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			<title>IMF allows Rs830b power subsidies</title>
			<link>https://tribune.com.pk/story/2600950/imf-allows-rs830b-power-subsidies</link>
			<comments>https://tribune.com.pk/story/2600950/imf-allows-rs830b-power-subsidies#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
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			<category><![CDATA[Business]]></category>
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				<![CDATA[Sanctions Rs300b for theft, bill recovery but imposes condition to raise tariffs in Jan'27]]>
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				<![CDATA[The International Monetary Fund (IMF) has allowed Pakistan to allocate Rs830 billion for power subsidies in the new budget. The amount includes Rs300 billion to pay for electricity theft and poor bill recovery. The lender also imposed a new condition to increase electricity prices in January 2027, according to government sources.

The decision underscores a contradiction in the IMF&#39;s approach towards Pakistan where it is sanctioning hundreds of billions of rupees for electricity subsidies but was not comfortable with subsidies on petrol and diesel.

The IMF has also asked Pakistan to increase electricity prices in January 2027 on account of annual price adjustment, which should fully reflect the impact of rising generation cost due to the Middle East conflict, said government sources. They added that Pakistan has accepted the IMF&#39;s condition as a new structural benchmark of the $7 billion bailout package.

The government assured the lender that timely electricity tariff adjustments would be consistent with cost recovery that remains progressive. It said increases would be balanced across consumer categories.

This includes the National Electric Power Regulatory Authority (NEPRA)&#39;s continued timely notifications of quarterly tariff adjustments (QTAs) and automatic monthly fuel charges adjustments (FCAs), as well as full implementation of the January 2027 annual rebasing, all of which will continue in the context of recent global energy market volatility.

The sources said the IMF also permitted Rs830 billion for power subsidies for the fiscal year 2026-27, 16% less than the demand made by the government.

The subsidy has been allowed on account of tariff differential impact, clearance of erstwhile Federally Administered Tribal Areas (FATA) arrears, agriculture tube wells, circular debt repayments and more importantly to offset the cost of inefficiencies and theft.

The sources said Pakistani authorities have assured they remain committed to ensuring the power sector&#39;s financial viability through timely tariff increases that recover costs and prevent a recurrence of circular debt.

However, despite price increases under every IMF programme, circular debt has not ended and instead keeps increasing, showing the failure of the programme design.

Sources said the government also accepted the IMF&#39;s stance that implementation of necessary price adjustments in the context of recent shocks to global energy markets was critical to ensuring the sector&#39;s viability and broader macroeconomic stability without unduly burdening the budget.

But, once again, the IMF allowed a Rs300 billion increase in circular debt for the next fiscal year. This comes after a Rs400 billion increase projected for this fiscal year, offset by budget subsidies. The IMF was comfortable with yet another promise to end circular debt in 2031.

While the IMF generously allowed Rs830 billion in power subsidies, it stopped the government from giving fuel subsidies despite global price shocks caused by the war.

Both parties agreed that the Rs830 billion subsidy would cover the projected tariff differential for Distribution Companies (Discos) and K-Electric (KE); current and arrears payments of FATA, agricultural tube wells, and circular debt stock payments to counterbalance the anticipated Rs300 billion circular debt flow.

The government also reassured the IMF it would finalise arrangements with several Independent Power Producers (IPPs) with whom penalty payments on arrears were to be waived as part of the broader circular debt stock reduction operation, which remains incomplete. So far, sponsors of power plants set up under the China-Pakistan Economic Corridor (CPEC) have not agreed to waive arrears to claim their principal amounts, said the sources.

Pakistan promised the IMF it would finalise arrangements with all IPPs by end-June 2026. It would also try to resolve a dispute with KE, currently under litigation, which has resulted in significant non-payment and arrears by the end of December 2026, said the sources.

The government has once again promised that private sector participation in Disco management would improve performance, efficiency and governance and address power sector circular debt drivers, helping to mitigate the need for higher tariffs.

It has, however, delayed the privatisation of Islamabad, Gujranwala and Faisalabad power distribution companies until next year after promising to privatise all these entities by early 2026. The sources said the IMF was comfortable with the delay in privatisation.

The government informed the IMF it was assessing the viability of privatising Nandipur and Guddu power plants. However, there is hardly any chance for the success of these plans.

The government said it would facilitate the move to renewable energy and rationalise capacity relative to demand while securing grid sustainability. The publication of the revised 2025-35 Integrated System Plan has been delayed as public hearings have been more extensive than expected. The plan combines capacity and transmission planning and aims to reduce excess capacity and deliver significant savings.

The IMF has also imposed a new condition to strengthen human resources and secure a sustainable fee-based financing mechanism for a power sector management company to ensure its financial sustainability and resource adequacy.]]>
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			<title>Gold, silver prices unchanged in Pakistan and international markets</title>
			<link>https://tribune.com.pk/story/2601042/gold-silver-prices-unchanged-in-pakistan-and-international-markets</link>
			<comments>https://tribune.com.pk/story/2601042/gold-silver-prices-unchanged-in-pakistan-and-international-markets#comments</comments>
			<pubDate>Sat, 04 Apr 26 10:48:29 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Price of 10 grams of gold remains at Rs 420,406]]>
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				<![CDATA[Prices of gold and silver remained stable in domestic and international markets on Saturday.

In the local market, the price of gold per tola held steady at Rs490,362, while 10 grams of gold remained at Rs420,406.

On the global market, gold prices per ounce were stable at $4,676.

Silver prices also remained firm, with one tola trading at Rs7,794 and 10 grams at Rs6,682. Globally, the price of silver per ounce held steady at $73.10.

Read:&nbsp;SBP injects Rs13.68tr into market

Yesterday, gold prices in Pakistan rose, tracking an upward trend in the international market. In the domestic market, the price of gold per tola climbed by Rs3,400 to settle at Rs490,362.

Likewise, the price of 10 grams of gold increased by Rs2,915, reaching Rs420,406, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

A day earlier, on Thursday, gold prices had declined, with the per tola rate falling by Rs7,100 to Rs486,962.

In the global market, gold prices gained $34, reaching $4,676 per ounce, including a $20 premium.

Moreover, silver prices also moved higher, rising by Rs160 to Rs7,794 per tola.

Meanwhile, on Friday, the Pakistani rupee posted a slight gain against the US dollar in the interbank market.

By the close of trading, the local currency stood at 279.10, appreciating by Rs0.01 against the greenback. On Thursday, it had settled at 279.11.

In global markets, China&#39;s yuan strengthened against the US dollar as the latter steadied, with investor attention shifting to the release of US payroll data later in the day.

The dollar had surged a day earlier on safe-haven demand after US President Donald Trump signalled that the Iran conflict could persist.

The spot yuan opened at 6.8930 per dollar on Friday and was last trading 37 pips higher than its previous close.]]>
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			<title>SPI nears double-digit YoY spike</title>
			<link>https://tribune.com.pk/story/2600951/spi-nears-double-digit-yoy-spike</link>
			<comments>https://tribune.com.pk/story/2600951/spi-nears-double-digit-yoy-spike#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[Usman Hanif]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600951</guid>
			<description>
				<![CDATA[Rising fuel prices push weekly inflation to 9.12%; WoW index rises 1.01%]]>
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				<![CDATA[Inflationary pressures in Pakistan intensified further, with the Sensitive Price Indicator (SPI) recording a sharp 9.12% year-on-year (YoY) increase, reflecting the deepening impact of rising energy costs induced by the Israel-US war on Iran.

According to the latest weekly report issued by the Pakistan Bureau of Statistics (PBS), inflation rose by 1.01% week-on-week (WoW) for the week ended April 2, 2026, compared to a 0.97% increase in the previous week, marking a continued upward trend in prices for the third consecutive week.

The report highlighted that price pressures were largely driven by increases in essential food items and energy costs. Among the major contributors, liquefied petroleum gas (LPG) prices surged by 13.28%, followed by eggs (2.23%), chicken (2.13%), pulse mash (1.74%) and mutton (1.54%). Prices of milk, curd and beef also registered modest increases during

the week.

On the other hand, some relief was observed in select food items. Tomato prices declined by 6.03% and garlic, potatoes and onions also posted noticeable decreases. Wheat flour and sugar prices recorded slight reductions, partially offsetting the overall inflationary trend.

Out of the 51 essential commodities tracked, prices of 15 items increased, nine decreased, while 27 remained unchanged, indicating a broad-based but uneven inflationary pattern across the consumption basket.

On a yearly basis, energy costs remained the key driver of inflation. LPG prices jumped by 53.69%, diesel by 29.94%, gas charges by 29.85% and petrol by 26.17%, significantly contributing to the overall rise in the SPI. Food inflation also remained elevated, with wheat flour, onions, mutton and beef registering notable YoY increases.

The inflationary impact was visible across all income groups. The lowest income segment (earning up to Rs17,732 per month) experienced a YoY inflation rate of 7.46%, while middle-income groups faced higher pressure, with inflation reaching up to 9.28%. Even higher-income households saw inflation at 8.70%, reflecting widespread cost pressures across the economy.

It is pertinent to mention that Pakistan&#39;s headline inflation rate rose to 7.3% year-on-year in March 2026, according to the PBS, coming in below the government&#39;s projected range of 7.5-8.5%. This compares with 7% in February and just 0.7% in March last year, reflecting a low base effect.

