He said this during an address to the nation, delivered on the eve of Eidul Fitr. The premier began his address by extending Eid greetings to the nation.

He also referred to a global fuel crisis resulting from the US-Israeli war on Iran, which began on February 28. The government announced unprecedented austerity measures last week to cope with the crisis and also hiked petroleum products’ prices earlier this month.

PM Shehbaz said in view of the present situation, the festival demanded humanity, national unity and collective responsibility. “And I believe the joy of Eid in its true sense is sharing it with those in need,” he added.

The premier said the world was facing an “extraordinary challenge” today, adding that the values of selflessness, hard work and compassion were the only means to resolving the crisis.

He said the war going on in the Middle East had severely impacted the global peace and economy, as well as the common man. “The situation has become even more dangerous in the aftermath of attacks on energy installations of brotherly countries,” he added.

“And the risk of this crisis intensifying and prolonging increases with every passing moment.”

PM Shehbaz noted that the price of oil from the Middle East had skyrocketed in the international market. “It was available for $72 per barrel a few weeks ago, but in just three weeks, the price has breached the historic mark of $158 per barrel,” he said.

He warned that if the situation continued to worsen, a further increase in fuel prices would be imminent.

The premier said the crisis was giving rise to an “inflation storm”, adding that he realised that an increase in petrol and HSD prices earlier in March by Rs55 per litre had badly affected a common man’s life.

He lauded the nation for its “patience and courage” during these challenging times, thanking the people for their “cooperation”.

PM Shehbaz said on March 13, oil prices in the international market had significantly increased again. Thereafter, he continued, a recommendation for increasing the price of petrol by Rs50 per litre and that of HSD by Rs74 per litre was made.

“But I rejected this recommendation,” he said, explaining that he realised the burden that the people were bearing following the Rs55 per litre increase.

So, he said, “I decided that the federal government will bear the burden of around Rs24 billion, resulting from the rise in oil prices. For this, we made necessary cuts in our budgets and limited development expenditure”.

He further said another increase had been witnessed in oil prices in the “week starting today”, following which it was again recommended to him to increase the price of petrol by Rs76 per litre and that of diesel by Rs177 per litre.

But, he said, he rejected the recommendations, particularly considering that Eid was so close.

“So, once again, the federal government will bear the additional burden of Rs45bn,” PM Shehbaz said.

The premier said that for the last two weeks, the federal government had spent Rs69bn from its “savings and development budgets” to prevent an increase of Rs127 per litre in the price of petrol and Rs252 per litre in that of HSD.

However, he added, it was not a lasting solution.

He also noted that the measures did not just benefit the deserving and needy, but also those who were well off.

“To stop this unjust practice, I have issued instructions to relevant ministries to form a comprehensive and transparent mechanism to ensure that the relief is limited to the deserving,” he announced.

A situation report, released by the ministry on Friday, said that Pakistan’s fertiliser sector demonstrated strong supply-demand alignment, with production meeting 90 to 95 per cent of total urea demand and imports bridging the remaining gap. Growth in fertiliser consumption of 2 to 5pc annually reflected increasing agricultural productivity, it said.

With stock buffers ranging between 5 to 10pc of seasonal demand, both Rabi 2025–26 and Kharif 2026 were expected to remain free of shortages. Continued gas supply of 700 to 800 million cubic feet per day (mmcfd) will remain critical to sustaining this stability, the report said.

Quoting the latest data on fertilisers, the report said it reflected a stable, growing, and well-managed fertiliser ecosystem supporting Pakistan’s agricultural economy.

The data showed that urea availability during the current Rabi season exceeded 3.5 million tons against the demand of about 3.3 million tons, resulting in a surplus of 150,000 to 200,000 tons.  Similarly, the availability of diammonium phosphate (DAP) remained above 700,000 tons against the demand of around 650,000 tons.

For Kharif 2026, it added that the projected urea availability was around 3 to 3.2 million tons against the expected demand of 2.9 to 3 million tons, whereas DAP availability was estimated at 750,000 to 800,000 tons against demand of about 700,000 tons, ensuring a comfortable buffer of 50,000 to 100,000 tons.

The domestic urea prices remain stable at around Rs3,700 to Rs4,000 per 50kg bag, compared to international prices exceeding Rs5,500 to Rs6,000 per bag. DAP prices domestically range between Rs11,500 to Rs12,500 per bag, while international equivalents exceed Rs14,000, the report said.

It added that Pakistan’s fertiliser production capacity stood at approximately 7 million tons of urea annually.

Major producers include Fauji Fertiliser Company (over 2.5 million tons capacity), Engro Fertilisers (around 2.3 million tons), Fatima Fertiliser (700,000–800,000 tons), and Fauji Fertiliser Bin Qasim (DAP capacity around 650,000 tons), it said.

“The sector consumes nearly 700–800 mmcfd of natural gas. Around 60pc to 65pc of production is dependent on Sui Northern Gas Pakistan Limited-supplied gas, while the remainder operates on dedicated or diverted gas sources.

Even when one to two plants temporarily shut down, the remaining capacity ensures production above 85 to 90pc of national demand, the report stated.

Over the last five years, it maintained that the urea consumption had grown from approximately 6.0 million tons to nearly 6.8 to 7.0 million tons, reflecting a compound annual growth rate (CAGR) of around 2 to 3pc. DAP consumption had increased from about 1.1 million tons to nearly 1.4 million tons, indicating a CAGR of 4 to 5pc.

Annual urea demand in Pakistan ranges between 6.5 and 7 million tons, while DAP demand fluctuates between 1.2 and 1.5 million tons, it said.

During Rabi, urea consumption accounts for nearly 55 to 60pc of total annual usage due to wheat requirements, whereas Kharif sees increased DAP demand, accounting for nearly 60pc of its annual consumption,” it reported.

According to the report, Pakistan cultivated approximately 22–23 million hectares annually, divided into two major seasons.

During Rabi, wheat alone occupies about 9 million hectares, while gram and oilseeds cover another 2 to 3 million hectares. In Kharif, rice is grown on roughly 3 million hectares, cotton on 2 to 2.5 million hectares, and sugarcane on over 1.2 million hectares, it said.

The 24-carat gold coin is the latest effort by Trump and his allies to put the president’s name on buildings, government programmes and US currency since his second White House term began in January 2025.

During a presentation by a US Mint official to the Commission of Fine Arts, discussion turned to what diameter the 24-carat coin should be, up to three inches (7.6cm).

Chamberlain Harris, a White House aide whom Trump appointed to the commission this year, said the biggest possible coin would be Trump’s preference.

“The larger the better,” she said, shortly before the coin was approved by the entire panel.

The US Mint will now produce final dimensions for the coin. Trump has already approved the design and it is expected that Treasury Secretary Scott Bessent will order the coin to be minted.

The coin would depict a stern-looking Trump leaning over a desk and staring forward. It is based on a photograph displayed in the National Portrait Gallery in Washington.

The White House referred questions to the Treasury Department.

“As we approach our 250th birthday, we are thrilled to prepare coins that represent the enduring spirit of our country and democracy, and there is no profile more emblematic for the front of such coins than that of our serving President, Donald Trump,” US Treasurer Brandon Beach said in a statement to Reuters.

The US Mint did not immediately respond to a request for comment.

The Trump gold coin drew criticism from some Democrats and members of another federal arts committee.

“Monarchs and dictators put their faces on coins, not leaders of a democracy,” Jeff Merkley, a Democratic US senator, told Reuters in a statement.

“Trump’s administration moving to put his face on a commemorative coin is his latest effort to distort the meaning of America’s 250th birthday.”

Donald Scarinci, a member of the bipartisan Citizens Coinage Advisory Committee, a separate federal panel that refused to consider the gold coin proposal last month, acknowledged this is not the first time a sitting president’s image has been on a commemorative coin.

In 1926, 150 years after America’s colonies issued the 1776 Declaration of Independence from British rule, an image of Republican President Calvin Coolidge, in office at the time, appeared on a commemorative coin, although his profile was overlaid by an image of George Washington, America’s first president.

