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                        <title>Latest Business News and Business News Headlines | Business</title>
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			<title>IPOs: hunger for corporate paper</title>
			<link>https://tribune.com.pk/story/2609901/ipos-hunger-for-corporate-paper</link>
			<comments>https://tribune.com.pk/story/2609901/ipos-hunger-for-corporate-paper#comments</comments>
			<pubDate>Sun, 24 May 26 20:13:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[AAH Soomro]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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				<![CDATA[Regulators must act on tax reforms, digitisation, enforcement to unlock listings]]>
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				<![CDATA[The record-breaking, Rs5.8 billion and five-second subscription of the Service Long March (SLM) Tyres&#39; 75% share in the IPO highlights the massive pent-up demand for quality corporate paper in Pakistan. Beyond this single success, regulators must aggressively incentivise more listings on the Pakistan Stock Exchange (PSX) to transform a struggling economy into a private sector-led $1 trillion powerhouse.

Key reasons to accelerate PSX listings

Driving documentation and transparency: Listing forces companies to open their financial accounts to intense public scrutiny, strict regulatory compliance and a moral obligation to protect minority shareholders. This transition brings hidden wealth into the formal economy, dismantling the parallel system of fake accounts used by undocumented sole proprietorships to evade legitimate taxes.

Providing unrivalled investor protection: The rigorous process of drafting and vetting an IPO prospectus provides an unmatched level of transparency regarding a company&#39;s financial history, risk factors and capital deployment strategies. Such open disclosure is virtually non-existent in private partnerships or unlisted businesses, giving investors a secure foundation to deploy capital.

Institutionalising professional governance: Listed entities generally transition away from centralised, sponsor-led management toward competent, independent executive boards. By embedding skin-in-the-game mechanisms like employee stock option plans (ESOPs) and performance-linked equity bonuses, public companies build resilient second-tier leadership and robust succession planning &ndash; sharp contrasts to stagnant, incentive-less private &#39;seth&#39; organisations.

Historical precedent of fiscal incentives: A decade ago, tax credits initiated under the finance ministry offered vital fiscal breathing room for capital formation. These policies rewarded companies investing in plants and machinery, slashed corporate tax rates during their first few years on the board, and allowed salaried individual investors to claim tax credits on IPO investments. Reintroducing these exact mechanisms is critical today.

Diverting capital from dead assets to productive sectors: A broader equity market redirects national capital away from non-productive real estate speculation (&#39;dead plots&#39;), fraudulent Ponzi schemes, volatile currencies and risky crypto assets. Funnelling liquidity into progressive, transparent public companies fosters healthy corporate competition, enhances market efficiency and offers investors liquid, easily divestible assets.

Utilising the growth runway of the GEM board: The Growth Enterprise Market (GEM) board serves as a vital nursery for small and medium enterprises (SMEs). It provides a structured, accessible regulatory runway that prepares ambitious teams for eventual migration to the main board once they hit maturity and meet Securities and Exchange Commission of Pakistan (SECP) thresholds, linking corporate profitability directly to economic growth.

Slashing the cost of capital: Public listing builds institutional trust, offering lenders a transparent window into long-term corporate performance. This heightened compliance and verified creditworthiness substantially lower the cost of debt borrowing and equity financing, directly driving capital appreciation for the business.

Cultivating a culture of local innovation: A thriving IPO market inspires a new generation of young entrepreneurs to innovate, build and create local jobs rather than seeking low-paid employment or fleeing the country. Creating a visible path to stock market success secures and retains critical human capital within Pakistan.

Preserving multi-generational businesses: Global trends show that listing a family-owned conglomerate allows original sponsors to smoothly cede control to professional management. This institutionalisation protects solid businesses from failing if the next generation moves abroad or lacks interest, preventing the distressed asset liquidations common in private family handovers.

Broadening market depth to reduce volatility: Diversifying the PSX with fresh listings across technology, healthcare, agriculture and services expands the breadth of the KSE All-Share Index. A larger, multi-sector market naturally dilutes market manipulation, dampens volatility, attracts foreign institutional investors and showcases a resilient, multifaceted national economy.

Critical preconditions for a thriving listing culture

Wishing for an influx of IPOs is futile without establishing fundamental macroeconomic reforms. To effectively double the number of IPOs every two years and unlock sustainable growth for a population of 250 million, the government and regulators must secure the following baseline conditions:

Macroeconomic and policy stability: Ensuring predictable fiscal policies that protect long?term corporate planning. Fiscal reform: slashing prohibitive corporate and super taxes while reinstating direct tax credits for IPO companies and retail subscribers. Capital market digitisation: streamlining the onboarding, compliance and trading infrastructure for tech-savvy investors.

Levelling the playing field: launching aggressive clampdowns on tax evasion, smuggling, corruption and cash-based real estate speculation to strip the undocumented sector of its unfair advantages.

THE WRITER IS AN INDEPENDENT ECONOMIC ANALYST]]>
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			<title>The cost of being formal in Pakistan</title>
			<link>https://tribune.com.pk/story/2609902/the-cost-of-being-formal-in-pakistan</link>
			<comments>https://tribune.com.pk/story/2609902/the-cost-of-being-formal-in-pakistan#comments</comments>
			<pubDate>Sun, 24 May 26 20:13:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[Ahmed Mujtaba Memon]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Formal sector and salaried class pay high taxes because they are visible, while undocumented and big fish remain comfo]]>
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				<![CDATA[I run the kind of business Pakistan says it wants and needs. I produce goods, employ people, file my returns and try to operate formally. Yet the more formal and visible a business becomes, the more the government comes after it. I am told that the IMF programme has stabilised the economy, the fiscal numbers are improving and Pakistan is making progress. But if that is so, why does it feel harder each month to stay afloat?

This is what it feels like to be in the formal economy of Pakistan. Most formal businesses are not asking for favours or subsidies; they want a stable environment in which they can do what they do best.

They want to pay the taxes they legally owe, but do not want arbitrary demands or delayed refunds to finance the state while they scramble for working capital at exorbitant interest rates. They want to grow and employ people, but higher fuel, transport and food costs quickly lead to wage pressure, higher input costs and declining profit margins.

The recent IMF report talks about fiscal discipline, primary surplus, reserve building, energy cost recovery and broadening the tax base. All these things are very important and Pakistan does need stability. But the question is who is paying for this stabilisation and whether the productive economy is being weakened in the process.

As the budget takes shape, the conversation remains fixated on the tax-to-GDP ratio and low tax collection. But Pakistan also has a bigger problem: it taxes the wrong things and the wrong people, not just too little. The poor pay taxes through fuel, utilities, GST and inflation. The formal sector and salaried class pay because they are visible, while the undocumented, big fish and politically protected sectors remain comfortable.

The imbalance is no longer just a feeling. Recent newspaper reports based on FBR data show that salaried individuals paid around Rs550 billion in income tax in FY 2024-25; far more than retailers and exporters combined. The trend appears to be continuing this year, with salaried taxpayers reportedly paying more than Rs315 billion in the first seven months of FY 2025-26. This does not mean that all businesses are undertaxed; many formal businesses, banks, importers and manufacturers pay heavily. But it shows the real problem with our tax system: Pakistan taxes what is visible far more easily than what is powerful, undocumented or politically difficult.

The IMF report itself points to the same imbalance from another angle. Petroleum products carry an effective tax rate of 166%, while agriculture contributes 24.6% of value added but has an effective tax rate of only 0.3%. This is why a simple tax-to-GDP target does not tell the full story. Taxing petrol and salaries is not the same as taxing wealth and income from those who are powerful enough to avoid the system.

When the state delays a refund, it is not just an accounting issue. It is using a business&#39;s working capital. On paper, the business may have a sizeable refund due from FBR, but suppliers, banks, workers and utility companies do not accept &quot;refund receivable from FBR&quot; as payment. A refund delayed by six months is not just a delayed payment. It is an involuntary loan from business to government.

Whether or not Pakistan&#39;s electricity tariffs are among the highest in the world is debatable, but they are certainly high enough to make many businesses uncompetitive. Years of wrong political decisions, capacity payments and sector inefficiencies are now passed to bill-paying consumers and industry in the name of cost recovery. Cost recovery is not reform if system inefficiencies are simply passed on to consumers and industry. A foreign buyer does not care why Pakistani utilities are high. He only compares price, reliability and delivery.

The IMF report also talks about not introducing any new Export Processing Zones and phasing out existing ones. In general, EPZ facilitation is not a freebie; it prevents exporters from first paying taxes and duties that would later have to be refunded &ndash; an expensive proposition under the normal regime. The IMF appears to justify this as &quot;levelling the playing field&quot;. But if the national business environment itself is broken, then removing export-zone facilitation may not create fairness. It may remove one of the few spaces where exporters can operate without their working capital being blocked.

It would be unfair to blame the IMF alone. The IMF did not create our weak tax machinery, circular debt, untaxed real estate, delayed refunds or protected sectors. These are Pakistani failures. But the IMF programme matters because it defines what success is measured by. When success is measured mainly through primary surpluses, revenue targets, reserve accumulation and energy cost recovery, the state naturally chooses the easiest route to meet those targets.

In Pakistan, that easiest route is usually not the fairest route. It means taxing fuel, electricity, salaried income and formal businesses because they are visible, delaying refunds and passing the cost of energy-sector failures to paying consumers and industry because consumers and businesses have less power than the state. This may help the government meet its targets, but it can weaken the businesses expected to invest, hire and export.

The upcoming budget should not be judged by its revenue total but by where that revenue comes from. Pakistan can meet IMF targets and still fail the test of growth. The real question is not whether the state can produce a primary surplus. The real question is whether, when the adjustment is over, enough people will still have the confidence to invest, produce, hire and export.