On a monthly basis, the Consumer Price Index (CPI) increased by 1.2%, higher than February&#39;s 0.3%. During July-March FY26, average inflation stood at 5.67%. Urban inflation reached 7.4% YoY, while rural inflation was recorded at 7.2%.

Analysts expect the pace of inflation to remain moderate, supported by remittance inflows, though external risks may influence the outlook.]]>
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			<title>Fuel hike raises policy questions</title>
			<link>https://tribune.com.pk/story/2600955/fuel-hike-raises-policy-questions</link>
			<comments>https://tribune.com.pk/story/2600955/fuel-hike-raises-policy-questions#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[SHAHRAM HAQ]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Pakistan has limited ability to insulate economy from shocks amid global crisis]]>
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				<![CDATA[The government&#39;s decision to raise petroleum prices by an unprecedented margin has triggered fresh concerns over policy consistency as officials appear to have reversed their earlier stance of shielding consumers from global oil volatility within a matter of days.

Petrol prices have surged by Rs137 per litre to Rs458 while high-speed diesel has climbed by Rs185 to Rs520 per litre, marking one of the sharpest increases in the country&#39;s history. The move comes despite recent assurances from policymakers that efforts were underway to absorb international price pressures and avoid passing the full burden onto consumers.

The abrupt shift has raised questions in economic circles about what forced the government into such a significant policy reversal and whether Pakistan has the fiscal space to manage external shocks in an increasingly volatile global environment.

Officials had earlier indicated that the government was exploring options, including engaging with the International Monetary Fund, to seek flexibility in adjusting the petroleum levy so that domestic prices could be moderated. However, the latest increase suggests that either those efforts did not materialise in time or the scale of the external shock proved too large to contain.

Analysts say the rapid escalation in global oil prices, driven by intensifying tensions linked to the Iran-Israel conflict and fears of supply disruptions in the Strait of Hormuz, has significantly altered the government&#39;s calculations. With crude markets swinging sharply this week and standing at around $112 per barrel, maintaining artificially low domestic prices may have risked widening fiscal imbalances and putting additional pressure on foreign exchange reserves.

&quot;The government was clearly trying to manage expectations and avoid panic but the reality of global markets caught up faster than anticipated,&quot; said an official of the Ministry of Petroleum. &quot;At this level of price increase, it becomes less about choice and more about compulsion.&quot;

Pakistan&#39;s heavy reliance on imported fuel makes it particularly vulnerable to such shocks. Any sustained increase in global oil prices directly impacts the import bill, weakens the currency and fuels inflation across sectors ranging from transport to food and manufacturing. In this context, absorbing the full impact through subsidies or reduced taxation becomes increasingly difficult, especially under the constraints of ongoing fiscal consolidation.

The latest development has also brought into focus the broader question of policy credibility. Frequent shifts in pricing decisions and public messaging can undermine market confidence and make it harder for businesses and consumers to plan ahead.

A senior official in the energy sector, speaking on condition of anonymity, said that while efforts were made to cushion the impact, the pace of change in international markets left limited room to manoeuvre. &quot;When prices move this quickly, the system does not have the capacity to respond smoothly. There was a ray of hope before President Trump&#39;s last speech to the US audience, as crude was hovering around $100 per barrel at that time, but after the speech oil prices skyrocketed once again. There are always trade-offs between fiscal stability and public relief,&quot; the official said.

Business leaders, on the other hand, warn that such unpredictability adds another layer of uncertainty to an already challenging economic environment. Industries dependent on fuel for transportation and production now face a sudden surge in input costs, which is likely to be passed on to consumers in the coming weeks.

Pakistan Business Forum Chief Organiser Ahmad Jawad said the sharp spike in fuel prices has intensified pressure on key sectors, particularly agriculture, where higher diesel costs are making crop sowing increasingly unviable. He noted that the pace of recent hikes, coupled with higher petroleum levies, risks triggering a fresh wave of inflation and placing an unsustainable burden on both businesses and consumers already operating under tight financial conditions.

The federal government, which claims that it has provided a Rs129 billion subsidy on fuel, is now seeking help from provinces to share this burden. Punjab and Sindh have moved forward with some measures, like some limited petrol subsidy for bikes and free public transport, but the cascading effects would be much higher.

The outcome of this crisis is obvious and that is Pakistan&#39;s limited ability to insulate its economy from global energy shocks with a dilemma to maintain fiscal discipline and meet external financing requirements tied to IMF programmes.

The government&#39;s room for manoeuvring is likely to remain constrained. Any further escalation in the Middle East could push prices even higher, forcing policymakers into another difficult round of decisions. Nevertheless, the record-breaking fuel hike stands as a stark reminder of how quickly policy positions can shift under external pressure and how exposed Pakistan&#39;s economy remains to forces beyond its control.]]>
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			<title>2,164GWh consumed under surplus power package</title>
			<link>https://tribune.com.pk/story/2600957/2164gwh-consumed-under-surplus-power-package</link>
			<comments>https://tribune.com.pk/story/2600957/2164gwh-consumed-under-surplus-power-package#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Industries, agriculture sector save Rs21b by consuming extra electricity at low tariff]]>
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				<![CDATA[The government&#39;s surplus power package has triggered a considerable surge in electricity demand from industrial and agricultural sectors, which have consumed a massive 2,164 gigawatt hours (GWh) of additional electricity in just three months &ndash; from December 2025 to February 2026.

The Ministry of Energy (Power Division), in a statement, said that under the special initiative to provide relief and support for the country&#39;s industries and agriculture sector, the surplus electricity package had been introduced at the lowest tariff rate of Rs22.98 per unit on incremental consumption.

&quot;This accounts for 23% of all units sold to these sectors during the three-month period, proving that the package has triggered a strong growth in energy demand,&quot; it said.

Industries saved Rs19.6 billion while agricultural consumers saved Rs1.14 billion, bringing cumulative financial relief to Rs20.83 billion.

Among industrial categories, B3 consumers saved the largest amount of Rs8.76 billion, followed by B2 consumers, who saved Rs5.34 billion, B4 consumers &ndash; Rs4.02 billion and B1 consumers &ndash; Rs1.48 billion.

The number of consumers taking benefit from the package has been impressive, with 67% of large B4 industries (83 out of 123), 52% of B3 (1,812 out of 3,470), 48% of B2 (33,449 out of 69,124) and 43% of B1 (98,718 out of 229,282) availing the incentive, along with 34% of agricultural consumers (82,334 out of 242,451).

In terms of individual shares in energy consumption under the package, B1 industries led with 27%, followed by B4 at 25%, B2 at 24%, B3 at 22% and agriculture

at 21%.

January 2026 saw a 12% year-on-year growth while in February consumption rose 11%, &quot;clearly showing that the package has increased electricity demand and encouraged industries to rely more on cost-effective grid power instead of expensive self-generation&quot;.

&quot;This rising demand is a strong and positive indicator for the country&#39;s economic recovery and energy sector stability,&quot; the Power Division remarked.

The surplus power package was launched in December 2025 by the Power Division as a targeted initiative to boost electricity consumption, optimise the available generation capacity and provide financial relief for industrial and agricultural consumers over a longer period.]]>
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			<title>Microsoft to invest $10b in Japan</title>
			<link>https://tribune.com.pk/story/2600954/microsoft-to-invest-10b-in-japan</link>
			<comments>https://tribune.com.pk/story/2600954/microsoft-to-invest-10b-in-japan#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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				<![CDATA[Investment aims to expand AI infrastructure, strengthen cyber defence]]>
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				<![CDATA[Microsoft on Friday said it will invest 1.6 trillion yen ($10 billion) in Japan between 2026 and 2029 to expand artificial intelligence (AI) infrastructure and strengthen cybersecurity cooperation with the government.

The investment includes the training of 1 million engineers and developers by 2030, Microsoft said, which was unveiled during a visit to Tokyo by Vice Chair and President Brad Smith. In a statement, the company said the plan aligns with Prime Minister Sanae Takaichi&#39;s goal to boost growth through advanced, strategic technologies while safeguarding national security.

Microsoft will work with domestic firms including SoftBank and Sakura Internet to expand Japan-based AI computing capacity, allowing companies and government agencies to keep sensitive data within the country while accessing Microsoft Azure services, it said. It will also deepen cooperation with Japanese authorities on sharing intelligence related to cyber threats and crime prevention.

Japan&#39;s adoption of AI has accelerated since 2024, with around one in five working-age people using generative AI tools, Microsoft said, citing its own data.]]>
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			<title>Stocks slide as fuel price shock jolts PSX</title>
			<link>https://tribune.com.pk/story/2600958/stocks-slide-as-fuel-price-shock-jolts-psx</link>
			<comments>https://tribune.com.pk/story/2600958/stocks-slide-as-fuel-price-shock-jolts-psx#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
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				<![CDATA[KSE-100 drops over 1,600 points on deepening inflation fears]]>
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				<![CDATA[Stocks came under renewed selling pressure at the Pakistan Stock Exchange (PSX) on Friday as investor sentiment remained fragile following the government&#39;s decision to withdraw fuel subsidies and sharply increase petroleum prices.

The benchmark KSE-100 index experienced a volatile session, losing over 1,600 points. It initially plunged deeply before recouping some of the losses, but ultimately closed in the red as inflationary concerns and macroeconomic uncertainty kept investors cautious.