Scarinci said the Trump coin is different from the Coolidge coin because it will be much larger and will feature Trump alone.

The Trump administration has also proposed a different, $1 coin featuring Trump’s image that would go into circulation this year.

Legal loophole as gold coin not currency

Scarinci said the $1 coin would be in clear breach of a law that prohibits the image of a sitting or former president being on a dollar coin until three years after their death.

There is a potential loophole, however, when it comes to the gold coin, because unlike the dollar coin, which would be in circulation, the gold coin is a non-circulating collector coin.

Scarinci said under the law, both his panel and the Commission of Fine Arts are meant to approve any coins.

“But we still fully expect them to plough ahead and mint both coins,” Scarinci said.

Since he reentered the White House in January 2025, Trump has affixed his name to prominent Washington buildings, a planned class of Navy warships, a visa programme for wealthy foreigners, a government-run prescription drug website and federal savings accounts for children.

Two different customs notifications, SRO525 of 2026 and SRO518 of 2026, were issued to amend the rules for taking measures in the wake of an emergency and war-like situation in the Gulf, which has disrupted cargo flows and port operations.

As per the notification, the FBR authorised M/s DP World to utilise a 16.9-acre berth backup area located in the North Eastern Industrial Zone of Port Qasim for temporary storage of international transhipment cargo.

The facility is intended to ease congestion and facilitate smoother handling of transhipment consignments arriving at the port. Through another notification, SRO525, the FBR introduced wide-ranging amendments to the Customs Rules 2001, significantly tightening monitoring, documentation, and liability provisions governing transhipment cargo.

Temporary storage at Port Qasim aims to ease cargo disruptions

The revised rules expand the scope of transhipment operations to include not only seaports, but also airports and off-dock terminals (ODTs), while formally incorporating ground handling agents into the regulatory framework. Documentation requirements have been strengthened, including mandatory declaration of HS codes, description, and quantity of goods in cargo manifests.

A key feature of the new regime is the imposition of strict liability on shipping lines and airlines. In cases of pilferage, misdeclaration, or discrepancies, carriers will be responsible for payment of duties and taxes as determined by customs authorities.

Terminal operators, ODTs, and ground handling agents will also be responsible for liabilities arising from cargo under their custody. The rules also mandate 100 per cent scanning of international transhipment cargo routed through ODTs and airports under the Customs Computerised System.

According to the notification, any discrepancy detected during scanning will trigger a full physical examination before cargo is allowed to exit the port premises. In cases involving major irregularities, customs authorities may initiate legal proceedings against the concerned shipping line or airline.

To further tighten oversight, cargo moving from ODTs to ports or airports for onward export will also be subject to scanning at entry points. Storage of transhipment cargo has been restricted to facilities compliant with the requirements laid down under the Customs Rules 2001.

The amendments empower customs authorities to suspend movement of transhipment cargo to or from specific terminals, shipping lines, or airlines if violations are detected or if such operations hinder clearance of goods meant for domestic consumption.

In addition, operators, including terminal operators, ODTs, and ground handling agents, have been directed to submit monthly reconciliation reports detailing receipt, storage, and onward movement of cargo by the fifth day of each month.

The two measures indicate a combination of temporary facilitation through expanded storage capacity and stricter enforcement of compliance requirements, as customs authorities attempt to manage external disruptions while safeguarding revenue and supply chain integrity.

Published in Dawn, March 20th, 2026

The decision followed recommendations of a technical committee headed by Minister of State for Finance Bilal Azhar Kayani. The committee, which included representatives from the private sector, recommended the proposed policy changes unanimously.

The Federal Board of Revenue (FBR) has issued customs notification SRO528 of 2026 to amend the Customs Rules 2001, replacing the earlier nine-month utilisation limit with 18 months, effective from March 7, 2025.

Mr Azhar said on his X handle that under the revised framework, exporters can now import inputs duty-free and utilise them within the extended period.

Move meant to support exporters facing financial and production constraints

The longer timeframe is expected to reduce financial strain on exporters, particularly small and medium enterprises, which often face working capital constraints and production cycle delays, he added.

The committee reviewed historical EFS data and benchmarked utilisation periods against regional peers before reaching its recommendations, the minister said.

Prior to the policy change, a total of 7,932 Goods Declarations of EFS users for input goods had exceeded the permitted nine-month utilisation period. Following the extension to 18 months, all such GDs are now eligible for export under the scheme, he said.

The committee also introduced two additional facilitation measures. First, automatic replenishment of the security deposit has been allowed to the extent of goods consumed and exported, reducing processing time. Second, EFS users have been granted the right to appeal before the Chief Collector against orders issued by the regulatory collector within 30 days, with decisions to be made within that period.

According to the notification, in addition to the extended utilisation period, the rules provide for a further extension of six months beyond the 18-month limit, to be granted by a committee on a case-by-case basis.

To strengthen oversight, EFS users will now be required to submit a six-monthly reconciliation statement detailing input goods acquired, output goods exported or sold domestically, along with value addition and wastage, within 30 days of each period’s end.

The amendments also introduce procedural facilitation measures. Exporters who have already utilised inputs and completed exports within the prescribed period will be allowed to import additional duty-free inputs equivalent to the value of goods already consumed and exported, subject to conditions.

The changes in EFS reflect the government’s attempt to balance facilitation with compliance as it seeks to support exporters while maintaining regulatory oversight of duty-free import schemes.

Published in Dawn, March 20th, 2026

On Feb 28, when an illegal attack was launched by the US and Israel on Iran, the rates for 10 grams and one tola stood at Rs472,018 and Rs550,562, based on a global gold price of $5,278 per ounce.

On Jan 29, 2026, Pakistan witnessed its highest-ever gold rates, with 10 grams priced at Rs491,135 and one tola at Rs572,862, as the global gold price reached $5,505 per ounce.

“History shows that the precious metal has often lost its luster when intense conflicts escalate into full-scale wars among countries,” said Qasim Shikarpuri, president of the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), while speaking to Dawn on Thursday.

Prices slip below Rs500,000 per tola

He said gold prices would plunge further if the war intensifies, adding that another factor behind the decline is the loss of value in Dubai, once considered one of the largest gold markets with strong investor interest.

“The war has changed the dynamics of Dubai. I recently returned from there, where the airport is witnessing low passenger footfall, especially among arrivals. Investors and foreigners are leaving via connecting flights,” he said.

“Foreign investors are selling gold in Dubai as they try to secure their safety and return to their homelands at any cost,” he added. “Previously, gold prices in Dubai used to rise by two to three dollars per ounce due to strong demand. Now, investors holding inventory are willing to sell at up to $40 below the market price to liquidate their assets and exit the market.”

He noted that gold was previously smuggled out of Pakistan due to higher prices in Dubai, but the situation has now reversed as investor activity there has declined, with some awaiting a return to normalcy.

In Pakistan, some investors are taking a risk by buying gold at lower prices, hoping for a rebound after the Middle East conflict subsides, Shikarpuri said.

However, the drop in domestic gold prices has offered limited relief to jewellery buyers, given that rates remain high despite a significant decline from January levels.

Published in Dawn, March 20th, 2026

The FBR has issued SRO527 of 2026 to retain a reduced sales tax rate of 0.25 per cent on imported sugar, compared to the standard 18pc, while also revising the value-added tax structure to continue concessional treatment until February 28, 2026.

This decision is in line with the government previous decision to extend income tax concession on sugar imports, which was notified through SRO455 of 2026 released on March 5. As per this decision, the government allowed imp­orters to pay income tax at a reduced rate of 0.25pc.

In July 2025, the government has introduced the concession scheme. Since then, it has been extended multiple times, first until September 30, 2025, and later to November 30, 2025.

The government has already allowed commercial imports of up to 500,000 tonnes of sugar under specified conditions.

Sugar imports are being facilitated through the Trading Corporation of Pakistan as well as approved private sector entities under the supervision of the commerce ministry. Authorities have made it mandatory for consignments to undergo strict quality verification through internationally recognised inspection firms.