The writer is a retired civil servant]]>
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			<title>Dar says ‘Pakistan is open for business’ at China investment conference</title>
			<link>https://tribune.com.pk/story/2609807/dar-says-pakistan-is-open-for-business-at-china-investment-conference</link>
			<comments>https://tribune.com.pk/story/2609807/dar-says-pakistan-is-open-for-business-at-china-investment-conference#comments</comments>
			<pubDate>Sun, 24 May 26 05:17:07 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
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				<![CDATA[DPM says over $13b in MoUs and joint ventures have been signed through bilateral B2B engagements]]>
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				<![CDATA[Deputy Prime Minister and Foreign Minister Ishaq Dar said Pakistan was &ldquo;open for business&rdquo; as he addressed the Pakistan-China B2B Investment Conference in Hangzhou, highlighting deepening economic cooperation between Islamabad and Beijing during Prime Minister Shehbaz Sharif&rsquo;s official visit to China.

He arrived in Beijing along with Planning Minister Ahsan Iqbal for a series of high-level political and diplomatic engagements.

Addressing Chinese and Pakistani business leaders at the conference focused on information technology, telecom, battery energy storage systems and agriculture, Dar described the selected sectors as central to Pakistan&rsquo;s &ldquo;economic transformation and industrial modernisation&rdquo;.

&ldquo;Pakistan is open for business. Pakistan is reforming. Pakistan is rising,&rdquo; he added.



Delighted to have arrived in Beijing, China, accompanied by Minister for Planning, Development &amp; Special Initiatives, brother Ahsan Iqbal @betterPakistan.

We were warmly received at Beijing airport by Vice Minister of the International Department of the CPC Central Committee&hellip; pic.twitter.com/yStL12gQTC
&mdash; Ishaq Dar (@MIshaqDar50) May 24, 2026


Dar said more than 500 companies from both countries were participating in the conference, which he described as a reflection of the growing Pakistan-China business partnership.

The deputy prime minister said the government under Prime Minister Shehbaz had pursued a programme focused on economic revival, industrial expansion and sustainable growth, adding that Pakistan had achieved economic stabilisation over the past four years despite external challenges.

He further said the Ministry of Foreign Affairs had &ldquo;fundamentally redefined its role&rdquo; by placing economic diplomacy at the centre of Pakistan&rsquo;s foreign policy. &ldquo;Expanding B2B engagement with China is a powerful example of this new direction,&rdquo; he said.

Highlighting progress in bilateral economic cooperation, Dar said Pakistan and China had organised two business-to-business conferences in China and two in Pakistan.

&ldquo;Cumulatively, more than 300 MoUs and nearly three dozen joint ventures have been signed, with a total value exceeding 13 billion US dollars,&rdquo; he said. &ldquo;And we have obtained nearly 30% conversion rate from MoUs to agreements and contracts.&rdquo;

He said the achievements were &ldquo;not merely statistics&rdquo; but reflected &ldquo;trust, confidence, and shared ambition&rdquo;.

Referring to recent developments in bilateral investment, Dar said the IBI Pakistan Digital Economy Headquarters had been established in Islamabad within eight months of discussions held in Beijing.

&ldquo;Within less than eight months after Chairman Qian&rsquo;s meeting with the prime minister in Beijing, IBI has established and started its operations,&rdquo; he said, adding that the initiative had already resulted in MoUs worth more than $1 billion.



Deputy Prime Minister/ Foreign Minister Senator Mohammad Ishaq Dar @MIshaqDar50 delivered welcome remarks at the Pakistan&ndash;China B2B Investment Conference in Hangzhou, led by Hon&rsquo;ble Prime Minister Muhammad Shehbaz Sharif @CMShehbaz and attended by the Governor of Zhejiang&hellip; pic.twitter.com/Rulyove8p2
&mdash; Ministry of Foreign Affairs - Pakistan (@ForeignOfficePk) May 24, 2026



Dar also highlighted an upcoming joint venture between Pakistan&rsquo;s Servis Group and China&rsquo;s Longstar Group, saying the Chinese company was preparing to establish a billion-dollar company in Pakistan.

&ldquo;These achievements are the result of coordinated efforts across multiple Pakistani institutions under the guidance of the prime minister,&rdquo; he said.

The foreign minister praised Pakistan&rsquo;s Ambassador to China Khalil Hashmi and officials involved in organising the conference for their efforts in coordinating business matchmaking initiatives across Chinese cities and consulates.

Referring to Hashmi receiving the Chinese Government Friendship Award, Dar described it as recognition of the diplomat&rsquo;s &ldquo;invaluable contributions to strengthening Pakistan-China relations&rdquo;.

The deputy prime minister said Pakistan viewed China&rsquo;s economic diplomacy model as an example for its own institutions.

&ldquo;What our Missions in China are doing is economic diplomacy in action,&rdquo; he said, adding that the approach combined engagement, targeted outreach, strategic partnerships and measurable outcomes.

Read: PM Shehbaz arrives in Hangzhou on four-day official visit to China

Marking the 75th anniversary of diplomatic ties between Pakistan and China, Dar said the relationship had &ldquo;stood the test of time, changing global realities, and regional challenges&rdquo;. &ldquo;Our iron brotherhood is growing stronger with each passing year,&rdquo; he said.

He added that traditional government-to-government relations were now being reinforced by expanding business-to-business cooperation.

Quoting a Chinese proverb, Dar said: &ldquo;A journey of a thousand miles begins with a single step.&rdquo; &ldquo;I must say the Chinese economic model of learning by doing, induction, and two years offers lessons for Pakistan. I am glad that we took that first step in Shenzhen two years ago,&rdquo; he said. &ldquo;And now, there is no looking back, only forward and upward.&rdquo;

Meanwhile, PM Shehbaz is scheduled to meet Chinese President Xi Jinping and Premier Li Qiang during his four-day visit from May 23-26.

The prime minister is also expected to attend an event marking 75 years of diplomatic relations between Pakistan and China, meet executives of leading Chinese companies and visit the China Academy of Agricultural Sciences.

The Foreign Office said the visit would add &ldquo;new dimensions&rdquo; to Pakistan-China relations, particularly through enhanced cooperation between Pakistani and Chinese firms under Phase II of the China-Pakistan Economic Corridor (CPEC).

Read More: Shehbaz praises visionary leadership of China&#39;s Xi

Last month, President Asif Ali Zardari also completed a five-day visit to China, during which both countries signed multiple MoUs aimed at strengthening bilateral cooperation in desalination, agricultural technology, and the tea industry. This move is expected to boost investment, technology transfer, and economic ties between the two countries.

Earlier in January, Pakistan and China agreed to align their development strategies and build an upgraded version of the China-Pakistan Economic Corridor, known as CPEC 2.0, during wide-ranging talks in Beijing that also covered political ties, security cooperation and regional and international issues.

As part of their economic engagement, Pakistan and China agreed to develop an upgraded CPEC, a pioneering project of the Belt and Road Initiative.

The two sides said the new phase would focus on the key sectors of industry, agriculture and mining, promote the building and operation of Gwadar Port, ensure the smooth passage of the Karakoram Highway, and enhance Pakistan&rsquo;s capacity for sustainable development.

They also agreed to deepen cooperation in trade and investment, information technology, science and technology, cybersecurity, technical and vocational training and education, and people-to-people and cultural exchanges.

The two sides stated that the year-round opening of the Khunjerab Pass would facilitate two-way trade and further strengthen people-to-people contacts. They also welcomed third-party participation in CPEC cooperation in accordance with the modalities agreed by both countries.]]>
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			<title>Looking beyond preferences scheme</title>
			<link>https://tribune.com.pk/story/2609904/looking-beyond-preferences-scheme</link>
			<comments>https://tribune.com.pk/story/2609904/looking-beyond-preferences-scheme#comments</comments>
			<pubDate>Sun, 24 May 26 20:13:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[DR MANZOOR AHMAD]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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				<![CDATA[Long-term growth is better secured through binding bilateral free trade deals]]>
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				<![CDATA[The summit meeting between President Donald Trump and President Xi Jinping was overshadowed by rising tensions in the Middle East, yet trade issues remained high on the agenda. While the talks produced no major breakthrough on the closure of the Strait of Hormuz or broader geopolitical concerns, there was modest progress on easing bilateral trade tensions.

China agreed to increase purchases of American agricultural products by more than $17 billion annually and confirmed the first tranche of an order for 200 Boeing aircraft. The two sides also agreed to establish separate trade and investment boards to manage economic relations more systematically.

On tariffs, however, the meeting largely preserved the status quo, with China refraining from pressing for immediate reductions and both sides choosing, for now, to avoid further escalation.

These developments are unlikely to restore the pre-crisis global trading order. At best, they may offer temporary relief from the turbulence that has unsettled international markets over the past year. The earlier model of deeply integrated global supply chains is unlikely to return anytime soon, nor is there much prospect of reviving the old multilateral consensus.

A growing sense of mistrust now shapes global trade relations, pushing countries toward diversification rather than dependence on any single economic power. No country is abandoning the American market altogether, as the United States remains the world&#39;s largest source of imports and consumption. However, governments are increasingly seeking additional markets and more reliable partnerships. Long-stalled free trade negotiations have suddenly regained momentum as countries attempt to reduce overdependence on any single market.

India, for example, accelerated negotiations with the European Union, the United Kingdom, the European Free Trade Association, and the UAE, concluding agreements that had remained pending for decades. Brazil and several Latin American countries similarly revived and advanced trade arrangements with the EU after years of delay. These countries recognised that economic pragmatism matters more than ideological alignment.

