Category: Business

Fauji Fertilizer Company Limited (FFC) has announced its financial result for the first quarter of 2025 ended March 31, 2025 in its Board of Directors meeting held on April 28, 2025.

FFC undertook scheduled maintenance of the manufacturing facilities at Goth Machhi and Port Qasim during the period, while no shut down was carried out last year. Aggregate Urea production stood at 629 thousand tonnes while DAP output was recorded at 168 thousand tonnes. The fertilizer market remained oversupplied in first quarter, driven by weak farm economics and drought, resulting in lower fertilizer sales.  

FFC recorded Urea offtake of 538 thousand tonnes, down 26% year on year, compared to the industry’s decline of 40%. The Company held only 16% of the sector’s closing Urea inventory of ~825 thousand tonnes, reflecting strong marketing efforts, consequently Urea market share improved to 49% from 45% of last year. In the DAP segment, sales of manufactured and imported products stood at 88 thousand tonnes, dominating the DAP market leadership with a share of 63%.

Profitability of the merged entity stood at PKR 13.3 billion, compared to PKR 10.5 billion last year, reflecting a 27% increase. The Company also earned other income of PKR 7.4 billion which includes dividend of PKR 2.8 billion received from Askari Bank Limited. Earnings per share (EPS) of PKR 9.3 was recorded, up from PKR 8.3 per share from last year.  

On a consolidated basis, FFC recorded a PAT of Rs. 17.6 billion, reflecting a 39% increase over the same period last year, primarily driven by strong performance from FFC’s standalone operations, supplemented by contributions from subsidiaries and associated companies.

Earnings per share (EPS) of PKR 9.3 was recorded, up from PKR 8.3 per share from last year. Board of Directors is pleased to announce the first interim dividend of 70% (Rs 7.00 per share) for the period.

In a bid to improve intraprovince connectivity, Punjab’s Information Minister Azma Bokhari has announced the launch of key infrastructure projects. According to a press conference held in Lahore, lawmakers in Punjab have decided to launch Pakistan’s first-ever bullet train, which will run from Lahore to Rawalpindi.

Furthermore, the Information Minister also announced the launch of Air Punjab, which could compete with existing airlines such as Pakistan International Airlines (PIA) and AirSial. The introduction of an additional airline will increase competitiveness in the domestic air industry, potentially causing a drop in airfares. However, airlines will not witness an immediate surge in competition, as reports believe that setting up Air Punjab will take approximately eight to 12 months.

She hailed the aforementioned infrastructure projects as “historic” and revealed Air Punjab’s expansion roadmap. As per reports, the airline is set to acquire four airplanes on a lease agreement for domestic operations. However, officials running the airline are expected to obtain an “international air license” within one year, allowing the provincial airline to fly to international destinations.

Some believe that the entry of another competitor in Pakistan’s airspace could reduce the market share of existing airlines. PIA recorded its first profit in over two decades in 2024, and its revenues could plummet with Air Punjab entering the market. There is some merit to this fear, as recent census reports indicate that Punjab is the most populous province, suggesting that increased competition in Punjab could lead to competitors scrambling for market share.

The bullet train project is also expected to facilitate rapid transit, cutting the 4.5-hour journey from Lahore to Rawalpindi down to just 2 hours and 20 minutes. Details from reports indicate that aside from the aforementioned route, the provincial government intends to add additional routes and stops to facilitate travel.

Commuters between both cities could witness a staggering 48.15 percent drop in travel times, resulting in significant time savings that can be allocated to more productive purposes. Moreover, the information minister disclosed plans to construct a glass train that will run from Rawalpindi to Murree.

The completion of the glass train could result in a significant surge in tourism, boosting the profit margins of hospitality establishments in Murree. The influx of tourists is expected to create new business opportunities, leading to growth in the local economy.

Following a series of infrastructure projects that exceeded their allocated budgets, the Lowari Tunnel project has now joined the list, currently under review after overrunning its planned cost. According to reports, project costs are now projected to be 362 percent higher than initially anticipated.

Project details reveal that development works on the infrastructure project were authorised over 20 years ago. If completed, the tunnel could provide a safe passage to the northern parts of Pakistan that border Afghanistan. 

According to reports, the Central Development Working Party (CDWP) has reviewed a proposal that, if accepted, would allow project costs to reach up to Rs 37 billion. However, authorities have not been able to reach an agreement as project documents reveal government instructions to set a price ceiling at Rs28 billion to avoid cost overruns.

Reports indicate that the Ministry of Communications (MoCom) was granted only Rs4 billion by the Planning Commission to cover immediate liabilities. Initially, MoCom had asked for an additional Rs10 billion to finance the project, but this request was not accepted.

Reports suggest that the meteoric rise in cost could be associated with the federal government’s directives to expand the projects’ scope. The aforementioned expansion orders caused the project price to gradually increase from Rs8 billion in 2004 to its current projection of Rs37 billion.

However, some believe that it may not be a fair comparison to compare costs over more than two decades, as inflation rates have remained persistently high, causing the prices of inputs to soar. According to data from the International Monetary Fund (IMF), the average inflation rate over the project’s lifetime sits at approximately 10.5 percent. However, many believe that it is unlikely that the rate of inflation caused the cost to balloon by a whopping 362 percent. 

Authorities believe that construction work on the tunnel is vital, as it opens up road access to the Chitral district during the winter months. Without the tunnel, the flow of traffic would remain limited because of heavy snowfall.