Officials said the extension is intended to maintain price stability and prevent shortages.

Published in Dawn, March 20th, 2026

“If prolonged, higher energy prices will lead to higher headline inflation,” said IMF chief spokesperson Julie Kozack at a press briefing.

Kozack said that if oil prices remained above $100 for a year or more, the estimated impact on global inflation could be a rise of up to two percentage-points, with output dropping one percentage-point, according to “a broad rule of thumb.”

She also confirmed that the IMF had “not received any formal requests for emergency financing” in the wake of the US-Israel war on Iran.

The US and Israel launched strikes on Iran on February 28, sparking a war that has engulfed the Middle East and seen Tehran virtually blockade the key Strait of Hormuz waterway.

About 20 percent of the world’s oil and natural gas passes through the strait, and the crisis has sent energy prices spiralling, with potential knock-on effects on inflation worldwide.

On Thursday, international benchmark Brent crude was trading at around $110 a barrel — up 52 per cent from before the war.

Kozack said the world’s most economically vulnerable states would be first in line to feel the fallout.

“They have limited policy space, limited buffers and this in a world where financing conditions may be becoming more challenging for them,” she said.

Kozack highlighted that the Fund was monitoring developments on commodity prices, inflation and global financial conditions in the wake of the war.

She stressed that countries would feel the effects in a variety of ways, particularly when it comes to commodity prices, depending on the structure of their economy.

Food prices were another area of concern.

“Fertiliser shipment has been disrupted (due to the conflict), and this, along with transportation disruptions, raise risks that we could see increases in food prices, and those could be substantial, again, depending on the duration and intensity,” she said.

The appeal was made in a handout issued after a meeting chaired by Prime Minister Shehbaz Sharif in Islamabad, where fuel-conservation and austerity measures recently announced by the government were reviewed.

Last week, the government announced unprecedented austerity measures to cope with the situation that emerged due to the US-Israel war on Iran, which has led to a global oil crisis affecting various countries, including Pakistan.

The measures included a 50 per cent cut in fuel allowance for official vehicles and a four-day work week. It was also decided that 50pc of staff in the public sector would work from home; however, those providing essential services are exempt.

The meeting held on Thursday to review the situation was briefed about the country’s fuel reserves and consumption, as well as petroleum products’ cargoes, the handout issued by the PM’s Office (PMO) said.

It added that the meeting was informed that there were “adequate stocks of petroleum products” to meet the country’s requirements, and that arrangements for procuring more fuel were also being made.

However, it was also stated that “in view of the unstable situation in the Middle East and the region, which could severely affect fuel supplies, further conservation measures will have to be taken in the coming days”.

The handout said that PM Shehbaz issued directives for devising a “comprehensive strategy” with the provinces so that any “emergency situation can be dealt with”.

Moreover, it added, the meeting was informed about the implementation of austerity and fuel conservation measures, about which PM Shehbaz said: “We are able to provide relief to the people because of the policy of austerity.”

The PM, as well as the rest of the meeting’s participants, was told that the implementation of the premier’s instructions regarding austerity measures was being ensured and that the Intelligence Bureau (IB) was monitoring the situation.

The IB has been tasked with carrying out an audit of austerity measures announced by the government and to submit a report on their implementation.

In the handout, the rich were urged to set an example by adopting austerity measures. It also carried an appeal by the government, which urged people to conserve petrol and diesel to “avert the risk of petroleum products’ supply getting affected in the coming days”.

It was stressed during that meeting that the country would have to be prepared for all kinds of situations and that people would have to adapt their practices in light of the changing situation. People were urged to adopt carpooling and avoid travelling unnecessarily.

The handout said PM Shehbaz directed all relevant departments to take any emergency steps.

It added that the meeting was told that the overall situation was being monitored and a record of petroleum products was being maintained so that any “irregularity” could be promptly identified and countermeasures could be taken.

Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir, National Security Adviser Lt General Asim Malik and several federal ministers were among those who attended the meeting, the handout said.

Data published by the Financial Times shows that Pakistan receives 99 per cent of its liquefied natural gas (LNG) imports from Qatar and the United Arab Emirates, making it particularly vulnerable to disruptions in Gulf energy flows.

“Pakistan’s heavy reliance on LNG from Qatar and the UAE means any shock to supplies through the Strait of Hormuz would be felt very quickly,” the Financial Times reported, quoting market analytics.

Energy analytics firm Kpler highlighted that a large share of Asia’s LNG — including Pakistan’s — originates in the Gulf and transits the Hormuz chokepoint, now disrupted by the Middle East conflict.

“Pakistan and Bangladesh have limited storage and procurement flexibility, meaning disruption would likely trigger fast power-sector demand destruction rather than aggressive spot bidding,” Go Katayama, principal insight analyst at Kpler, was quoted as saying in international coverage.

With limited storage capacity and little procurement flexibility, analysts warned Pakistan would struggle to cushion even short-term supply shocks. For Pakistan, such disruption could mean immediate curtailment of gas supplies to power plants and energy-intensive industries, reviving the risk of widespread load-shedding and industrial slowdowns. Unlike larger economies with strategic reserves or diversified sourcing, Pakistan has limited room to absorb supply shocks.

In a study released on March 18, the Council on Foreign Relations warned that South Asia would face some of the most acute fallout from a sustained Gulf energy disruption. While Bangladesh sources about 72pc of its LNG imports from Qatar and the UAE and India about 53pc, Pakistan’s 99pc dependence makes it the most exposed in proportional terms.

The CFR study also highlighted the broader political risks associated with fuel shortages and rising prices across South Asia. Countries in the region have a history of fuel-related protests, some of which have turned violent.

India, which faces the largest combined exposure in absolute terms, sources more than half of its LNG imports from the Gulf, with a significant share linked to Brent crude pricing.

According to Reuters’ reporting on Asia’s energy scramble amid the crisis, “a spike in crude prices driven by tensions around Strait of Hormuz would raise both India’s oil import bill and the cost of LNG contracts,” creating what analysts described as a “dual physical and financial shock”. About 60pc of India’s oil imports come from the Middle East, Reuters noted.

In Bangladesh, already struggling with a structural gas deficit of more than 1,300 million cubic feet per day according to the Institute for Energy Economics and Financial Analysis (IEEFA), the government reportedly closed universities and placed the military in charge of oil depots amid fears of unrest.

Reuters quoted officials saying that authorities were taking “extraordinary steps to prevent protests and maintain order around fuel supplies”.

The CFR report noted that even in countries with less history of fuel-related unrest, shortages, rationing and long queues triggered clashes between motorists, petrol pump owners and police.

Across Asia, governments are in what the study describes as “constant energy triage”. Many shortened government workweeks, urged reductions in air-conditioning use, and began releasing whatever strategic reserves they possess.

“Countries without significant reserves are being forced into hard choices between rationing and economic contraction,” CFR analysts were quoted as saying in the report.

While Malaysia and Brunei are oil exporters and Japan and China maintain larger stockpiles, many other Asian states could face severe supply shortages within weeks if disruptions continue.

Factories in export-dependent economies are shutting down or operating part-time, while tourism — a critical sector for countries such as Thailand and Vietnam — is being hit by rising jet fuel prices and declining traveller confidence. In Thailand, tourist arrivals fell about nine pc year-on-year in the first week of March, with hotel occupancy in key destinations reportedly as low as 10pc, international media reports showed.

The war is now 20 days old. If it extends into the summer, the CFR warned, it could have calamitous consequences for Asian growth and political stability.

For Pakistan, with nearly total dependence on Gulf LNG and limited storage buffers, the immediate concern is physical supply security — a shock that could quickly translate into higher power outages, industrial disruption and renewed economic stress.

The government completed its spectrum auction in Islamabad last week, in which 480 megahertz (MHz) were sold for $507 million. The three bidders — Zong, Jazz and Ufone — competed heavily for the 2,600MHz band, a key frequency range for 5G services. Zong acquired 110MHz, Ufone 180MHz and Jazz 190MHz during the auction.

