Business

ISLAMABAD — The Securities and Exchange Commission of Pakistan (SECP) has approved the nation’s first digital lending product specifically designed for women-led Micro, Small, and Medium Enterprises (MSMEs). Announced on June 22, this initiative aims to empower female entrepreneurs by providing them with accessible financial resources. Initiative Details The SECP’s approval marks a significant step in promoting gender inclusivity within Pakistan’s financial sector. This digital lending product will cater exclusively to women entrepreneurs, offering asset financing ranging from PKR 100,000 to PKR 1.5 million. Financing will be contingent upon the outcome of a credit assessment, ensuring funds are allocated efficiently and responsibly. This effort is part of a broader strategy to integrate digital solutions into financial services, enhancing accessibility for underserved segments. By focusing on women-led MSMEs, the SECP aims to address the gender gap in business financing, which has historically limited the growth potential of female entrepreneurs in Pakistan. Strategic Importance SECP officials emphasize the importance of this product in fostering an inclusive financial environment. An SECP spokesperson stated, “This product is a testament to our commitment to supporting women entrepreneurs and ensuring their financial independence.” The digital nature of the product is expected to streamline the application process, making it easier for women to access the funds needed to grow their businesses. Addressing Barriers Historically, women entrepreneurs in Pakistan have faced substantial barriers in accessing finance. Cultural norms, lack of collateral, and limited financial literacy have hindered their ability to secure business loans. The SECP’s initiative responds to these longstanding issues, aiming to create a more equitable financial landscape. The SECP has been actively enhancing the regulatory framework for digital financial services. Reforms to promote fintech innovations and digital banking solutions align with the approval of this digital lending product, modernizing and making the financial sector more inclusive. Impact on Economy and Society The introduction of a digital lending product exclusively for women-led MSMEs holds significant implications for Pakistan’s economic and social landscape. Economically, it could stimulate growth in the MSME sector, a critical component of the national economy. By equipping women entrepreneurs with essential financial tools, the initiative may lead to increased business activity, job creation, and innovation. Socially, the product is a progressive step towards gender equality in business. Empowering women with financial resources can lead to greater economic independence, improved living standards, and enhanced participation in the country’s economic development. This supports global efforts to promote gender equality and women’s empowerment, as outlined in the United Nations Sustainable Development Goals. The SECP has approved a digital lending product for women-led MSMEs. The product offers asset financing ranging from PKR 100,000 to PKR 1.5 million. This initiative aims to bridge the gender gap in business financing. It is part of broader efforts to modernize and digitize Pakistan’s financial sector.

LAHORE — The Lahore Chamber of Commerce and Industry (LCCI) delegation, led by President Faheem Ur Rehman Saigol, held discussions with Lahore Deputy Commissioner Capt. (Retd.) Muhammad Ali Ijaz on Thursday. The meeting addressed business community concerns over recent enforcement actions and relocation notices impacting local industries. Meeting Agenda The LCCI expressed the business community’s growing unease to the Deputy Commissioner. Key issues included recent enforcement actions against industries and issued relocation notices. These have led to the sealing of several bus body maker workshops, disrupting affected sectors. Faheem Ur Rehman Saigol, LCCI President, highlighted adverse impacts on the local economy and called for a collaborative approach between the business community and authorities. He stressed the need for clear communication to ensure enforcement measures do not hinder business operations. Response from Local Authorities Deputy Commissioner Capt. (Retd.) Muhammad Ali Ijaz acknowledged LCCI’s concerns and assured commitment to resolving these issues. He stated, “We are open to dialogue and are keen to work with the business community to find solutions that are in the best interest of all stakeholders.” The meeting concluded with an agreement to establish a task force, including representatives from LCCI and the local administration, to facilitate ongoing dialogue and address future concerns. Regulatory Background The recent enforcement actions and relocation notices are part of a broader local government initiative to regulate industries lacking compliance with environmental and zoning regulations. These measures aim to ensure industrial activities do not compromise public health and safety. Historically, Lahore’s business community has faced challenges with regulatory compliance and enforcement. Previous attempts to streamline industrial operations often met resistance due to economic implications for businesses and workers. The LCCI has consistently advocated for policies balancing regulatory requirements with economic growth and employment support. The chamber plays a pivotal role in mediating between the government and businesses to find workable solutions. Implications for Business The dialogue between LCCI and the Lahore Deputy Commissioner is pivotal in bridging the gap between regulatory enforcement and business operations. Outcomes from these discussions could significantly impact Lahore’s economic landscape, particularly for SMEs vulnerable to abrupt regulatory changes. For the business community, operating without fear of sudden closures or relocations is essential for maintaining investor confidence and job security. The task force establishment models a cooperative approach to regulatory enforcement beneficial for other regions in Pakistan. This engagement reflects the ongoing struggle to balance economic development with regulatory compliance in Pakistan. As the country seeks to attract foreign investment and boost industrial output, creating a stable and predictable business environment is paramount.

