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Category: Business

  • Oil falls as markets downplay impact of Venezuela crisis

    Oil falls as markets downplay impact of Venezuela crisis

    Oil prices dipped on Monday as ample global supply outweighed concerns over potential disruptions following the U.S. capture of Venezuelan President Nicolas Maduro during a bold weekend raid.

    Brent crude fell 50 cents, or 0.8 percent, to $60.26 a barrel by 0752 GMT, while U.S. West Texas Intermediate slipped 53 cents, or 0.9 percent, to $56.79 a barrel.


    Markets were volatile in early Asian trading as investors assessed the political turmoil in Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC), and its potential impact on oil production.


    President Donald Trump said Washington DC would take control of the country and confirmed that the U.S. embargo on Venezuelan oil remained in place after Maduro was detained in New York on Sunday.

    Analysts, however, suggested that with global oil supplies abundant, any short-term disruption to Venezuela’s exports would have limited effect on prices.

    According to Kazuhiko Fuji, a consulting fellow at Japan’s Research Institute of Economy, Trade and Industry, Venezuela’s oil infrastructure has not been impacted by U.S. strikes. 

    “Even if Venezuelan exports are temporarily disrupted, over 80 percent are destined for China, which has built up ample reserves, and alternative sourcing is unlikely to strain the market,” Fuji said.


    Despite Maduro and his wife Cilia Flores being detained, top officials in his government have called the arrests a kidnapping and remain in control, pledging loyalty to the president. 

    Analysts cautioned, however, that a regime change could suppress prices.


    Venezuelan production could climb by a few hundred thousand barrels per day by the end of 2026, but further gains would require significant investment, according to Raymond James analysts.

     UBS strategist Giovanni Staunovo added, “Any meaningful recovery in Venezuelan output is likely to take considerable time.”


    Trump indicated on Sunday that a second military strike on Venezuela was possible if remaining officials did not cooperate with U.S. efforts to “fix” the country.

    Helima Croft, head of commodities research at RBC Capital, said, “All bets are off in a chaotic change-of-power scenario like what we saw in Libya or Iraq.”

    The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, decided on Sunday to maintain their output. It announced that current production levels would remain unchanged.


    Trump also hinted at possible further U.S. interventions in Latin America, suggesting that Colombia and Mexico could face military action if they fail to curb the flow of illicit drugs into the United States.

    Analysts are also closely monitoring developments in Iran, another OPEC producer, after Trump warned of possible U.S. intervention in the country’s crackdown on protests, adding to broader geopolitical tensions.

  • PSX extends New Year rally with record high over 183,000 points

    PSX extends New Year rally with record high over 183,000 points

    The Pakistan Stock Exchange (PSX) surged on Monday, extending its New Year rally as investors poured liquidity into asset-allocation flows amid easing macroeconomic signals.

    As per the details, the benchmark KSE-100 Index added nearly 9,000 points across the first three sessions of 2026, climbing to an intraday high of 183,964.37, gaining 4,929.44 points (2.75%) from Friday’s close of 179,034.93.

    The session’s low was 179,535.46, still up 500.53 points (0.28%) and the day’s peak marked a fresh all-time intraday high.

    “Overall positive start of the year is witnessed as investors pour in massive liquidity to target year asset allocation,” said independent analyst AAH Soomro, cautioning that the market may be “going too fast too soon”.

    Brokerage research flagged a constructive near-term setup. AKD Research projected sentiment would strengthen on expectations of foreign portfolio and direct investment inflows. Analysts suggested the KSE-100 could extend its uptrend towards 263,800 by December 2026, supported by easing monetary conditions, improving external accounts and reform momentum.

    The rally follows last week’s 6,634-point (3.8%) advance to a record 179,035, aided by a softer-than-expected December 2025 Consumer Price Index (CPI) at 5.6%, reinforcing expectations of further monetary easing.