The licence agreements for the services were signed by Pakistan Telecommunication Authority Licensing Director General Brig (retd) Aamir Shahzad and senior management of Jazz, Ufone and Zong.

In a press release, Jazz announced that in the first phase of 5G rollout, the services were being provided across 180 sites in Islamabad, all four provincial capitals — Lahore, Karachi, Peshawar and Quetta — as well as in Rawalpindi, Multan and Faisalabad.

“Jazz is delivering ultra-fast speeds, low latency, and enhanced reliability at scale. At the same time, Jazz continues to expand and upgrade its nationwide 4G network, ensuring that the benefits of connectivity reach every Pakistani, everywhere,” the press release stated.

The press release further stated that in the recent spectrum auction, Jazz was the only operator to secure spectrum across all key bands — 700MHz, 2,300MHz, 2,600MHz and 3,500MHz.

Separately, a press release issued by Ufone said the telecommunication company had acquired the largest share in 3,500MHz band with 120 MHz allocation.

The press release stated that Ufone was in the final phase of acquiring Telenor, and the new mobile operator following the merger, MergeCo, “will hold the largest and most diversified spectrum portfolio of 292.4 MHz” in Pakistan. It is 8MHz more than that of Ufone’s closest competitor, Jazz, and would lead to nationwide coverage in both rural and urban areas.

For its part, Zong announced that it had commercially launched 5G services in more than 16 cities, including Islamabad, Rawalpindi, Karachi, Lahore, Peshawar, and Quetta.

In its press release, the telecommunication company also announced plans to deploy and upgrade more than 1,000 5G sites nationwide in 2026.

It recalled that Zong was a “pioneer” and had conducted Pakistan’s first 5G trial in 2019.

‘Wonderful beginning’

PM Shehbaz also addressed the ceremony in Islamabad, hailing a “wonderful beginning” for Pakistan after the success of the recent 5G spectrum auction.

The premier called the acquisition of 5G spectrum a “milestone” for Pakistan in terms of industry, agriculture and technology.

He said that the whole programme was concluded “very transparently”, adding that legal challenges were the largest obstacle to the auction process as they had been in the past. In this regard, he thanked Law Minister Azam Nazeer Tarar for making the “utmost effort to end these legal challenges” and ensure full transparency.

Highlighting the recent sale of Pakistan International Airlines, PM Shehbaz also said that “all these transactions are being done with full transparency”.

He congratulated IT Minister Shaza Fatima Khawaja, IT Secretary Zarrar Hasham Khan, Pakistan Telecommunication Authority Chairman Hafeezur Rehman, and all those who had successfully brought the project to completion. He also congratulated the chief executive officers of the three bidders.

The prime minister expressed the hope that the spectrum would reach “all four corners of Pakistan”, in both cities and rural villages.

Addressing Zong CEO Huo Junli, he congratulated him on the spectrum acquisition, saying, “I am sure you will take it to the height of glory through your hard work and … untiring efforts.”

“China and Pakistan, as you know, are great friends,” PM Shehbaz said. “Our friendship is unique in this world, and it is growing by the day — rather, by the hour.”

He added that one of the manifestations of this friendship was modern technology and said, “I think today’s the time that we should now move faster, so that the youth of Pakistan is able to make use of the most modern technology.

“Whether it’s IT, whether it’s artificial intelligence; I think technology is the name of the game,” he concluded.

At the auction event last week, the IT minister had called the event “maybe one of the most important days in the history of Pakistan”.

She added that alongside 5G being introduced for the first time in Pakistan, the nation would also see an increase in the quality of 4G connectivity.

Later, while addressing a ceremony where the spectrum was released to the operators, she said that the auction had increased Pakistan’s spectrum capacity threefold, boosting it to over 7,500MHz. She

also said that the government was working to establish an AI Council to bring experienced professionals on board to guide the country’s AI policy and its development.

The exchange rate has largely remained stable during the current fiscal year, and predictions of destabilisation proved unfounded despite the prolonged conflict.

This stability comes as regional currencies weakened; the Indian rupee depreciated by up to five per cent from Rs88 to Rs92 against the US dollar during the war, while fears of further depreciation persist.

Financial sector experts believe the exchange rate is being managed to some extent, though they caution that continued war could still pose risks.

Flights to Dubai, Umrah travel continue; airfares surge

“This is highly appreciable and extremely supportive for the country that, despite almost three weeks of war, the exchange rate is under control,” said Zafar Paracha, a currency dealer.

Exporters, however, fear that the ongoing Middle East conflict could reduce exports to the region, while production and shipping costs have risen significantly.

Currency dealers in the interbank market said importers are facing payment challenges, but dollar availability has improved due to better reserves held by the SBP and commercial banks.

The Exchange Companies Association of Pakistan (ECAP) said that the US dollar in the interbank market appreciated slightly by two paise to Rs279.45 on Wednesday, while the open market rate stood at Rs290.32.

The financial sector also views ongoing talks with the IMF as supportive for the rupee. The government has described these discussions as positive.

“This is also a positive indication that remittance inflows remained strong, showing growth during the first eight months of FY26,” said Mr Paracha, adding that overseas Pakistanis remained confident about sending money home.

He noted that consignments of foreign currencies (other than US dollars) are regularly sent to Dubai for conversion into dollars and brought back to Pakistan. Flights to Dubai have continued despite the regional conflict.

He added that Umrah travel remains uninterrupted, with thousands of Pakistanis still travelling to Saudi Arabia, although airfares have surged sharply.

Return ticket costs for Umrah have increased from Rs150,000-200,000 before the war to Rs300,000-400,000 for one-way travel. While overall air travel to the Middle East has declined, it has not been completely disrupted.

Published in Dawn, March 19th, 2026

The Central Power Purchasing Agency (CPPA) demanded payment of higher fuel costs on account of power consumed in February, even though more than 75 per cent of power generation came from domestic, cheaper sources. Electricity consumption was reported to be around 11.42pc higher than in the same month last year but about 15pc lower than in January.

Once approved, the power companies would charge an additional amount of about Rs12.2bn to consumers of all the power companies, including ex-Wapda Distribution Companies (Discos) and K-Electric, in the billing month of April. The National Electric Power Regulatory Authority (Nepra) has called a public hearing on March 31 to examine the request for additional FCA charges to consumers.

The CPPA, which filed the petition for a higher FCA for February consumption, said power consumption was around 11.4pc higher year-on-year and about 15pc lower month-on-month.

The power companies have claimed an average fuel cost of Rs8.37 per unit for February compared to Rs8.23 per unit in the same month last year. The CPPA reported that 7,427 billion units (gigawatt-hours) were delivered to Discos in February, compared with 8,762 GWh in January. The power companies have claimed that the average fuel cost amounted to Rs8.37 per unit in February against a pre-approved reference fuel cost of Rs6.74 per unit, there is a need for about Rs1.64 per unit additional FCA.

The CPPA said about 7,696 GWh of electricity was generated in February at an estimated fuel expenditure of Rs62.75bn (Rs8.15 per unit), of which 7,427 GWh of energy was delivered to Discos at a cost of Rs62.2bn (Rs8.37 per unit), leading to a higher fuel cost over what was already charged to consumers in February bills.

Hydropower recovered its top position among fuel sources contributing to the national grid, with an over 23pc share after the annual canal closures in December and January, but remains below its full potential. The hydropower had contributed only 8pc electricity to the grid in January.

This was followed by nuclear power, with its 18.83pc share in February, compared to 17.5pc in January, when a few power plants were on forced outage or undergoing annual refuelling.

Local coal-based power generation stood third with a 16pc share of the national grid supply in February, followed by almost 15pc from imported coal-based generation. Then came local gas-based generation with 11.52pc share, followed by Regasified Liquefied Natural Gas (RLNG) based power generation at 9.47pc share, a massive fall from its 22pc contribution in January.

