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ARY NEWS

Shoaib Nizami

  • Pak Suzuki hints at ending local car production in Pakistan

    Pak Suzuki hints at ending local car production in Pakistan

    ISLAMABAD: Pak Suzuki has hinted at halting its local car production in Pakistan by 2030, citing concerns over the country’s new tariff policies.

    During a meeting of Senate Standing Committee on Finance and Industries, Hiroshi Kawamura, the company’s chief executive officer, expressed deep concerns about the future of the local auto industry in Pakistan.

    Hiroshi Kawamura said that the government’s new tariff policy could severely damage Pakistan’s domestic automotive sector.

    “The opening up of used car imports, particularly vehicles over five years old starting next year, poses a serious threat to local manufacturers,” he warned.

    Hiroshi Kawamura said that Pak Suzuki had plans to invest Rs. 40 billion to increase local production of auto parts as it was interested in expanding investment in Pakistan, but the current policy direction is ‘discouraging.’

    Hiroshi Kawamura said that the Suzuki Alto has already met standards in Japan, blaming Pakistan’s poor road infrastructure for accelerated vehicle wear and tear.

    “There is a vast difference in vehicle condition after 25,000 km between Pakistan and Japan,” he added.

    Hiroshi Kawamura further warned that allowing the import of used vehicles would lead to widespread unemployment among local skilled labor. “The new tariff policy could prove disastrous for Pakistan’s local auto industry,” he added

    Suzuki has not officially confirmed a shutdown but indicated that without a favorable policy environment, continuing local manufacturing operations beyond 2030 might not be feasible.

  • Chinese FM Wang Yi lands in Islamabad for Pak-China Strategic Dialogue

    Chinese FM Wang Yi lands in Islamabad for Pak-China Strategic Dialogue

    Chinese Foreign Minister Wang Yi has arrived in Pakistan at the invitation of Deputy Prime Minister and Foreign Minister Ishaq Dar.

    The sixth round of the Pakistan-China Strategic Dialogue will take place today in Islamabad.

    According to details, the joint chairmanship of the Strategic Dialogue will be held by Foreign Minister Ishaq Dar and his Chinese counterpart.

    The visit by Chinese Foreign Minister Wang Yi is part of the ongoing high-level exchanges between Pakistan and China.

    The main objective of the dialogue is to further deepen the all-weather strategic cooperative partnership between the two countries. Discussions will focus on enhancing all aspects of bilateral relations.

    Promoting economic and trade cooperation, reaffirming the joint commitment to regional peace, development, and stability are also on the agenda. The fifth round of the Strategic Dialogue was held in May 2024 in Beijing.

    Read more: China’s Wang Yi returns as foreign minister

    Last year in May, Chinese Foreign Minister Wang Yi co-chaired the fifth Pakistan-China Foreign Ministers Strategic Dialogue alongside Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar in Beijing.

    According to information available on the Chinese Foreign Ministry website, Pakistan’s Prime Minister Shehbaz Sharif made an official visit to China in June last year.

    In October, China’s Premier Li Qiang visited Pakistan to attend the 23rd meeting of the Council of Heads of Government of the Shanghai Cooperation Organization member states. Additionally, Pakistan’s President Asif Ali Zardari visited China officially in February this year.

  • Pakistan’s first wealth perception index 2025 released

    Pakistan’s first wealth perception index 2025 released

    ISLAMABAD: The Economic Policy & Business Development Think Tank (EPBD) has released its inaugural report formulating a Wealth Perception Index 2025, listing Pakistan’s top 40 public and private sector conglomerates, including the first-ever compilation of prospective dollar-billionaire business groups in the country.

    The Index, launched on Pakistan’s 78th Independence Day, identifies 20 leading public-listed corporate groups and 20 high-performing private groups across strategic sectors such as banking, cement, fertilizer, diversified manufacturing, real estate, FMCG, IT, and media.

    According to EPBD CEO Ahmad Nawaz Sukhera, the rankings highlight the potential of Pakistan’s private sector to drive sustained economic growth—provided it is backed by “supportive government policies and an enabling regulatory framework.”

    “Government alone cannot address Pakistan’s complex economic challenges. We need a strategic partnership between policy makers and our top private sector leaders,” Sukhera said.

    The Top 20 Public Listed Conglomerates by market capitalization include the Fauji Foundation ($5.90bn), Bestway/UBL Group ($4.51bn), Yunus Brothers/Lucky Group ($2.59bn), Nishat Group/MCB ($2.39bn), Engro Holdings ($2.39bn), Meezan Bank ($2.38bn), Arif Habib Group ($1.57bn), Aga Khan Fund & HBL ($1.56bn), Attock Group ($1.35bn), and British American Tobacco Pakistan ($1.24bn).