DERA ISMAIL KHAN — On June 22, the Deputy Commissioner of Dera Ismail Khan held a meeting with a delegation of persons with disabilities to address their fundamental rights and daily challenges. Meeting Highlights The meeting at the Deputy Commissioner’s office reviewed welfare measures for persons with disabilities. Community representatives raised issues about accessibility, employment opportunities, and social inclusion. The Deputy Commissioner affirmed the administration’s dedication to improving living conditions and rights for people with disabilities. In an official statement, the Deputy Commissioner stressed the need to integrate persons with disabilities into mainstream society. “It is our responsibility to ensure equal access to opportunities and resources for all citizens, regardless of physical abilities,” he stated. Potential strategies to enhance welfare programs and new initiatives adapted to the disabled community’s needs were discussed. Challenges Addressed Participants pointed out inadequate infrastructure, such as a lack of ramps and accessible public transport, which limits mobility and independence. They also highlighted the scarcity of employment opportunities and the need for vocational training programs. The Deputy Commissioner pledged to resolve these issues through coordination with relevant government departments and stakeholders. Background In Pakistan, systemic challenges hinder persons with disabilities from accessing basic rights and services. The country, having ratified the United Nations Convention on the Rights of Persons with Disabilities, is bound to promote and protect these rights. Yet, policy implementation varies widely across regions. Recent efforts to improve conditions include the Disabled Persons (Employment and Rehabilitation) Ordinance, which sets employment quotas for disabled persons in public and private sectors. However, enforcement remains inconsistent, perpetuating marginalization. Significance of Engagement The Deputy Commissioner’s engagement with the disabled community in Dera Ismail Khan signifies a critical step towards addressing systemic issues. Involving the community actively allows for policies to be tailored more effectively to their needs. Economically, providing better access to education and employment can enhance the local economy. Increased workforce participation boosts quality of life and reduces reliance on social welfare. Socially, inclusivity promotes diversity and tolerance within the community. On a broader scale, aligning with international human rights standards and sustainable development goals can improve Pakistan’s global standing. Addressing concerns of persons with disabilities demonstrates the government’s commitment to human rights. Key Outcomes The Deputy Commissioner engaged with persons with disabilities to discuss welfare initiatives. Accessibility, employment opportunities, and social inclusion were main issues raised. Commitment to improving conditions through collaboration with departments was affirmed.