  • Up to five percent levy on mobile imports proposed to fund manufacturing drive

    Up to five percent levy on mobile imports proposed to fund manufacturing drive

    The federal government is considering imposing a levy of up to five percent on the import of mobile phones and electronic devices as part of a proposed manufacturing policy for 2026–33, according to media reports.

    The proposed levy is expected to generate $368 million, which would be used to localise mobile phone production in Pakistan. The policy is nearing completion and is awaiting Prime Minister Shehbaz Sharif’s assent.

    The current taxes on imported mobile phones are expanded upon by the Mobile and Electronic Device Manufacturing Policy. With a focus on boosting domestic production and exports, the program seeks to transition the sector from simple assembly operations to full-scale manufacturing within the nation.

    Under the policy framework, international mobile phone brands will be encouraged to establish manufacturing facilities in Pakistan. Local manufacturers are expected to receive support to expand their production capacity. The Engineering Development Board (EDB) has set a target of achieving 50 percent localisation in mobile phone manufacturing by 2033.

    The policy also includes targets related to electronic waste recovery. Authorities aim to achieve a 70 percent e-waste recovery rate by 2033 as part of the localisation drive. In addition, the policy outlines plans to train 50,000 skilled workers over the policy period, including 15,000 specialised professionals.

    Data from previous years shows growth in local assembly following regulatory approvals. The Pakistan Telecommunication Authority (PTA) issued 37 licences for local mobile phone assembly, leading to an increase in production from 0.1 million units in 2019 to 30.1 million units.

    By 2025, domestic production is expected to meet 93 percent of market demand. During the same period, mobile phone imports are projected to decline from 16 million units in 2019 to 2.04 million units.

    Pakistan has also started exporting mobile phones to markets including the United Arab Emirates and other Gulf Cooperation Council countries. Investments in the sector are estimated at $250–300 million, contributing to the creation of between 50,000 and 60,000 direct and indirect jobs.

  • Solar, smartphone users dodge higher taxes as shortfall lags behind FBR expectations

    Solar, smartphone users dodge higher taxes as shortfall lags behind FBR expectations

    The Federal Board of Revenue (FBR) missed its revised tax collection target for the first half of the fiscal year by Rs330 billion, a smaller shortfall than official estimates, reducing the immediate risk of a mini-budget that could have affected users of solar panels and smartphones among others.

    Provisional figures show the FBR collected Rs6.16 trillion during July to December. The amount was Rs545 billion lower than the original target for the period, but remained below the shortfall the tax authority had projected in briefings to the prime minister, where the gap was estimated at Rs564 billion.

    The reduced gap has eased pressure on the government to introduce additional tax measures in January that could have affected users of solar panels, mobile phones and banking services. However, the option of a mini-budget remains available under commitments made with the International Monetary Fund (IMF).

    Revenue collection in December was supported by Rs391 billion gathered on the last day of the month after banks were kept open until 10pm. The FBR also paid Rs38 billion in refunds during December, 47 percent less than the amount paid in the same month last year. 

    Despite these efforts, the authority missed the monthly target by Rs20 billion, though the shortfall was lower than in previous months.

    Tax collection during the first six months increased by 10 percent compared to the corresponding period last year, a rate well below what is required to achieve the annual revenue target of nearly Rs14 trillion.

    During the IMF programme review, the Fund reduced the FBR’s annual revenue target by Rs214 billion to account for lower inflation, weaker economic growth and the impact of floods. Both sides agreed that if revenue slippages widened, the government would introduce additional tax measures of at least Rs200 billion.

    Sources said Pakistan had informed the IMF that proposed measures could include increasing sales tax on solar panels, raising withholding tax on cash withdrawals, and increasing taxes on mobile and landline phone usage. Another proposal involved extending federal excise duty to confectionery and biscuits.