    The Top 20 Prospective Dollar-Billionaire Business Groups feature prominent family-led enterprises such as Packages Group, Fatima Group, Sapphire Group, Hilton Pharma, Lake City Holdings, MEGA & Pioneer Cement, Jang/Geo Network, Beaconhouse Group, JDW Sugar, Artistic Group, Vision Group/Park View City, US Apparel, Liberty Group, Soorty Group, and Master Group of Industries.

    Pakistan, Pakistan Wealth perception index 2025

    Pakistan, Pakistan Wealth perception index 2025

    EPBD notes that these 40 conglomerates collectively contribute billions in tax revenues, create large-scale employment, and hold the capacity to “double their impact” over the next decade. It has recommended an innovative policy initiative requiring senior civil servants to undergo intensive internships within these corporations to bridge the “policy-business disconnect.”

    The think tank emphasised that sectors such as banking, cement, fertilizers, and diversified industrial manufacturing have high multiplier effects and should remain at the core of Pakistan’s economic growth strategy.

    The report also underlines the growing role of women-led institutions, technology firms like Systems Limited, and foreign-listed companies investing in Pakistan’s economy.

    “Pakistan possesses the entrepreneurial talent and business leadership necessary for sustained growth. With the right partnerships and enabling environment, these groups can help transform the economy,” Sukhera added.

    Also Read: Moody’s upgrades Pakistan’s credit rating

  • Pakistan plans to ‘extend’ loan repayment period to meet IMF condition

    Pakistan plans to ‘extend’ loan repayment period to meet IMF condition

    ISLAMABAD: In a move to fulfil another International Monetary Fund (IMF) requirement, the Pakistan government has prepared a comprehensive strategy to extend the repayment period of both domestic and external loans, ARY News reported on Tuesday, citing sources. 

    According to officials, the plan aims to increase the average maturity period for domestic debt from the current 3 years and 8 months to 52 months, while the maturity period for external debt will be extended from the current 6.1 years to 76 months.

    The IMF has set 2028 as the deadline for Pakistan to fully implement the new maturity targets.

    Sources stated that extending the maturity period will help reduce financing requirements in the coming years.

    Read more: IMF advises autonomy to Auditor General of Pakistan’s Office

    An implementation report will be shared with the IMF mission ahead of the next economic review, while execution of the policy will begin within the current fiscal year.

    The new framework also stipulates that around 30% of domestic loans will be issued at a fixed policy rate, and the share of Shariah-compliant debt will be increased to 20% over the next three years.

    Additionally, the volume of external debt of Pakistan will be capped at no more than 40% of total public debt, the sources said.

  • Pakistan govt ‘cancels’ sugar import tender

    Pakistan govt ‘cancels’ sugar import tender

    The Pakistan government reportedly decided to cancel the tender for the import of 100,000 tonnes of sugar, ARY News reported, quoting well-placed sources.

    On August 3, the Trading Corporation of Pakistan (TCP) issued a new tender for the import of 100,000 metric tons of sugar.

    According to official sources, the deals with all three companies that submitted bids could not be finalized. Authorities urged that no procedural violations will be committed in acquiring imported sugar, and that neither the price nor the quality standards will be compromised.

    Sources said the tender bids did not meet the government’s required specifications regarding price, size, and quality of sugar.

    The offered rates for fine granulated sugar ranged between $539 and $567 per tonne, while the medium-sized sugar was quoted at $599 per tonne—both deemed unacceptable.

    In addition to high prices, the government would have had to bear cargo handling charges at Karachi Port, along with unloading, truck loading, and transportation expenses to deliver the sugar from the port to various markets across the country.

    Read more: Pakistan govt issues tender for 100,000 metric tons sugar import

    Earlier, the International Monetary Fund (IMF) expressed reservations over Pakistan’s decision to offer tax exemptions and subsidies on imported sugar, warning that such measures could jeopardise the ongoing $7 billion loan program.

    According to official sources, the IMF opposed the government’s plan to provide a subsidy of Rs55 per kilogram on imported sugar, which is expected to arrive in Pakistan at a cost of Rs249 per kg.

  • Pakistan gets IMF nod for sugar import tax relief

    Pakistan gets IMF nod for sugar import tax relief

    ISLAMABAD: The International Monetary Fund (IMF) has lifted its objection to Pakistan’s tax relief on imported sugar, following successful negotiations by the government, ARY News reported citing sources.