Pakistan, by contrast, showed limited enthusiasm for pursuing new trade agreements and instead focused on preserving unilateral preferential arrangements such as the GSP Plus regime. It appeared satisfied that the United States had granted it slightly more favourable tariff treatment, or at least kept it broadly aligned with its South Asian peers.

At the same time, Pakistan did not follow the American protectionist path. Instead, it gradually moved toward unilateral tariff liberalisation and greater openness to competition. Policymakers increasingly recognised that long-term competitiveness cannot be built through permanent economic shelter.

They also understood that entering bilateral free trade agreements without first rationalising Pakistan&#39;s own tariff regime would be unwise, as it would effectively subsidise imports from countries already operating at lower tariff levels, limiting the scope for meaningful reciprocal concessions, as happened in the case of China.

Critics of the tariff reforms had warned that lower tariffs would reduce import-related tax revenues and weaken domestic manufacturing. Yet, as the reforms approach their first full year, these concerns have not materialised.

Manufacturing has performed better than several other sectors, including agriculture and services, while import-based tax revenues have continued to grow in double digits despite tariff reductions of more than 20% under the first year of the reform plan. For the first time in decades, customs-related tax expenditures arising from special exemptions for privileged groups have also begun to decline.

While Pakistan can continue reforming its tariff regime over the coming years before pursuing major bilateral agreements, it cannot afford to ignore regional developments. Asia-Pacific economies are steadily deepening integration and actively considering expansion beyond the original 15 members.

A formal accession process now exists for new entrants. Sri Lanka, Bangladesh, and Hong Kong have all expressed interest in joining this bloc. Since Pakistan has already embarked on tariff reform, it should now adopt a more forward-looking strategy and seek to become part of this fast-growing regional framework.

Alongside tariff reform, Pakistan must also look beyond unilateral preference schemes. Many peer economies now recognise that long-term growth is better secured through binding bilateral free trade agreements rather than arrangements subject to unilateral withdrawal or expanding conditionalities.

The Philippines, for example, currently benefits from GSP Plus preferences in the EU. Yet recognising that such schemes are temporary and conditional, it has chosen not to seek an extension beyond 2027 and has instead begun negotiations for a free trade agreement with the EU. Indonesia has similarly concluded an FTA with the EU.

The global economy, therefore, remains in transition rather than collapse. The old order has weakened, but most countries are not choosing between Washington and Beijing. Instead, they are seeking to preserve economic flexibility, diversify partnerships, and protect their own interests in an increasingly fragmented, yet still interconnected, global economy.

The writer currently serves as a WTO Trade Arbitrator and has previously served as Pakistan&#39;s Ambassador to the WTO]]>
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			<title>Poor tax design, not evasion, keeps ratio low</title>
			<link>https://tribune.com.pk/story/2609905/poor-tax-design-not-evasion-keeps-ratio-low</link>
			<comments>https://tribune.com.pk/story/2609905/poor-tax-design-not-evasion-keeps-ratio-low#comments</comments>
			<pubDate>Sun, 24 May 26 20:13:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[Faran Mahmood]]>
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			<category><![CDATA[Business]]></category>
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				<![CDATA[Behavioural fixes like pre-filled returns and ring-fenced funds could boost compliance]]>
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				<![CDATA[Pakistan&#39;s tax-to-GDP ratio has remained around 9% to 10% for several decades now &ndash; a figure that is alarmingly low for a country of its size and potential.

The established explanation for this could be attributed to our culture of celebrating tax evasion, along with a lack of political will for deep structural reforms. But a more accurate diagnosis points towards the overall poor design of our systems.

The compliance process is costly, the human actors are corrupt, and the perceived contract between citizens and the state is broken; resulting in rational actors trying to stay outside the system.

However, the good news is that this is a solvable problem that countries like Estonia, India, the United Kingdom and Australia have been tackling over the past two decades by using behavioural public policy instruments and insights.

Unfortunately, Pakistan continues to head in the opposite direction. Take for example the new proposed income tax return forms launched by the Federal Board of Revenue (FBR) for the year 2026, which will now require additional information from filers, instead of making their job easier.

In contrast, Estonia&#39;s e-Tax system pre-fills income, salary, dividend, pension and other information using third-party data from employers, banks and government databases. The result is a tax return that hardly takes three minutes to complete for most citizens, something which is hailed as a national cultural moment.

Similarly, Pakistan&#39;s tax system has failed to address the core behavioural issues holding back civic compliance for years. This failure becomes glaringly obvious in public debates, where most Pakistanis routinely counter with the argument, &quot;I pay Zakat, so I shouldn&#39;t have to pay income tax&quot; &ndash; a fascinating and deeply ingrained behavioural phenomenon.

At its root, this justification represents a psychological conflict between religious obligation and civic duty, one that is heavily influenced by a lack of institutional trust. Consequently, income tax demands are not seen as a legitimate civic duty, but rather as a form of &quot;double dipping&quot; by the state.

In response, the government should use public messaging that works with religious sentiments rather than fighting them. Partnering with respected religious scholars to clarify that Zakat is a private spiritual duty for poverty relief, while income tax is a collective civic contract for macro-infrastructure development (roads, airports, defence), can behaviourally decouple the two in the public mind.

Similarly, the state could use &quot;ring-fenced tax funds&quot; that allow citizens to opt for a percentage of their income tax to be locked exclusively into a particular sector, say, healthcare or public transport. The state should introduce &quot;citizen budgets&quot; and public digital dashboards showing exactly where tax money goes.

If a new bridge in sector G-8 of Islamabad is given a description saying: &quot;Built using the local income tax collected from the G-8 commercial markaz,&quot; the behavioural link between tax contribution and reward becomes tangible.

In the United Kingdom, HMRC sends behaviourally framed messages like &quot;Nine out of ten people in the UK pay their tax on time&quot; to taxpayers who have failed to pay yet. Furthermore, inspired by the US Internal Revenue Service (IRS), HMRC is launching an enhanced reward scheme for informants of non-compliance with special focus on offshore schemes.

Meanwhile, research conducted by Australia&#39;s tax authorities revealed that the first communication a new taxpayer receives affects their long-run compliance behaviour. Those who received clear, friendly explanations of tax obligations complied at higher rates than those who got notices of penalties. Taking a leaf out of this playbook, the FBR should start sending a welcome kit to new tax registrants, especially young, first-time job holders.

At the same time, Pakistan should seriously consider adopting faceless audit assessments on the lines of what India does. Cases are randomly allocated by algorithm, both parties remain anonymous, and reviewing officers are in a different jurisdiction to prevent local influence. Additionally, the FBR could have mandatory video hearings for disputes above a threshold. This preserves the anti-corruption benefits while ensuring substantive engagement where it matters.

In a nutshell, fixing Pakistan&#39;s tax-to-GDP ratio is not merely a matter of rewriting tax codes or weaponising an archaic system, but rather the system needs to change its lens from blind enforcement to behavioural engineering. Until the state makes compliance cheaper, automated and psychologically rewarding, rational citizens will continue to choose the shadows.

THE WRITER IS A CAMBRIDGE GRADUATE AND WORKS AS A STRATEGY CONSULTANT]]>
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			<title>PSX gains 2,248 points in mixed week</title>
			<link>https://tribune.com.pk/story/2609738/psx-gains-2248-points-in-mixed-week</link>
			<comments>https://tribune.com.pk/story/2609738/psx-gains-2248-points-in-mixed-week#comments</comments>
			<pubDate>Sat, 23 May 26 20:10:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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				<![CDATA[KSE-100 index advances on diplomatic optimism, strong IPO demand]]>
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				<![CDATA[Pakistan Stock Exchange (PSX) extended gains during the outgoing week, when the benchmark KSE-100 index rose over 2,248 points amid easing geopolitical concerns linked to expected progress in US-Iran negotiations and improving investor confidence.

On a day-on-day basis, the bourse commenced the week with a plunge of nearly 3,800 points, triggered by stalled US-Iran peace negotiations, which pushed crude prices above $110.91 per barrel. On Tuesday, the index oscillated between the intra-day high of 164,309.65 and the low of 162,563.58. At close, it posted a handsome rise of 1,091.66 points, or 0.67%, to settle at 162,896.68.

On Wednesday, the PSX witnessed a stable session, closing at 164,831, up 1,935 points (+1.19%). The market remained robust on Thursday, where the index closed at 168,514, up 3,683 points (+2.23%). It ended the week with a mixed session as the KSE-100 settled at 167,844, down 670 points (-0.40%).

Arif Habib Limited (AHL), in its weekly report, noted that the KSE-100 index rose during the outgoing week, driven by improved geopolitical sentiment on expectations of progress in US-Iran talks, supported by Pakistan&#39;s role in facilitating backchannel diplomacy. It eased concerns over potential oil supply disruptions and supported equity market performance, with the index closing at 167,844, up 1.36% week-on-week (+2,248 points).

&nbsp;



AHL mentioned that the initial public offering of Service Long March Tyres created history at the PSX, which attracted Rs70 billion investment with a record 16.7x oversubscription, reflecting exceptional market demand. Among key economic data, auto financing showed a strong recovery, increasing 36.6% year-on-year to Rs360 billion in Apr&#39;26 and rising 4.1% month-on-month, supported by improving consumer sentiment.

