AGP Executive Report

Energy & LNG Relief: Pakistan is set to get fresh Qatari LNG support as tankers approach Port Qasim, easing pressure after earlier supply disruptions tied to Hormuz-linked risks. Telecom Oversight: The NA IT panel summoned Jazz, Zong and Ufone CEOs over poor mobile services, and also questioned NEPRA’s stance on treating telecom as an industry. Finance for Inclusion: PMIC and BII agreed a USD 30m additional lending push for microfinance, with a strong focus on women and underserved clients. Digital Growth Push: ICMA says Google’s entry can help Pakistan move from tech consumption to digital production and exports—if skills, startups, IP and incentives follow. SME & Youth Credit: SMEDA and PMYP signed an MoU to improve financial literacy and business planning for youth and MSMEs under the PM Youth Business & Agriculture Loan Scheme. Transport & Logistics in Sindh: Sindh cabinet approval is being sought for a logistics park and purchase of 500 EV buses to expand Karachi’s mass transit. Workplace Safety Reminder: A PILER seminar revisited the Baldia factory tragedy, blaming weak occupational safety and health enforcement. Markets & Costs: PSX slid over 3,000 points amid oil-price pressure and US-Iran tensions, while petrol/diesel hikes kept squeezing households. Trade Facilitation: PM Shehbaz chaired a Trade Facilitation Board meeting aimed at cutting delays, non-tariff hurdles and improving port and customs performance. Refinery Upgrade: Pakistan’s refinery upgrade agreement has been finalised for ECC approval to improve efficiency and cleaner Euro-V outputs. Regional Shipping Risk: Houthis’ moves around Yemen’s Mocha and Bab al-Mandeb are again raising stakes for Red Sea shipping and energy flows.

Red Sea Energy Shock: Yemen’s Houthis seized Mocha and pushed closer to the Bab el-Mandeb chokepoint, raising fresh risks for global shipping and energy flows as Saudi retaliatory strikes continue. Pakistan Diplomacy: Pakistan said there’s no current discussion of a military reaction under the Makkah Defence Agreement, but it will act “when the time comes,” while also warning Iran to rein in Houthi allies. Fuel & Inflation Pressure: Pakistan’s petroleum minister linked local fuel hikes to global market moves, as another LNG cargo from Qatar was set to reach Karachi to ease supply concerns. Corporate Moves: Cherat Cement plans to acquire at least 30% of NICL, signaling consolidation in Pakistan’s cement-and-chemicals supply chain. Auto & EV Demand: Chery Master Pakistan opened bookings for the all-electric Chery Q at PKR 1.5 million ahead of launch, while Pakistan’s auto policy 2026-31 aims to boost localisation and exports. Finance & Investment: British International Investment reaffirmed plans to expand its Pakistan footprint, targeting infrastructure, climate finance, tech and private markets. Markets & Metals: Gold and silver prices fell in Pakistan in line with global bullion softness amid Middle East uncertainty.

NBP Leadership: National Bank of Pakistan welcomed Imran Sarwar as its new President and CEO, bringing 36+ years of banking experience in risk, credit policy and corporate/investment banking. Auto & EV Policy: PM Shehbaz approved Pakistan’s Auto Policy 2026-31, keeping protection for existing assemblers while offering major tax relief for NEVs and treating hybrids and ICE vehicles equally on duties/taxes. Power Transport Push: Punjab CM Maryam Nawaz set targets for 1,500 e-buses across 91 tehsils from Jan 2027 and 3,000 operational by June 2027, expanding grassroots public transport. Oil & Gas Cost Pressure: Pakistan’s oil industry warned that Middle East crude spikes and frequent pricing changes are squeezing refineries/OMCs and could trigger product shortages; separately, gas consumers may face an extra Rs46bn as security costs for pipeline protection are shifted to tariffs. Trade & Finance Talks: New Zealand’s envoy met Finance Minister Aurangzeb to discuss B2B links and investment as Pakistan sustains reform momentum after Eurobond access. Market Mood: PSX slid about 699 points as Middle East war jitters lifted oil prices and yields. Regional Security: Pakistan warned Iran to rein in Houthi attacks on Saudi Arabia, with the Mecca pact again in focus as shipping and energy risks rise. Agriculture Livelihoods: A global farmer survey found widespread pricing unfairness and income stress, with climate-driven production losses adding to pressure.