There was no furnace oil- or diesel-based generation in February, unlike January, when 3pc of the generation came from furnace oil. RLNG-based generation was the most expensive at Rs23.21 per unit, followed by Rs13.59 from local gas, Rs13.56 from imported coal, and then Rs12.22 per unit from local coal.

The nuclear fuel cost amounted to Rs2.50 per unit in February, up from Rs2.23 in January and Rs1.82 in February of last year. The three renewable energy sources — wind, bagasse and solar — together contributed 5.63pc share to the grid. Wind and solar have no fuel cost, while fuel cost from bagasse-based plants stood at Rs10.39 per unit with just 1.19pc contribution to the grid. The cost of bagasse-based fuel has almost doubled from Rs5.96 per unit in February last year. Electricity import from Iran stood at 0.45pc of the total with fuel cost of Rs23.21 per unit.

Published in Dawn, March 19th, 2026

In its letter of March 17, the ministry has asked the Director General of the Pakistan Civil Aviation Authority (PCAA) in Karachi to look into the issue of “unauthorised additional charges” reportedly being levied by cargo handling company Gerry’s Dnata on meat export shipments.

The communication followed a complaint submitted by the All Pakistan Meat Exporters and Processors Association (APMEPA), which raised concerns that the newly imposed charges were increasing export costs and affecting the industry’s competitiveness in international markets.

According to exporters, Gerry’s Dnata recently implemented an extra charge of Rs50 per kg on meat exports and cautioned that consignments would not be processed for shipment unless the payment was settled.

Industry representatives say the additional levy amounts to roughly $180 per tonne, a cost escalation that could significantly affect exporters operating in highly competitive global markets.

In the letter, the Prime Minister’s Committee on Export of Surplus Food Items to GCC Countries had been informed during a meeting on March 15 that the additional charges had already been withdrawn.

However, exporters argue that the issue remains unresolved and that the charges are still being levied in practice, leading the Ministry to request the aviation regulator to examine the matter and settle it to exporters’ satisfaction.

The Ministry has also asked that the committee be updated on the outcome of the inquiry.

Exporters warn that continued uncertainty about cargo-handling costs could disrupt shipments of perishable meat products, which rely heavily on tightly managed cold-chain logistics and air cargo operations.

They also want authorities to ensure that cargo-handling charges remain transparent and regulated, arguing that sudden, unilateral cost increases could undermine the country’s export competitiveness at a time when Pakistan is seeking to boost foreign exchange earnings through higher-value-added food exports.

Published in Dawn, March 19th, 2026

The 11-1 vote kept rates steady at a range of 3.50 per cent to 3.75pc, with officials flagging one expected rate cut by the end of the year.

“The implications of developments in the Middle East for the US economy are uncertain,” the Fed said in a statement.

The central bank cut rates three consecutive times late last year before holding them steady at its January meeting.

It has a dual mandate of maintaining inflation near a long-term target of 2pc while ensuring maximum employment.

With war in the Middle East causing global oil prices to spike, potentially fuelling widespread inflation and curbing growth, analysts said policymakers were unlikely to make any immediate moves.

Affordability has been a key political issue for Trump, who has repeatedly called for rates to be slashed even as price increases have remained stubbornly high. “Uncertainty about the economic outlook remains elevated,” the Fed said Wednesday, while noting that economic activity was “expanding at a solid pace.”

Published in Dawn, March 19th, 2026

The minister, in a statement, highlighted that the work follows a formal agreement between KPT and KGTL to enhance navigational capacity and meet rising international shipping demand.

Karachi Gateway Terminal (Private) Ltd is the new joint venture between AD Ports Group and Kaheel Terminals, which will manage, operate and develop container berths 6-10 at East Wharf, Karachi Port.

“This initiative underscores the government’s commitment to modernising port facilities and bolstering Pakistan’s role in regional and global trade. Upon completion within three months, the project will enable KPT to accommodate vessels up to 350 meters in length with a gross registered tonnage (GRT) of 100,000,” the Minister stated.

“This will boost port efficiency by handling higher-capacity ships, reducing congestion, and shortening turnaround times,” Mr Chaudhry stated.

The dredging will deepen the upper and lower Harbour channels to 14 meters for safer navigation, while the 14 berths will be raised to 15.5 meters to accommodate larger ships and expand cargo-handling capabilities.

Published in Dawn, March 19th, 2026

The CPS sets out “a roadmap to support the country’s transition to sustainable and inclusive growth through private sector-led development”, the Manila-based lending agency said.

“The five-year strategy will focus on three pathways: enabling private sector development, advancing inclusion and empowerment, and enhancing resilience and sustainability”, it said, adding these priorities will be reinforced by crosscutting themes of good governance and institutional strengthening, gender equality and social inclusion, digital transformation, and regional cooperation and integration.

“The new CPS is tailored to address Pakistan’s structural challenges and promote robust and lasting growth, which benefits the whole country, especially the poor and vulnerable,” said ADB Country Director for Pakistan Emma Fan.

“It promotes strategic investments and reforms across key sectors to stimulate economic growth and create jobs. ADB looks forward to supporting Pakistan’s public and private sectors in delivering on this ambitious agenda,” she said.

The CPS noted that Pakistan had stabilised its macroeconomic conditions following a series of external shocks and had initiated important structural reforms.

“The CPS responds to this evolving country context by emphasising export- and investment-led growth, supported by improved public financial management, an enabling business environment, and investments in high-impact sectors”.

Private sector development is a central feature of the strategy. Under the CPS, ADB will support reforms and investments to reduce regulatory and compliance burdens, improve infrastructure, expand access to finance, promote public–private partnerships, and boost private sector operations.

The CPS also identifies transformative opportunities in critical minerals, railways and multimodal connectivity, energy security and clean energy, agricultural productivity and value chains, integrated water resource management, and skills development and employment.

The ADB, which remains one of the top two multilateral lending agencies to Pakistan, said it will increasingly deploy integrated solutions, combining policy reforms, sovereign and non-sovereign financing, technical assistance, and knowledge support across Pakistan to effectively address emerging challenges.

To advance inclusion and empowerment, the ADB will prioritise investments and reforms to strengthen human capital, expand access to quality social services, and promote women’s economic participation.

With Pakistan’s high vulnerability to extreme weather events and disasters, resilience and sustainability form a core pillar of the strategy. ADB will support initiatives on disaster risk management, climate change adaptation and mitigation, integrated flood and water resource management, agriculture value chains and food security, and air quality improvement.

The ADB noted that being the world’s fifth most populous country, with an estimated population of 240.5 million in 2025, and about 66 per cent under the age of 30, Pakistan’s sizeable young workforce — combined with the country’s rich natural resource endowments, including critical minerals, a growing digital ecosystem, and its strategic location — represented important opportunities for economic growth. A decisive shift toward private sector-driven growth can unlock this potential, transforming the economy and enabling sustained export- and investment-led expansion.

However, for Pakistan to shift to a sustainable and inclusive growth trajectory, it must address multiple structural constraints to address critical challenges, which include Pakistan’s narrow production and export bases, its burdensome business environment, and its imbalanced public financial management.

“The infrastructure gaps are characterised by an inefficient energy sector, insufficient investments in rail, and deficiencies in urban services. Limited provision of social services and governance weaknesses have weighed on human capital development. Poverty levels remain high”, the ADB said in its CPS, adding that the country was “highly vulnerable to climate change and natural hazards”.

These interlinked constraints call for carefully sequenced reforms and well-designed investments to unlock sustained growth while enhancing inclusion and resilience.

Yet it said there were a lot of opportunities for sustainable and inclusive growth. With its large young workforce, improving macroeconomic conditions, an ongoing boom in digital innovation, rich agricultural and natural resources, and progress on structural reforms, Pakistan has an opportunity to transform its economy.

Highlighting abundant resources and latent development potential, the ADB said about 47pc of Pakistan’s land is arable, compared with 10.7pc globally and 12.7pc in Asia. The country is also richly endowed in critical minerals. Information technology is already Pakistan’s fastest-growing export, and digital transformation can accelerate productivity, stimulate innovation, and create new business opportunities.