LAHORE — Exporters in Pakistan have received assurance of faster export consignment clearance following a recent meeting of the Special Committee on the Export Facilitation Scheme (EFS) established by the Federal Board of Revenue (FBR). This committee convened on June 22, 2023, in Lahore to streamline export processes and tackle longstanding issues, including the rapid settlement of duty drawback claims. Special Committee Meeting Highlights Led by Chief Collector Exports Mohsin Rafiq, the Special Committee on Export Facilitation Scheme gathered with multiple stakeholders to boost export procedure efficiency. The committee’s focus is primarily on expediting the clearance of export consignments and addressing the persistent problem of delayed duty drawback payments. Committee members, including senior official Naveed Anwar, stressed the removal of bureaucratic hurdles traditionally slowing down export progress. They assured exporters of comprehensive measures to overcome these barriers, ensuring smoother trade operations. Mohsin Rafiq stated, “We are committed to addressing the concerns of exporters and ensuring that their consignments are cleared without unnecessary delays,” as part of FBR’s broader plan to strengthen Pakistan’s export sector crucial for economic growth. Challenges in the Export Sector Pakistan’s export sector has long struggled with procedural delays, bureaucratic inefficiencies, and financial constraints. The Export Facilitation Scheme, introduced by the FBR, aims at simplifying and speeding up export-related processes to support exporters. A significant issue has been the duty drawback system, which enables reclaiming duties on imported materials used in export production. Delays in these claims often result in cash flow problems, affecting exporters’ competitiveness worldwide. In recent years, the government has enacted several policies and established committees like the EFS to improve the business environment for exporters. Importance of Efficient Export Processes The promise of swift clearance and duty drawback payments marks a critical development for the export community in Pakistan. Efficient export processes ensure that Pakistani products remain competitive in global markets. By reducing delays, exporters can better meet international demand, amplify their market footprint, and bolster the national economy. This initiative is especially crucial as Pakistan aims to raise its export figures to mitigate the trade deficit and boost foreign exchange reserves. Given that the export sector significantly contributes to the GDP, improvements here can ripple through the entire economy, enhancing stability. Further, removing bureaucratic obstacles aligns with government efforts to improve the ease of doing business. These measures could draw foreign investment and encourage local entrepreneurs to broaden their ventures, fueling economic growth. Key Takeaways The FBR’s Special Committee on Export Facilitation Scheme has pledged faster clearance of export consignments. Expedient payment of duty drawback claims is prioritized to ease cash flow pressures for exporters. Efforts are underway to dismantle bureaucratic barriers delaying export processes. Enhancing export efficiency is vital for strengthening Pakistan’s competitive edge in global markets. These measures support economic growth, positively impacting the country’s GDP.

DERA ISMAIL KHAN — The Water and Sanitation Services Company (WSSC) in Dera Ismail Khan has launched a city-wide cleanliness drive. This effort focuses on the routes of Muharram-ul-Haram mourning processions and Imambargahs. It aims to provide a clean and safe environment for participants and mourners. Sanitation Efforts for Muharram The WSSC has deployed resources to boost sanitation for the upcoming Muharram processions. Sanitation teams are conducting special cleaning operations along the designated routes. This initiative is part of a wider strategy to maintain hygiene and safety during religious observances. Teams are tasked with waste removal, street cleaning, and ensuring debris-free areas. Additional waste bins have been placed along the routes to help the public dispose of waste properly. The WSSC works with local authorities to ensure that efforts are effectively implemented and any issues promptly addressed. Community Involvement An official stated, “We are committed to providing a clean, safe environment during Muharram. Our teams work round the clock to maintain the routes.” The official highlighted the need for community cooperation and encouraged residents to use the waste bins provided. Significance of Muharram Muharram, the first month of the Islamic calendar, holds significant importance for Muslims, especially Shiite communities. They commemorate Imam Hussain’s martyrdom, Prophet Muhammad’s grandson, through processions and gatherings, known as Majalis. In Pakistan, these attract large crowds, necessitating extensive preparations for public safety and cleanliness. Impact of the Cleanliness Drive The cleanliness drive is crucial for several reasons. It emphasizes the importance of public health and safety during large gatherings. A clean environment prevents the spread of diseases, contributing to community well-being. Maintaining cleanliness during events can positively impact the local economy. Clean environments attract visitors, benefiting local businesses and vendors, especially during Muharram. Community and Governance Socially, the initiative highlights community service and cooperation. Encouraging locals to help maintain cleanliness fosters communal responsibility and pride. This can strengthen community cohesion and civic engagement. Politically, effective public service management during religious events can enhance the credibility of local authorities. Demonstrating competence builds government trust, crucial for governance and public administration. Key Takeaways The WSSC has intensified cleanliness efforts for Muharram processions. Sanitation teams are deployed along the procession routes to ensure cleanliness and safety. Muharram’s significance draws large crowds, highlighting the need for meticulous preparation.