    Under one option, the withholding tax on cash withdrawals by non-filers could be raised from 0.8 percent to 1.5 percent. Another proposal involves increasing withholding tax on landline phones from 10 percent to 12.5 percent, which is expected to generate Rs20 billion annually. The withholding tax on cellular calls could also be increased from 15 percent to 17.5 percent, generating an estimated Rs24 billion per year.

    The government has also agreed to raise sales tax from 10 percent to 18 percent, while a proposal to impose a 16 percent federal excise duty on confectionery and biscuits could generate Rs70 billion annually.

    Tax-wise data shows income tax collection reached Rs3.03 trillion against a target of Rs3.3 trillion, recording nine percent growth. Sales tax collection stood at Rs2.09 trillion, reflecting a 10 percent increase. 

    Federal excise duty collection amounted to Rs400 billion, up 11 percent from last year, while customs duty collection reached Rs642 billion, showing an eight percent increase but remaining below the target.

    Meanwhile, exporters raised concerns with Prime Minister Shehbaz Sharif over the FBR’s decision to scrutinise income tax returns. Pakistan Retail Business Council Chairman Ziad Bashir wrote to the prime minister, warning that the move could “easily be misconstrued as an attempt to provoke friction between the business community and the elected leadership.”

    Earlier this week, the FBR issued instructions to its field formations to examine tax returns of exporters on the grounds that taxable incomes may have been understated following changes in the export taxation regime.

    The directives asked field formations to closely review declarations of major exporters within their jurisdictions to identify any abnormal reduction, inconsistency or change in reporting patterns following the amendment. 

    Bashir said the export sector was already operating under high effective tax rates, energy tariffs, interest rates and financing costs, adding that broad and open-ended scrutiny instructions sent a troubling signal to businesses. 

    “If this trajectory continues, one is compelled to ask whether the system is inadvertently or otherwise signalling that exporters should simply wind up their businesses,” Bashir stated.

    The FBR management has maintained that exporters will not be targeted and that cases selected for scrutiny will be monitored to avoid undue hardship.

  • Telecom sector surpasses PKR 1 trillion revenue in FY2024–25: PTA

    Telecom sector surpasses PKR 1 trillion revenue in FY2024–25: PTA

    Pakistan’s telecom sector maintained strong growth in FY2024–25, achieving significant milestones in connectivity, revenues, and digital infrastructure, according to the Pakistan Telecommunication Authority (PTA) Annual Report 2024–25.


    The report shows that total telecom subscribers in the country have surpassed 200 million, while broadband connections exceeded 150 million, highlighting continued digital adoption nationwide. 

    Telecom coverage now extends beyond 92 percent, with broadband penetration above 60 percent, reflecting the sector’s expanding reach in both urban and underserved areas.


    Financially, the sector generated revenues of over PKR 1 trillion, representing a 12 percent increase compared to the previous year.

     Contributions to the national exchequer rose to PKR 402 billion in 2025, up from PKR 336 billion in 2024, underscoring the sector’s growing fiscal impact.


    Investments in the telecom sector also grew by nine percent, reaching $838 million during the reporting period.

    Infrastructure expansion supported a significant rise in data consumption, with total usage reaching 27,727 petabytes in 2025. 

    The report notes that 95 percent of cellular networks are now 4G-enabled, backed by 17.21 Tbps of international bandwidth. Pakistan further strengthened regional and global connectivity with the addition of four new high-capacity submarine cable systems.


    PTA played a central role in supporting infrastructure development and connectivity initiatives across Pakistan, Azad Jammu and Kashmir (AJK), and Gilgit-Baltistan (GB), including the rollout of the National Roaming initiative to improve service availability in remote and less profitable areas.


    On the manufacturing side, the report highlights significant progress in local device production, with over 95 percent of mobile devices including 68 percent smartphones now produced locally, contributing to import substitution and industrial growth.


    Pakistan’s global cybersecurity position also improved, with PTA addressing threats through operations at the National Telecom Security Operations Center (nTSOC). Consumer protection efforts showed positive results, with a 13 percent decline in complaints during the year.