Moreover, Pakistan is strategically located and strengthening its infrastructure and connectivity can leverage the benefits of regional connectivity indicators. To fulfil its potential and turn its advantages into long-term development gains, Pakistan must carry out lasting reforms and combine these with sound investments.

Noting improving economic performance, the ADB said Pakistan’s economy has stabilised and returned to growth following a series of boom-and-bust cycles as GDP expanded by 3.1pc in FY2025, improving from a 0.2pc contraction in FY2023.

Average inflation declined sharply to 4.5pc in FY2025 from 23.4pc in FY2024 and fell below the State Bank of Pakistan’s target of 5–7pc. The current account balance moved from a deficit of –4.7pc of GDP in FY2022 to a 0.5pc surplus in FY2025 — the first since FY2011.

The issue was formally raised at a meeting of the special cabinet committee formed to monitor petroleum prices, presided over by Finance Minister Muhammad Aurangzeb.

The oil industry complained that credit limits for oil marketing companies (OMCs) in Pakistani currency remained unchanged, despite their foreign exchange requirements increasing more than double since the beginning of the US-Israel war on Iran.

These limits were set when petrol and diesel prices in the global market were around $70 and $90 per barrel, which have now gone beyond $132 and $190 per barrel, respectively. Similarly, the situation with insurance costs, import premiums and freight charges has been affected because of longer haul voyages. The import premium has gone above $20 from less than $5-6 per barrel.

As a consequence, commercial banks were not providing full foreign exchange coverage to their import requirements. Led by state-owned Pakistan State Oil (PSO), the industry demanded that the committee and the State Bank of Pakistan (SBP) intervene and enhance their credit limits or make any other arrangements they may deem appropriate for foreign exchange availability for oil imports.

It was reported that both petrol and diesel stocks had improved over the past few days despite challenges. Petrol stocks now provide more than 29 days of coverage while diesel stocks provide 26 days of coverage. Crude stocks had also increased to 14 days while Saudi Aramco had promised to deliver two more cargoes by mid-April.

An official statement said the committee was briefed that global petroleum markets remained “exceptionally tight, with recent increases observed in both benchmark prices and cargo premiums”.

Members noted that the prevailing market conditions reflect supply-side uncertainties linked to regional developments, with premiums for upcoming cargoes expected to remain elevated in the near term.

“It was highlighted that rising international prices have significantly increased the landed cost of imports, resulting in larger transaction sizes and placing pressure on existing financing arrangements,” the statement said, adding the committee discussed “operational challenges arising from the increased size of letters of credit (LCs) and emphasised the need for enhanced coordination between financial institutions and importers to ensure continuity of fuel imports”.

The finance minister directed that the matter be taken up with the State Bank of Pakistan and the Pakistan Banks’ Association (PBA) to explore facilitation measures, including temporary enhancements and consortium-based financing where required. Meanwhile, the central bank governor assured the committee that any issues relating to prudential limits would be reviewed on priority, while banks were encouraged to adopt a flexible approach to accommodate higher transaction volumes in view of prevailing market conditions.

The committee also undertook a detailed review of petroleum product stock positions and was briefed that, despite heightened volatility in international energy markets and evolving regional dynamics, domestic supply remained stable with adequate stocks available across the country. It was noted that diesel stocks currently provided approximately 24 days of cover, while petrol stocks remained at comfortable levels, supported by ongoing imports and refinery operations.

The Petroleum Division reported that one cargo of crude oil had arrived and was under discharge, while another vessel is expected to reach Karachi harbour within hours. It said that additional shipments remained in transit, and further import arrangements for March and April were being actively managed to reinforce national reserves. Refinery throughput was also expected to improve as incoming cargoes are processed, with efforts underway to optimise production levels across facilities.

The committee also reviewed demand patterns in the domestic market and noted indications of elevated offtake in recent weeks. Members emphasised the importance of close monitoring to discourage speculative stockholding and ensure that fuel availability remains smooth across the distribution network. Provincial administrations and regulatory authorities were directed to intensify oversight, including inspections and enforcement actions where necessary.

In view of the upcoming Eid holidays and the ongoing harvesting season, the committee reviewed supply continuity arrangements and was informed that OMCs would maintain operational readiness to meet demand. It was reiterated that depots would remain functional in line with commercial requirements, and no disruption in fuel availability was anticipated during this period, the statement said.

The meeting also reviewed progress on strengthening monitoring mechanisms, including the development of a digital dashboard aimed at improving real-time visibility of stock levels and supply conditions. The finance minister emphasised the need for timely data integration and directed all stakeholders to ensure prompt sharing of information to support informed decision-making.

Members were also briefed on ongoing engagements with international partners to diversify supply sources and mitigate potential disruptions. It was noted that discussions with key suppliers, including under government-to-government arrangements, were progressing, with additional volumes expected to strengthen supply security in the coming weeks.

Aurangzeb told the meeting that the government’s foremost priority was to ensure the uninterrupted availability of petroleum products across the country while minimising the burden on the public. He observed that while international markets continue to exhibit volatility and upward price pressures, proactive planning and coordinated efforts have helped maintain a stable domestic supply position.

In its Monday meeting, the committee was informed that the March requirements were fully secured and, based on current cargo planning and supply arrangements, coverage was available up to mid-April.

Unprecedented surge in global oil prices due to the blockade of Strait of Hormuz — a key waterway for ships — has also impacted Pakistan, with the government hiking the prices of both petrol and high-speed diesel by Rs55 from March 7.

While the government kept the petroleum prices unchanged, it increased the price of kerosene oil by Rs40 per litre on Sunday — the last review day under the weekly revision plan.

In an address to the nation, President Anura Kumara Dissanayake said electric cars were adding an extra 300 megawatts of demand at night, straining the grid.

“Electric car owners charge their vehicles when they return from work. This is placing an additional burden on the grid, and we are compelled to operate all our generators to meet this surge,” he said on Tuesday night.

Much of the electricity at night is generated by a 900-megawatt coal power station and another 1,000 megawatts from diesel — a far cry from the clean-green image EVs might hope to project.

Sri Lanka, still waiting for large-scale battery storage, currently has no way to bottle its abundant daytime solar power.

“Charge your car during the day when we have excess electricity from solar,” Dissanayake said, adding that authorities plan to introduce tariffs shortly to curb night-time charging.

The South Asian country has seen a surge in electric cars since a five-year ban on vehicle imports was lifted in February last year.

More than 10 per cent of all vehicles imported since then have been fully electric.

Faced with an energy crisis following the war in the Middle East, Sri Lanka has begun rationing fuel. It has also imposed a four-day working week starting Wednesday in a bid to conserve fuel.

Dissanayake said the country was unable to secure two shipments of 90,000 tonnes of crude oil due to the Middle East war.

However, he said Colombo was in talks with “friendly states” including neighbouring India and Russia to purchase refined products.

On Wednesday, streets were relatively free of traffic, with train and bus stations empty, as schools, government offices and banks closed in response to the government’s energy-saving drive.

The Central Power Purchasing Agency (CPPA) demanded the higher fuel cost on account of power consumed in February, even though more than 75 per cent of power generation came from domestic and cheaper sources.

Electricity consumption was reported to be around 11.42pc higher than the same month of last year but about 15pc lower than January 2026.

Once approved, the power companies would charge an additional amount of about Rs12.2bn to consumers of all the power companies, including ex-Wapda Distribution Companies (Discos) and K-Electric, in the billing month of April.

The National Electric Power Regulatory Authority (Nepra) has called a public hearing on March 31 to examine the request for additional FCA charges for consumers.

The CPPA also filed the petition for a higher FCA for February consumption. The power companies have claimed an average fuel cost of Rs8.37 per unit for February compared to Rs8.23 per unit in the same month last year.

The CPPA reported that 7,427 billion units (gigawatt hours) were delivered to Discos in February, compared to 8,762 GWh delivered to Discos in January.