At the close of trading, the benchmark KSE-100 index posted a sharp decline of 1,612.55 points, or 1.06%, and settled at 150,398.71.

Arif Habib Limited (AHL) noted that Pakistan&#39;s stock market remained under pressure during the current week, with the KSE-100 index declining by 0.9% week-on-week to close just above the key psychological support level of 150,000.

Despite the overall negative trend, select heavyweights provided some support, as 21 shares contributed a cumulative 79 index points, led by Meezan Bank (+5.97%), Engro Fertilisers (+5.88%) and Pakistan Oilfields (+1.93%). On the flip side, major laggards including UBL (-4.44%), Engro Holdings (-2.94%) and Fauji Fertiliser (-0.85%) weighed heavily on the index.

Macroeconomic developments also influenced investor sentiment as the government raised prices of petrol to Rs458 per litre and diesel to Rs520 per litre, moving to a targeted subsidy approach. Analysts estimate that earlier the government provided a subsidy of around Rs129 billion ($462 million).

Global cues remained mixed, with geopolitical tensions between the US and Iran raising fears of further escalation, while the extended Easter holiday in Western markets suggests a potentially news-heavy period ahead.

Market participants expect volatility to persist, with the possibility that oil prices may be nearing a short-term peak. Looking ahead, analysts believe that the 150,000 level will remain a crucial support zone for the index at the start of the coming week.

On the activity front, the average daily traded volume stood at around 471 million shares while traded value averaged Rs24.6 billion. Among individual stocks, Cnergyico, Attock Refinery, Sui Southern Gas Company, Power Cement and Pakistan Oilfields emerged as top gainers, while Honda Atlas Cars, Systems Ltd, Air Link Communications, Kohat Cement and UBL were among the major losers during the week.

&quot;Another negative session was observed at the exchange after government&#39;s announcement to end fuel subsidy (whereby diesel prices were increased by 55% and petrol prices by 43%),&quot; Topline Securities noted in its market review.

The top negative contribution to the index came from UBL, ENGROH, FFC, SYS and LUCK as they cumulatively erased 1,100 points. Traded value-wise, Attock Refinery (Rs2.7 billion), UBL (Rs2.2 billion), Pakistan Petroleum (Rs1.4 billion), OGDC (Rs1.23 billion) and PSO (Rs811 million) dominated the activity, Topline said.

KTrade highlighted that the federal government&#39;s decision to withdraw fuel subsidies in line with the IMF&#39;s requirements, resulting in a significant increase in petrol and diesel prices, weighed on sentiment, given its clear inflationary implications. However, much of this impact appears already priced in, with expectations of higher interest rates largely embedded in market positioning.

Overall trading volumes were recorded at 471.9 million shares compared with the previous session&#39;s tally of 352.3 million. The value of shares traded during the day was Rs24.6 billion.

Shares of 483 companies were traded. Of these, 132 stocks closed higher, 279 fell and 72 remained unchanged.

Cnergyico PK was the volume leader with trading in 97.2 million shares, gaining Rs0.59 to close at Rs7.45. It was followed by WorldCall Telecom with 28.3 million shares, closing unchanged at Rs1.18 and Pak Refinery with 24.2 million shares, gaining Rs2.99 to close at Rs32.90. Foreign investors sold shares worth Rs288 million, the National Clearing Company reported.]]>
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			<title>Gold gains Rs3,400 per tola, silver also moves higher</title>
			<link>https://tribune.com.pk/story/2600853/gold-gains-rs3400-per-tola-silver-also-moves-higher</link>
			<comments>https://tribune.com.pk/story/2600853/gold-gains-rs3400-per-tola-silver-also-moves-higher#comments</comments>
			<pubDate>Fri, 03 Apr 26 09:04:14 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
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			<category><![CDATA[Business]]></category>
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				<![CDATA[Price of 10 grams of gold increases by Rs2,915]]>
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				<![CDATA[Gold and silver prices on Friday increased in both local and international markets.

The price of gold rose by Rs3,400 per tola, reaching Rs490,362. The rate for 10 grams of gold also increased by Rs2,915 to Rs420,406.

In the international market, gold prices went up by $34 per ounce to $4,676.

Silver prices also registered an increase. The price per tola rose by Rs160 to Rs7,794, while the rate for 10 grams increased by Rs138 to Rs6,682.

In the global market, silver was priced at $73.10 per ounce.

Also Read: SBP&#39;s reserves up $6m to $16.38b

Earlier on Thursday, gold prices declined sharply locally, tracking losses in the international market, where bullion came under pressure due to a stronger US dollar and rising oil prices.

In the local market, the price of gold per tola fell by Rs7,100 to settle at Rs486,962, according to the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10 grams of gold dropped by Rs6,087 to Rs417,491.

The decline comes a day after gold hit Rs494,062 per tola, gaining Rs15,300 in a single session.

Internationally, gold prices fell by $71 to $4,642 per ounce, including a $20 premium. Spot gold was down 2% at $4,660.95 per ounce by 11:22 am EDT, after touching a two-week high, while US gold futures slipped 2.6% to $4,686.80.

Market sentiment shifted after US President Trump signalled continued military actions against Iran, pushing oil prices higher and strengthening the dollar. The developments raised concerns about inflation and reinforced expectations of higher interest rates, which typically weigh on non-yielding assets like gold.

Silver prices in Pakistan also recorded a notable decline, falling by Rs350 to Rs7,634 per tola, in line with a nearly 4% drop in international silver rates.]]>
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			<title>Govt to end currency controls</title>
			<link>https://tribune.com.pk/story/2600756/govt-to-end-currency-controls</link>
			<comments>https://tribune.com.pk/story/2600756/govt-to-end-currency-controls#comments</comments>
			<pubDate>Thu, 02 Apr 26 19:13:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600756</guid>
			<description>
				<![CDATA[Gives assurances to IMF to clear way for disbursement of $1b loan tranche]]>
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				<![CDATA[Pakistan has assured the International Monetary Fund (IMF) that to deal with the economic impact of the Middle East conflict, it stands ready to increase interest rates and devalue currency, as the lender has imposed yet another condition to end control over foreign currency movement.

According to the Pakistani authorities, to cope with the increasing inflation and control imports in the aftermath of the Middle East war, they have assured the lender of increasing interest rates and easing control over the currency market. The assurances have been given to pave the way for a staff-level agreement for the disbursement of the fourth loan tranche of $1 billion out of the $7 billion package.

Central bank sources said that to deal with the adverse impact of choking supply lines and increasing fuel cost on the import bill and inflation, the bank informed the IMF that it would maintain an appropriately tight monetary policy and &quot;stands ready to raise interest rates, if needed&quot;.

In its last monetary policy, the central bank had kept the rate unchanged after hostilities began in the region. Both the IMF and the SBP were of the view that with the increase in domestic oil prices due to the surge in global markets, inflation was expected to go up, which would require an increase in interest rates, currently standing at 10.5%.

In March, the inflation rate rose 7.3%, the highest level in the past 17 months but lower than expectations of the Ministry of Finance. The federal government had estimated that the country&#39;s energy import bill would rise in the range of $300 million to $500 million a month, if Brent crude prices ranged between $100 and $120 per barrel.

The Pakistan Bureau of Statistics (PBS) reported on Thursday that imports fell in March on an annual basis. According to the national data collecting agency, imports dipped 5.4% to $5 billion over the same month of last year.

During the July-March period of the current fiscal year, imports grew 6.6%, or $3.2 billion, to $50.5 billion. Compared to that, exports shrank 8% in nine months to a mere $22.7 billion, reflecting a huge trade deficit of $27.8 billion. The deficit widened 23% in the nine-month period.

However, Pakistani authorities have assured the IMF that they will relax restrictions on foreign exchange movement and will also use the currency as a shock absorber to discourage imports. The IMF has added a new condition in programme documents to make sure that these restrictions are lifted by March next year, sources said.

According to the new condition, the central bank will develop a roadmap for the gradual removal of foreign exchange restrictions. It will quantify the indicators and set timelines for complete liberalisation of the foreign exchange regime, the sources added.

They said that complete removal of the restrictions would depend on Pakistan&#39;s macroeconomic and financial stability. The IMF&#39;s stance was that such liberalisation would help the private sector and increase foreign investment.

But there have always been concerns about manipulation of the foreign currency market, given its very small size. In recent months, central bank authorities said that they removed various regulations that unduly burdened banks and their clients, including certain documentary requirements. The central bank was moving from general verification to risk-based verification to minimise the time and cost of these transactions, sources said.

Pakistan has already committed to implement a flexible exchange rate regime but the central bank is artificially keeping the price of the rupee low by massively purchasing dollars from the market. The country has failed to significantly enhance exports, which could help build the foreign exchange reserves.

The central bank assured the IMF that it would use the foreign exchange market as a buffer to absorb shocks and rebuild reserves. The SBP also said that it would take measures to arrange sufficient finances to ensure that Letters of Credit were opened for imports without bringing balance sheets of banks under stress, sources added.

They said that to address IMF concerns about subsidising foreign remittances, the government assured the lender that it would limit subsidies only to the extent of money allocation in the budget.

There had been disagreement between the Ministry of Finance and the SBP over financing the remittance subsidy scheme. The IMF has already included a condition in its loan package to determine the true cost of subsidies and the deadline to submit the report is May this year.

