AGP Executive Report

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

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

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

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

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

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

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

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

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

Himalayan Climate Risk: Nepal’s flash floods after an ice-rock avalanche and temporary damming have killed 1,204 and left thousands missing, with hydropower sites hit—another stark reminder for Pakistan’s own mountain and water-security planning. Court Watch: Pakistan’s Naval Farms and Naval Sailing Club on Rawal Lake got a legal lifeline as the Islamabad High Court set aside a 2022 demolition order and related findings. Energy & Costs: Pakistan raised petrol by Rs2.29 to Rs346.16/litre and HSD by Rs1.11 to Rs372.03/litre for Sept 3, as US-Iran tensions keep oil markets volatile; OGRA also moves toward daily price publication. Regional Power & Trade: Pakistan-Uzbekistan energy cooperation is flagged as a growth lever, with talks on electricity connectivity, renewables and investment, while the SCO Bishkek summit approved transport, energy and economic cooperation steps and handed Pakistan the chairmanship. Agri-Livestock Push (CPEC 2.0): China donated livestock vaccines for CPEC 2.0 as Pakistan targets productivity gains, with lumpy skin disease and brucellosis highlighted as major threats. Markets: PSX slid about 1,690 points amid US-Iran-driven risk and shipping worries around the Strait of Hormuz. Business & Tech: Web Summit Qatar 2027 confirmed 70+ global partners, including Pakistan, as the region courts startups and investment.

Inflation Watch: Pakistan’s headline CPI inflation climbed to 11.1% YoY in August, up from 9.2% in July, with rural inflation rising faster than urban—raising pressure on household budgets. Energy & Power: Senate panel discussions flagged a possible 30-minute extension in business hours, but the Power Division warned it could add demand and cost, with LNG supply tight amid ongoing load-shedding concerns. Tax Enforcement: FBR intensified action against illicit cigarette manufacturing, sealing a clandestine unit in Chakwal and seizing raw tobacco and unstamped cigarettes—aimed at protecting revenue and fair competition. Trade & Connectivity: Pakistan and Kyrgyzstan agreed to lift bilateral trade to $200m in two years and signed multiple accords spanning transit trade, climate cooperation, counterterrorism, education and virtual assets. Regional Water Security: At the SCO summit, PM Shehbaz reiterated that water must never be weaponised, tying the message to the Indus Waters Treaty dispute and broader regional stability. Maritime Cooperation: Pakistan and Belgium agreed to deepen maritime institutional links, student exchanges and port development under the blue economy agenda. Business Diplomacy: PBCQ unveiled a 60-day roadmap to deepen Pakistan-Qatar business ties, targeting wider membership and faster cooperation channels. Security & Shipping Risk: Iran-US tensions escalated around the Strait of Hormuz, with reports of mines disrupting tanker routes—another reminder of how quickly trade corridors can be hit. Climate & Disaster Risk: Nepal’s glacial-collapse flood disaster is being framed as a warning for cascading hazards and stronger cross-border early-warning and planning.

Pakistan-Qatar Business Push: Pakistan Business Council Qatar (PBCQ) unveiled a 60-day roadmap to deepen trade and investment, including expanding membership across manufacturing, textiles, IT and logistics. SCO Tech Agenda: Pakistan proposed an SCO sovereign AI infrastructure and governance framework as it assumes chairmanship, alongside priorities in energy, connectivity, health and disaster management. Power for Industry: K-Electric will invest Rs15bn in Karachi grid upgrades—new cables, feeder bifurcation and transmission improvements—to support uninterrupted industrial supply. Energy & Oilfield Boost: OGDCL signed with Baker Hughes to deploy Mature Assets Solutions to revive ageing wells and raise indigenous production. Tax/Export Facilitation: FBR told a Senate panel it will replace bank guarantees/cheques with insurance guarantees where admissible to ease exporters’ banking frictions. Inflation Watch: August CPI inflation rose to 11.1% YoY (and 11.2% in another report), driven by fuel/taxes and food pressures. Local Governance Reform (Sindh): Cabinet approved amendments to the Sindh Local Government Act, including earlier elections and digital mapping of 1.61m acres of katcha land. Agri Policy Clash: PKRC opposed commercialising GM maize, calling for a full ban on cultivation and release. Livestock Health: NA body was briefed that concrete steps are needed to curb foot-and-mouth disease to protect meat exports. Corporate Move: Engro agreed to sell its EPCL stake (56.19%) to Lotte Chemical Pakistan for about Rs19.7bn, pending approvals.

