Category: Business

Fauji Fertilizer Company (FFC) has partnered with four leading banks to provide clean financing of up to Rs. 500,000 for farmers registered with its Sona Centers, ensuring greater financial inclusion and agricultural growth.

The signing ceremony at Serena Hotel, Islamabad, was attended by Chairman of the Board of FFC, Lt. Gen Anwar Ali Hyder (R), MD & CEO FFC, Mr. Jahangir Piracha along with Mr. Zafar Masud, President & CEO Bank of Punjab; Mr. Atif Aslam Bajwa, President Bank Alfalah, Mr. Zia Ijaz, President & CEO, Askari Bank Limited and Mr. Altaf Hussain Saqib, Head of Commercial Banking at Faysal Bank.

The initiative echoed the importance of collaborating with FFC to extend financial support to the backbone of Pakistan’s economy—the farmers. They reaffirmed their commitment to bridging the gap between financial institutions and the agricultural sector, making credit facilities more accessible and farmer-friendly.

Under this agreement, farmers will gain access to hassle-free credit, allowing them to invest in quality inputs and improve their agricultural outputs. 

This collaboration marks a milestone in agricultural finance, reinforcing FFC’s commitment to farmer empowerment, financial inclusion, and sustainable agricultural development.

The State Bank of Pakistan (SBP) has revealed that year-on-year (YoY) foreign direct investment (FDI) fell by a staggering 45 percent in February 2025. As per reports, this led to Pakistan attracting just $95 million in FDI.

Independent analysts suggest that Pakistan’s inability to attract FDI is linked to the rising levels of terrorism and political instability. However, while FDI might have fallen in February 2025, a longer snapshot of the situation portrays a more optimistic picture for Pakistan.

This is because, over the first eight months of the fiscal year (FY) 2024-25, FDI has grown by 41 percent to rest comfortably at $1.618 billion. Compared to the corresponding period last year, Pakistan was only able to attract investments that amounted to $1.147 billion.

However, with incidents of terrorist attacks ballooning across the country, many believe that foreign investors may reconsider parking their funds in Pakistani businesses. Data from the South Asian Terrorism Portal (SATP) reveals that in 2024, a staggering 790 incidents of killing were recorded – a level of violence not seen in the country for approximately a decade.

In the first two and a half months of 2025, these incidents jumped to 191, which means that if terrorist operatives continue uninterrupted, Pakistan is on track to see more violence than it has since 2014. This fact does not sit well with potential stakeholders in the economy, causing them to seek out safer destinations for their investments.

According to credible reports, financial experts have outlined how Pakistan’s FDI inflows lag far behind those of neighbouring countries in South Asia. This is primarily linked to the aforementioned issues the government is grappling with: Terrorism and political instability.

These issues have also resulted in Pakistan remaining unable to sell off its loss-making publicly owned enterprises as foreign investors fear they will not be able to recoup their initial investments, let alone generate profits. As such, state-owned enterprises (SOEs), for example, Pakistan International Airlines (PIA), have not been able to find any potential buyers.

However, the federal government is attempting to increase foreign investment levels by taking a hard stance against terrorist operatives that are hurting the country’s international outlook. Islamabad intends to show potential investors that Pakistan is a safe place to invest, with a plethora of lucrative investment opportunities available.

Despite the challenges, China has remained by Pakistan’s side, pouring approximately $662 million of the $1.6 billion that cash-strapped Pakistan has been able to attract in FDIs during the first eight months of FY 2024-25.

The United Kingdom’s contribution for the aforementioned period stands at $167 million, followed closely by Hong Kong and the United States’ contributions at $160 million and $68 million, respectively.

The National Highway Authority (NHA) has incurred a loss of 318 billion rupees for fiscal year (FY) 2024-25, causing the entity’s net deficit to grow. Data from credible reports reveals that NHA’s aggregate losses have surged past 1.82 trillion rupees.

The authority’s annual revenues in comparison sit at a measly 54.15 billion rupees. The magnitude of the deficit is such that the entity would need to redirect the entirety of its revenue stream, for approximately 34 years, towards the deficit for it to neutralize.

According to reports, the NHA has racked up loans amounting to 3.1 trillion rupees causing financial strain. However, the NHA authority possess assets valued at a whopping 5.8 trillion rupees – indicating that total assets stand higher than total liabilities.

Analysts have outlined that the NHA’s total asset position has been deteriorating over the last two years however as the entity held assets worth 5.9 trillion rupees and 5.84 rupees in 2022 and 2023 respectively.

 
According to a statement from Communications Minister Abdul Aleem Khan to the National Assembly, NHA’s budget deficit has fallen to 318 billion rupees from its previous high of 413 billion rupees. This translates into a drop of 23 percent indicating an improvement in the entity’s deficit.

