Former militant commander surrenders in Sui

Latest News on Business, Finance and Markets from Pakistan

Latest News on Business, Finance and Markets from Pakistan

ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) and Tehreek-e-Tahaffuz-e-Aain-e-Pakistan (TTAP) on Sunday vowed to fight the imposition of an emergency and Governor's Rule in Khyber Pakhtunkhwa on legal, parliamentary and public fronts. They accused the federal government of exploiting terrorism as a pretext to send packing what they called the only democratically elected government in the country, while dismissing other governments as products of the 'Form 47-installed regime', despite the KP government enjoying a two-thirds majority. In a statement following consultations, PTI Chairman Barrister Gohar Ali Khan, TTAP Vice Chairman Allama Raja Nasir Abbas, PTI Secretary General Salman Raja and other leaders rejected the measures, questioning whether they were genuinely required by security concerns or intended to weaken a provincial administration led by a political rival. READ MORE: Emergency, governor's rule imposed in KP as president approves cabinet decision The leaders maintained that counterterrorism efforts should not undermine provincial autonomy or override an electoral mandate. Barrister Gohar questioned the timing of the security-related allegations, claiming the provincial government had cooperated with federal authorities and participated in consultations before terrorism became central to the justification for intervention. He said the PTI had attended 15 meetings and two days of negotiations, adding that a written record was available. He challenged the federal government to clarify whether terrorism had been cited during negotiations before October 2 and, if not, why it had subsequently become a principal justification for action against the provincial government. According to Gohar, federal representatives had initially accused the KP government of failing to cooperate on counterterrorism. He said he disputed the allegation, maintaining that the provincial administration had attended relevant apex committee meetings, strengthened police capacity and increased security resources. He also challenged federal authorities to identify any instance in which the provincial government had refused requested security funding. The competing claims could be assessed through meeting minutes, funding records, official correspondence and other evidence. Gohar further alleged that terrorism was being invoked to obstruct the PTI's planned long march. He questioned the rationale for imposing an emergency and Governor's Rule across the province when, according to him, the security concerns cited by the authorities were concentrated in 12 districts. The PTI chairman also condemned the reported detention of Chief Minister Sohail Afridi as an attack on the provincial mandate, saying the party had been unable to contact him directly. In a separate statement, Gohar thanked Jamat-e-Islami, Jamiat Ulema-e-Islam-Fazal (JUI-F) and the Awami National Party (ANP) for opposing Governor's Rule and emergency, describing their positions as evidence of broader political resistance to the intervention. Invoking the 18th Amendment, Gohar argued that allegations of poor governance could not, on their own, justify federal intervention overriding provincial autonomy. He maintained that the imposition of an emergency and Governor's Rule violated the spirit of provincial autonomy and said the measures could be challenged in court. He alleged that federal interference had eroded provincial authority and represented a further concentration of power at the centre. He said the PTI would pursue legal remedies, raise the issue in elected forums and mobilise public support against the decision. The party also linked the dispute to its longstanding demands concerning former prime minister Imran Khan, including access to medical treatment, meetings with him and contact with his children. Gohar questioned delays in cases involving PTI leaders and Imran Khan's wife, Bushra Bibi, arguing that prolonged proceedings had deprived them of timely judicial consideration. Reiterating the party's opposition to terrorism, Gohar said the PTI supported the country security efforts but would resist attempts to use security concerns to suppress political demands or peaceful mobilisation. He described the planned march as a campaign for justice rather than a demonstration for its own sake. Copyright Business Recorder, 2026

