a 998cc petrol engine, which offers better fuel economy and low maintenance costs.

It is important to note that withholding tax will be charged separately, and final prices may vary for filers and non-filers.

In a release, the company said that all variants of the Suzuki Cultus are currently available in the market with immediate delivery.

Pak Suzuki Motor Company Limited introduced the current generation Suzuki Cultus at a launch event in Lahore on April 22, 2017. The new Cultus VXR initially carried a price of Rs1,250,000 while the Cultus VXL was priced at Rs1,391,000.

Arif Habib Consortium on Tuesday won the auction for Pakistan International Airlines Corporation Limited with a successful bid of Rs135 billion, securing a 75% stake, after the privatisation process entered an open auction round at a ceremony in Islamabad.

The result marked Pakistan’s first major privatisation in nearly two decades.

Earlier in the day, pre-qualified bids came from Lucky Cement, private airliner Airblue and the Arif Habib consortium.

In the first round of bidding, Lucky Cement offered Rs101.5 billion, Airblue submitted Rs26.5 billion, while the Arif Habib consortium placed the highest bid at Rs115 billion. 

Airblue exited the race as its bid fell short of the reference price of Rs100 billion, which was announced by authorities after the completion of the first round.

Officials then allowed a 30-minute break for consultations between the two highest bidders. After the break, the auction entered its second round that opened with a base bid of Rs115 billion — based on the highest first-round offer by Arif Habib.

The bidding rules set the minimum increment at Rs250 million as Arif Habib and Lucky Cement engaged in competitive bidding during the open auction. 

Lucky Cement raised its offer to Rs134 billion before Arif Habib responded with a bid of Rs135 billion.

Following the move, Lucky Cement withdrew from the auction and congratulated Arif Habib.

The entire auction was broadcast live on TV and streamed across official social media platforms.

PepsiCo Pakistan, in partnership with the PepsiCo Foundation and leading micro-entrepreneurship nonprofit SeedOut, has launched the PepsiCo Rise Together Program, Economic Empowerment Program a flagship social and economic empowerment initiative designed to help restore livelihoods and strengthen community resilience across Pakistan.

For decades, Pakistan’s street-food culture has been more than a culinary tradition, it has been a source of income for hundreds of thousands of micro-entrepreneurs whose carts bring flavor, familiarity, and vibrancy to city streets. But rising inflation, declining consumer spending, and the devastating 2025 floods have pushed this vital sector to the edge, leaving many vendors without carts, savings, or the means to support their families.

Against this backdrop, PepsiCo Pakistan and its iconic brand 7UP, with support from the PepsiCo Foundation, have stepped forward with a program that blends economic recovery with human dignity. This two-year economic empowerment program aims to reintegrate over 200+ street-food vendors in year 1, positively impacting more than 1,600+ individuals, by providing modern food carts, interest-free microfinancing, and formal training in food hygiene, financial literacy, customer service, and business planning. Implemented by SeedOut, the initiative combines global corporate standards with community- level expertise, helping ensure support reaches the households most affected by recent economic and environmental shocks.

7UP’s leadership in this effort builds naturally on its long-standing connection to Pakistan’s vibrant food culture. 7UP will amplify the stories of participating vendors through a 360-degree storytelling campaign, spotlighting their resilience, their challenges, and their journey back to stability. The initiative reinforces PepsiCo Pakistan’s broader #InWithForPakistan focus on uplifting communities and contributing to sustainable national recovery.

“Street-food vendors are an essential part of both our culture and our economy,” said Furqan Ahmed Syed, Chief Commercial Officer, PepsiCo International Beverages & General Manager, PepsiCo Pakistan Beverages. “Helping them rebuild their livelihoods is the need of the hour, and this programme reflects our belief that corporations must play an active role in strengthening the communities they serve. Street food shapes the pulse of our youth and our culture, and with this program, PepsiCo together with 7UP is proud to help uplift the vendors who keep that heartbeat alive every day.”

“True recovery begins when families regain dignity and the ability to earn sustainably. Through the PepsiCo Rise Together Program, we are not only restoring livelihoods, but rebuilding confidence, resilience, and long-term economic stability at the community level. At SeedOut, we believe sustainable impact comes from empowering people with opportunity, not dependency,” said Zain Ashraf Mughal, Founder & President, SeedOut.

This sentiment is shared by the PepsiCo Foundation. “This effort goes far beyond financial assistance, it is about restoring confidence, dignity, and opportunity,” said Hatim Khan, Senior Director, PepsiCo Foundation.

The PepsiCo Rise Together Program is a testament to the power of collaborative, purpose-led action. By rebuilding one cart, one vendor, and one family at a time, the initiative aims to support sustainable economic recovery while helping preserve the flavors and traditions that define Pakistan’s street-food heritage.

The government is set to auction a 75% stake in Pakistan International Airlines (PIA) with a commitment to reinvest most of the proceeds back into the national carrier struggling with financial troubles, reports said Friday.

According to reports, officials have briefed a Senate panel about the plan as Prime Minister’s (PM) Adviser on Privatisation Muhammad Ali said 92.5% of the bidding proceeds would be reinvested in PIA to support its turnaround.

He added that the airline would still require an additional Rs80 billion in financing after privatisation to stabilise operations and fund growth.

Ali told the Senate Standing Committee on Privatisation, chaired by Senator Afnan Ullah Khan, that PIA currently operates 18 aircraft and needs fresh investment to induct new planes. He said the reference price for the bidding has not yet been finalised.

Only the airline’s core aviation business is being privatised. Assets such as the Roosevelt Hotel in New York will remain under government ownership and will be developed through a joint venture instead of privatisation.

Privatisation Commission Secretary Usman Bajwa informed the committee that the government could sell up to 100% of PIA shares depending on investor interest and final approvals.

He said major obstacles that undermined a previous privatisation attempt have been removed including Rs33 billion in liabilities that investors were earlier required to assume. Tax-related issues including those linked to sales tax have also been resolved.

Bajwa noted that the reopening of routes to Britain and Europe has strengthened PIA’s commercial outlook. Negotiations with investors over final commercial terms have entered the last stage and are expected to conclude soon.

Following privatisation the airline will immediately need about Rs80 billion in financing to sustain operations.