However, the deficit value is twice that of the one recorded in 2022 causing many to highlight how this drop can be attributed to the ‘base effect’. The base effect refers to the phenomena of a drop being reported because the initial value was extremely low.

In the written statement, Abdul Aleem Khan outlined Islamabad’s provision of annual ‘development funds’ under the Public Sector Development Program (PSDP) at a ‘markup rate’. If the NHA can utilize these funds to establish projects that can boost revenues, the deficit might get narrower over time.

However, the aforementioned funds are one of the reasons for the large deficit that the NHA faces. According to reports, finance costs on PSDP loans are responsible for the deficit among the slew of other factors.

These factors include asset depreciation, interest payments and exchange losses on foreign loans. Moreover, Abdul Aleem Khan pointed out how the net deficit ‘reflects the impact of non-cash expenditures’ suggesting that the entity is not facing these outflows in real terms – instead, the outflows can be considered to be ‘accounting adjustments’.

A unit from the Ministry of Finance (MoF) has taken note of the NHA’s rising debt burden and is going over issues pertaining to the entity’s documentation of finances. If left unchecked, the NHA could continue to run massive deficits, leaving the national exchequer to bear the burden.

Pak Suzuki Motor Company (PSMC) has decided to discontinue WagonR and Ravi – two of its most popular car variants. As per credible reports, the company intends to halt the production of the aforementioned cars by June 2025. 

Prior to the current suspension order, the company discontinued Bolan and Mehran in 2024 and 2019, respectively, to modernise their fleet. Vendors have revealed the official schedule for WagonR and Ravi, indicating that the production for both cars is slated to drop to zero by the start of the fiscal year (FY) 2025-26.

However, analysts claim that the company has made this move despite the strong consumer demand for Ravi. According to reports, the demand for Bolan was high too at the time of its discontinuation – indicating Suzuki’s commitment to modernisation as opposed to pure profit maximization.

While Ravi has its substitute in the form of the ‘Every’ pick-up, vendors have outlined how no alternative has been offered to WagonR by the company. In October 2024, Suzuki started producing Every, which was the same month Bolan was discontinued. This provided consumers the opportunity to switch seamlessly to their other product line.

Until Pak Suzuki offers a substitute, some believe that domestic consumers may gravitate towards purchasing imported WagonRs. Boasting greater fuel economies and features, imported vehicles have been offering greater competition to local automotive manufacturers and assemblers alike.

Pak Suzuki’s motivation behind the shelving of older variants of their vehicles could signal their intention to introduce a newer model of the variant. Reports indicate, however, that this move may spell bad news for several small to medium-sized dealers.

This is because converting potential consumers to customers may prove to be a tough task with new vehicles, especially while the market is facing rising competition.

However, the company’s ‘monopoly’ in the market is unlikely to disappear as the Suzuki models have the largest number of domestic spare parts manufacturers. The availability and price of spare parts in the market are key factors which potential buyers of automobiles consider before inking purchase agreements.

As per reports, the company has sold a sizable number of both variants over the years, with WagonR’s peak production recorded in 2019 at 33,173 units. Ravi’s production peaked in 2016 when the company reportedly assembled 29,825 units of the vehicle.

Many believe that the company should launch an alternative to WagonR before competitors, both domestic and foreign, attempt to capture Suzuki’s market share in the hatchback space.

Pakistan’s pharmaceutical sector has expanded into the international market as a pharmaceutical company has exported Centrum to Kenya. As per reports, Haleon Pakistan (formerly GlaxoSmithKline Consumer Healthcare Pakistan Limited) manufactured the renowned multivitamin product Centrum at its Jamshoro facility before shipping off their product to the African Nation.

Haleon Pakistan informed the market about the development by sharing the news of the export order via a notice to the Pakistan Stock Exchange (PSX). As per the notice, the company expressed great pleasure in its first ever export of the multivitamin.

This spells great news for cash-strapped Pakistan as rising export revenues could help bridge the gap in the trade deficit. For Pakistan, which has historically ran large deficits with its trading partners, a boost in pharmaceutical dispatches could help the economy.

Moreover, the export order could open up new revenue streams for Pakistan if additional countries start purchasing domestically manufactured pharmaceutical products. Kenya’s import order embodies the faith that the international market has in locally produced pharmaceutical goods.

The company’s notice to the PSX discussed the prospect of expansion of export operations in 2025. Displaying patriotic sentiments, the notice outlined the company’s willingness to operate and to “support the economy of Pakistan”.

Recently, exporters have been engaging in tax evasion which has resulted in large amounts of income remaining unrealized for the national exchequer. Many export based companies frequently misrepresent data surrounding their transactions in an attempt to avoid paying taxes.

However, some commend Haleon’s commitment to operating within the country despite the tough business environment. The company appreciated the role that officials from the Special Investment Facilitation Council (SIFC) played to secure the achievement.