After developing an action plan, both the finance ministry and the SBP would finalise a mechanism to ensure that claims arising from the remittance subsidy scheme during any given fiscal year did not exceed budgetary allocations, sources said. Remittances are the only main non-debt creating source for Pakistan to remain afloat and are significantly higher than exports.]]>
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			<title>PSX dips 3,500 points amid risk-off mood</title>
			<link>https://tribune.com.pk/story/2600759/psx-dips-3500-points-amid-risk-off-mood</link>
			<comments>https://tribune.com.pk/story/2600759/psx-dips-3500-points-amid-risk-off-mood#comments</comments>
			<pubDate>Thu, 02 Apr 26 19:13:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600759</guid>
			<description>
				<![CDATA[Index slides 2.25% as oil surge, geopolitical fears rattle investors]]>
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				<![CDATA[Stocks came under heavy selling pressure on Thursday as escalating geopolitical tensions and a surge in global oil prices rattled investor sentiment, triggering a broad-based sell-off at the Pakistan Stock Exchange. The benchmark KSE-100 index fell sharply, although it managed to stay above the key 150,000 level, with analysts attributing the decline to a risk-off mood following weakness in global markets.

At the close of trading, the KSE-100 index posted a sharp decline of 3,500.30 points, or 2.25%, and settled at 152,011.26. Arif Habib Limited (AHL) noted that the KSE-100 extended losses, falling 2.25% as heavyweight banking stocks came under pressure, although the index continued to hold above the 150,000 level. The decline comes a day after a strong rally, with analysts describing the latest session as a phase of consolidation.

Market breadth remained negative, with only 15 stocks advancing while 84 declined. TRG Pakistan (+10%), Attock Refinery (+1.83%) and Unity Foods (+4.12%) were the main positive contributors. On the flip side, United Bank (-3.52%), Fauji Cement (-1.72%) and MCB Bank (-4.34%) weighed heavily on the index, emerging as the top drags.

Trading activity remained moderate, with total traded volumes in the regular market standing at 352.3 million shares, while the traded value hit Rs19.5 billion. Among the top traded stocks by value, Lucky Cement, Pakistan Petroleum, OGDC and National Bank featured prominently, reflecting continued investor interest in energy and banking sectors.

On the economic front, Pakistan posted a trade deficit of $2.7 billion in March 2026 as exports declined 14% year-on-year to $2.3 billion while imports fell 5.4% to $5 billion. However, on a cumulative basis, the deficit for 9MFY26 narrowed 18.5% to $22.7 billion, indicating some improvement in external balances. Analysts expect the market to remain range bound in the final session of the week, where the 150,000 level is likely to act as a key support zone.

Topline Securities, in its review, stated that the local bourse remained under pressure, tracking the negative momentum in global markets after remarks by Donald Trump on the ongoing Middle East conflict dented investor sentiment. Escalating geopolitical tensions, coupled with a surge in oil prices, kept market participants on the back foot, reinforcing a cautious stance throughout the session.

Selling pressure prevailed across the board, which dragged the index to the intra-day low of 5,489 points. The market eventually settled at 152,011, marking a decline of 3,500 points and reflecting a clear risk-off sentiment amid the uncertain backdrop. The major negative contribution came from UBL, FFC, MCB, Hubco, PPL, OGDC and Lucky Cement, which cumulatively eroded 1,589 points, Topline said.

KTrade Securities stated that looking ahead, the market direction remained closely tied to geopolitical developments and oil price dynamics. A sustained upside in crude, particularly if Brent stays above the $100 mark, could further dampen investor confidence and extend the ongoing downside.

Overall trading volumes were recorded at 352.27 million shares compared with the previous session&#39;s tally of 670.87 million. The value of shares traded during the day was Rs19.51 billion.

Shares of 481 companies were traded. Of these, 99 stocks closed higher, 323 fell and 59 remained unchanged.

K-Electric was the volume leader with trading in 56.14 million shares, losing Rs0.11 to close at Rs7.11. It was followed by WorldCall Telecom with 17.56 million shares, losing Rs0.02 to close at Rs1.18 and The Bank of Punjab XD with 16.95 million shares, losing Rs1.33 to close at Rs25.19. Foreign investors bought shares worth Rs456.6 million, the National Clearing Company reported.]]>
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			<title>Peace hopes trigger robust PSX rally</title>
			<link>https://tribune.com.pk/story/2600599/peace-hopes-trigger-robust-psx-rally</link>
			<comments>https://tribune.com.pk/story/2600599/peace-hopes-trigger-robust-psx-rally#comments</comments>
			<pubDate>Wed, 01 Apr 26 19:46:40 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600599</guid>
			<description>
				<![CDATA[KSE-100 index jumps 6,768 points over easing geopolitical tensions]]>
			</description>
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				<![CDATA[Trading halted at the Pakistan Stock Exchange (PSX) on Wednesday in a massive show of strength as Middle East de-escalation hopes brought investors back into a vibrant mood. Equities surged sharply in broad-based buying across multiple sectors, which sent the KSE-100 index soaring by over 6,750 points. PSX, in its official notice, confirmed that the market halt was triggered after the KSE-30 index rose 5% from the previous day&#39;s close, activating the exchange&#39;s circuit breaker mechanism. Following this, all equity markets were suspended at 12:03 pm and all outstanding orders were automatically cancelled.

The KSE-100 initially climbed to 153,615, marking a gain of 3.28%, and by 12:03 pm, it was hovering around 156,205, up 7,462 points, or 5.02%. When trading resumed, the benchmark index reached the intra-day high of 157,347. Though some volatility emerged later, the index closed on a strong note at 155,511.57, reflecting a jump of 6,768.25 points, or 4.55%.

KTrade Securities noted that the KSE-100 staged a powerful rebound, closing up 6,768 points and marking a sharp reversal after the recent prolonged weakness. The session opened strong and maintained a firm upward trajectory, with broad-based buying indicating a decisive shift in sentiment.

The rally was largely driven by improving global cues as easing geopolitical tensions lifted the risk appetite. Overnight developments, including conciliatory signals from both the US and Iran, triggered a sharp pullback in international oil prices, while global equities across the US and Asia closed in the green. This external tailwind set the stage for aggressive buying at the local bourse, KTrade remarked.

Heavyweight stocks across commercial bank, cement, fertiliser and E&amp;P sectors drove the index&#39;s performance. The latest Consumer Price Index (CPI) reading of 7.3%, coming in below expectations, reinforced investor confidence by supporting the case for a stable monetary policy outlook. The combination of easing inflation and softer oil prices provided a strong base for sentiment recovery, it added.

Arif Habib Limited (AHL) observed that stocks registered a strong surge back above 150k with the KSE-100 gaining 4.55% day-on-day. A total of 91 shares rose while eight fell with United Bank (+6.36%), Lucky Cement (+9.17%) and Fauji Fertiliser (+2.89%) contributing the most to the index gains. &quot;Wednesday&#39;s surge is the second biggest move that has come from below 150k since the KSE-100 broke below the Oct 2025 lows, underscoring its attractiveness for long-term capital deployment.&quot;

AHL mentioned that China and Pakistan issued a joint call for an immediate ceasefire in the Gulf war and for safeguarding shipments through the Strait of Hormuz. Additionally, US President Trump was scheduled to address the nation, which follows addresses already made by the prime ministers of the UK and Australia. Domestically, the CPI for March rose 7.3% year-on-year and 1.2% month-on-month, which were broadly in line with expectations. AHL anticipated that index levels below the 200-day moving average would remain attractive for long-term accumulation.

Topline Securities wrote that gains of 6,768 points in the KSE-100 index signalled a strong rebound in market sentiment. During the session, the index traded within a wide range, touching the intra-day high of 157,347 and low of 151,263. Trading was briefly halted after the KSE-30 index surged more than 5% from the previous day&#39;s close, activating the market-wide circuit breaker.

Overall trading volumes increased to 670.9 million shares against Tuesday&#39;s tally of 435 million. The value of traded shares stood at Rs44 billion. Foreign investors sold shares worth Rs170.6 million, the National Clearing Company reported.]]>
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			<title>Saggian zone demands industrial status</title>
			<link>https://tribune.com.pk/story/2600959/saggian-zone-demands-industrial-status</link>
			<comments>https://tribune.com.pk/story/2600959/saggian-zone-demands-industrial-status#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[APP]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600959</guid>
			<description>
				<![CDATA[Minister directs resolution of conversion fees issue via stakeholder consultation]]>
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				<![CDATA[Provincial Minister for Industries and Commerce Chaudhry Shafay Hussain has assured industrialists that their genuine issues would be addressed on a priority basis, particularly the demand to abolish conversion fees imposed by the Ravi Urban Development Authority (Ruda) in Saggian Industrial Area.

The assurance came during a meeting with a delegation led by Senior Vice President of the Lahore Chamber of Commerce and Industry (LCCI) Tanveer Ahmed Sheikh on Friday.

Representatives of the industrialist community told the minister that industries in Saggian were under increasing pressure due to these charges. They argued that imposing heavy conversion fees on already established industrial units was unjustified, especially since the area&#39;s infrastructure had largely been developed by themselves.