Indus Waters Treaty: Pakistan scored a major legal win as The Hague arbitration ruled India cannot unilaterally suspend the Indus Waters Treaty and ordered interim restraints on the Ratle hydropower project, while India rejected the ruling—keeping water diplomacy and hydropower timelines in focus. Inflation Watch: Pakistan’s August CPI rose 11.15% year-on-year, up from 9.2% in July, with rural inflation climbing faster than urban. Energy & Power Reliability: Telecom operators urged lower industrial power tariffs and protection from load-shedding, citing generator dependence and diesel costs to keep networks running. SCO Summit, Pakistan Chairmanship: Bishkek adopted 28 documents, including security and digital cooperation steps, and handed SCO chairmanship to Pakistan; leaders also stressed water as “lifeblood” that must not be weaponised. Regional Trade/Logistics: Iran-US tensions and Strait of Hormuz disruption fears pushed oil prices higher and raised shipping cost pressure, with Pakistan flagged as vulnerable on LNG supply continuity. Digital Nation: Pakistan showcased digital transformation at LEAP 2026, highlighting the Digital Nation Pakistan Act, spectrum/5G push, and a national digital stack. Manufacturing Pulse: HBL PMI for August edged to 51.8, the highest since the war began, supported by steadier orders and easing delivery delays.

Energy & Load Shedding: Pakistan’s power ministry apologised for night load-shedding, blaming lack of contracted LNG and saying spot LNG is costly amid Iran-US and Hormuz disruptions. Fuel Pricing: Petrol rose by 77 paisa to Rs342.79/litre while HSD fell by Rs1.03 to Rs370.41/litre; OGRA also announced daily rates for transparency. Industry Cost Pressure: FPCCI urged rationalising petroleum prices, especially diesel, warning high fuel taxes are inflating logistics and hurting competitiveness. Procurement & Telecom: Telecom Operators Association demanded repeal of PPRA Rule 42(f) allowing direct G2G contracting, saying it crowds out private IT/telecom firms. Agriculture Policy: Finance-led committee reached consensus on a transition framework for GM and non-GM maize coexistence, addressing seed and price concerns. Macroeconomic Outlook: Finance Division expects August inflation to stay elevated at 10–11% amid weak FDI, private credit contraction and climate risks. Trade & Logistics: Shipping costs to the US jumped over 200% on some routes due to the Iran war; exporters warned competitiveness is at risk. Regional Connectivity: Pakistan Railways signed a freight forwarding framework with Russian Railways Logistics, targeting a pilot container freight train. Defence Diplomacy: Pakistan, Saudi Arabia and Türkiye moved to institutionalise the Makkah Defence Alliance with a Saudi-based secretariat and a Pakistani first secretary general for three years. Business Ecosystem: LCCI launched a Directory of Trade and Industry 2026 covering 51,708 entities; PSW and TDAP ran Khadijah Women Entrepreneurship sessions in Sialkot and Gujranwala. Water Security: The Hague tribunal ruled India cannot put the Indus Waters Treaty in abeyance and ordered interim limits on Ratle works.

Power & Industry: Power Minister Awais Leghari apologised for night-time loadshedding, blaming higher demand and gas shortages, while warning high-loss areas face extra cuts due to electricity theft. Energy & Trade Shock: With the US-Iran flare-up around the Strait of Hormuz, Pakistani exporters say shipping costs to the US have jumped over 200% on some routes, threatening competitiveness. Water Security: The Hague Permanent Court of Arbitration ordered India to suspend work on hydro projects and uphold the Indus Waters Treaty, while India rejected the ruling and its interim measures. Regional Defence: Pakistan, Türkiye and Saudi Arabia kicked off the first committee meeting under the Makkah Joint Defence Agreement in Istanbul, focusing on interoperability, intelligence-sharing and defence industry cooperation. Diplomacy for Industry: PM Shehbaz Sharif arrived in Bishkek for the SCO summit, with Pakistan set to take SCO chairmanship for 2026-27—aiming to push trade, connectivity and energy talks. Public Safety Accountability: PM Shehbaz ordered suspension of eight officials and criminal proceedings after a PIMS hospital fire killed 14 newborns, citing missing alarms/sprinklers and weak emergency procedures. Telecom Costs: A Senate panel urged immediate tax cuts on imported mobile phones and asked customs to set a clearer valuation mechanism.

Makkah Defence Pact: Turkey, Saudi Arabia and Pakistan kick off the first committee meeting in Istanbul under the Mecca Joint Defence Agreement, with foreign/defence ministers and chiefs of staff set to discuss deterrence, interoperability and defence industry cooperation. Agri-Exports Push: Pakistan and Saudi Arabia agree to raise Pakistani agricultural and food exports to $3bn in two years, prioritising rice, red meat, fruits, concentrates, green fodder and water-efficient farming tech. Auto Policy 2026-31: PAAPAM proposes a rationalised tariff structure—higher duties on CBUs and localised parts, while keeping raw materials at minimal/zero duty—to support localisation and jobs. Power Sector Cost Cut: Power Division invites international bids to rehabilitate Guddu’s steam turbine (ST-16), targeting lower generation cost by Rs4.19/unit and adding 297MW by restoring combined-cycle output. Business & Energy Reliability: PBF warns recurring load management despite near-50,000MW installed capacity, blaming RLNG shortages and delayed cargoes for reduced generation. Airport Facilitation: Khawaja Asif inspects Lahore airport, ordering more security search counters to clear long queues, especially for female passengers. Cotton Market: Panic buying by textile mills lifts local cotton and phutti prices; stakeholders also flag adulteration with waste material and demand strict action. Hospital Fire Accountability: PM Shehbaz orders suspension of eight officials and criminal proceedings over the PIMS newborn fire that killed 14.