Reports have highlighted that the Executive Committee of the National Economic Council (ECNEC) ordered the project to be ‘formally closed’; however, the Ministry of Communications did not abide by the ECNEC’s instructions. 

Rising project costs hurt the national exchequer, and with international creditors pressuring Pakistan to consolidate its fiscal position and implement austerity measures, many believe that overlooking cost overruns may hurt Pakistan’s macroeconomic indicators.

In its latest report, the Asian Development Bank (ADB) has revealed that Pakistan loses a staggering $2 billion per annum to climate related disasters, worsening concerns related to poverty in the cash-strapped economy.

Pakistan is one of the “most climate-vulnerable” economies in South Asia. However, destruction from disaster does not affect every resident uniformly as it disproportionately impacts vulnerable segments of the Pakistani demographic, the report said.

The ADB’s report indicated that women and other groups are hit hardest, resulting in a significant decline in their quality of life.

The institute has attempted to safeguard the disaster-prone country from further calamities by providing financial assistance in 2024, the reports said, revealing that the regional lender extended a $500 million “policy-based” loan to prepare Pakistan against future disasters. These funds were to be utilised for disaster preparedness, response and planning.

The report suggested that the creditors programme assisted Pakistan with disaster modelling, risk mapping and provided financing for initiatives that would reduce the risk of disasters. Furthermore, Pakistan received support for programmes to boost domestic climate resilience.

According to the report, Pakistan’s subscription to ADB’s programme allows it to receive timely disbursements from the lender if a disaster strikes the country. With floods usually occurring during the summer season, particularly June to August, many believe that the availability of funds to combat potential disasters in the upcoming months could provide a safety net to victims.

The regional creditor highlighted the issues faced by Central and South Asian economies, notably outlining Pakistan’s poverty related woes.

The report revealed that the ADB had allocated a staggering $330 million to provide social protection to 9.3 million Pakistanis, aimed at helping alleviate financial strain on poverty-stricken households, providing education to children and boosting access to healthcare services.

One of the primary factors behind declining living standards and persistently high poverty rates is the ballooning of Pakistan’s urban population. Reports indicate that urban areas suffer from significant planning issues, resulting in housing shortages and ultimately, high living costs.

The rise in the cost of living has resulted in a significant decline in the standard of living for rural to urban migrants as they do not own residences in the urban areas. 

However, Islamabad seems to be taking independent steps towards sustainable growth as well. The government has raised the petroleum development levy and is focusing on hydropower projects. 

The federal government recently also issued Sukuk bonds to raise funds to develop three hydropower infrastructure projects that could reduce the incidence of widespread flooding while also generating power.

At the heart of Lahore University of Management Sciences’ (LUMS) Science and engineering building, the Centre for Digital Assets and Regulation (CeDAR) was officially launched on Thursday, drawing leading voices from the world of crypto, venture capital and policy.

The event marked more than just an inauguration, signalling Pakistan’s growing ambition to position itself at the forefront of digital asset innovation in South Asia.

Speaking at the event, Mohammad Yesilhark of NOIA Capital described Bitcoin as “the fastest horse” in the race of financial assets and even called it “Islamic”.

His remarks echoed a broader sentiment felt throughout the panels: that Pakistan, despite its economic hurdles, holds untapped potential to leapfrog into the future of finance through crypto and blockchain.

The event featured discussions on everything — from tokenised assets to using excess electricity for Bitcoin mining. One key argument was that while countries like El Salvador and Bhutan were early adopters of Bitcoin, Pakistan’s demographic scale offers an even greater runway. With proper infrastructure and regulatory support, Pakistan could not only catch up to global competitors but it could even take the lead.

Fiat currency was described as an “experiment” by Mr. Faisal Aftab, Zayn VC and US treasuries were critiqued for offering “negative real returns”.  Aftab noted how CPI metrics often exclude essentials like food and energy in their calculations, implying that inflation erodes gains from US treasuries, leaving investors with assets that yield losses in real terms. 

Meanwhile, crypto, particularly Bitcoin, was presented as a more inclusive and resilient store of value which Yesilhark outlined is “capable of traversing both time and space” without the logistical hurdles of physical assets like gold. In simple terms, digital assets are more portable than existing assets in the physical plane. 

The conference also tackled criticism often levied against crypto, including money laundering and capital flight. Mr. Humza Khan, ⁠Growth Manager at Binance Pakistan, argued that crypto, with its trackable nature, is often more compliant than traditional channels. “Capital flight is a rich man’s game,” one panelist noted, “but for average Pakistanis, crypto means accessible remittances and financial inclusion”. 

According to Khan, banks can sometimes charge up to a 25 percent service fee of a transaction’s total value while these charges are negligible using digital asset platforms. 

Mr. Sardar Ahmed Durrani, from Genesis Digital outlined the profitability of running a crypto mining operation, claiming large operations could generate revenues north of $8 million. If Pakistan is to build a robust regulatory framework, it won’t just help protect investors and could bring taxable income into the formal economy. 

With officials from Binance, Zayn VC, Haruko and the State Bank of Pakistan present, the event set the tone for what CeDAR hopes to become: a bridge between policy, technology and sustainable financial innovation.

Pakistan may have arrived late to the crypto conversation but if the energy at CeDAR’s launch was any indication, it’s ready to speak loud and clear.