Haleon Pakistan, a subsidiary of Haleon Netherlands B.V, was initially listed on the PSX in late March 2015. The company specializes in the commercial provision of pharmaceutical goods that cater to over-the-counter consumer healthcare.

Aside from manufacturing operations, the company also invests heavily into its marketing initiatives to boost sales and increase shareholder value. With the company securing lucrative export contracts, some believe that private investors may begin to pour funds into the company.

While Pakistan’s pharmaceutical industry remains underdeveloped, recent developments suggest that the sector may be on the right track. As per credible reports, Citi Pharma Limited (CPHL) fulfilled its first export order to the Middle East and North Africa (MENA) region – which brought in over half a million Euros into Pakistan.

In an attempt to jump on the global trend of crypto adoption by major powers, Islamabad has launched the Pakistan Crypto Council (PCC). According to credible reports, the government intends to integrate blockchain technology into Pakistan’s financial landscape to regulate digital asset holdings.

A press release from the Finance division revealed that the PCC has full support from the federal government. Moreover, the newly formed council intends to foster crypto-based innovations in Pakistan.

Islamabad had not been actively planning to create a federal entity to regulate cryptocurrency. However, a visit from a delegation from the United States fast-tracked efforts to form a regulatory body.

As per reports, a meeting between Finance Minister Muhammad Aurangzeb and Trump’s advisors for ‘digital assets’ took place in February. After this meeting, the finance ministry started work on the establishment of the PCC.

Many believe that Pakistan would never have jumped on the ‘crypto trend’ had it not been for the US. This is because up until last year, Islamabad and the State Bank of Pakistan (SBP) were staunch opponents of crypto.

The SBP issued warnings against engaging in transactions surrounding crypto with a previous finance minister, even declaring that digital assets such as crypto would remain illegal forever.

However, the government’s stance against crypto has softened considerably in the past few months. Islamabad recently appointed Bilal Bin Saqib, an entrepreneur, to the post of chief advisor to the finance minister.

The finance division’s press release outlined how the formation of the PCC could bring about innovation in the ‘financial landscape’ of the country. However, some fear the possibility of capital flight via crypto channels.

This fear is warranted as the legalisation of crypto could witness the anonymous transfer of funds to offshore destinations, effectively bypassing the capital controls that are currently in place. Moreover, since Pakistani rupees will be used to purchase digital assets, the value of the national currency could depreciate as individuals attempt to move their funds out of Pakistan.

However, the federal government remains confident in its ability to monitor transactions effectively. Reports reveal that a multitude of government bodies and officials will be responsible for regulatory oversight – which could help curb instances of capital flight.

As per the finance division’s statement, the PCC’s board members will include the chairman of the Securities and Exchange Commission, the governor of the SBP and the IT and law secretaries.

The federal government will not be bringing forth a new mini-budget before the end of June 2025. Initially, amid fears of talks breaking down with the International Monetary Fund (IMF), reports had claimed that the global lender may not extend credit to cash-strapped Pakistan.

However, the IMF appears to be satisfied with the government’s attempt to ensure that the country stays on the roadmap laid out by the international creditor. This ‘roadmap’ included a slew of targets which Pakistan had to meet to secure the disbursement of the next $1 billion tranche of the Extended Fund Facility (EFF) program.

Pakistan-IMF talks are expected to conclude today and upon finalization, the IMF’s visiting delegation will draft an assessment report. This document will then be sent to the IMF’s executive board after which a decision on providing additional financial assistance to Pakistan will be reached.

According to credible reports, today’s agenda revolves around reviewing budget targets which had been set by the IMF at the last EFF program meeting. Officials are slated to evaluate the performance of the economy for the current fiscal year (FY) – FY 2024-25.

Many believe that the international creditor will also go over the tax shortfall which Pakistan has experienced. A possible remedy that the IMF could suggest would be the introduction of new tax goals to offset FY 2024-25’s shortfall.

Before discussions started, the IMF believed that the federal government would fail to reach its tax target of Rs12.9 trillion. This is because their calculations suggested that Islamabad would miss its annual tax collection target by a staggering Rs490 billion.

Today’s meeting is set to conclude with both Islamabad and the IMF submitted finalized proposals regarding the trajectory the economy should follow. While Pakistan has met most targets laid out by the creditor, the IMF wants to witness greater changes to ensure that the economy is on the right track.

The aforementioned changes concern the abolishment of tax exemptions on electric vehicles and solar panels. The sky-high price of electric vehicles, guarantees that only a specific stratum of the population can afford them – the ‘super wealthy’.

Removing tax exemptions on such luxury products, such as electric cars, could alleviate pressures on the national exchequer as the federal government will be able to realize more revenues from their sales.