    The relief, detailed in a FBR notification, reduces the sales tax from 18% to 0.25% and is not part of the national budget or a subsidy program, a stance Pakistan clarified to address IMF concerns over fiscal discipline amid a sugar shortage, the sources within the finance ministry added.

    Pakistan plans to import 100,000 tons of sugar in the first phase, costing $56.7 million, with a tax exemption of Rs 1.85 billion.

    Earlier, the International Monetary Fund (IMF) expressed reservations over Pakistan’s decision to offer tax exemptions and subsidies on imported sugar, warning that such measures could jeopardise the ongoing $7 billion loan program.

    The government of Pakistan has finalized decision to import 200,000 tons of sugar to address the soaring rates in domestic market, ARY News reported.

    According to Ministry of National Food Security spokesperson, the final order for the sugar import has been issued, with the first shipment expected to arrive in Pakistan in early September 2025.

    The spokesperson stated that the import of sugar is aimed at balancing prices and providing relief to the public.

    Additionally, the government has secured a discount on sugar purchases in the international market, which is expected to further ease the financial burden.

    The availability of imported sugar is anticipated to stabilize the local market, ensuring steady supply and price control, the spokesperson added.

  • FBR exceeds July tax collection target

    FBR exceeds July tax collection target

    ISLAMABAD: The Federal Board of Revenue (FBR) has successfully met and surpassed its tax collection target for the first month of the current fiscal year, ARY News reported citing sources.

    According to sources, the FBR collected Rs 755 billion in July, exceeding the assigned target of Rs 748 billion.

    This performance reflects the government’s renewed focus on revenue generation and tax compliance.

    Breakdown of the July collections shows that Rs 324 billion was collected under income tax, while sales tax collections stood at Rs 353 billion.

    Additionally, Rs 46 billion was generated through federal excise duty, and Rs 113 billion came from customs duty.

    For the ongoing fiscal year, the FBR has been given an ambitious annual tax collection target of Rs 14,131 billion.

    Sources emphasised that achieving monthly tax goals is crucial, as it is one of the primary conditions set by the International Monetary Fund (IMF) under the existing financial support program.

    The higher-than-expected revenue performance in July is seen as a positive indicator for Pakistan’s economy as it seeks to stabilise its fiscal position and maintain its commitments to international lenders.

    Also Read: FBR Tax Collection 2024-25 surpasses Rs. 1 trillion

    Earlier, in a report by the Federal Board of Revenue (FBR), a total FBR tax collection of Rs. 1,017.8 billion for the fiscal year 2024-25 has been mentioned, according to written feedback by the Ministry of Finance, submitted in the Senate.

    This is a key achievement in Pakistan’s income-generating efforts, with FBR tax collection presenting remarkable growth across the main categories.

    According to the Ministry of Finance, from July 2024 to June 2025, income tax totalled Rs. 628.3 billion, while sales tax collections touched Rs. 389.5 billion.

    In the month of June 2025, the highest income tax collection of Rs. 125.9 billion was recorded, highlighting an impressive finish to the fiscal year.

    The FBR also broadened its tax revenue base and added 280,197 new filers to the system. The number of return filers rose to 1,034,143, from 841,071 in total last year.

    Set target for the income tax for the year 2024-25 was Rs. 480 billion, whereas the sales tax target was Rs. 400 billion. Fortunately, both targets were achieved.

    With regard to sales tax refunds, the FBR paid Rs. 363.7 billion during FY 2024-25. In the last five years, the total accumulated refunds have escalated to Rs. 1,472.1 billion.

  • Petrol, diesel prices announced for next fortnight

    Petrol, diesel prices announced for next fortnight

    ISLAMABAD: The federal government has announced new petrol and diesel prices for the next fortnight, ARY News reported.

    According to a notification issued by the Ministry of Finance, the petrol price has been decreased by Rs7.54 per litre and while diesel’s price was inreased by Rs1.48 per litre.

    Petrol Price in Pakistan- Latest Updates

    After the decrease, the new price for petrol has been set at Rs 264.61 per litre while the diesel will be available at Rs 285.83 per litre after a hike of Rs1.48.