The power companies claimed that the average fuel cost amounted to Rs8.37 per unit in February against a pre-approved reference fuel cost of Rs6.74 per unit, therefore, the need for about Rs1.64 per unit additional FCA.

The CPPA said about 7,696 GWh of electricity was generated in February at an estimated fuel expenditure of Rs62.75bn (Rs8.15 per unit), of which 7,427 GWh of energy was delivered to Discos at a cost of Rs62.2bn (Rs8.37 per unit), leading to a higher fuel cost than already charged to consumers in February bills.

Hydropower regained its top position among fuel sources contributing to the national grid, with a share of over 23pc after annual canal closures in December and January, but remained below its full potential. Hydropower had contributed only 8pc of electricity to the grid in January.

This was followed by nuclear power, which accounted for an 18.83pc share in February, compared to 17.5pc in January when a few plants were under forced outage or undergoing annual refueling.

Local coal-based power generation ranked third, contributing 16pc to the national grid in February, followed by imported coal at nearly 15pc. Local gas accounted for 11.52pc, while regasified liquefied natural gas (RLNG)-based generation contributed 9.47pc, marking a sharp fall from 22pc in January.

There was no furnace oil and diesel-based generation in February, unlike January, when 3pc of the generation had come from furnace oil.

RLNG-based generation was the most expensive at Rs23.21 per unit, followed by imported coal at Rs13.56, local coal at Rs13.5, and local gas at Rs12.22 per unit.

The nuclear fuel cost stood at Rs2.50 per unit in February, up from Rs2.23 in January and Rs1.82 in February last year.

The three renewable energy sources — wind, bagasse and solar — together contributed 5.63pc to the grid. Wind and solar have no fuel cost, while bagasse-based plants recorded a fuel cost of Rs10.39 per unit, with a 1.19pc share. This is almost double the Rs5.96 per unit recorded in February last year. Electricity imports from Iran accounted for 0.45pc of the total, at a fuel cost of Rs23.21 per unit.

Under a federal government decision, the fuel charge adjustment for Discos is also applicable to K-Electric consumers with effect from the start of the current fiscal year in June 2025.

The FCA is reviewed every month as per the tariff regime applicable across the country and is usually applicable to consumers’ bills for one month only.

Under the tariff mechanism, changes in fuel costs are passed on to consumers on a monthly basis through an automatic process, while quarterly adjustments — on account of variations in power purchase price, capacity charges, variable operation and maintenance costs, use of system charges, and transmission and distribution losses — are built into the base tariff by the federal government.

The privatisation plan, delayed for years, is now facing fresh setbacks that include dwindling interest in state-run firms such as Shipping Corporation of India and HLL Lifecare, besides the collapse of the IDBI Bank stake sale last week after bids fell short of the government’s minimum price.

India’s finance, shipping and health ministries and the companies did not respond to Reuters’ queries.

Indian Prime Minister Narendra Modi’s ambitious privatisation plan was aimed at having the state exit most sectors while remaining only in sensitive ones such as telecom and banking.

But the government could only sell Air India to Tata Sons, and indirect holdings in steel-maker Neelachal Ispat Nigam Ltd to Tata Steel, and Ferro Scrap Nigam to Konoike Transport Co.

The initial delays to the plan came from bureaucratic red tape and political pushback after Modi failed to secure a full majority in 2024 elections and had to rely on regional allies to form the government.

Dwindling buyer interest

India had invited bids to privatise Shipping Corporation in 2020 and received interest from multiple bidders, but a later review found the shortlisted bidders were ineligible to acquire the firm, the two government sources said.

The divestment department has since proposed scrapping the sale and either restarting the process, or exploring a merger with Container Corporation of India to integrate the logistics chain, the sources said.

The government had also targeted privatising Container Corporation of India in 2021-22 but never launched the sale.

Another state-run firm, HLL Lifecare, was put on the block in 2021 and financial bids were invited for the sale. However, interested bidders declined to move ahead with the process and sought changes in the sale offer terms, both the sources said, without giving details.

The government is, however, yet to take a final call on shelving the current stake sale plans in these three state-run companies, one of the two sources said.

The details of the sales processes of these three state-run firms have not been previously reported.

Operational inefficiencies, unclear asset transfers and high government pricing expectations, coupled with limited incentives, are keeping investor interest weak and stalling privatisation, said Ankur Wahal, director at professional services firm En Pointe Adwisers.

Higher valuation

IDBI Bank’s scrapped sale derailed what was seen as a model for future bank privatisations, after a high reserve price and Middle East-related geopolitical uncertainty curbed investor interest, an industry source said.

Also, the lack of protection for liabilities such as pension and gratuity dues further deterred investors.

The failed sale will likely hit divestment receipts for the next financial year, starting April 1, Wahal said.

India has targeted 800 billion Indian rupees ($8.66 billion) in asset monetisation and divestments, with a significant portion earlier expected from IDBI Bank.

This comes as the Middle East crisis threatens to raise India’s oil import bill, adding pressure through higher inflation and a wider current account deficit.

“The government’s privatisation plan has hit a wall,” said N R Bhanumurthy, director at the Madras School of Economics. Potential bidders will be interested in acquiring state-run companies if valuations are attractive, he said.

The index gained 4,276.09 points, or 2.85 per cent, to stand at 154,292.25 points from the previous close of 150,016.16 points.

The KSE-100 plunged to an intraday low of 150,284.25 points at around 9:30am, then reached its intraday high of 154,684.45 points at 1:30pm, before settling at 154,292.25.

Topline Securities noted the bullish momentum reflected “recovery in overall market sentiment”.

“The upward movement was largely supported by slightly lower international oil prices, alongside selective value hunting by investors,” it added.

It noted that the rally was “primarily led by index-heavy stocks” — United Bank Limited (UBL), Oil & Gas Development Company (OGDC), Fauji Fertiliser Company Limited (FFC), Pakistan Petroleum Limited (PPL), and Meezan Bank Limited (MEBL) — which collectively added 1,816 points to the benchmark.

“Trading activity remained firm,” Topline Securities said, with total volumes clocking in at 397 million shares and overall turnover reaching Rs22.3 billion.

Among the most actively traded stocks today:

• Bank of Punjab: up 6.82pc to Rs27.55 on a volume of 54,733,142 shares
• Wasl Mobility Modaraba (Right): up 700pc to Rs0.64 on a volume of 31,549,329
• K-Electric Limited: up 4.32pc to Rs7.73 on a volume of 26,433,608

The top advancing stocks were led by Wasl Mobility Modaraba (Right), rising 700pc to Rs0.64, followed by First Al-Noor Modaraba, rising 14.38pc to Rs5.01, and Security Investment Bank Limited, rising 13.46pc to Rs7.42.

The top decliners were Tariq Corporation Limited (Pref), down 10pc to Rs13.23; Itanz Technologies Limited, down 10pc to Rs32.95, and Jubilee Spinning & Weaving Mills Ltd, down 9.63pc to Rs31.34.

The PSX had slipped below 150,000 points on Monday as volatile conditions arising from the Middle East conflict and border tensions with Afghanistan sent investors into panic, who sold off their positions.

However, on Tuesday, the KSE-100 index managed to close in the green, snapping a four-day losing streak and boosting the market above the 150,000-point level.

The ongoing Middle East war and the resulting shipping paralysis in the Strait of Hormuz have sent the global oil prices haywire.

On Tuesday, US crude rose 2.28pc to $95.63 a barrel and Brent climbed 2.59pc to $102.81 per barrel.

The State Bank of Pakistan (SBP) is likely to increase its policy rate at the next monetary policy meeting, following an expected sharp rise in headline inflation after a jump in oil prices.

Financial experts watching the unexpectedly high cut-off yields of the treasury bills in the latest auction said that a 100-basis-point increase in treasury bill returns created visible room for an interest rate hike at the next monetary policy scheduled for April 27.