If hearing about Pakistan succeeding in IMF negotiations made you feel good, you need to also hear about ISL. It’s a Pakistani company helping build Saudi Arabia’s future by facilitating major projects. It’s a proud moment for Pakistan! Want to know more about ISL’s impact? Click here.

Islamabad has officially slashed solar buyback rates by over 60 percent. As per credible reports, the federal government has also eliminated the process of net billing and reduced the buyback rate to a measly 10 rupees per unit.

This decision was taken by officials at a Cabinet meeting of the Economic Coordination Committee (ECC) to stifle the growth of solar net metering connections. This is because net metering has been proven to cause significant financial strain on the national grid, resulting in higher electricity bills for non-net meter users.

The Power division reported how solar panel owners with net meters are inducing a 9 paisa per unit increase in average electricity costs. While net meter owners are often met with zero or very low electricity bills, the national grid and its users have to collectively bear a cost of 101 billion rupees.

If left unchecked, this financial burden could have ballooned to a staggering 545 billion rupees by 2034. A financial burden of such a magnitude would have resulted in non-net meter users bearing an additional cost of 3.6 rupees per unit. As such, authorities decided to take action before the situation deteriorated any further.

Finance Minister Muhammad Aurangzeb presided over the ECC meeting during which power companies were directed to sell grid electricity at 42 rupees per unit while charging 48 rupees per unit for ‘peak’ electricity. These prices are exclusive of duties and taxes and vary as per consumption.

However, reports have revealed that the policy is applicable only to new net-metering users. Moreover, new users will not be allowed to install solar capacity in excess of their approved usage. Previously, users were allowed to install solar capacity that exceeded their approved load by 50 percent, but this rate has now been revised downward to just 10 percent.

Users who already have net meters may not feel the impact of the policy change immediately, as reports claim that they will fall under this framework only when their seven-year contracts end. However, many believe that net-meter users have been handed the short end of the stick.

A senior official reportedly outlined how, after taxes and duties, net meter users will be forced to purchase electricity at an extortionate 70 rupees per unit during peak hours – a stark contrast with the new buyback rate of 10 rupees per unit. Another alternative that analysts have highlighted for net meter owners is to purchase high-capacity batteries and sever ties with the national grid.

Currently, taxes have not been levied on off-grid solar installations. However, many fear that it is only a matter of time before these installations are in the crosshairs of the Federal Board of Revenue (FBR).

On a positive note, are you aware of ISL? It’s a Pakistani company helping build Saudi Arabia’s future by facilitating major projects. It’s a proud moment for Pakistan! Want to know more about ISL’s impact? Click here.

In the spirit of the holy month of Ramzan, Careem, the pioneer of ride-hailing services in Pakistan, has partnered with Islamic Relief to support the well-being of orphaned children. Through this initiative, Careem users can opt to donate PKR50 when booking a ride by selecting ‘GO Relief’, with all the proceeds going to Islamic Relief towards providing vital assistance to orphans.

As part of Islamic Relief’s “Be the Hope” campaign – the initiative aims to mobilize donations to provide safety, education, and nourishment for orphaned children. The campaign also extends its reach to children who are deprived of education and those in Gaza, ensuring they receive the care and opportunities they deserve.

This partnership underscores Careem’s ongoing commitment to social responsibility and community welfare. By integrating technology with charitable giving, Careem continues to create opportunities for people to contribute towards positive change.

Commenting on the initiative, Imran Saleem, Country General Manager at Careem Pakistan, said: “Ramzan is a blessed and joyous month of generosity and giving back. Careem has always been at the forefront of leveraging technology to create a meaningful impact on the lives of people and are always looking for ways to give back to society.”

He further added: “This Ramadan, we are partnering with Islamic Relief to provide our customers with an easy and hassle-free way to contribute to the noble cause of helping orphaned children. I would urge everyone to actively participate and help create a better future for those who need it.”

Speaking about the partnership, Asif Sherazi, Country Director, Islamic Relief Pakistan, stated “We are excited for our partnership with Careem which exemplifies what’s possible when corporates and charities unite with common purpose. Together, we’re providing sponsorship support to orphaned children and showing them that they are valued members of our community. Islamic Relief’s Orphan Sponsorship Programme stands apart with its true one-to-one approach, ensuring every donation continuously supports the same child’s education, healthcare, and psychosocial well-being. Our model enables transformative, long-term change; empowering orphans to rise above their circumstances, access opportunities they deserve, and build better lives for themselves and their families.”

This Ramzan, “Be the Hope” an orphaned child deserves. Your support can help change lives, bring smiles, and create opportunities. Join us in making a difference – because every child deserves a future filled with hope. Islamic Relief, a globally recognized non-governmental organization (NGO), has been working in Pakistan for the past three decades, uplifting communities through sustainable humanitarian and development initiatives.