    According to report, PTA remains focused on 5G readiness, strengthening cybersecurity frameworks, and supporting the development of a future-ready digital economy.

  • Govt rolls out Pakistan’s first skills impact bond

    Govt rolls out Pakistan’s first skills impact bond

    Pakistan on Tuesday launched its first private-capital-funded Pakistan Skills Impact Bond (PSIB), backed by a Ministry of Finance guarantee, to support technical skills training through a results-linked financing model.

    According to reports, the bond will operationalise a Rs1 billion pilot tranche under a three-year instrument aimed at funding a scalable Technical Skills Development Programme.

    The launch ceremony included the signing of financing documents, such as investor and issuer agreements, and was attended by senior government officials, development partners, private sector representatives and international organisations.

    According to officials, the PSIB introduces a shift in how skill development initiatives are financed in Pakistan by moving away from traditional public expenditure models toward a structure tied to outcomes.

    The bond is designed to link funding to measurable indicators, including certification, job placement and a minimum six-month employment retention period for trainees.

    Under the proposed framework, the model is expected to evolve over time. Subsequent tranches may connect repayment to a nominal share of trainee salaries, a mechanism intended to create a longer-term funding cycle while supporting workforce participation in domestic and overseas markets.

    Finance Minister Muhammad Aurangzeb, speaking at the event, said the launch marked “an important moment focused on education and training”. He linked the initiative to Pakistan’s economic reform agenda and broader human capital strategy.

    The minister said Pakistan’s demographic dividend could only be realised through large-scale efforts to upskill and reskill young people, adding that skills development required structured financing and accountability.

    He highlighted the role of the National Vocational and Technical Training Commission (NAVTTC) in advancing this objective.

    Referring to global labour trends, the finance minister said the international shift toward digital skills, including blockchain-related work, had opened earning opportunities for Pakistani youth.

    He also noted that Pakistan already has one of the largest freelance workforces globally.

  • Yawar Siddiqui, an entrepreneur, elected as president of TIE Islamabad for 2026-28

    Yawar Siddiqui, an entrepreneur, elected as president of TIE Islamabad for 2026-28

    TIE Islamabad (The Indus Entrepreneurs) has announced the successful conclusion of its chapter elections, with Mr. Yawar Siddiqui elected as President for the term 1 January 2026 to 31 December 2028.

    The announcement marks an important milestone for the organization as it enters a new phase of leadership focused on strengthening and scaling entrepreneurial impact across Pakistan.

    TiE Islamabad is the local chapter of TIE Global, a leading international non-profit organization dedicated to fostering entrepreneurship through mentoring, education, networking, and access to capital. The chapter has played a pivotal role in supporting Pakistan’s startup ecosystem through initiatives such as the Pakistan StartUp Cup, enabling founders to gain global exposure and connect with a worldwide network of seasoned entrepreneurs, investors, and industry experts.

    Commenting on the transition, Mr. Yawar Siddiqui, Co-Founder of RepStack, a rapidly growing HR services company ranked among the 66th fastest-growing HR companies in the United States and recognized by Inc. 5000, stated that the new office will carry forward TiE’s long-standing mission of empowering entrepreneurs.

    He emphasized continued focus on structured mentoring, high-quality educational programs, and ecosystem development, reaffirming TIE Islamabad’s commitment to fostering innovation, building sustainable businesses, and creating long-term economic value through globally competitive ventures.

  • Petrol, diesel prices expected to fall from January 1

    Petrol, diesel prices expected to fall from January 1

    Petrol and other petroleum products may become cheaper from January 1, 2026, following a decline in international crude oil prices. Officials say a plan has been prepared to reduce rates for the first fifteen days of the month.

    Petrol prices are expected to fall by up to Rs10.60 per litre, while high-speed diesel could decrease by up to Rs8.59 per litre. 