During the week, the government exceeded the Pakistan Investment Bond (PIB) auction target, raising Rs652 billion against expectation of Rs350 billion, with strong participation and major allocation in the 15-year PIB. Pakistan posted a current account deficit of $252 million in 10MFY26 versus a surplus of $1,662 million in the same period of last year, while Apr&#39;26 recorded a deficit of $324 million compared to a surplus of $1,134 million in Mar&#39;26. Oil and gas production declined, with gas output falling 3.2% WoW to 3,028 million cubic feet per day and oil production dropping 1.9% WoW to 70,215 barrels per day due to lower field output. Power generation fell 10% YoY to 9,499 gigawatt hours in Apr&#39;26, while DISCOs requested a fuel cost adjustment of Rs1.72/kWh amid higher fuel-based generation. Meanwhile, foreign exchange reserves surged, reaching $17.1 billion from $15.9 billion, led by a $1.2 billion spike in State Bank reserves, with import cover growing to 2.7 months, AHL said.

Syed Danyal Hussain of JS Global commented that the KSE-100 increased 1.4% (+2,248 points) during the week amid improved investor sentiment driven by prospects of easing geopolitical tensions. Brent crude prices dipped to $103/barrel (-6% WoW). On the macroeconomic front, Pakistan&#39;s current account reverted to a deficit of $324 million in Apr&#39;26, primarily due to a widening trade gap, led by higher energy imports, taking the cumulative 10MFY26 deficit to $252 million.

Meanwhile, the country&#39;s trade deficit exceeded $4 billion in Apr&#39;26, marking the highest monthly deficit in 46 months, as imports increased 7% YoY and the oil import bill hit a 44-month high. Consequently, the cumulative trade gap widened to $32 billion, up 20% during 10MFY26. In parallel, the IMF concluded its visit following constructive discussions with Pakistani authorities, while the government reaffirmed its commitment to achieving a primary surplus target of 2% of GDP in FY27. Separately, the Real Effective Exchange Rate rose to a seven-year high of 105.8 in Apr&#39;26. In the latest T-bill auction, the government raised Rs702 billion against the target of Rs450 billion, while yields increased 9 to 86 basis points across different tenors, Hussain said.]]>
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			<title>'Budget relief limited by IMF commitments'</title>
			<link>https://tribune.com.pk/story/2609739/budget-relief-limited-by-imf-commitments</link>
			<comments>https://tribune.com.pk/story/2609739/budget-relief-limited-by-imf-commitments#comments</comments>
			<pubDate>Sat, 23 May 26 20:10:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609739</guid>
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				<![CDATA[Minister says PIA privatisation completed, three power distribution companies next]]>
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				<![CDATA[Minister of State for Finance Bilal Azhar Kayani has said the government intends to reduce the tax burden on the salaried class in the upcoming budget, but limited fiscal space under the International Monetary Fund (IMF) programme restricts major relief, according to a statement issued on Saturday.

Speaking at a pre?budget seminar at the Rawalpindi Chamber of Commerce and Industry (RCCI), Kayani said the budget is expected in the first week of June. He assured zero tolerance for harassment by tax authorities.

Over the past two years, the government has achieved economic stability through fiscal discipline, improving foreign exchange reserves and restoring confidence among international financial institutions. Despite regional conflicts, the rupee remained stable and Pakistan did not face fuel shortages, he added.

Kayani said increasing exports and strengthening the economy are top priorities so that Pakistan can eventually move away from dependence on IMF programmes. Special measures are being introduced for small and medium enterprises, and the utilisation period for imported goods by small exporters has been extended to 18 months.

On privatisation, the minister said the process is progressing rapidly. The privatisation of Pakistan International Airlines (PIA) has been completed, and three power distribution companies are currently being privatised.]]>
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			<title>Pakistan honoured at Drone Congress</title>
			<link>https://tribune.com.pk/story/2609606/pakistan-honoured-at-drone-congress</link>
			<comments>https://tribune.com.pk/story/2609606/pakistan-honoured-at-drone-congress#comments</comments>
			<pubDate>Fri, 22 May 26 20:10:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609606</guid>
			<description>
				<![CDATA[PVARA chairman says blockchain integration with drone tech can boost logistics, transparency]]>
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				<![CDATA[Pakistan was designated as the Country of Honour at the 10th anniversary of the World Drone Congress in Shenzhen, where Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA) Bilal Bin Saqib represented the country, according to a statement issued on Friday.

The Congress is regarded as one of the world&#39;s leading platforms for drone technology, autonomous systems, UAV innovation, and the low?altitude economy, bringing together participants from more than 120 countries.

Addressing global delegates, Saqib highlighted the transformative impact of drone technology integrated with digitalisation and blockchain across logistics, supply chain management, smart cities and emergency response systems. He noted that blockchain integration can significantly enhance safety, transparency and operational efficiency of drone ecosystems while strengthening trust and compliance across industries.

Saqib emphasised that Pakistan is actively advancing its digital economy and developing a forward?looking virtual assets regulatory framework designed to support innovation and emerging technologies. He said the integration of blockchain with drone technologies presents significant opportunities for cross?border collaboration and scalable global models for autonomous systems.

He expressed hope that the Congress would deepen international cooperation in drone technology and digital assets, accelerate technological innovation and regulatory harmonisation, and contribute to sustainable industrial growth and global digital transformation. The deep integration of drones and blockchain technology has the potential to become a major driving force behind the next wave of global industrial innovation and digitalisation, he added.]]>
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			<title>PSX jumps over 3,680 points as oil prices retreat</title>
			<link>https://tribune.com.pk/story/2609312/psx-surges-over-3000-points-in-early-trading</link>
			<comments>https://tribune.com.pk/story/2609312/psx-surges-over-3000-points-in-early-trading#comments</comments>
			<pubDate>Thu, 21 May 26 07:59:53 +0500</pubDate>
			<dc:creator>
				<![CDATA[​ Our Correspondents]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609312</guid>
			<description>
				<![CDATA[Broad-based rally lifts KSE-100 to 168,514 amid US-Iran hopes]]>
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				<![CDATA[The KSE-100 Index witnessed a strong relief rally on Thursday, climbing over 3,680 points to close above 168,500 as positive global cues and easing oil prices boosted investor sentiment across the board.

The KSE-100 Index closed at 168,514 points, advancing 3,683 points (+2.23% DoD) in a broad-based relief rally as sentiment improved sharply across the board. &quot;Trading activity also picked up versus recent sessions, with 270 million shares traded in the KSE-100 universe, signalling healthier participation after several muted days, although volumes still remain below phases of full risk-on momentum,&quot; said Ahmed Sheraz of KASB KTrade.

Sector-wise, gains were widespread with commercial banks, fertilisers, cement, E&amp;Ps and power names driving the move, supported by strength in stocks including UBL, FFBL, FCCL, HUBC, HBL, ENGROH, PPL, OGDC and NBP. Volume leaders included BOP (29m&nbsp;shares), KEL (26m) and TRG (17m), reflecting renewed appetite in selective high-beta counters.

On the macro front, sentiment received support from the sharp pullback in global oil prices, with crude retreating toward US$105/bbl after reports that a draft understanding between the US and Iran could be circulated within the next 24&ndash;48 hours, raising expectations of easing regional tensions and improved supply outlook.

Pakistan&rsquo;s diplomatic engagement aimed at facilitating dialogue also remained in focus. Meanwhile, positive cues from Asian and US equity markets added to local risk appetite.

Looking ahead, the market remains headline-driven, with near-term direction likely to depend on developments surrounding US-Iran negotiations, Strait of Hormuz dynamics, oil price trajectory, and follow-through in foreign and local risk sentiment. Continued easing in energy markets could remain supportive, but volatility tied to geopolitical headlines is expected to persist.]]>
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			<title>Govt approves sale of 30% PNSC shares</title>
			<link>https://tribune.com.pk/story/2609067/govt-approves-sale-of-30-pnsc-shares</link>
			<comments>https://tribune.com.pk/story/2609067/govt-approves-sale-of-30-pnsc-shares#comments</comments>
			<pubDate>Tue, 19 May 26 22:11:43 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609067</guid>
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				<![CDATA[NLC will buy shipping company's stake along with management control]]>
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				<![CDATA[The government announced on Tuesday that it had given in-principle approval for selling 30% shares of Pakistan National Shipping Corporation (PNSC) to National Logistics Corporation (NLC) along with management control, kicking off the process to meet formalities.

It also announced a technical supplementary grant &quot;amounting to Rs160 million for repair and maintenance of the Prime Minister&#39;s Office during fiscal year 2025-26&quot;. The Economic Coordination Committee (ECC) of the cabinet &quot;granted in-principle approval for restructuring of Pakistan National Shipping Corporation through sale of 30% shareholding and transfer of management control to National Logistics Corporation&quot;, said a press statement issued by the Ministry of Finance.

The finance ministry said that the Ministry of Maritime Affairs had submitted a summary for selling PNSC shares to NLC. &quot;The ECC directed the concerned authorities to expedite the process in view of tapping the emerging maritime and transshipment opportunities,&quot; it said.

The government had earlier established a task force on maritime affairs, which recommended the handing over of PNSC to NLC. PNSC is a state-owned entity that controls sea transportation lines while NLC runs trucking business and transports goods across the country. After the ECC&#39;s green light, the sale price will be determined in addition to meeting other formalities to transfer management control to NLC from the Ministry of Maritime Affairs.

Finance Minister Muhammad Aurangzeb chaired the ECC meeting, which also approved over Rs8.6 billion worth of supplementary grants, days before the end of the current financial year.

The ECC approved two summaries submitted by the Ministry of Interior including a supplementary grant amounting to Rs160 million for the repair and maintenance of the Prime Minister&#39;s Office during FY 2025-26, said the finance ministry.

The committee was informed that following the winding up of Pakistan Public Works Department (Pak PWD), maintenance responsibilities for the Prime Minister&#39;s Office had been transferred to the Capital Development Authority (CDA).

It also allocated Rs480 million for recurring operational requirements of the Frontier Corps KP (North) Hospital at Shakas, Khyber District. The ECC noted that the approved allocation for the FC Hospital would support uninterrupted provision of healthcare and operational services to the FC personnel, families of martyrs and injured soldiers.