KARACHI — A high-level trade delegation from Iran’s Khorasan Province met with officials from the Korangi Association of Trade and Industry (KATI) on June 22. The focus was on enhancing industrial, trade, and investment relations between Pakistan and Iran. The meeting, attended by the Commercial Attaché of the Consulate of the Islamic Republic of Iran, aimed to boost business-to-business linkages and increase bilateral trade. Highlights of the Meeting The Iranian delegation, representing various sectors of Khorasan’s economy, explored opportunities for mutual cooperation with KATI officials. Both parties expressed a strong commitment to strengthening economic ties, particularly through industrial collaboration and investment ventures. The meeting underscored the potential for increased trade between the two neighboring countries, which share a long history of economic and cultural exchanges. The Commercial Attaché emphasized the strategic importance of fostering closer economic relations, citing significant benefits for both economies. “The collaboration between Khorasan and KATI can serve as a model for regional economic integration,” he stated, highlighting the need for sustained dialogue and partnership. Investment Opportunities During the discussions, KATI officials presented various investment opportunities within Pakistan’s industrial sectors, inviting Iranian businesses to explore joint ventures and partnerships. The Iranian delegation outlined potential areas for collaboration in Khorasan, particularly in agriculture, manufacturing, and technology. The meeting concluded with both sides agreeing to establish a framework for regular communication and cooperation. This is aimed at overcoming existing trade barriers and facilitating smoother business transactions. Background Pakistan and Iran have historically maintained cordial relations, with trade being a significant component of their bilateral ties. Despite political challenges and regional instability, both countries have consistently sought to enhance economic cooperation. In recent years, several initiatives have aimed to boost trade, including the establishment of joint chambers of commerce and trade fairs. Khorasan Province, in northeastern Iran, is a key economic region with a diverse industrial base. It shares borders with Afghanistan and Turkmenistan, serving as a strategic trade hub in the region. The province’s economy is driven by agriculture, mining, and manufacturing, offering considerable collaboration opportunities with Pakistani industries. Significance of the Meeting The meeting between the Khorasan trade delegation and KATI is significant for several reasons. Economically, it represents a proactive step towards diversifying and strengthening trade relations between Pakistan and Iran, which have been hampered by geopolitical tensions and international sanctions. By focusing on industrial collaboration and investment, both countries can leverage their strengths to foster economic growth. Socially, enhanced trade ties can lead to job creation and improved livelihoods in both regions. For Pakistan, increased Iranian investment could bolster the industrial sector, leading to technological advancements and increased productivity. Similarly, Iranian businesses stand to benefit from access to Pakistan’s large consumer market and its strategic location as a gateway to South Asia. Politically, the strengthening of economic ties can serve as a stabilizing factor in the region, promoting peace and cooperation. By building robust economic linkages, Pakistan and Iran can mitigate the impact of external pressures and work towards a more integrated regional economy.