ISLAMABAD: In a sweeping move to tighten federal control over Khyber Pakhtunkhwa's administration, the government on Sunday announced an 11-member special advisory council headed by Governor Faisal Karim Kundi. The announcement came shortly after the imposition of emergency and governor's rule in the province, effectively removing the Pakistan Tehreek-e-Insaf-led (PTI) provincial government from power. The government also decided to set up a dedicated secretariat to oversee administrative affairs in 12 districts facing serious security challenges. READ ALSO: Emergency, governor's rule imposed in KP as president approves cabinet decision Speaking at a press conference, Information Minister Attaullah Tarar, flanked by other ministers, said the council would oversee key provincial departments, including finance, education, energy, health, law, industries, mines and minerals, information and development. The move establishes a parallel administrative arrangement under the governor and the chief secretary, with the newly created secretariat tasked with directly overseeing administrative affairs in the 12 designated districts and keeping the federal government abreast of developments on the ground. According to a federal government notification, Dr Syed Aamir Abdullah has been assigned education, while Tariq Mahmood Pasha will oversee finance, revenue, excise and taxation. Usman Saifullah Khan has been given the portfolios of energy, power, planning and development. Former Khyber Pakhtunkhwa advocate general Aamir Javed will look after law and parliamentary affairs, while Samar Haroon Bilour has been assigned information and broadcasting. Dr Muhammad Irshad will oversee industries and commerce, and Maulana Muhammad Tayyab Qureshi Aauqaf and Religious affairs. Lt Gen Dr Nigar Johar Khan (retd) has been assigned health, Kifayatullah Khan home and tribal affairs, and Dr Sarfaraz Ali Shah mines and minerals. Asif Rafiq Afridi will oversee communications and works, local government, housing and transport. Copyright Business Recorder, 2026

ISLAMABAD: The World Bank has proposed USD 200 million in financing to help Khyber Pakhtunkhwa (KP) broaden its tax base and improve public service delivery, targeting an increase in the province's own-source tax revenue from Rs64 billion to Rs122 billion in real terms by June 2031. According to the bank's document, the proposed Pakistan Public Resources for Inclusive Development Multiphase Programmatic Approach for KP envisages a total cost of USD 650 million, including USD 450 million in provincial government financing and USD 200 million from the World Bank. The programme is expected to run from fiscal year 2027 to fiscal year 2032. The proposed World Bank financing comprises a USD 100 million International Development Association (IDA) credit and a USD 100 million IDA loan, while the provincial government will contribute the remaining USD 450 million. READ MORE: KP revenue mobilisation programme: World Bank gives exceptional approval for time extension, restructuring The programme aims to strengthen KP's fiscal system to support macroeconomic stability and improve public service delivery, with reforms targeting revenue mobilisation, expenditure efficiency in health and education, and the use of reliable data in policymaking. The bank's assessment highlights the province's persistent fiscal and social challenges. In fiscal year 2025, 35.3 percent of KP's population lived below the national poverty line, around 40 percent of children under five were stunted, 36 percent of school-age children were out of school, and only 58 percent of children were fully immunised. KP remains heavily dependent on federal transfers, while its own-source revenue finances only a small and declining share of rapidly rising expenditure, the document notes. Higher salaries and pensions, the absorption of the merged districts, inflation and an expanded development programme have increased spending pressures and crowded out public investment. The proposed programme will focus on three major areas: expanding provincial revenue collection, improving the allocation and efficiency of health and education spending, and strengthening the provincial statistical system. Under the revenue mobilisation component, the World Bank seeks a broader tax base, simplified and harmonised tax administration, and digital transformation across the KP Revenue Authority, Excise Taxation and Narcotics Control Department, and Board of Revenue. The bank has identified gaps in tax coverage, fragmented revenue administration and inadequate digital capacity as major obstacles to increasing provincial revenue. Property, agriculture and substantial parts of the services sector remain outside effective taxation, while the three provincial agencies operate with overlapping mandates and limited data sharing. On public spending, the programme envisages needs-based budgeting, more predictable budget execution, greater spending authority at the facility level, and digital procurement and financial management to improve the delivery of health and education services. The bank cautioned that existing public financial management reforms have yet to translate into efficient health and education spending, citing weak links between budget allocations and facility needs, unpredictable releases, and poorly integrated procurement and payment systems. By June 2031, the programme aims to ensure that 60 percent of primary schools currently failing to meet minimum functional standards achieve compliance. It also targets verification of 60 percent of contractual payments through the electronic procurement and disposal system, with payments processed through electronic fund transfers. The programme further seeks to reduce procurement cycle times in health and primary education by 15 percent and improve digital reporting of grants to Parent Teacher Councils. The third component will strengthen the provincial statistical system through improved economic and sectoral data, integration of administrative databases, and establishment of a KP Development Data Hub to support planning and resource allocation. The proposed operation carries moderate environmental and social risks, including potential digital exclusion of rural and low-income populations, data privacy concerns, electronic waste, and possible distributional effects of agricultural income tax reforms. The World Bank's approval of the proposed operation is scheduled for October 29, 2026. Copyright Business Recorder, 2026