Owing to a revenue shortfall in the current fiscal year, the IMF had imposed a prior condition to show savings in the budget to minimise the revenue impact. To meet the condition, Finance Secretary Imdad Ullah Bosal issued a decree to give effect to savings of Rs136 billion from the budget and to place it before the National Assembly along with FY27 budget.

The IMF had also imposed another prior action, whereby it was made mandatory for the FBR to collect Rs322 billion against court cases to minimise the revenue shortfall. The IMF said that the FBR collected Rs327.7 billion from the disputed taxpayer obligations, meeting the target of Rs322 billion. It said that most of this collection, or Rs318.4 billion, was based on a recent court ruling that confirmed the legality of super tax. The ECC approved Rs3.9 billion in supplementary grant for the Prime Minister&#39;s Youth Skill Development Programme and the establishment of Danish Schools in Azad Jammu &amp; Kashmir, Gilgit-Baltistan and Balochistan. Except for the Islamabad Capital Territory and special areas, education is the responsibility of the provincial governments.

The ECC considered and approved a summary submitted by the Ministry of National Health Services for a supplementary grant of Rs1.5 billion for the Prime Minister&#39;s National Health Programme.

The committee approved a summary submitted by the Ministry of Kashmir Affairs regarding enhancement of monthly subsistence allowance for the Jammu &amp; Kashmir refugees of 1989 from Rs3,500 to Rs6,000 per person with effect from February 1, 2026. It approved an allocation of Rs578.9 million for the period ending June 30, 2026. The committee directed the concerned ministry to take up future budgetary requirements with the Finance Division.

The ECC considered a summary submitted by the Ministry of Railways regarding allocation of an additional grant for payment of outstanding liabilities under the Prime Minister&#39;s Assistance Package. After detailed deliberations, it approved Rs1 billion for the assistance package.

The committee directed the Railways Division to undertake a broader review of pension liabilities. The ECC also directed the Establishment Division to review the overall policy framework relating to the Prime Minister&#39;s Assistance Package.

The committee approved a summary submitted by the Ministry of National Food Security for the allocation of Rs1 billion through a supplementary grant for operationalising the National Agri-Trade and Food Safety Authority. The authority has been established to strengthen regulatory oversight pertaining to food safety, plant health, livestock and agro-chemicals in line with international standards and trade requirements.

The ECC gave its nod to the National Policy to Realise Pakistan&#39;s Gemstone Potential 2026-2030, submitted by the Industries and Production Division. The policy aims to formalise the gemstone sector, promote value addition and modern mining practices, and enhance exports and regional economic development, particularly in Gilgit-Baltistan, Khyber-Pakhtunkhwa and Azad Jammu &amp; Kashmir.]]>
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			<title>Gold declines further in local, global markets</title>
			<link>https://tribune.com.pk/story/2608449/gold-slips-in-global-market-local-prices-fall-by-rs600-per-tola</link>
			<comments>https://tribune.com.pk/story/2608449/gold-slips-in-global-market-local-prices-fall-by-rs600-per-tola#comments</comments>
			<pubDate>Sat, 16 May 26 08:35:37 +0500</pubDate>
			<dc:creator>
				<![CDATA[Ehtesham Mufti]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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				<![CDATA[Price of gold falls by $6 per ounce to $4,539]]>
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				<![CDATA[Gold and silver prices declined in both international and domestic markets on Saturday. In the international bullion market, the price of gold fell by $6 per ounce to $4,539.

According to the All-Pakistan Gems and Jewellers Sarafa Association, in the local market, the price of gold per tola decreased by Rs600 to Rs476,262. The price of 10 grams of gold also declined by Rs515 to Rs408,317.

Meanwhile, silver prices also recorded a sharp decrease in the domestic market. The price of silver per tola dropped by Rs159 to Rs8,073, while the rate for 10 grams of silver fell by Rs136 to Rs6,921.

Read: Gold per tola falls by Rs15,500 as global prices decline

A day earlier, gold prices recorded a sharp decline in global and domestic markets. In the international bullion market, the price of gold per ounce fell by $155, bringing it to $4,545 per ounce.

According to the All-Pakistan Gems and Jewellers Sarafa Association, in the local market, the price of gold per tola decreased by Rs15,500 to Rs476,862. Similarly, the price of 10 grams of gold fell by Rs13,289 to Rs408,832.

Meanwhile, silver prices also declined in the country. The price of per tola silver dropped by Rs972 to Rs8,232, while the price of 10 grams of silver fell by Rs833 to Rs7,057.

On Thursday, gold prices in Pakistan edged higher, tracking slight gains in the international market, where bullion remained broadly steady as investors weighed developments in the US-Israel conflict with Iran and signals from high-level diplomatic engagements between the United States and China.

Read more: SBP forex reserves increase $17m

In the local market, the price of gold per tola rose by Rs1,000 to settle at Rs492,362, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10-gram gold increased by Rs858 to Rs422,121.

On Wednesday, gold had closed at Rs491,362 per tola after declining by Rs1,100, reflecting continued volatility in the domestic bullion market in line with shifting global cues. In the international market, spot gold was little changed at $4,689.99 per ounce at 1043 am EDT (1443 GMT), while the US gold futures for June delivery slipped 0.2% to $4,695.80.

The US dollar index edged up 0.2%, making dollar-denominated bullion relatively more expensive for holders of other currencies and slightly capping the upside momentum.]]>
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			<title>Tariff protection hurts consumers</title>
			<link>https://tribune.com.pk/story/2609906/tariff-protection-hurts-consumers</link>
			<comments>https://tribune.com.pk/story/2609906/tariff-protection-hurts-consumers#comments</comments>
			<pubDate>Sun, 24 May 26 20:13:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[Aadil Nakhoda]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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				<![CDATA[Open competition forces firms to invest in productivity and innovation, not rent-seeking]]>
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				<![CDATA[As the announcement of the budget for the upcoming fiscal year, FY27, draws near, lobbies and special interest groups representing their respective industries and trade associations make a push for favourable fiscal policies to policymakers.

Although the main focus is to lower taxes, which is indeed a valid contention, and increase subsidies and handouts in return for a promise of higher industrial growth, many industry representatives wary of competition from imported goods also lobby for higher customs duties, regulatory duties and other forms of internal taxes on imports to increase the price of competing imported goods.

The higher the price of imported goods, the lower the quantity demanded and consequently lower the competition for local producers in the domestic market. Therefore, analysis on the performance of key industries and the impact of government policies becomes increasingly common as the new budget approaches.

The auto industry, which struggled during the recent economic downturn in Pakistan, has reported significant growth in 2026. The advent of new cars, such as electric vehicles, and new variants of SUVs, crossovers and hybrids have provided major impetus for the auto industry. Total sales are likely to reach 300,000 in this fiscal year, which is reportedly the highest volume of sales since 2018.

However, the composition of carmakers in the market has significantly changed since then. In 2018, the three Japanese automakers dominated the Pakistani automobile market, contributing to more than 80% of total sales. This has changed in recent years as Chinese and Korean carmakers have penetrated the domestic market.

With the new auto policy set to be implemented at the start of the next fiscal year, the sales of cars in Pakistan are not only likely to rise, but the composition is likely to further tilt towards the Chinese carmakers as their capabilities and efficiency in manufacturing electric vehicles will give them a clear advantage over their counterparts.

Consumer preferences regarding better quality, modern designs and competitive pricing are taking precedence, as they should. Consumers today have greater choice of varieties available in the market than they did a decade ago. Hence, the recovery in the auto industry is accompanied by greater dynamism in the market as new manufacturers are increasingly capturing a larger share.

However, even though sales in the auto industry are recovering from the slump of recent years, car ownership, at 11 per 1,000, is dismal. It is more than 22 per 1,000 in India and 173 per 1,000 in China. India had an average of more than 4.5 million cars sold in recent years, with Maruti reporting more than 180,000 sales in April 2026. Similarly, Indonesia, with a population slightly higher than that in Pakistan, had an average of more than 1 million cars sold in recent years.

The low sales and the low per capita car ownership rates in Pakistan are worsened by high inflation and taxes, a weak currency and restrictive import policies via high import duties. This results in uncompetitive prices of products, both finished and unfinished goods, across the supply chains in the industry.

The National Tariff Commission introduced the National Tariff Policy 2025-2030 which is set to transform the tariff structure on imports in Pakistan. It aims to liberalise the imports of several products by capping customs duties at 15% and eliminating the complex web of regulatory duties and additional duties. These are often imposed via statutory regulatory orders, which create significant distortions in the domestic market.

Policymakers also plan to phase out high surcharges on imported used cars, while increasing the sales of electric vehicles. The market composition of the auto industry is likely to evolve with the new policies. However, unfortunately, the increased competition and the availability of new cars threaten the sales and viability of traditional manufacturers, hence their resistance to change by pushing to keep the status quo.

It is often promulgated by those favouring tariff protection that lower tariffs do not necessarily increase exports. However, higher tariff rates are not only a tax on exports as they create anti-export bias, but they also tend to artificially inflate prices of otherwise cheaper imports that could benefit the economy vis-a-vis higher consumer welfare.

Imports allow firms to discover the most effective prices in global markets, especially if the goods are imported from more competitive markets that are major suppliers to the world market. Therefore, as highlighted by Nobel laureates Philippe Aghion and Peter Howitt, imports can drive much-needed competition within an industry. This fosters innovation, compelling firms to make productivity-enhancing investments rather than relying on rent-seeking lobbying to guarantee their profit margins.