The minister directed relevant authorities to work in close coordination with the LCCI to find a practical and mutually agreed solution. He noted that applying commercialisation or conversion charges on existing industrial units in Saggian was not appropriate.

&quot;The matter of conversion fees will be resolved through consultation with stakeholders,&quot; he said.

Earlier, Tanveer Ahmed Sheikh highlighted that around 1,500 industrial units were operating in the Saggian area. He urged the government to recognise the area as a formal industrial zone and provide policy support to ensure its sustainable growth.]]>
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			<title>US forum pitches tax reforms to Aurangzeb</title>
			<link>https://tribune.com.pk/story/2600758/us-forum-pitches-tax-reforms-to-aurangzeb</link>
			<comments>https://tribune.com.pk/story/2600758/us-forum-pitches-tax-reforms-to-aurangzeb#comments</comments>
			<pubDate>Thu, 02 Apr 26 19:13:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600758</guid>
			<description>
				<![CDATA[Pharma sector eyes $5b exports without subsidies; IT firms seek forex retention]]>
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				<![CDATA[A delegation of the American Business Forum (ABF) called on Finance Minister Muhammad Aurangzeb at the Finance Division and shared proposals for tax policy rationalisation, reduction in compliance burden, incentivisation of exports and facilitation of foreign exchange inflows, according to a statement issued by the Ministry of Finance on Thursday.

The delegation, led by ABF President Osman Khalid Waheed, emphasised the need for predictable and consistent policies to encourage long-term investment.

The finance minister briefed participants on Pakistan&#39;s improving macroeconomic outlook, highlighting progress on fiscal and external fronts as well as constructive engagement with international financial institutions and development partners.

He noted that despite global uncertainties and regional challenges, the government remains committed to maintaining macroeconomic stability and pursuing structural reforms to support sustainable growth.

The minister also apprised participants of ongoing efforts to manage energy sector challenges, strengthen supply chains and ensure effective coordination across key ministries through a high-level committee chaired by him. He emphasized that the government is closely monitoring developments and remains fully engaged with both domestic and international stakeholders to safeguard economic stability.

The ABF appreciated the government&#39;s reform agenda and proposed tax rationalisation, lower compliance burden, export incentives and forex inflows facilitation, while stressing predictable policies for long-term investment.

Representatives from the pharmaceutical sector highlighted the potential to significantly increase exports with regulatory reforms, noting the industry could expand exports from approximately $1 billion to $3-5 billion without requiring fiscal subsidies. They stressed the importance of modernising regulations and ensuring consistency in pricing decisions.

Participants from the IT and services sectors underscored the need to facilitate foreign exchange retention and incentivise export-oriented growth. Issues related to digital payments, corporate card usage and taxation of cross-border transactions were also raised.

Aurangzeb acknowledged the input provided by the delegation and reiterated the government&#39;s commitment to fostering a business-friendly environment. He assured participants that many proposals are already under consideration and that the upcoming budget would reflect a clear direction towards tax rationalisation and regulatory reforms.

The minister emphasised that policy-making is being aligned with broader economic value considerations, with a focus on promoting exports, encouraging investment and ensuring long-term sustainability.]]>
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			<title>Pakistan’s ports emerge as transit hub after Iran war disrupts Gulf routes</title>
			<link>https://tribune.com.pk/story/2600542/pakistans-ports-emerge-as-transit-hub-after-iran-war-disrupts-gulf-routes</link>
			<comments>https://tribune.com.pk/story/2600542/pakistans-ports-emerge-as-transit-hub-after-iran-war-disrupts-gulf-routes#comments</comments>
			<pubDate>Wed, 01 Apr 26 14:57:06 +0500</pubDate>
			<dc:creator>
				<![CDATA[Anadolu Agency]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600542</guid>
			<description>
				<![CDATA[Official data shows Karachi Port handled more transshipments in less than a month than all of 2025]]>
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				<![CDATA[As conflict-related disruptions ripple across Gulf shipping routes, Pakistan&rsquo;s main ports are emerging as an unexpected transit hub, handling a surge in cargo rerouted away from the region&rsquo;s traditional maritime centres.

Since early March, ports in Karachi have seen a sharp rise in transshipments &mdash; cargo temporarily offloaded and redirected to other destinations &mdash; as vessels avoid higher-risk routes linked to the escalating US-Israel war with Iran.

Officials said the increase has been dramatic.

Karachi Port alone handled 8,313 containers over the past 24 days, slightly exceeding the total volume recorded for all of 2025, according to data from the Karachi Port Trust.

The port, which handles more than half of Pakistan&rsquo;s foreign trade, has absorbed the bulk of the diverted cargo.

The Bin Qasim Port has also handled record-breaking flows since March 1.

The Port Qasim Authority&nbsp;reported a significant increase in cargo throughput across its terminals for the July-March period of fiscal year 2025-26, with total cargo handled rising to 36.548 million tonnes from 33.768 million tonnes during the same period last year, marking an 8.2% growth.

The surge came as disruptions linked to the conflict, including restrictions in the Strait of Hormuz as well as attacks on vessels and ports, had slowed operations across the Gulf.

Ports such as Oman&rsquo;s Salalah and the UAE&rsquo;s Jebel Ali have been affected by strikes, while others have seen disruptions, creating space for Pakistan to step in, analysts said.

Safe haven

Mohammad Rajpar, chairman of the Pakistan Ship&rsquo;s Agents Association, told Anadolu that Karachi&rsquo;s ports had become a &ldquo;safe haven&rdquo; and &ldquo;temporary storage hub&rdquo; for regional trade.

He said Karachi Port handled around 75% of the redirected cargo, with the remaining 25% processed at Bin Qasim.

The surge was so significant that the port&#39;s operations continued even on Eidul Fitr for the first time in the its 172-year history.

Rising insurance premiums have played a key role in the shift.

The risk premium and insurance cost for delivery inside the Persian Gulf is four times higher than for Pakistan, Rajpar said.

&ldquo;It&rsquo;s a great opportunity for us to become a permanent regional transshipment hub, like Salala and Jebel Ali ports, as we have the capacity,&rdquo; he said.

Currently, Pakistani ports are handling 3.8 million containers annually compared to a capacity to handle 6m containers per year, Rajpar said.

Opportunity likely to outlast conflict

Analysts said the shift in shipping patterns could persist even if the conflict eases.

&ldquo;Even if the war ends today, the traditional shipping routes will take at least three months to restore,&rdquo; Rajpar said.

He added that elevated risk perceptions and insurance costs could linger even longer.

&ldquo;Pakistan can exploit this advantage as higher insurance costs will continue to compel the shipping industry to rely on safe and secure ports,&rdquo; he said.

Aasim Siddiqui, a Karachi-based shipping expert, predicted the effects could last for at least four to five years.

&ldquo;We have a golden opportunity to convert this temporary boom into a sustainable business,&rdquo; he told Anadolu.

However, he stressed that success would depend on efficiency and costs.

He noted that the government of Prime Minister Shehbaz Sharif had recently changed several customs-related rules to expedite the transshipments.

The reform, he said, &ldquo;is a good omen for the [country&rsquo;s] shipping industry&rdquo;.]]>
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			<title>CPEC-II to prioritise industry, innovation</title>
			<link>https://tribune.com.pk/story/2600408/cpec-ii-to-prioritise-industry-innovation</link>
			<comments>https://tribune.com.pk/story/2600408/cpec-ii-to-prioritise-industry-innovation#comments</comments>
			<pubDate>Tue, 31 Mar 26 20:05:21 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600408</guid>
			<description>
				<![CDATA[Officials stress Gwadar's rising role, push deeper business and education cooperation]]>
			</description>
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				<![CDATA[Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said on Tuesday that the second phase of the China-Pakistan Economic Corridor (CPEC) would focus on innovation, industrial development and people-to-people connectivity, marking a shift towards broader economic integration.

He said growth corridors, innovation corridors, livelihood corridors and regional development initiatives would form part of CPEC Phase-II. The minister was addressing an annual award ceremony for outstanding Pakistani and Chinese staff working on CPEC projects at the Ministry of Planning, Development and Special Initiatives. Addressing the ceremony, he paid tribute to Pakistani and Chinese professionals, particularly engineers, and described them as central to the execution of CPEC projects. He said the ceremony was not merely a distribution of awards but recognition of their service and dedication.

The minister emphasised the importance of solar energy systems and advanced meteorological systems for Pakistan&#39;s future and highlighted the need for human resource development. He said Pakistani students studying in China should return home and contribute to national progress under development initiatives.

He added that discussions had been held on the China-Pakistan Knowledge Corridor aimed at ensuring access to quality higher education for the younger generation. He reiterated that Pakistan attached importance to its all-weather strategic cooperative partnership with China.

Recalling the early phase of CPEC, the minister said Pakistan had been facing up to 18 hours of load shedding and noted that Chinese investment in the energy sector helped overcome the crisis. He said CPEC had played a significant role in Pakistan&#39;s economic development over the past decade.

&quot;Friends are those who stand by you in times of need,&quot; he said, adding that without CPEC, Pakistan might still have been struggling with severe power shortages. He said agreements signed at the event would give new impetus to ongoing development projects and strengthen bilateral cooperation.