Auto Sector Push: PM Shehbaz gives in-principle approval to Pakistan’s Auto Policy 2026-31, aiming to boost local production and exports, with proposed phased duty cuts for hybrid vehicles and hybrid trucks/commercial vehicles. Housing Finance: Shehbaz orders provincial chief secretaries to survey properties eligible as collateral under the Apna Ghar Scheme; so far 147,504 applications received, 53,127 approved (Rs313.42bn), and Rs45.43bn disbursed to 8,739 applicants. Bank Lending Drive: The PM urges banks to expand credit for farmers, SMEs and housing under the Access to Finance Plan 2026-28, promising support for lenders that scale disbursements. Energy Shock & Markets: Oil prices jump as Brent tops $100 amid US-Iran escalation; Pakistan’s PSX KSE-100 slips about 699 points on war jitters and higher oil costs. Industrial Capex: NICL approves Rs3bn (about $11m) for a new palmitic acid plant, CPW expansion, chlorine liquefaction and relocation of an oleochemicals facility to Hub. Education Results: FBISE announces Intermediate 2026 results with 85.95% overall pass rate; girls dominate top positions across groups. Healthcare Access: Govt sets up 10 telemedicine dispensaries in Islamabad, with free hepatitis C screenings starting from age 12. MDCAT Schedule: MDCAT 2026 set for Sept 20 across Sindh, with centres in Karachi, Hyderabad, Jamshoro, Mirpurkhas, Larkana, Shaheed Benazirabad, Sukkur and Islamabad.

Hormuz Diplomacy: Iran’s FM Abbas Araghchi blamed the US for regional escalation and said talks with Oman on a temporary maritime route through the Strait of Hormuz are making “significant progress,” with Japan urging continued coordination for safe navigation. Export & Business Push: PM Shehbaz met industrialists to remove bottlenecks for export-led growth and asked authorities to review extending super tax exemptions for exporters; meanwhile, ICCI and ASEAN diplomats called for a more structured, result-oriented Pakistan-ASEAN partnership. Auto Policy Pressure: PAMA urged the government to announce the new auto policy urgently, while PAAPAM warned draft NEV/localisation incentives could roll back localisation and hurt local auto-parts manufacturing. Energy Cost Strain: Karachi’s SITE industrialists warned rising petroleum prices and daily fuel revisions are squeezing margins and risking closures; OCAC also urged consistency in HSD pricing and immediate notification of pending OMC margin changes. Tax Simplification: FBR launched a fixed 1% turnover tax scheme for small shopkeepers (min Rs25,000), offering simplified compliance and reduced audit burden. Food Safety for Rice: TDAP held an Okara seminar on aflatoxin control and MRL management for rice stakeholders to meet international market requirements. Finance Sector: Punjab’s Bank of Punjab shareholders approved up to Rs30bn equity injection to strengthen capital and expand lending capacity. Market Mood: PSX fell about 994 points as Middle East conflict fears and higher oil prices dented investor sentiment.

Middle East Energy Shock: Pakistan’s PM Shehbaz Sharif strongly condemned Houthi attacks on Saudi cities and energy facilities that injured 73 civilians, warning the fallout could hit regional peace and global energy flows. Market Volatility: The PSX KSE-100 slid about 994 points (and earlier over 2,000 intraday) as investors priced in higher oil risk and Middle East escalation; oil prices hovered near six-week highs. Fuel Cost Pressure: Petrol rose Rs12.90 to Rs358.77/litre and HSD by Rs3.72 to Rs381.77/litre for Sept 8, adding uncertainty for transporters and industry amid volatile global crude. Power & Regulation: NEPRA cleared key steps for competitive power market access and raised grid charges for some consumers, while also approving uniform network charges—moves that can reshape industrial electricity costs. Trade & Logistics Risk: UNCTAD warned Strait of Hormuz disruptions could push SMEs out of global value chains as energy, freight, insurance and financing costs rise. Marine Sustainability: Pakistan unveiled a 10-year shark conservation plan (2025-2035) to curb finning/bycatch and protect habitats through 2035. Agribusiness Link: Kyrgyzstan discussed direct kidney bean exports to Pakistan, targeting higher trade volumes and buyer-producer contacts. Local Infrastructure: Rawalpindi launched major Peshawar Road underpass diversions, with heavy traffic management in place. Digital Growth: Tencent Cloud partnered with Bookme to scale travel and e-ticketing operations across MENAP.