Further, cheaper imports are not necessarily driving the balance-of-payments deficit; it is rather the over-dependence on imported fuel and the volatility in its prices, making it even more important for this transition towards electric vehicles and more fuel-efficient cars.

Lastly, the increased import competition in the market creates a &#39;selection effect&#39;, which boosts aggregate performance in the industry. It not only lowers prices in the industry but forces the least productive firms &ndash; which often pay the lowest wages and struggle to make profits &ndash; out of the industry.

A more dynamic industry that is open to competition, where the least performing firms are replaced by better performing counterparts, improves national welfare. This allows new innovative products to be added and old redundant products to be dropped.

Average productivity levels increase as firms become more competitive and more innovative with newer products that are more efficiently produced and more beneficial to consumers. This also leads to higher wages in industries as better performing firms offer higher wages to their workers. The share in capital investments by more productive firms also increases, leading to higher overall returns in the industry. Thus, it is imperative to bring about this dynamism in the business sector driven by more openness towards competition.

The focus should now shift towards implementing complementary reforms that improve the business environment, allowing both the easier entry of productive firms and exit of redundant firms, rather than neutralising the efforts of policymakers introducing more dynamism and innovation in the economy via the national tariff policy.

For instance, investments in improving human capital and the quality of research and development by ensuring better skill-based training will not only be a boon for industries but also ensure a more adaptable workforce to the changing business environment across industries.

THE WRITER IS AN ASSISTANT PROFESSOR OF ECONOMICS AND RESEARCH FELLOW AT CBER, IBA]]>
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			<title>SMEDA, FPCCI discuss MSME development</title>
			<link>https://tribune.com.pk/story/2609736/smeda-fpcci-discuss-msme-development</link>
			<comments>https://tribune.com.pk/story/2609736/smeda-fpcci-discuss-msme-development#comments</comments>
			<pubDate>Sat, 23 May 26 20:10:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609736</guid>
			<description>
				<![CDATA[Zaki Ijaz cites limited finance, high costs and regulatory hurdles as key challenges]]>
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				<![CDATA[Small and Medium Enterprises Development Authority (SMEDA) CEO Nadia Jahangir Seth has said the authority is working to create an enabling ecosystem for micro, small and medium enterprises (MSMEs) to grow and contribute more effectively to the national economy, according to a statement issued on Saturday.

Speaking during a visit by a SMEDA delegation to the regional office of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Lahore, Seth highlighted the vision of Prime Minister Shehbaz Sharif to boost economic growth through SME development. She said SMEDA has undertaken strategic initiatives aimed at unlocking the potential of MSMEs across the country.

&quot;SMEs are the backbone of Pakistan&#39;s economy and hold tremendous potential for job creation, innovation and export growth. SMEDA is fully committed to equipping them with the tools, opportunities and policy support needed to thrive in an increasingly competitive environment,&quot; she stated.

The CEO highlighted key interventions including dedicated initiatives for women entrepreneurs, SME registration and formalisation, export promotion support and improved facilitation services. She noted that special measures had also been introduced to help ease financial constraints and improve access to economic opportunities.

FPCCI Regional Chairman and Vice President Zaki Ijaz said MSMEs are globally recognised as a key driver of economic growth. He noted that Pakistan&#39;s SME sector continues to play a vital role despite facing structural challenges, including limited access to finance, rising cost of doing business, complicated regulatory procedures, technological adaptation barriers and export?related constraints. &quot;Pakistan&#39;s sustainable economic progress depends on a strong and resilient SME sector. Strengthening SMEs is essential for enhancing productivity, creating jobs and improving the country&#39;s export competitiveness,&quot; he remarked.

Ijaz also noted that Seth had been conferred the Tamgha?e?Imtiaz by the government in recognition of her services in SME development, public policy and women entrepreneurship promotion. SMEDA and FPCCI reaffirmed their commitment to pursuing collaborative initiatives aimed at strengthening MSMEs and enhancing their contribution to Pakistan&#39;s economic growth. Senior officers of SMEDA accompanied the CEO during the visit.]]>
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			<title>'Budget relief limited by IMF commitments'</title>
			<link>https://tribune.com.pk/story/2609739/budget-relief-limited-by-imf-commitments</link>
			<comments>https://tribune.com.pk/story/2609739/budget-relief-limited-by-imf-commitments#comments</comments>
			<pubDate>Sat, 23 May 26 20:10:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609739</guid>
			<description>
				<![CDATA[Minister says PIA privatisation completed, three power distribution companies next]]>
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				<![CDATA[Minister of State for Finance Bilal Azhar Kayani has said the government intends to reduce the tax burden on the salaried class in the upcoming budget, but limited fiscal space under the International Monetary Fund (IMF) programme restricts major relief, according to a statement issued on Saturday.

Speaking at a pre?budget seminar at the Rawalpindi Chamber of Commerce and Industry (RCCI), Kayani said the budget is expected in the first week of June. He assured zero tolerance for harassment by tax authorities.

Over the past two years, the government has achieved economic stability through fiscal discipline, improving foreign exchange reserves and restoring confidence among international financial institutions. Despite regional conflicts, the rupee remained stable and Pakistan did not face fuel shortages, he added.

Kayani said increasing exports and strengthening the economy are top priorities so that Pakistan can eventually move away from dependence on IMF programmes. Special measures are being introduced for small and medium enterprises, and the utilisation period for imported goods by small exporters has been extended to 18 months.

On privatisation, the minister said the process is progressing rapidly. The privatisation of Pakistan International Airlines (PIA) has been completed, and three power distribution companies are currently being privatised.]]>
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			<title>IMC to invest $335m over five years</title>
			<link>https://tribune.com.pk/story/2609737/imc-to-invest-335m-over-five-years</link>
			<comments>https://tribune.com.pk/story/2609737/imc-to-invest-335m-over-five-years#comments</comments>
			<pubDate>Sat, 23 May 26 20:10:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609737</guid>
			<description>
				<![CDATA[CEO highlights localisation-led growth of auto sector]]>
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				<![CDATA[Indus Motor Company (IMC) Chief Executive Ali Asghar Jamali has said that Toyota has made a direct investment in Pakistan of $736 million in the past 35 years, and the company has planned to further invest $335 million over the next five years.

These investments will make IMC the first automotive company in Pakistan to invest more than $1 billion in the automotive industry.

&quot;The company has also contributed approximately $6.3 billion in taxes to the national exchequer over the past three and a half decades, accounting for around 1% of total government tax collection annually,&quot; said Jamali while speaking at a ceremony to celebrate Toyota&#39;s 35 years in Pakistan, held at its manufacturing plant at Port Qasim.

He added that today IMC&#39;s extensive network of dealers and suppliers supports more than 55,000 jobs across its value chain, where local parts makers supply over Rs210 million worth of parts every working day to support the production of Toyota vehicles for Pakistan. The company&#39;s &quot;Make-in-Pakistan&quot; expedition has protected the outflow of $6.5 billion in import bill through localisation and import substitution.

Indus Motor was incorporated in 1989 as a joint venture between the House of Habib, Toyota Tsusho Corporation, and Toyota Motor Corporation, and is the manufacturer and assembler of Toyota vehicles, parts, and accessories in Pakistan.

&quot;We are celebrating a legacy of manufacturing excellence, localisation, and sustained contribution to the country&#39;s automotive industry, with over 1.2 million vehicles sold nationwide since the start of operations.

&quot;Nearly three and a half decades ago, the first Toyota Corolla was rolled out, which today stands at IMC&#39;s headquarters. From an initial annual manufacturing capacity of 5,000 vehicles to 76,000 vehicles per year today, IMC has grown significantly over the past 35 years,&quot; Jamali said.]]>
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			<title>MoU inked with Changfa Group for agri-machinery</title>
			<link>https://tribune.com.pk/story/2609734/mou-inked-with-changfa-group-for-agri-machinery</link>
			<comments>https://tribune.com.pk/story/2609734/mou-inked-with-changfa-group-for-agri-machinery#comments</comments>
			<pubDate>Sat, 23 May 26 20:10:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609734</guid>
			<description>
				<![CDATA[Delegation tour StarCharge Group, a global leader in EV charging and smart energy technology in more than 60 countries]]>
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				<![CDATA[Special Assistant to the Prime Minister Haroon Akhtar Khan and Federal Minister for National Food Security Rana Tanveer Hussain have visited leading industrial enterprises in Changzhou to strengthen industrial collaboration with China.

The delegation toured StarCharge Group, a global leader in EV charging and smart energy technology operating in more than 60 countries. The delegation also visited Changfa Group, a major manufacturer of tractors, agricultural machinery and diesel engines. Kingsbridge Ventures and Changfa signed an MoU.]]>
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			<title>Gold steady despiteglobal slide</title>
			<link>https://tribune.com.pk/story/2609604/gold-steady-despiteglobal-slide</link>
			<comments>https://tribune.com.pk/story/2609604/gold-steady-despiteglobal-slide#comments</comments>
			<pubDate>Fri, 22 May 26 20:10:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609604</guid>
			<description>
				<![CDATA[Stronger dollar weighs on bullion globally; rupee edges up]]>
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			<content:encoded>
				<![CDATA[Gold prices in Pakistan remained unchanged on Friday despite a decline in international bullion markets, where stronger oil prices and a firmer US dollar weighed on investor sentiment and increased expectations of another US interest rate hike.

In the local market, the price of gold per tola stayed steady at Rs475,362, according to rates issued by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Similarly, the price of 10-gram gold remained unchanged at Rs407,546. On Thursday, the domestic gold market had recorded a sharp increase of Rs5,000 per tola amid earlier global gains and currency-related adjustments.