LAHORE — The All Pakistan Cement Distributors Association (APCDA) calls on the government to reverse the turnover tax increase affecting cement distributors. The recent tax hike from 0.25% to 1.25% is placing a significant burden on the business community. Current Situation The APCDA’s appeal follows the decision to increase the turnover tax rate for cement distributors, stirring concern within the industry. The association reports rising operational costs and threats to business feasibility due to this increase. Representatives argue the hike is disproportionate, potentially causing job losses and reducing market competitiveness. An APCDA spokesperson called the tax increase unbearable, urging the government to reconsider to prevent further industry strain. This plea is part of broader efforts by business groups to secure more favorable tax conditions, especially amid the current global financial challenges. Understanding the Turnover Tax The turnover tax is based on gross revenue, not net profit, ensuring business contributions to national revenue irrespective of profit. Previously, Pakistan’s cement distributors faced a 0.25% rate; however, the government recently increased it to 1.25% to boost fiscal revenues. This increase is among several fiscal measures to address budget constraints and enhance revenue collection. The cement industry, a critical economic contributor, voices strong concerns about the tax hike’s potential negative impacts. Implications of the Tax Increase The higher turnover tax affects both the cement distribution sector and the broader economy. As cement is vital to construction, a major economic growth and employment driver, increased costs can disrupt supply chains and slow projects. Higher tax rates mean financial pressure for distributors leading to possible price hikes for consumers, dampening construction material demand, and slowing infrastructure and housing development nationwide. APCDA’s concerns reflect the need to balance revenue generation and business-friendly environments. Impact on Competitiveness This tax increase could harm Pakistan’s regional market competitiveness. Neighboring countries with more favorable tax regimes might attract businesses to relocate, risking job creation and economic stability locally. Key Takeaways The APCDA urges reversing the turnover tax hike from 0.25% to 1.25%. The increased rate burdens cement distributors, threatening business viability. The turnover tax ensures revenue from gross income. The cement industry’s key economic role may face ripple effects from the tax increase.

ISLAMABAD — Gold prices in Pakistan saw a significant increase on Monday, with the rate per tola rising by Rs4,643 to reach Rs442,636, according to the All Pakistan Sarafa Gems and Jewellers Association. This increase follows the previous trading day’s rate of Rs437,993. Factors Behind the Price Hike On June 22, 2023, the cost of one tola of gold increased significantly to Rs442,636 in the local market. This rise, reported by the All Pakistan Sarafa Gems and Jewellers Association, marks a substantial Rs4,643 jump from Rs437,993 the day before. Similarly, the price of 10 grams of 24-karat gold increased, following the general market trend. This surge is attributed to several factors, such as fluctuations in the international market and changes in the local currency’s value. Shifts in global demand or supply often influence local prices in Pakistan. Economic Context Local traders link the rise in gold prices to Pakistan’s economic conditions, where inflationary pressures and currency depreciation impact commodity prices. Gold is considered a safe-haven investment, attracting more demand during economic uncertainty, further driving up its price. Gold has a dual role in Pakistan as both an investment and a cultural asset. It’s traditionally used in jewelry for weddings and significant events, making it a staple in households. The All Pakistan Sarafa Gems and Jewellers Association sets daily prices, affected by international trends and local economics. Implications of Rising Gold Prices The increase in gold prices has notable implications for consumers and Pakistan’s economy. For individuals planning weddings or cultural events, the higher cost can lead to increased expenses and potentially lower demand for jewelry. Economically, higher gold prices may indicate broader inflation trends. As a hedge against inflation, rising gold prices could show concerns about economic stability and currency value, leading to increased investment in gold. The price hike can impact Pakistan’s trade balance. As a net importer of gold, higher prices might increase import bills, affecting foreign exchange reserves and the trade deficit. This situation highlights the need for strategic economic management to lessen negative impacts. Key Takeaways The gold price per tola in Pakistan increased by Rs4,643, reaching Rs442,636. Price changes were driven by international market fluctuations and local economic factors. Gold’s investment appeal grows during economic uncertainty, boosting demand. Rising prices affect consumer purchasing decisions, notably for weddings. Higher gold prices can influence Pakistan’s trade balance and foreign reserves.