Power Tariffs & Grid Charges: Nepra approved a positive quarterly tariff adjustment of Rs0.5194 per unit, adding about Rs12.67bn to bills over three months, and also set uniform Use of System Charges for bulk/open-access consumers to enable competitive wholesale power trading. Fuel Costs & Protests: Petrol was hiked again by Rs12.9/litre to Rs358.77, with HSD also up; Jamaat-e-Islami warned of escalating protests and said talks on the petroleum levy will resume after government proposals. Gas Sector Stress: SNGPL is facing a liquidity crunch with receivables of about Rs174bn from the power sector, mainly due to delayed CPPA-G payments. Industry Oversight: A Senate panel reviewed Pakistan Steel Mills issues including security shortages ahead of DSF withdrawal and persistent theft concerns. Tax Rules for Steel: FBR expanded the list of iron/steel makers eligible for Rs5/unit sales tax on electricity used in production. Exports & Finance: HBL and EXIM Bank signed a Bank Master Policy to provide export credit insurance support; PSX also cleared an IPO for SE Fruits & Vegetables to raise up to Rs1.92bn. Infrastructure & Resilience: Japan extended JPY 2.6bn for Sindh flood protection/dike improvement in Larkana; ADB praised Punjab’s delivery pace and discussed water, health and agri support. Youth Skills: SMAP wrapped phase one of a youth skill programme training 75 students in mining and trade-related skills, with more phases planned in Karachi and other cities.

Digital Finance & Product Innovation: JazzCash marked its 10th anniversary by opening an AI Foundry and usability testing lab in Islamabad, using eye-tracking to spot customer friction and speed up development of more inclusive financial journeys. Consumer Protection: A Senate committee unanimously approved a bill to make doctors publicly disclose fees and expenses, though officials argued it overlaps with the Islamabad Healthcare Regulatory Authority. Energy & Cost Pressure: Pakistan’s petroleum levy has hit a record Rs3.137 trillion in two and a half years, adding to fuel-price strain; meanwhile PSX slid again as oil-price and Hormuz tensions spooked investors. Power Sector Reform: NEPRA approved amendments making Battery Energy Storage Systems mandatory for renewables auctions, aiming to tackle curtailment and evening ramp issues. Agriculture & Market Fairness: Sindh’s farm crisis deepened after deregulation, with growers alleging middlemen capture most value while input costs rise. Health Infrastructure: PIMS moved to address engineering and technical staff shortages after a fire, including restoring HVAC and deploying surplus engineers. Climate Risk: Reports on Punjab monsoon flooding and northern cloudbursts underline weak drainage and preparedness, pushing Pakistan toward more disaster-proof infrastructure. Regional Security & Trade: The Mecca Defense Alliance and Hormuz escalation keep reshaping regional defense and energy risk perceptions, with knock-on effects for markets and logistics.

Energy & Industry Costs: Pakistan’s refineries face penalties if they miss Upgradation Agreements with the Petroleum Division by Oct 1, as the government pushes Euro-V compliant output and targets about $1bn annual FX savings. Power Sector Governance: IESCO issued a scheduled power suspension programme for maintenance across Islamabad and Rawalpindi circles. Rail & Logistics Investment: ADB is considering up to $1.1bn financing to upgrade the ML-1 Karachi–Rohri section, aiming to improve climate-resilient operations and signalling. Digital Payments: P2G payments are accelerating, with 1LINK reporting around Rs13.5tn in 2025 government collections via digital channels. Agri Prices & Policy: Sindh Abadgar Board warns deregulation has left wheat and sugarcane growers at the mercy of middlemen after the province stopped fixing buying prices. Farmers’ Price Pressure: Farmers urged the government to fix wheat and sugarcane prices amid rising costs. Protest Watch: JI’s petroleum levy sit-in in Karachi entered its 22nd day, with threats of wider disruption if demands aren’t met. Food & Farming Risk: Experts and exporters warned that unilateral GMO corn approval could harm food security and Pakistan’s export industry. Trade Competitiveness: Analysts flagged a widening trade deficit and weak export momentum, stressing competitiveness as the core issue. Weather & Resilience: Flood and cloudburst forecasts across Punjab and Gilgit-Baltistan underline a growing delivery gap in climate resilience.

Energy Procurement: Pakistan issued its third LNG tender for September after rejecting two earlier rounds over high prices, with delivery planned for Sept 12–16 and bids due Sept 8—highlighting the pressure of securing spot gas at manageable costs. Power & Renewables: The Power Division says 11,695 pending net metering cases have been resolved, with direct consumer contact via SMS/WhatsApp and an online status portal to cut reliance on intermediaries. Electricity Tariffs: NEPRA raised power tariffs by about Rs2.58 per unit, adding to household and business costs amid ongoing energy strain. Agriculture & Rural Economy: Farmers warn governance failures are pushing up costs and squeezing output, with cotton production cited as falling sharply; the call is for structural reforms to protect livelihoods. Trade & Exports: Pakistan set a new fish export record of about $0.57bn in FY26, with EU confidence returning and a push toward value-added processing to grow exports further. Infrastructure in Punjab: Punjab approved seven road packages under PPP for construction/rehabilitation, plus steps toward local vaccine production and livestock vaccine manufacturing. Climate Disruption: Cloudburst floods hit Ghizer and Hunza, damaging homes, farmland and power lines, while landslides disrupted parts of the Karakoram Highway. Industry Relations: Justice (retd) Roohul Amin Khan appointed NIRC chairman for a three-year term, supporting cross-provincial industrial relations dispute handling. Gender & Land: A study says only about 2% of women own land alone or jointly, underlining major gaps in economic empowerment and inheritance.