Internationally, spot gold fell 0.9% to $4,502.59 per ounce by 1457 GMT after touching an intraday low of around 1%, according to Reuters. Bullion was also headed for its second consecutive weekly decline, losing nearly 0.8% during the week.

US gold futures for June delivery also dropped 0.9% to $4,502.70 per ounce, as investors reassessed the outlook for US monetary policy amid persistent inflationary pressures and elevated energy prices.

Market analysts said rising oil prices have intensified concerns that inflation could remain sticky in major economies, particularly in the United States, prompting traders to increase bets on further tightening by the US Federal Reserve. According to market expectations, there is now a 58% chance of at least one US interest rate hike by the end of 2026.

Higher interest rates generally reduce the appeal of non-yielding assets such as gold, while a stronger dollar makes bullion more expensive for overseas buyers.

Meanwhile, silver prices in Pakistan remained unchanged at Rs8,034 per tola.

Commenting on market activity, Adnan Agar, Director at Interactive Commodities, said the bullion market remained sluggish ahead of a US bank holiday on Monday.

&quot;Gold is currently trading around $4,510 to $4,515 per ounce. The market is slow because of the US holiday and investors are also monitoring the final stages of Iran-US developments,&quot; he said.

Agar noted that despite current weakness, gold may find strong support at lower levels. &quot;Even if gold declines further, there is a strong possibility it will not fall below the $4,100-$4,200 range and could rebound from there,&quot; he added.

Analysts said geopolitical developments, particularly negotiations involving Iran and the United States, would remain a key trigger for bullion prices in the coming sessions.

Meanwhile, the Pakistani rupee edged up 0.01% against the US dollar in the inter-bank market on Friday, gaining Rs0.03 to close at 278.52, compared to Thursday&#39;s closing of 278.55, according to State Bank data.

In global markets, the US dollar hovered near a six-week high amid volatile trading triggered by conflicting signals over a potential US-Iran peace deal, though hopes of progress lent some support to sentiment. The dollar index stood at 99.24, slightly below the recent peak of 99.515, its highest level since April 7.]]>
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			<title>Oil prices rise on investor doubt</title>
			<link>https://tribune.com.pk/story/2609601/oil-prices-rise-on-investor-doubt</link>
			<comments>https://tribune.com.pk/story/2609601/oil-prices-rise-on-investor-doubt#comments</comments>
			<pubDate>Fri, 22 May 26 20:10:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[Reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609601</guid>
			<description>
				<![CDATA[Brent crude futures were up 82 cents, or 0.8%, at $103.40 a barrel by 1653 GMT]]>
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				<![CDATA[Oil prices rose on Friday as investors doubted the prospect of a breakthrough in US-Iran peace talks, but prices remained on track for a weekly loss.

Brent crude futures were up 82 cents, or 0.8%, at $103.40 a barrel by 1653 GMT. US West Texas Intermediate futures were 54 cents, or 0.56%, higher at $96.89. Both had risen over 3% earlier in the session.

On a weekly basis, Brent was more than 5% lower and WTI was down by more than 8%, with prices fluctuating sharply as expectations for a peace deal between Iran and the US shifted.

A senior Iranian source told Reuters earlier that gaps with the US have narrowed, and US Secretary of State Marco Rubio spoke of &quot;some good signs&quot; in talks.]]>
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			<title>Govt invites bids for privatisation of three Discos</title>
			<link>https://tribune.com.pk/story/2609068/govt-invites-bids-for-privatisation-of-three-discos</link>
			<comments>https://tribune.com.pk/story/2609068/govt-invites-bids-for-privatisation-of-three-discos#comments</comments>
			<pubDate>Tue, 19 May 26 22:11:43 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609068</guid>
			<description>
				<![CDATA[Investors can acquire between 51% and 100% shareholding with management control]]>
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				<![CDATA[The government has formally invited expressions of interest from local and international investors for the privatisation of three major electricity distribution companies(DISCOs): Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO), according to a statement on Tuesday.

Investors can acquire between 51% and 100% shareholding with management control in each Discos. The three companies collectively serve more than 14 million consumers across major industrial, commercial and urban centres of Punjab and the Islamabad region.]]>
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			<title>SBP forex reserves increase $17m</title>
			<link>https://tribune.com.pk/story/2608174/sbp-forex-reserves-increase-17m</link>
			<comments>https://tribune.com.pk/story/2608174/sbp-forex-reserves-increase-17m#comments</comments>
			<pubDate>Thu, 14 May 26 20:47:17 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2608174</guid>
			<description>
				<![CDATA[Local gold inches up as global tensions hold bullion steady]]>
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				<![CDATA[Pakistan&#39;s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $17 million on a weekly basis to $15.87 billion during the week ended May 8, 2026, the central bank said on Thursday.

The country&#39;s total liquid foreign reserves stood at $21.34 billion. Of these, the net reserves held by commercial banks amounted to $5.47 billion.

Earlier, the SBP reported that it had received around $1.3 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). The IMF Executive Board completed the third review under the EFF on May 8 and approved the disbursement of SDR 760 million for Pakistan. In addition, the board also approved the second tranche of SDR 154 million under the RSF.

According to the central bank, Pakistan received a total of SDR 914 million, equivalent to around $1.3 billion, on May 12, 2026. The SBP said the inflow would be reflected in the foreign exchange reserves data for the week ending May 15, 2026.

Furthermore, the Pakistani rupee continued its strengthening streak with a marginal rise of 0.01% against the US dollar in the interbank market on Thursday, closing at 278.62, up Rs0.03 from Wednesday&#39;s close at 278.65.

Meanwhile, gold prices in Pakistan edged higher, tracking slight gains in the international market, where bullion remained broadly steady as investors weighed developments in the US-Israel conflict with Iran and signals from high-level diplomatic engagements between the United States and China.

In the local market, the price of gold per tola rose by Rs1,000 to settle at Rs492,362, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10-gram gold increased by Rs858 to Rs422,121.

On Wednesday, gold had closed at Rs491,362 per tola after declining by Rs1,100, reflecting continued volatility in the domestic bullion market in line with shifting global cues. In the international market, spot gold was little changed at $4,689.99 per ounce at 1043 am EDT (1443 GMT), while the US gold futures for June delivery slipped 0.2% to $4,695.80. The US dollar index edged up 0.2%, making dollar-denominated bullion relatively more expensive for holders of other currencies and slightly capping the upside momentum.

The global sentiment remained cautious as investors monitored geopolitical risks, including tensions in the Middle East. Oil markets also reacted to reports from Iran regarding vessel movement through the Strait of Hormuz, while diplomatic discussions between the US and Chinese leadership added to broader uncertainty.

Silver prices in Pakistan also moved higher, gaining Rs65 to reach Rs9,204 per tola, mirroring the upward bias in precious metals despite mixed global trading signals.]]>
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			<title>Pakistan, Vietnam discuss PTA to cut tariffs</title>
			<link>https://tribune.com.pk/story/2608177/pakistan-vietnam-discuss-pta-to-cut-tariffs</link>
			<comments>https://tribune.com.pk/story/2608177/pakistan-vietnam-discuss-pta-to-cut-tariffs#comments</comments>
			<pubDate>Thu, 14 May 26 20:47:17 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[The ambassador noted that Vietnam remains one of Asia's fastest-growing economies]]>
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				<![CDATA[Evolving geopolitical and trade dynamics in the region have created new opportunities for Pakistan, particularly for Karachi, which has the potential to rapidly emerge as a regional trade and logistics hub owing to the strategic importance of Karachi Port, Vietnamese Ambassador Pham Anh Tuan has said, according to a statement issued on Thursday.

Speaking during a visit to the Karachi Chamber of Commerce and Industry (KCCI), the ambassador observed that global supply chain disruptions caused by Middle East tensions have compelled businesses to explore alternative trade and transhipment routes. Karachi Port could play a vital role in connecting regional markets, especially the Middle East, through enhanced maritime activities.

The ambassador noted that Vietnam remains one of Asia&#39;s fastest-growing economies. Bilateral trade stands at about $850 million, which falls significantly short of its potential. Both countries have initiated discussions on a preferential trade agreement (PTA), under which tariffs on more than 100 product lines are expected to be reduced to zero. Negotiations are progressing positively.

The ambassador invited KCCI to send a high-powered trade delegation to Vietnam to explore investment opportunities, joint ventures and commercial partnerships.]]>
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			<title>Pakistan, China expand cooperation</title>
			<link>https://tribune.com.pk/story/2607966/pakistan-china-expand-cooperation</link>
			<comments>https://tribune.com.pk/story/2607966/pakistan-china-expand-cooperation#comments</comments>
			<pubDate>Wed, 13 May 26 21:33:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2607966</guid>
			<description>
				<![CDATA[Challenge SEZ attracts $150m investment as EV manufacturing tops trade talks]]>
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				<![CDATA[Pakistan and China are expanding cooperation across 21 priority sectors with investments exceeding $1.5 billion, reflecting the growing strength of the strategic economic partnership between the two countries, Ambassador to China Khalil Hashmi has said, according to statements issued on Wednesday.

Speaking at a high?level interaction organised by the Foreign Affairs Liaison Office (FALO) Karachi, Hashmi said Chinese investment in Pakistan continues to grow in sectors including defence production, information technology, agriculture, education, medical equipment, infrastructure development, pharmaceuticals and manufacturing. Joint ventures between Pakistani and Chinese companies are also increasing steadily.

The ambassador highlighted growing demand for Pakistani food products and agricultural goods in Chinese markets and said the government is making focused efforts to further enhance exports to China. Describing the China?Pakistan Economic Corridor (CPEC) as a transformational project, he said it has laid the foundations for prosperity, regional connectivity and economic growth, while future phases will create greater opportunities in industrialisation, agriculture, technology, logistics and human capital development. &quot;Pakistan will not allow hostile elements or terrorists to undermine bilateral cooperation,&quot; Hashmi said, adding that the government is fully committed to ensuring foolproof security for Chinese engineers, technical experts and personnel working in the country.