    Petrol Price in Pakistan Today

    Prices w.e.f 1-August-2025

    Fuel Type Old Price New Price Difference
    Petrol (Super) PKR 272.15 264.61 7.54
    High Speed Diesel PKR 284.35 285.83 1.48
    Light Speed Diesel PKR 155.81 PKR 155.81  0.0
    Kerosene Oil PKR 171.65 PKR 171.65  0.0

     

    Earlier on July 15, the federal government had hiked petrol and diesel prices which was in effect till July 31.

    The petrol price had been raised by Rs5.36 per litre and while diesel saw an increase of Rs11.37 per litre.

    The Oil and Gas Regulatory Authority (OGRA) earlier on Thursday announced Liquefied Petroleum Gas (LPG) prices for August 2025, reducing it by Rs17.74 per kilogram (kg).

    According to a notification issued, the price of LPG has been set at Rs215.36 per kg, after a decrease of Rs17.74 per kg. The price of a domestic LPG cylinder (11.8 kg) has been reduced by Rs209.24, bringing the new price to Rs2, 541.36 against the old price of Rs 2,750.60.

    The reduction aligns with global trends in oil prices and aims to ease the financial burden on consumers.

  • FBR abolishes tax on digital goods, services

    FBR abolishes tax on digital goods, services

    ISLAMABAD: The Federal Board of Revenue has abolished a 5% tax on digital goods and services provided through online platforms, ARY News reported quoting FBR.

    The decision follows successful tariff negotiations with the United States to eliminate the tax imposed on foreign companies.

    The tax, introduced just a month ago in the federal budget, applied to the supply of digital products and services.

    According to an official notification issued here, the Digital Presence Procedures Tax will no longer be applicable to foreign digital goods and services.

    Sources within the FBR indicate that the International Monetary Fund (IMF) will also be consulted regarding this decision. The tax exemption will take effect from July 1, 2025, as per the notification.

    It is worth mentioning here that the Government of Pakistan introduced a new digital tax law that mandates taxation on earnings generated from YouTube, social media platforms, and various online services.

    According to reports, income derived from audio, video, and music streaming services subjected to tax, along with other digital sectors.

    The legislation also applies to telemedicine, e-learning platforms, cloud services, and online banking in Pakistan. Furthermore, e-commerce websites, online stores, and digital marketplaces will also fall under the scope of the new tax regulation.

    Read More: How Digital Transformation Can Enhance Pakistan’s Tax Revenue

    Banks and exchange companies involved in transferring payments to foreign companies in exchange for goods or services will be required to deduct a 5 percent tax.

    This tax must be deposited into the Pakistan national treasury by the 7th of each month. Failure to deduct or deposit the tax will result in legal action against the concerned financial institutions.

    Under the new framework, all social media platforms operating in Pakistan are now obligated to submit quarterly reports to the government.

  • Audit reveals massive overbilling by electricity distribution companies

    Audit reveals massive overbilling by electricity distribution companies

    ISLAMABAD – July 22, 2025: Widespread financial irregularities have come to light within entities operating under Pakistan’s Power Division, ARY News reported on Tuesday, citing an official report.

    As per details, eight electricity distribution companies have been found involved in overbilling amounting to Rs244 billion in Pakistan.

    The audit covers IESCO, LESCO, HESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO, according to official documents. The companies reportedly resorted to overbilling in an attempt to conceal line losses, electricity theft, and poor operational performance.

    Even domestic consumers, agricultural tube wells, and deceased individuals were not spared. Multan Electric Power Company (MEPCO) alone reportedly issued bills worth Rs49.6 million to deceased persons.

    The report noted that five of these distribution companies overbilled 278,649 consumers by Rs47.81 billion in a single month. Despite the scale of malpractice, no action has been taken against officials involved in concealing theft and line losses through overbilling.

    In the fiscal year 2023-24, consumers were billed an additional 904.6 million units, according to documents. In some cases, refunds amounting to billions of rupees were claimed, prompting audit authorities to demand verification records.

    Read more: PM Sharif directs to ‘accelerate’ DISCOs privatization process

    Furthermore, Rs22 billion in overbilling was carried out under the pretext of managing line losses through extra load charges. The audit authorities have formally sought explanations from the eight distribution companies involved.

    One alarming revelation includes QESCO’s overbilling of agricultural consumers, exceeding Rs148 billion, reportedly to mask inefficiencies up to FY 2023-24.

    Additionally, 10 distribution companies issued Rs18.64 billion in extra billing through 1,432 feeders.

    Despite repeated requests, audit officials were not provided the required billing records.

    However, Rs5.29 billion was refunded to consumers in overbilling under incorrect meter readings, and PESCO offered Rs2.18 billion in multi-credit adjustments to affected users.