Cyber Governance: Pakistan’s Cabinet has directed the IT ministry to make PISF 2026 include clear implementation timelines and an independent third-party audit, aiming to standardise security across government systems. EU Trade Conditions: The EU warned GSP+ access is “far from guaranteed” and the next phase will hinge on measurable progress on human rights, labour rights, environment and governance. Power & Renewables: The Power Division says 11,695 net metering applications have been cleared and consumers are being contacted directly via SMS/WhatsApp, as the shift from net metering to net billing continues. Environment Crackdown (Punjab): Punjab intensified enforcement against pollution, inspecting brick kilns and industrial units, confiscating illegal plastic and sealing violators. Insurance Regulation: SECP recommended adding credit and suretyship business to restricted insurance classes, proposing tighter rules for prudential safeguards and policyholder protection. Trade Bloc Push: FPCCI/ECO-CCI urged revamping ECOTA, saying intra-regional trade is only ~8.75% and barriers like tariffs, non-tariff issues and payment frictions are holding back the region. Tax Relief & FBR Reform: Finance minister Bilal Azhar Kiyani said super tax is abolished for exporters and mid-income businesses, with faceless audits and a new tax operating model to cut harassment. Industry Healthcare Upgrade: Defence minister and Punjab labour minister inaugurated the upgraded Social Security Hospital in Sialkot for factory workers and families. Agri-Food Safety: NAFSA held stakeholder talks for a new digital, science-based pesticide regulation framework under the NAFSA Act 2026. Market Watch: PSX ended the week down ~1.3% amid US-Iran tensions and higher crude prices.

Power Sector Reform: Deputy PM/Foreign Minister Ishaq Dar chaired a committee review on power-sector reforms and privatization, stressing efficiency, sustainability and better outcomes for electricity consumers. Tariffs & Consumer Relief: NEPRA raised power costs by up to about Rs2.58 per unit for September, adding roughly Rs46bn burden; meanwhile, the Power Division says it has resolved 11,695 pending net metering cases and started direct updates to consumers via SMS/WhatsApp, with no intermediary fees. Petroleum Costs: Pakistan again rejected a high-priced spot LNG bid from BP Singapore at $26.7128/MMBtu as LNG and shipping risks rise; separately, the government is considering a mechanism to cut diesel by Rs18–20/litre by reducing the HSD crack spread. Industry Skills & Jobs: Pakistan Engineering Council launched a one-month Skill Development Training for 1,400 graduate engineers under its GET programme, with Rs50,000 monthly stipends and field exposure via 60+ industrial partners. SME & Agriculture Finance: SMEDA and SBP are exploring cluster-based lending for SMEs, while PAMRA’s “Mandi Mart” project rolls out in three cities. Energy Infrastructure: NEPRA approved amendments making BESS mandatory for wind/solar IPPs in upcoming auctions, and Power Division is pushing reforms like automated detection billing to curb overbilling. Trade & Logistics: Pakistan’s anti-narcotics operation with Sri Lanka and the US seized 671kg methamphetamine via Karachi and Colombo ports. Water Security: India’s first rock check dam on the Indus in Ladakh is reported as a new pressure point for Pakistan’s water situation after IWT suspension.

Power Tariffs Hit Again: NEPRA approved a Rs2.06 per unit monthly increase and a 52 paisa quarterly hike, adding over Rs45bn to consumer bills, with K-Electric also affected. Energy & Industry Finance: Finance Minister Aurangzeb said MoF is working on a rupee-denominated, dollar-settled bond and exploring tokenising parts of Eurobond debt to reduce reliance on banks, while ADB backed PPPs and a Pakistan PPP Monitor. Transport & Logistics Push: PM Shehbaz urged early groundbreaking of ML-1 with ADB, and a Senate panel flagged delays and irregularities in the 765kV Dasu-Islamabad line. SME Credit: SMEDA and SBP discussed cluster-based lending to expand formal finance for SMEs. Water & Cities: Karachi’s KWSIP steering committee reviewed progress and stressed safety during execution. Agriculture & Exports: Punjab’s PAMRA launched “Mandi Mart” in Multan and Faisalabad; growers demanded full sugar deregulation and export of 1m tons before Nov 15. Trade Pressure: FPCCI warned July-Aug trade deficit widened 18.1% to $7.1bn as imports outpaced exports. Business & Compliance: KPRA granted GST relief to eligible FATA/PATA industrial units on taxable services received within the areas. Public Health: NAFDAC warned against four recalled medicines due to quality issues.