He also highlighted the increasing geo-political importance of Gwadar due to CPEC, noting its growing relevance in regional connectivity and trade. Chinese Ambassador to Pakistan Jiang Zaidong said the year marked the 75th anniversary of diplomatic relations between Pakistan and China and noted that recent high-level visits had resulted in agreements on CPEC projects and broader bilateral cooperation.

He said Deputy Prime Minister Ishaq Dar was visiting China and would meet Chinese Foreign Minister Wang Yi to discuss regional and bilateral matters. The ambassador appreciated steps taken by the Pakistani leadership and reaffirmed China&#39;s commitment to strengthening ties. Separately, Chinese Consul General Sun Yan visited the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Lahore Regional Office to discuss strengthening trade relations. A high-level consultative meeting was held with Pakistan&#39;s business leadership, chaired by FPCCI Regional Chairman and Vice President Zaki Aijaz. Aijaz proposed the establishment of a joint business working group to enhance collaboration and invited Chinese companies to relocate industries to Pakistan&#39;s Special Economic Zones, highlighting tax incentives, duty-free import of machinery and GSP+ status as competitive advantages.

On the occasion of the 75th anniversary of diplomatic relations, both sides emphasised accelerating CPEC 2.0, focusing on industrial development, technology transfer and business-to-business partnerships.

Sun Yan described Pakistan and China as all-weather strategic partners and said CPEC 2.0 was creating opportunities for the private sector, particularly in industry, agricultural modernisation and innovation. He said China&#39;s 15th Five-Year Plan focused on new quality productive forces that would expand bilateral cooperation. He said the Chinese Consulate was facilitating business linkages and that progress was being made with authorities in Beijing regarding business visa facilitation and policy support.

The meeting was attended by business leaders, including Shahzad Ali Malik, Dr Shehla Javed Akram, Nazir Hussain, Mian Sardar Nadeem Bara, Kashif Khokhar and Tariq Mahmood, along with representatives of trade associations and regional chambers. Participants emphasised cooperation in agriculture and the establishment of technical and vocational training centres aligned with industrial needs. At the conclusion of the event, FPCCI leadership presented a commemorative shield to the consul general.]]>
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			<title>Iran war could result in significant economic loss for the Middle East: UNDP</title>
			<link>https://tribune.com.pk/story/2600309/iran-war-could-result-in-significant-economic-loss-for-the-middle-east-undp</link>
			<comments>https://tribune.com.pk/story/2600309/iran-war-could-result-in-significant-economic-loss-for-the-middle-east-undp#comments</comments>
			<pubDate>Tue, 31 Mar 26 10:18:33 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600309</guid>
			<description>
				<![CDATA[Report says economic disruptions may result in up to $194 billion in losses]]>
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				<![CDATA[The United Nations Development Programme (UNDP) warned on Monday that&nbsp;the ongoing war by the United States and Israel&nbsp;against Iran could result in a significant economic setback for the Middle East, with Arab nations potentially losing up to $200 billion in economic growth.

The ongoing conflict has already driven up global energy prices, further straining the global economy. An earlier UN report highlighted that the effective closure of the Strait of Hormuz has contributed to rising food and fertiliser prices. This trend is expected to disproportionately affect poorer nations.

In a report issued today, titled&nbsp;&#39;Military Escalation in the Middle East: Economic and Social Implications for the Arab States region&#39;, the UNDP warned: &quot;At the regional level, GDP is estimated to decline by approximately 3.7-6%, equivalent to a contraction of roughly $120-194b&nbsp;(in constant 2015 USD), with investment contracting more sharply, reflecting heightened uncertainty and reduced capital formation.&quot;

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The report warned&nbsp;that even if the military escalation ended&nbsp;quickly, the socio-economic consequences for the region would be profound. The overall loss could lead to a rise in the regional unemployment rate by as much as four percentage points, resulting in the loss of approximately 3.6 million jobs. Additionally, it was&nbsp;estimated that up to 4m people could be pushed into poverty due to the economic downturn.

Read: After Spain, Italy also refuses airbase access to US military aircraft involved in Iran war

Abdallah Al Dardari, the UN assistant secretary-general leading the UNDP Arab states bureau, described the situation as a &quot;crisis&quot; that was raising alarm bells for countries in the region.

The Gulf Cooperation Council countries and the Levant were expected to be particularly hard hit, with each region projected to lose more than 5.2% of its GDP.

&nbsp;]]>
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			<title>KCCI urges conservation as petrol hits Rs458</title>
			<link>https://tribune.com.pk/story/2600953/kcci-urges-conservation-as-petrol-hits-rs458</link>
			<comments>https://tribune.com.pk/story/2600953/kcci-urges-conservation-as-petrol-hits-rs458#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shazia Tasneem Farooqi]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600953</guid>
			<description>
				<![CDATA[Chamber says global prices have doubled; calls for carpooling, limiting non-essential travel]]>
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				<![CDATA[The Karachi Chamber of Commerce and Industry (KCCI) has called on citizens to adopt responsible fuel consumption habits as petroleum prices continue to rise in line with global market trends.

Sharing his views with The Express Tribune, KCCI President Rehan Hanif emphasised that the latest surge in petrol prices is not an isolated domestic decision but a consequence of increasing international oil rates. With prices in the global market reportedly doubling from around $60 to $120 per barrel, the government has been left with little choice but to pass on the impact to consumers, given the country&#39;s limited economic capacity to absorb such a massive burden.

The chamber noted that ongoing geopolitical tensions and war-like conditions have disrupted global supply chains, affecting not just the countries directly involved but economies worldwide. &quot;These are not normal times; the entire world is facing the ripple effects of the conflict,&quot; he said, adding that inflationary pressures and rising fuel costs are inevitable under such circumstances.

The position of the KCCI reinforces the government&#39;s rationale behind the latest fuel price adjustment, presenting it as a necessary response to extraordinary global circumstances rather than a discretionary policy move. The sharp increase, petrol rising to Rs458.40 per litre and high-speed diesel (HSD) to Rs520.35 per litre effective April 3, 2026, underscores the intensity of pressure stemming from international oil markets, particularly in the wake of the escalating US-Iran conflict.

&quot;The increase in petrol prices is happening globally; the government had to increase them according to international prices. Our economy doesn&#39;t have the capacity for the government to absorb this cost. So, this was bound to increase. Since there is a war, the effects of war aren&#39;t limited only to the two countries fighting; they spread to the region, in fact, the whole world is being affected by this war,&quot; Hanif remarked.

He further highlighted that the government aims to curb fuel consumption to reduce imports and ease pressure on the balance of trade. With global oil prices rising from around $60 to $120, the import bill would otherwise double, so lowering demand can help keep expenditures relatively contained, he added.

Additionally, one way to manage this is by being more mindful of fuel use to avoid unnecessary travel and drive less. Even if you continue spending around Rs10,000 on petrol, you will receive less fuel at higher prices, so reducing usage can help control overall consumption and expenses. By curbing unnecessary usage, the country can prevent a sharp spike in fuel imports despite higher prices.

Urging the public to play an active role, Hanif advised citizens to adopt practical measures such as limiting non-essential travel, using vehicles only when absolutely necessary, and embracing carpooling to reduce overall fuel consumption. He emphasised that even modest individual efforts, when combined, can help cushion the broader economic impact, even if they cannot fully offset inflationary pressures.

KCCI stressed that the current circumstances should be treated as an emergency condition, requiring both government action and public cooperation. It noted that rising fuel prices and inflation are unavoidable in such a global crisis, but mindful and responsible behaviour, particularly avoiding unnecessary fuel use, can help households better manage escalating expenses and contribute to easing national economic strain.

KCCI urged the public to consider it a wartime condition and adopt responsible behaviour, including minimising non-essential travel, reducing fuel usage and practising carpooling. It noted that while such measures may not eliminate inflation, they can help households manage rising expenses.

To a question, Hanif said, &quot;It&#39;s not about solidarity with the government. What can the government even do at this point? When an item&#39;s price jumps unprecedented in the international market, what options does the government have left? So, we also need to be a bit mindful; we should reduce our usage and avoid unnecessary consumption.&quot;

KCCI concluded that the public must recognise these challenges as largely beyond the government&#39;s control and play its part by avoiding wasteful consumption during this period of economic strain.]]>
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			<title>OMCs warn against new OGRA verification rules</title>
			<link>https://tribune.com.pk/story/2600952/omcs-warn-against-new-ogra-verification-rules</link>
			<comments>https://tribune.com.pk/story/2600952/omcs-warn-against-new-ogra-verification-rules#comments</comments>
			<pubDate>Fri, 03 Apr 26 20:39:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600952</guid>
			<description>
				<![CDATA[Industry says rules are impractical, may deepen liquidity crisis and delay reimbursement]]>
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				<![CDATA[Oil marketing companies (OMCs) have raised serious concerns over new verification requirements imposed by the Oil and Gas Regulatory Authority (Ogra) for the release of price differential claims (PDC), warning the move could delay reimbursements and deepen liquidity crisis.

In a recent communication to OMCs, Ogra directed companies to submit scanned copies of sales invoices, duly reconciled and certified by their chief executives or chief financial officers, along with verification from external auditors, according to a statement issued on Friday. The regulator stated the step is aimed at ensuring transparency and expediting the processing of PDC claims. However, industry officials argue the conditions are not aligned with practical business and auditing frameworks.