Earlier, FALO Karachi Director General Muhammad Irfan Soomro described the interaction as a strategic conversation about Pakistan&#39;s economic future and Karachi&#39;s growing role as a bridge between the two countries. He said influence today is shaped by innovation, connectivity, supply chains, technology and economic strength, making economic diplomacy the new frontline of global competition. Pakistan must learn from China&#39;s success in industrialisation, export competitiveness, technological innovation, smart infrastructure and agricultural modernisation, he added.

Sindh Investment Advisor Syed Qasim Naveed Qamar assured participants that investors in Karachi and across Sindh would receive full facilitation and security support, reiterating the provincial government&#39;s commitment to domestic and foreign investors. Chinese Consul General Yang Yundong praised the interaction as an important platform for strengthening economic and people?to?people ties, describing Pakistan and China as &#39;iron brothers&#39; whose friendship has withstood the test of time over 75 years.

Commerce minister discusses trade, EV cooperation

Separately, Federal Minister for Commerce Jam Kamal Khan held a detailed meeting with Chinese Minister Counsellor Yang Guangyuan to discuss bilateral trade, industrial cooperation, agriculture modernisation, logistics connectivity, supply chain resilience and emerging investment opportunities under the broader framework of the strategic economic partnership, said a statement issued on Wednesday.

Kamal highlighted the evolving global trade environment, noting that supply chain disruptions have reinforced the importance of resilient regional trade corridors. Pakistan&#39;s geographic location positions it as a natural gateway connecting China, Central Asia, the Middle East and emerging markets, he said.

A major focus of the discussion was Pakistan?China industrial cooperation, particularly in electric vehicles (EVs), renewable energy, battery manufacturing and advanced industrial technologies. Kamal noted that Chinese automotive brands have established a growing presence in Pakistan through assembly operations, and the next phase should focus on deeper industrial collaboration, localisation, technology transfer and joint ventures in EV manufacturing. Pakistan offers not only a growing domestic market but also significant export potential for regional and African markets.

The Chinese side appreciated Pakistan&#39;s interest in expanding industrial cooperation and acknowledged the strong participation of Pakistani companies in emerging sectors such as IT, EVs, energy technologies and manufacturing.

Agriculture cooperation also featured prominently. Kamal said changing weather patterns, fertiliser supply disruptions and food security concerns have made agricultural modernisation an urgent global priority. He highlighted Balochistan&#39;s potential for drought?resistant crops such as olives, pistachios, almonds, dates and pine nuts, stressing the importance of shifting towards sustainable, climate?resilient agriculture.

The meeting also explored community?focused development cooperation, including water security solutions, renewable energy applications, solar?powered community infrastructure, women&#39;s vocational empowerment and rural welfare initiatives. Gwadar&#39;s emerging role as a regional trade hub was also discussed.

Challenge SEZ project reviewed

Federal Minister for Board of Investment Qaiser Ahmed Sheikh held a productive meeting with a high?level delegation of Challenge Fashion (Private) Limited, led by Chairman Huang, to discuss progress on the Challenge Special Economic Zone (SEZ) in Lahore.

Sheikh welcomed the delegation and appreciated Challenge Group&#39;s continued confidence in Pakistan&#39;s economy, terming the SEZ a landmark initiative. According to the statement issued on Wednesday, the project, with a proposed investment of $150 million, reflects a strong commitment to export?oriented industrialisation, employment generation and technology transfer. Its success will serve as a model for other international investors, particularly Chinese enterprises.

Both sides discussed development status, including progress on infrastructure, utilities and regulatory facilitation. The minister assured full government support for timely resolution of outstanding matters. The discussion also focused on SEZs in other countries, particularly Vietnam, where streamlined procedures have attracted large?scale foreign investment. WITH ADDITIONAL INPUT FROM APP]]>
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			<title>Data-driven policymaking key to growth</title>
			<link>https://tribune.com.pk/story/2607968/data-driven-policymaking-key-to-growth</link>
			<comments>https://tribune.com.pk/story/2607968/data-driven-policymaking-key-to-growth#comments</comments>
			<pubDate>Wed, 13 May 26 21:33:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[APP]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[IT minister stresses e-commerce, digitisation can help expand economy significantly]]>
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				<![CDATA[Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja on Wednesday said Pakistan&#39;s ongoing digital transformation under CPEC 2.0 carries significant potential to expand the national economy through data-driven policymaking, digitisation and growth in e-commerce.

Addressing the inauguration ceremony of the IBI Pakistan Digital Economy Headquarters, she said the initiative followed the prime minister&#39;s visit to China in September last year, which led to consultations with relevant stakeholders and the establishment of the Digital Economy Headquarters at a Special Technology Zone.

She said the headquarters was a flagship initiative to strengthen high-priority economic cooperation between Pakistan and China. Operating under the China-Pakistan Economic Corridor (CPEC) framework, it integrates trade facilitation, investment promotion, supply chain digitisation, SME empowerment and policy dialogue under a unified execution platform.

She pointed out that Pakistan&#39;s engagement with CPEC began in 2013 and Islamabad and Beijing had continued to deepen their partnership, with relations now extending beyond traditional diplomatic ties.

Fatima emphasised that Pakistan had entered a new phase of cooperation focused on improved execution of development initiatives. The completion of the Digital Economy Headquarters is part of a whole-of-government approach, supported by the Special Investment Facilitation Council (SIFC), which has helped address longstanding administrative and operational bottlenecks.

Outlining the Digital Nation Pakistan Act, the IT minister said it was built on three pillars &ndash; digital economy, digital society and digital governance, with the digital economy being the government&#39;s top priority.

Pakistan&#39;s gross domestic product (GDP) &ndash; the total size of the economy &ndash; exceeds $400 billion, with nearly half of it still within the informal sector. Citing industry estimates, she said digital transformation across sectors could add 5% to 7% to GDP by 2030, strengthening the case for accelerated digital adoption.

She highlighted Pakistan&#39;s expanding digital ecosystem, including more than 200 million mobile subscribers and over 157 million mobile internet users, saying &quot;this provides a strong foundation for e-commerce growth&quot;.

Emphasising the importance of data-driven governance, the minister said future policymaking in both government and business sectors must rely on accurate data to ensure efficiency, transparency and improved planning.]]>
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			<title>Textile sector presents budget proposals</title>
			<link>https://tribune.com.pk/story/2607791/textile-sector-presents-budget-proposals</link>
			<comments>https://tribune.com.pk/story/2607791/textile-sector-presents-budget-proposals#comments</comments>
			<pubDate>Tue, 12 May 26 20:51:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2607791</guid>
			<description>
				<![CDATA[FinMin seeks industry cooperation to extend digital monitoring from sugar, cement sectors]]>
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				<![CDATA[Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting on Tuesday with a high level delegation representing Pakistan&#39;s textile and apparel sector, which presented a comprehensive set of proposals for the Federal Budget 2026 27 aimed at strengthening the sector&#39;s competitiveness, according to an official statement.

The delegation highlighted the textile sector&#39;s vital contribution to exports, employment and foreign exchange earnings. It emphasised the need for a stable, growth oriented policy environment to cope with global market dynamics and increasing regional competition. Key proposals focused on taxation reforms, energy affordability, export facilitation, industrial modernisation, liquidity management, investment promotion and ease of doing business.

The representatives stressed that timely policy support would strengthen export competitiveness, promote value added manufacturing and attract fresh investment. They called for efficient refund mechanisms, rationalised energy pricing structures, facilitation for exporters and reduced compliance burden.

Aurangzeb appreciated the sector&#39;s engagement and reaffirmed the government&#39;s commitment to regular consultations through the Tax Policy Office. He discussed ongoing efforts to promote transparency and documentation through digital monitoring systems already introduced in sugar, cement, beverages and tobacco sectors across the board, including in units owned by the prime minister&#39;s family.

The finance minister invited the textile sector to extend cooperation towards similar digital monitoring mechanisms. Representatives acknowledged the importance of transparency and agreed to continue consultations to explore workable solutions for the industry&#39;s unique operational structure.]]>
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			<title>Pak-China sign $13b in MoUs, JVs in 2 years</title>
			<link>https://tribune.com.pk/story/2607601/pak-china-sign-13b-in-mous-jvs-in-2-years</link>
			<comments>https://tribune.com.pk/story/2607601/pak-china-sign-13b-in-mous-jvs-in-2-years#comments</comments>
			<pubDate>Mon, 11 May 26 20:32:28 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2607601</guid>
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				<![CDATA[A separate MoU was signed between KCCI and China's IBI Group]]>
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				<![CDATA[Pakistan and China have signed more than 300 memorandums of understanding (MoUs) and over three dozen joint venture agreements over the last two years, with a cumulative value exceeding $13 billion, Pakistan&#39;s Ambassador to China Khalil Hashmi has said, according to a statement issued on Monday.

Speaking at a meeting with a 70?member Chinese delegation at the Karachi Chamber of Commerce and Industry (KCCI), Hashmi said the government has established a comprehensive mechanism to ensure effective implementation of MoUs. Pakistan&#39;s realisation rate from MoUs to formal contracts has reached nearly 30%.

A separate MoU was signed between KCCI and China&#39;s IBI Group, a leading industrial internet and digital trade platform, to promote digital economy and industrial development.

The ambassador also disclosed that Pakistan is in active discussions with CATL, one of the world&#39;s largest battery manufacturers, to establish cooperation and investment initiatives.]]>
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