ISLAMABAD — Gold prices in Pakistan soared on Monday, with the per tola rate increasing by Rs4,643 to Rs442,636. This rise follows the previous trading day’s rate of Rs437,993, reported by the All Pakistan Sarafa Gems and Jewellers Association. Gold Price Surge Explained The local gold market in Pakistan witnessed a significant price surge at the week’s start. The price per tola, a traditional South Asian weight for precious metals, jumped by Rs4,643, reaching Rs442,636. This is a notable hike from the prior rate of Rs437,993. Several factors contribute to the gold price increase, including international market fluctuations, exchange rate changes, and local demand-supply dynamics. The global gold market heavily influences local prices. Moreover, the depreciation of the Pakistani rupee against the US dollar further accelerates the rise in local gold prices. Market analysts highlight that ongoing geopolitical tensions and economic uncertainties globally have spurred investors to flock to gold as a safe-haven asset, boosting prices. Increased international demand impacts local prices, including those in Pakistan. Historical and Economic Context Gold remains a favored investment in Pakistan, acting as a hedge against inflation and currency devaluation. The local gold market is sensitive to both domestic and international economic conditions. The All Pakistan Sarafa Gems and Jewellers Association provides crucial price insights for traders and consumers. In recent times, Pakistan’s economy has faced inflation, currency devaluation, and fiscal deficits. Such conditions often steer investors towards gold as a stable option. Cultural traditions, such as using gold in weddings, further influence market dynamics. Impact on Economy and Consumers The gold price rise has several implications for Pakistan’s economy and its citizens. Those planning weddings or events where gold is customary face higher costs, affecting household budgets, especially for middle and lower-income families. Investors might see profitable opportunities with rising prices, particularly if they bought gold earlier at lower rates. However, the surge makes new investments costly, leading to uncertainty in investment strategies and affecting financial planning. Key Takeaways Gold prices in Pakistan rose by Rs4,643 to Rs442,636 per tola. International market trends and local economic conditions influence the increase. Consumers encounter higher costs for gold, affecting household finances. Investor profits may grow, but new investments face higher barriers. The price surge reflects broader economic challenges like inflation and currency devaluation. Source Attribution The details about the gold price increase were provided by the All Pakistan Sarafa Gems and Jewellers Association.

ISLAMABAD — Pakistan’s petroleum imports increased by 2.2 percent, reaching $14.953 billion during the first eleven months of the fiscal year 2025-26, according to the Pakistan Bureau of Statistics (PBS). This rise is compared to the same period in the previous fiscal year. Import Growth Factors The PBS reported a 2.23 percent increase in petroleum group imports during this period. The total imports reached $14.953 billion, marking a significant rise from the previous year amid global oil price fluctuations and changing local demands. The increase in petroleum imports reflects the country’s growing energy needs. The petroleum group comprises crude oil, petroleum products, and liquefied natural gas (LNG), each showing varied import activities. The surge in imports might result from increased industrial activity and transportation demands. Crude Oil and Petroleum Products The import of crude oil alone saw a notable increase, significantly contributing to the overall rise. Additionally, the demand for refined petroleum products showed an upward trend, aligning with broader economic activities. Economic Context Pakistan’s reliance on imported petroleum products is long-standing due to limited domestic production capabilities. Historically, the energy sector plays a crucial role in Pakistan’s economy, with imports critical for meeting energy demands. Over the years, balancing energy imports with economic growth has posed challenges for Pakistan. Fluctuations in global oil prices affect the import bill, trade balances, and foreign exchange reserves. The government’s policies periodically aim to reduce import dependency by exploring alternative energy sources and boosting domestic production. Significance of Rising Imports The increase in petroleum imports holds several implications. Economically, it highlights ongoing energy demand as Pakistan’s industrial and transportation sectors expand. This trend suggests economic activity growth in energy-reliant sectors. However, a higher import bill can strain foreign exchange reserves and widen the trade deficit. This situation underscores the need for strategic energy procurement and consumption planning for sustainable economic growth. Energy Policy Considerations The reliance on imported petroleum underscores the need to diversify energy sources. Pakistan’s policies must balance imports and domestic production, while also exploring renewable energy options to mitigate global oil price risks. Key Takeaways Petroleum imports increased by 2.2% to $14.953 billion during fiscal years 2025-26. The rise reflects higher energy demands from industrial and transportation needs. Higher imports could impact foreign exchange reserves and trade deficit. Strategic energy policies are needed to balance imports and domestic production. Pakistan’s energy demands influence regional and international trade dynamics.