&quot;External auditors do not certify individual invoices as part of their standard scope of work,&quot; said a senior official at a major OMC. &quot;This requirement is not only impractical but also nearly impossible to implement within a reasonable timeframe.&quot;

The PDC mechanism compensates OMCs for selling petroleum products at government-controlled prices below cost. According to industry estimates, companies have already financed substantial amounts, about Rs205 per litre on diesel and Rs100 per litre on petrol, in recent months.

With reimbursements now linked to extensive documentation and multi-tier verification, companies fear prolonged delays in recovering these funds.

&quot;OMCs are already under severe cash pressure,&quot; said another executive. &quot;We have maintained supply despite heavy financial exposure, but further delays in PDC payments could impact operational sustainability.&quot;

Industry players also pointed out that audit firms are unlikely to undertake invoice-level verification, as it falls outside conventional auditing practices.]]>
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			<title>Leghari links power use rise to policy success</title>
			<link>https://tribune.com.pk/story/2600755/leghari-links-power-use-rise-to-policy-success</link>
			<comments>https://tribune.com.pk/story/2600755/leghari-links-power-use-rise-to-policy-success#comments</comments>
			<pubDate>Thu, 02 Apr 26 19:13:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[APP]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600755</guid>
			<description>
				<![CDATA[Says the government is working to make electricity tariffs competitive to support key economic sectors]]>
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				<![CDATA[Federal Minister for Power Awais Ahmed Khan Leghari, on Thursday, attributed the steady increase in electricity consumption to the success of the government&#39;s energy policies and reform measures, said a press release.

He made the remarks during a meeting with World Bank Country Director Bolormaa Amgaabazar. Leghari said the government is working to make electricity tariffs competitive to support key economic sectors. He informed that after reviewing concessional tariffs for industries, the Power Division is now working on time-of-use proposals aimed at enhancing energy competitiveness. The minister said the government also intends to tap the country&#39;s solar potential.]]>
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			<title>SBP facilitates teenagers to open bank accounts, digital wallets</title>
			<link>https://tribune.com.pk/story/2600560/sbp-facilitates-teenagers-to-operate-bank-accounts-digital-wallets</link>
			<comments>https://tribune.com.pk/story/2600560/sbp-facilitates-teenagers-to-operate-bank-accounts-digital-wallets#comments</comments>
			<pubDate>Wed, 01 Apr 26 17:32:56 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600560</guid>
			<description>
				<![CDATA[Launches new framework to empower youth to save securely and develop responsible financial habits]]>
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				<![CDATA[The State Bank of Pakistan (SBP) said on Wednesday it has launched a new framework for teenagers&rsquo; accounts, enabling them to independently own and operate bank accounts and digital wallets.

In a press release, the SBP outlined the key features of the initiative, emphasising the goal of fostering a financially literate, digitally adept generation. &quot;The framework is designed to empower the country&rsquo;s youth to save securely, transact confidently and develop responsible financial habits,&quot; the SBP stated.

While adult account ownership in Pakistan has surged to 67%, teenagers have traditionally been confined to joint or parent-controlled accounts, limiting their financial engagement and learning. The new framework aims to fill that gap by providing Pakistan&rsquo;s 26 million teenagers, aged 13 to 18, with the tools to save securely, transact confidently, and develop responsible financial habits, the SBP said.

Read More: PSX soars past 155,000 mark as hopes of US-Iran de-escalation lift market

&ldquo;By giving teenagers the ability to independently manage their finances, we&rsquo;re not just preparing them for adulthood, but setting them on a path towards becoming responsible, digitally-savvy financial citizens,&rdquo; it added.



In a move to build a financially savvy young generation, SBP has launched a new framework for teenagers&rsquo; accounts, enabling them to independently own and operate bank accounts and digital wallets. See PR: https://t.co/lOgGG3kxJe pic.twitter.com/bwIgWIcOOf
&mdash; SBP (@StateBank_Pak) April 1, 2026


It further said the initiative aligned with the SBP&#39;s broader financial inclusion strategy and formed a key part of its Strategic Plan for 2023-28. It also supported the National Financial Inclusion Strategy (NFIS) for 2024-28, which prioritised youth inclusion in Pakistan&rsquo;s economic future.

Pakistan&#39;s commitment to youth financial empowerment was recognised internationally last year, with the SBP receiving the AFI Global Youth Financial Inclusion Award.

&quot;The new framework is a continuation of our international efforts to build a financially inclusive society,&quot; the SBP added.

By creating opportunities for teenagers to engage directly with the banking system, the SBP said it was not only enhancing financial literacy but also laying the foundation for a digitally-skilled generation capable of driving future economic growth in Pakistan.]]>
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			<title>PSX slumps over 3% amid rising oil prices</title>
			<link>https://tribune.com.pk/story/2600215/psx-slumps-over-3-amid-rising-oil-prices</link>
			<comments>https://tribune.com.pk/story/2600215/psx-slumps-over-3-amid-rising-oil-prices#comments</comments>
			<pubDate>Mon, 30 Mar 26 20:05:48 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2600215</guid>
			<description>
				<![CDATA[ME tensions continue to fuel losses as KSE-100 sheds 4,865 points]]>
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				<![CDATA[The Pakistan Stock Exchange (PSX) on Monday remained highly volatile, reflecting its vulnerability to regional shocks and domestic macroeconomic uncertainty, and the benchmark index shed over 4,850 points, or 3.2%.

A sense of nervousness prevailed since the morning as investors awaited the outcome of Pakistan&#39;s diplomatic efforts to de-escalate tensions in the Middle East. Market players were jittery over surging global oil prices, which fuelled inflationary pressures.

During the day, the bourse swung between the high of 151,814 and low of 144,657. Heavy selling drove the KSE-100 index to sharply lower levels before midday. Though the index recovered slightly, it closed with a steep loss of 4,864.54 points, or 3.21%, at 146,842.97.

KTrade Securities noted that the KSE-100 extended its losing streak, closing down by 4,865 points, as external pressure kept market sentiment fragile. The bourse faced sustained selling from the outset, with no meaningful recovery attempt, reflecting a clear risk-off environment and weak investor confidence.

Activity remained relatively subdued, with KSE-100 volumes at 308 million shares, signalling lack of strong conviction across the board. Trading interest was concentrated in selective low-priced names, which indicated continued preference for momentum-driven plays over broader participation.

Sector-wise, selling pressure was widespread, where commercial banks, cement and fertiliser firms contributed to the bulk of the decline. Additionally, oil &amp; gas and technology stocks came under pressure amid cautious positioning and global uncertainty.

Looking ahead, market direction remains closely linked to US and Iran-linked developments and their implications for oil prices. Any diplomatic progress could bring down crude prices and offer near-term relief, KTrade said.

&quot;Intense selling pressure gripped the PSX as fears of a prolonged conflict in the Middle East dampened investor sentiment, pushing the index to the intra-day low of 144,657,&quot; JS Global analyst Mubashir Anis Naviwala observed. Although some recovery was seen later, the market remained deeply in the negative territory.

Heavy selling was observed in banking, cement and fertiliser sectors. Overall sentiment remained bearish as investors stayed cautious amid escalating geopolitical risks and global market uncertainty, he added.

Arif Habib Limited (AHL) commented that the KSE-100 saw another large drawdown, falling 3.21% to close below 150,000. Only two shares rose while 97 fell with Fauji Fertiliser Company (-2.95%), Engro Holdings (-3.68%) and Meezan Bank (-3.84%) being the biggest drags on the index.

Among corporate news, the board of directors of Engro approved the buyback of up to 45 million shares, to be conducted between May 7 and October 25, aimed at improving cash flow and providing an exit opportunity for investors wishing to liquidate their holdings. Additionally, the Middle East conflict continued to suppress risk appetite with investors still hesitant to build positions despite some markets trading higher on Monday.

The KSE-100 is now approaching the low hit earlier in the month and without some positive news flow it is in danger of being taken out. AHL advised investors to continue accumulating at depressed levels.

According to Topline Securities, the local bourse felt the heat on Monday as surging oil prices and geopolitical tensions rattled investor confidence. Adding to the unease, investors grew wary of the government&#39;s decision to keep fuel prices unchanged for a second consecutive week, raising concerns of fiscal strain, it noted.

Bears wasted no time to seize control, unleashing aggressive selling across the board. Relentless liquidation pushed the index to the intra-day low of 7,050 points. It finally settled at 146,843, with a sharp drop of 4,865 points (-3.21%).

Heavyweights such as Fauji Fertiliser, Engro Holdings, Meezan Bank, Lucky Cement and United Bank acted as key laggards, dragging the index down by 1,527 points, Topline said.

Overall trading volumes increased to 529.1 million shares compared with the previous tally of 435.5 million. The value of traded shares stood at Rs29.6 billion.

Shares of 481 companies were traded. Of these, 51 closed higher, 379 fell and 51 remained unchanged. K-Electric was the volume leader with trading in 56.5 million shares, down Rs0.31 to close at Rs6.62. Foreign investors sold shares worth Rs426.8 million, the National Clearing Company reported.]]>
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			<title>Pakistan joins sovereign AI initiative</title>
			<link>https://tribune.com.pk/story/2599843/pakistan-joins-sovereign-ai-initiative</link>
			<comments>https://tribune.com.pk/story/2599843/pakistan-joins-sovereign-ai-initiative#comments</comments>
			<pubDate>Sat, 28 Mar 26 20:44:33 +0500</pubDate>
			<dc:creator>
				<![CDATA[News Desk]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2599843</guid>
			<description>
				<![CDATA[White paper frames national control of AI as key to security, governance and economic development]]>
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				<![CDATA[The Pakistani Embassy in China joined the launch of a sovereign artificial intelligence (AI) white paper at the Zhongguancun Forum in Beijing on Friday, alongside partners from China, Brazil, Malaysia, Singapore, Vietnam, Thailand and Kazakhstan.