The trade and industry, already crying out under the hike in petroleum prices, could hardly afford a further increase in the benchmark interest rate, is 10.5 per cent, and it was expected that the State Bank might reduce the policy rate in the Monetary Policy announced on 9 March. However, the war had started in the Gulf, and expectations of a new wave of inflation were clear, prompting the State Bank to keep the interest rate unchanged.

In the auction held on Monday, returns on treasury bills increased by up to 100 basis points. The interest rate is below 100 basis points for most of the T-bills.

Possibility of tight monetary policy grows after 100bps hike in T-bill yields

The return on T-bills for one month was increased by 98.4bps to 11.47pc; for three months 100bps to 11.5pc; for six months 76bps to 11.5pc, and for 12 months 50.7bps to 11.5pc.

The Gulf War has entered its 18th day, and oil prices have risen to unexpected highs, with prices ranging from $110 to $130 per barrel. The prices quoted in the international market are not settled, as changes are too rapid due to the escalation of the war in the Gulf.

The government raised over Rs1 trillion in the auction by selling T-bills, reflecting its growing need for liquidity. Pakistan is also engaged in a war with Afghanistan, which requires additional financial support for the defence forces.

The bids also showed that the banks had no option but to lend their money to the government, as the total amount offered against the t-bills was Rs 1.358 trillion.

Due to high oil prices and high insurance costs for shipping amid growing uncertainty in the region, investors are reluctant to borrow and invest in domestic ventures.

Published in Dawn, March 18th, 2026

ISLAMABAD: The Institute of Cost and Management Accountants of Pakistan (ICMA) has proposed new levies in the coming Budget 2026-27, including taxes on digital services, online and speculative gaming, corporate brand promotion, and second-home ownership, to expand the country’s struggling tax base.

In its new taxation measures, submitted to the Tax Policy Office (TPO) of the Ministry of Finance, the statutory body of accounting and management professionals, said the proposals had been developed after careful analysis of Pakistan’s economic priorities, sectoral challenges, and international best practices to broaden the tax base and formalise emerging sectors.

The proposals are organised under seven key segments, including new revenue initiatives to broaden the tax base, climate and green taxation, urban and transport revenue, corporate and financial services, formalising digital and informal economy for tax revenue, agriculture and rural income and wealth and luxury tax.

The ICMA proposed a Digital Services Tax to capture revenue from Pakistan’s rapidly growing digital economy, including streaming platforms, gaming, mobile applications, and other digital media. This measure, it said, would formalise digital business activities, ensure equitable contribution to public revenue, and strengthen fiscal resources. The expected impact is to encourage compliance, formalisation of the digital sector, and alignment with international best practices.

It also proposed a regulated licencing and taxation framework for online and speculative gaming, which is largely unregulated and accessed via offshore platforms. ICMA recommended that only licenced operators should be allowed to operate under government oversight, paying a 2pc tax on gross revenues. This measure will convert informal and illegal activity into a legally monitored and taxed sector, protect consumers, and create a stable revenue source.

To leverage corporate visibility and turnover, ICMA recommended a dedicated levy on corporate advertising and brand promotion spending, applicable to enterprises with turnover above Rs100 million. By using existing invoices maintained by advertising agencies, this approach would ensure minimal administrative burden. This will result in increased transparency, equitable contribution from large enterprises, and additional revenue for public programs.

It also suggested Additional Resi­dential Property Tax (ARPS) targeting second homes or investment properties valued at Rs20 million and above. First-time buyers and primary residences should remain fully exempt. Buyers should be required to declare ownership of other residential properties at the time of registration. This will discourage speculative property purchases, promote efficient use of housing stock, and enhance housing equity.

Another proposal pertains to the nationwide adoption of Building Information Modelling (BIM) to streamline planning, approvals, and monitoring of infrastructure projects, both public and private. By digitising project management, BIM will improve efficiency, reduce delays, and increase transparency in construction projects.

Green Building Incentives are proposed to promote energy efficiency and water conservation. Certified green buildings should receive a 1.5pc concessionary tax on financing costs and rental income, encouraging sustainable construction practices.

To improve commercial building safety, ICMA recommended a Commercial Building Safety Levy (BSL) of 0.25pc on commercial property transactions, excluding residential properties.

For long-standing tax disputes, ICMA proposed a one-time settlement scheme that allows taxpayers to resolve disputes by paying a reduced percentage of the disputed amount. This will provide a final resolution, encourage voluntary compliance, and free FBR resources for active enforcement.

Proposals also include a Financial Transaction Tax (FTT) on equities, derivatives, and digital asset trades to generate revenue from financial markets while leveraging existing reporting infrastructure to minimise compliance costs.

The ICMA also proposed the National Consumer Receipt Lottery to encourage the formal documentation of retail sales. Consumers who obtain verified receipts should have a chance to win periodic cash prizes, thereby strengthening voluntary compliance, formalising retail activity, and creating a predictable revenue stream.

Finally, the ICMA also proposed a Windfall Gains Tax on extraordinary profits in sugar, oil & gas, and fertiliser sectors during periods of global price surges. This temporary levy is expected to ensure that the public benefits from exceptional gains by companies without affecting their normal profits.

Climate and green taxation

To promote sustainable development, ICMA proposed property tax relief for EV charging operators, providing an 80pc reduction for the first five years and 50pc for the next five years to encourage private investment in grid-compliant public and commercial EV charging stations, expand electricity consumption, and support Pakistan’s climate and EV adoption targets.

Also, it demanded a Landfill Disposal Tax to reduce municipal and industrial waste dumping while generating green revenue. Rates are proposed at Rs15,000 per tonne for general non-hazardous landfill waste and Rs1,000 per tonne for inert or partially treated waste.

ICMA also proposed a Progressive Carbon and Pollution Levy (PCPL) for large industrial units, under which higher-emitting industries pay a proportionally larger share. Revenue generated will fund environmental protection, pollution mitigation, and public health initiatives. This would encourage cleaner production and low-carbon technologies, and supports sustainable industrial growth.

The Green Transport Levy (GTL) of 2pc on fuel purchases, high-emission vehicle registration, and transport-related emissions has been proposed to fund low-carbon mobility, incentivise cleaner vehicles and fuels, and generate dedicated funding for green transport projects.

To formalise carbon markets, ICMA recommended a Carbon Market Levy for businesses participating in carbon trading or offset programs. Administration would be coordinated by the Environmental Protection Agency and registered trading platforms.

Published in Dawn, March 18th, 2026

Shipping giant Maersk has announced an increase in its Emergency Contin­gency Surcharge (ECS) for shipments from Pakistan and the wider subcontinent to West Africa, effective April 1.

Menzies RAS and Gerry’s Dnata imposed Rs25-50 per kg “ad hoc charges” on export cargo, in addition to heavy war risk and emergency conflict charges by shipping lines.

A UAE-based airline has also announced supplementary freight charges of $0.70 per kg on exports from Pakistan, effective March 19, 2026, citing changes in market conditions.

The outbreak of war in the Middle East has led to the imposition of war-risk and emergency conflict surcharges ranging from $3,500 to $4,000 per twenty-foot equivalent unit (TEU), depending on the shipping line.

All Pakistan Meat Exporters and Processors Association Chairman Mian Abdul Hanan urged the commerce ministry to immediately intervene and stop what he described as “unauthorised and unjustified ad hoc charges”, warning that consignments would be held back if the payments were not made.

He said the additional charges from Gerry’s Dnata would amount to about $180 per tonne, sharply increasing logistics costs and making Pakistani meat less competitive in global markets at a time when the country is trying to boost exports.

Expressing concern that Rs25-50 per kg charges could damage the credibility of Pakistan’s export supply chain, he questioned their legality, arguing that exporters were not the appropriate party to bear such costs.

“All relevant handling and service charges are already paid by the airlines, and any operational or financial matters should be resolved between the airline and the service provider rather than passed on to exporters,” he said.

Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Saquib Fayyaz Magoon said the Pakistan International Freight Forwarders Association and the Air Cargo Agents Association of Pakistan had also expressed serious reservations.

Published in Dawn, March 18th, 2026