    Kerosene oil may drop by Rs8.92 per litre, and light diesel oil by Rs6.62 per litre.

    If the plan is approved, petrol would cost around Rs252.85 per litre, down from Rs263.45. High-speed diesel would fall to approximately Rs257.06 per litre from Rs265.65, and kerosene oil could decrease to Rs171.62 from Rs180.54.

    Officials say the revisions are part of measures to align domestic prices with the drop in international crude oil rates. The reduced rates will apply for the first half of January, after which prices may be reviewed again.

  • Gold drops by Rs5,500 as international rates fall

    Gold drops by Rs5,500 as international rates fall

    Gold prices in Pakistan fell on Monday following a decline in the international market.

    The price of gold per tola dropped by Rs5,500 to reach Rs470,162, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

    Ten-gram gold also saw a decrease, trading at Rs403,088 after falling by Rs4,715. On Saturday, the price per tola had reached Rs475,662 after gaining Rs2,300 during the day.

    The decline in local gold rates mirrored the international market, where the price of gold dropped by $55 to $4,478 per ounce, with a premium of $20.

    Silver prices also saw a decrease on Monday, falling by Rs332 to reach Rs8,075 per tola.

  • China’s BYD likely to overtake Tesla as world’s largest seller of EVs

    China’s BYD likely to overtake Tesla as world’s largest seller of EVs

    Chinese electric vehicle (EV) manufacturer BYD is on track to overtake Tesla as the world’s largest seller of EVs, marking a major shift in the global landscape.

    As per the details, both companies are expected to soon unveil their final sales numbers for 2025, but figures released so far suggest Tesla is unlikely to hold onto its long-standing lead as Shenzhen-based BYD, by the end of November, had already sold 2.07 million EVs.

    In comparison, Tesla had reported sales of 1.22 million EVs by the end of September.

    Tesla’s third-quarter figures were temporarily boosted by a surge in demand ahead of the expiration of a US electric vehicle tax credit, which helped push nearly 500,000 vehicle sales in just three months. 

    The incentive, worth up to $7,500, ended under legislation supported by United States (US) President Donald Trump.

    However, analysts expect Tesla’s momentum to weaken. According to a FactSet consensus, Tesla is projected to sell around 449,000 vehicles in the fourth quarter, bringing its total 2025 sales to roughly 1.65 million units with a decline of 7.7 percent year-on-year and well below BYD’s current tally.

    Deutsche Bank has issued an even more cautious outlook, forecasting Tesla’s fourth-quarter sales at 405,000 units. The bank expects deliveries to fall by nearly one-third in North America and Europe, and by about 10 percent in China.

    The company has faced backlash linked to CEO Elon Musk’s political positions, including his support for Trump and other far-right figures. At the same time, competition has intensified, particularly from Chinese manufacturers such as BYD, as well as established European automakers.

    “We believe Tesla will see some weakness on deliveries in the fourth quarter,” said Dan Ives of Wedbush Securities. 

    “Sales of 420,000 would be good enough to show stable demand with Wall Street laser focused on the autonomous chapter kicking off in 2026,” Ives added, referring to plans for self-driving vehicles.

    Despite its rapid global expansion, BYD has also faced headwinds at home market. Price-sensitive consumers in China have pressured profit margins, prompting the company to accelerate its push into international markets.

    BYD has been proactive in establishing overseas manufacturing and supply chains, according to Jing Yang, director of Asia-Pacific Corporate Ratings at Fitch Ratings. 

    Chinese EV makers, including BYD, have also drawn criticism from overseas competitors over state subsidies that allow them to price vehicles aggressively. In response, Trump’s predecessor Joe Biden imposed 100 percent tariffs on Chinese EV imports – a policy that could be expanded further under Trump.

    Europe has also introduced tariffs, although BYD is developing manufacturing facilities in Hungary to mitigate the impact.