The document defines sovereign AI as national control over AI systems, data and infrastructure, while calling for cooperation on technology, deployment and governance.

At the launch, Zhipu AI Chief Executive Officer (CEO) Zhang Peng said sovereign AI had become a key national capability linked to security, economic upgrading and influence over global AI governance.

Khan Muhammad Wazir, Tech Affairs Counsellor at the Pakistani Embassy, represented Pakistan at the launch ceremony. Speaking to China Economic Net (CEN) in an exclusive interview after the event, Khan said Pakistan viewed sovereign AI as an important issue for every country and saw the new platform as an opportunity to expand cooperation. &quot;We believe in cooperation, and we believe in becoming part of such alliances and associations,&quot; Wazir said. &quot;Pakistan is part of it.&quot;

He said Pakistan hoped to benefit from cooperation with Chinese companies and partners through the sharing of experience and resources.

Wazir added that broader Pakistan-China cooperation in science and technology was expanding, with a growing role for the private sector alongside government-level engagement. He said collaboration in science and technology, agriculture and education was moving forward well.

Sovereign AI is gaining attention as governments become more concerned about dependence on foreign technology, particularly in areas involving public services, sensitive data and critical infrastructure.

For countries like Pakistan, the issue is not only about security. It also concerns whether AI tools can be adapted to local languages, regulatory needs and development priorities, rather than relying entirely on systems developed elsewhere.]]>
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			<title>Punjab offers Rs50,000 subsidy for cotton</title>
			<link>https://tribune.com.pk/story/2599846/punjab-offers-rs50000-subsidy-for-cotton</link>
			<comments>https://tribune.com.pk/story/2599846/punjab-offers-rs50000-subsidy-for-cotton#comments</comments>
			<pubDate>Sat, 28 Mar 26 20:44:33 +0500</pubDate>
			<dc:creator>
				<![CDATA[APP]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Project aims to expand cotton cultivation and address challenges affecting production in the region]]>
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				<![CDATA[The Punjab government has introduced a subsidy programme for farmers in Bahawalpur to promote cotton cultivation and increase production through model farms and mechanisation support.

According to a spokesperson for the Punjab Agriculture Department, the initiative includes financial incentives for establishing Cotton Model Farms (Hub Farms) and adopting modern agricultural practices. A subsidy of Rs50,000 per model farm will be provided for setting up these farms.

The programme also offers financial assistance of up to Rs25,000 per unit for modern battery-operated spray pumps to support pest control, while a subsidy of up to Rs120,000 per unit will be provided for chisel ploughs to improve land preparation.

The project aims to expand cotton cultivation and address challenges affecting production in the region. The spokesperson said the initiative was part of broader efforts to revive cotton output and improve farm productivity through access to improved machinery and facilities. Farmers interested in availing the subsidies can submit applications until April 10, 2026. Details regarding eligibility criteria, terms and conditions, and application procedures are available on the Punjab Agriculture Department&#39;s website and the Cotton Portal.

For further information, farmers can contact the agricultural helpline at 0800-17000, which operates daily from 8am to 8pm.]]>
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			<title>NGC to roll out new grid model from July</title>
			<link>https://tribune.com.pk/story/2599844/ngc-to-roll-out-new-grid-model-from-july</link>
			<comments>https://tribune.com.pk/story/2599844/ngc-to-roll-out-new-grid-model-from-july#comments</comments>
			<pubDate>Sat, 28 Mar 26 20:44:33 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2599844</guid>
			<description>
				<![CDATA[Reforms target legacy NTDC inefficiencies, with full digital maturity planned by end-2026]]>
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				<![CDATA[The National Grid Company of Pakistan Limited (NGC) will launch a new operating model for the country&#39;s power transmission system from July 1, 2026, as part of a broader restructuring aimed at improving efficiency and reliability.

According to a statement issued by the Ministry of Energy on Saturday, the update was shared during a briefing to Federal Minister for Power Sardar Awais Ahmad Khan Leghari, where NGC officials said the reform initiative, launched in January 2026, was progressing as planned.

The minister reiterated the government&#39;s support for the transformation, describing it as a step toward strengthening the power sector. He noted the company&#39;s focus on efficiency, transparency and accountability, and said such reforms were necessary to modernise the national energy infrastructure. The transformation is being led by Managing Director Engr Altaf Hussain Malik. He said the initiative aimed to develop a future-ready utility aligned with international practices to ensure a more efficient and reliable transmission system.

The reform is designed to address structural issues inherited from the National Transmission and Despatch Company (NTDC), established in 1998. Despite NGC&#39;s evolution into a dedicated transmission service provider, its operational framework remained tied to the earlier model, resulting in inefficiencies and coordination gaps.

The restructuring is based on six pillars, including unified operations leadership to improve project execution, stronger financial management for greater transparency, dedicated regulatory and stakeholder coordination, independent safety oversight, streamlined internal processes and the use of modern digital systems for real-time grid management.]]>
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			<title>K-P boycotts NFC talks</title>
			<link>https://tribune.com.pk/story/2599530/k-p-boycotts-nfc-talks</link>
			<comments>https://tribune.com.pk/story/2599530/k-p-boycotts-nfc-talks#comments</comments>
			<pubDate>Fri, 27 Mar 26 11:08:14 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2599530</guid>
			<description>
				<![CDATA[Refuses talks until 6.1m people from merged districts are considered in new formula]]>
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				<![CDATA[In a first setback, Khyber-Pakhtunkhwa (K-P) on Thursday refused to join National Finance Commission (NFC) deliberations after the other three provinces declined to include the 6.1 million population of the merged districts in any new resource distribution formula.

The K-P government walked out of the NFC sub-group meeting on the merged districts and their share after the three provinces stated that they could not allocate resources for the districts in a new award.

The meeting had been convened by K-P in light of decisions taken during the maiden NFC meeting held in December last year.

K-P Finance Minister Muzzammil Aslam on Thursday briefed the provincial assembly about the development.

When contacted, Aslam said the K-P government was keen to resume deliberations on the 11th NFC and future formula computations, which are essential for the country&#39;s fiscal health. However, he said the process could not move forward unless the three provinces reverted to their earlier commitment to enhance K-P&#39;s share in line with the increased population.

He said he would request NFC Chairman and Finance Minister Muhammad Aurangzeb to convene a meeting of the commission to first resolve the issue.

The K-P government expects its share in the NFC to rise from 14.62% to 18.96% after the merger of the erstwhile Federally Administered Tribal Areas (FATA) in 2018.

During the sub-group meeting, the provinces declined to honour in-principle decisions on increasing the provincial share. The three provinces maintained that any enhancement could be considered in the 12th NFC, a position rejected by the K-P government.

The K-P government argued that non-payment of the merged districts&#39; share meant the other provinces were illegally and unconstitutionally receiving the funds.

It stated that about Rs980 billion had already been diverted to other provinces, which should have been given to K-P after the merger.

Sources said the provincial government had also refused to support any further extension of the existing NFC until the merged districts&#39; share is decided.

With K-P&#39;s refusal, the existing NFC also lacks consensus. Sources said that if the new NFC award is not finalised by June, the K-P government may not agree to extend the current award without first settling the merged districts issue.

It has proposed that, in the interim period, the federal government should provide discretionary grants to compensate the province until consensus is achieved.

To a question, Aslam said the NFC process could not move forward as long as the issue of the merged districts remains unresolved.

The provincial government is of the view that 6.1 million citizens of the newly merged districts remain financially excluded. Despite the extension of district administration, civilian law enforcement, higher judiciary, police, essential services and infrastructure, the absence of financial inclusion continues to hinder development, peace and stability in the region.

As a result, K-P&#39;s share remains stagnant at 14.62% instead of the expected 18.96%, depriving the province of its constitutional rights and preventing the fiscal implementation of the 25th Constitutional Amendment for the 6.1 million citizens, it added.

The provincial government said the share of resources in the divisible pool meant for the development of the newly merged districts has instead been flowing to Punjab and Sindh, harming the spirit of the federation and affecting the operation of Article 160 of the Constitution.

Khyber-Pakhtunkhwa, particularly the merged areas, is once again in the grip of increased terrorist incidents in the wake of the August 2021 regime change in Afghanistan.

The 7th NFC did not allocate any designated funds to FATA, which remained a federally administered territory at the time. The award&#39;s equalisation formula provided higher per capita allocations to Balochistan and recognised the needs of other provinces.

While all four provinces started receiving higher allocations under the 7th NFC, FATA largely continued with its historical level of public expenditure, resulting in lower levels of development.

As per recent regional poverty numbers released by the Planning Commission, the merged districts significantly trail behind the four provinces in both income levels and multidimensional poverty indicators. Using the Household Integrated Economic Survey 2018-2019, the Planning Commission estimated an income poverty incidence rate of 74% in the merged districts.]]>
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