Petrol Pricing Reform: Pakistan’s Petroleum Pricing Committee set June 2027 as the target to deregulate petrol prices, with plans to link the formula more closely to market conditions and add rules to cushion sudden diesel swings. Rail & Logistics Push: PM Shehbaz urged early groundbreaking of the ML-1 railway corridor with ADB Vice President Yingming Yang, calling it key for freight logistics and regional trade connectivity. SECP Company Boom: SECP registered 4,761 new companies in August 2026, with 99.9% online filings; Punjab led, and IT topped new incorporations. Energy/Industry Deal: Lotte Chemical Pakistan agreed to buy Engro Polymer’s 56.19% stake in EPCL for Rs19.7bn, aiming to build a larger petrochemical platform. Skills for Engineers: PEC launched a one-month Phase-II GET skills training for 1,400 graduate engineers with a Rs50,000 monthly stipend and training centres across major cities. Flood Governance Warning: Islamabad’s Nullah Lai flooding highlighted long-standing basin risk and governance gaps, with PMD rainfall data showing severe impacts. Water & Trade Diplomacy: Oman, Qatar and Pakistan are pushing US-Iran de-escalation talks focused on maritime security around Hormuz. Local Business Visibility: TechDigital Labs expanded Local SEO services in Sialkot, targeting Google Business Profile, local keywords, citations and reputation building.

Trade Facilitation: PM Shehbaz approved a Trade Facilitation Board to cut non-tariff barriers and speed up port clearance, with emergency steps to boost port capacity and pre-arrival processing. Maritime & Industry: Work has started on a Rs12bn Gadani shipbreaking yard overhaul to modernise the sector into a safer, greener recycling facility aligned with international standards. Power & Water Infrastructure: WAPDA chief visited the Mohmand Dam project, urging faster work on the main dam and power house for irrigation, drinking water and 800MW hydel generation. Fertiliser Support: Sindh is considering a DAP subsidy on DAP for the Rabi 2026-27 season to shield farmers from expected price rises. EV Policy: NA panel took notice of double duties on EV chargers, warning it could hurt Pakistan’s green energy push and directed ministries/FBR to revisit the duty structure. Fuel Pricing: Petroleum Pricing Committee recommended setting June 2027 as the target for petrol deregulation and refined emergency intervention rules for diesel. Macro Pressure: Consumer confidence plunged 24.4% to a two-year low as inflation and unemployment fears deepen. Trade Gap: Pakistan’s trade deficit jumped 18% to $7.1bn in July-August, with exports growing slower than imports. Pharma: Pakistan’s pharma industry opposed moves to alter the drug pricing formula, warning of supply and affordability risks. Karachi Urban Works: Karachi mayor inaugurated road rehabilitation in North Nazimabad, while the city also saw a JI shutter-down strike over petroleum levy and IPP-related issues. Agriculture & Research: Pakistan and Australia agreed to expand cooperation in agriculture, biosecurity, water management and farmer-focused research. IT Jobs vs Exports: IT exports hit a record $4.6bn, but hiring is slowing fast as AI shifts routine work.

Petrol Deregulation Push: Pakistan is moving toward phased petrol pricing deregulation, with June 2027 flagged as a possible target for shifting retail rates toward market influence, while keeping emergency safeguards to avoid sudden shocks. Trade Facilitation: PM Shehbaz approved a Trade Facilitation Board to streamline cross-border processes, tackle non-tariff barriers, and fast-track port capacity with working groups and a Trade Facilitation Index. Energy & Industry Pressure: Reports highlight how Pakistan’s power crisis is worsening business conditions, with renewed focus on capacity, contract structures, and the impact of imported power on system reliability. Agriculture & Livestock Support: China donated 300,000 veterinary vaccine doses to Pakistan to strengthen livestock disease control, reinforcing CPEC-linked farm and rural development cooperation. Regional Diplomacy: Pakistan reiterated hope for peace in West Asia amid US-Iran escalation, stressing dialogue and diplomacy and referencing the Islamabad MoU as a pathway to stability. Climate Risk Spotlight: Coverage on Islamabad’s flash-flood governance failures and Nepal’s flood “climate compensation” push keeps extreme-weather preparedness in focus for the region.