Latest News on Business, Finance and Markets from Pakistan

Latest News on Business, Finance and Markets from Pakistan

Latest News on Business, Finance and Markets from Pakistan

Latest News on Business, Finance and Markets from Pakistan

ISLAMABAD: Pakistan strongly condemned the latest terrorist attack by the Houthi militia targeting King Khalid International Airport in Riyadh, reiterating its firm and unshakeable commitment to the sovereignty, territorial integrity, security and stability of the Kingdom of Saudi Arabia, the Foreign Office Spokesperson said in a statement on Sunday. 'The targeting of a civilian airport constitutes a heinous act of terrorism, a flagrant violation of international law and a grave threat to regional peace and security. Pakistan expresses its profound concern over reports of casualties and injuries resulting from the attack. Our prayers are with the victims and their families. We extend our heartfelt condolences to the bereaved families and wish a swift and complete recovery to those injured,' it was added. READ MORE: Saudi-led coalition says new attack at Riyadh airport causes fire, day after strike kills 12 The spokesperson further said the continued targeting of civilian population and critical infrastructure by the Houthi militia is utterly unacceptable and must be condemned unequivocally by the international community. 'Such brazen and indiscriminate acts of aggression cannot be justified under any circumstances and must cease immediately. Pakistan stands in unwavering solidarity with the leadership and people of the brotherly Kingdom of Saudi Arabia in the face of these repeated terrorist attacks,' it was reaffirmed. In accordance with the Makkah Agreement for Joint Defence and the recent decisions taken by its Strategic, Political and Defence Committee, the spokesperson said Pakistan reiterates its firm and unshakeable commitment to the sovereignty, territorial integrity, security and stability of the Kingdom of Saudi Arabia. 'Pakistan fully supports the Kingdom's legitimate right to defend its territory, protect its people and safeguard its cities and vital infrastructure against all threats and acts of aggression. Pakistan calls upon the Houthi militia to immediately cease its terrorist attacks and urges the international community to take a firm and unequivocal stand against such acts that endanger innocent lives and undermine regional stability. Pakistan will continue to stand shoulder to shoulder with the Kingdom of Saudi Arabia, resolute in its commitment to the Kingdom's sovereignty, security and defence,' it was further added.

ISLAMABAD: Port Qasim Electric Power Company (PQEPC) has opposed the proposed one-year limit on coal supply agreements, arguing that the restriction could undermine fuel security, disrupt procurement operations and increase risks for coal-fired power plants, sources told Business Recorder. In its comments submitted to the Central Power Purchasing Agency-Guarantee (CPPA-G), the company has also challenged the proposed mechanism for benchmarking coal procurement discounts, maintaining that variations in discounts offered by suppliers cannot, by themselves, establish irregularities in procurement. In a letter to CPPA-G, PQEPC responded to proposals contained in a Power Division letter concerning improvements to coal procurement guidelines for coal-fired power plants. The company urged the government and CPPA-G to assess its procurement practices against its approved tariff determination, generation licence, power purchase agreement (PPA) and implementation agreement with the government. PQEPC, which operates a 2x660-megawatt coal-fired power complex, maintained that it had procured and continued to procure imported coal in accordance with these project documents, adding that no departure from their requirements had been identified or alleged. The company argued that the proposed requirement to benchmark the ceiling price for replacement or alternative coal suppliers against the highest discount offered in comparable tenders was not expressly provided for in the NEPRA Act 1997, regulations framed under it or the project's contractual documents. According to PQEPC, the coal procurement guidelines issued by the National Electric Power Regulatory Authority (NEPRA) constitute policy guidance and cannot override contractual and regulatory obligations unless formally incorporated into the relevant tariff determination, licence conditions or contractual amendments in accordance with the law. The company further argued that procurement tenders could not be compared solely on the basis of headline discounts, as their terms varied in terms of quantities, contract duration, payment currency, delivery arrangements, coal quality specifications and performance guarantees. It maintained that tenders floated by different companies, or even by the same company at different times, might attract different offers because suppliers independently assess commercial risks and prevailing market conditions. Responding to the variation in discounts cited by the Power Division, PQEPC rejected the comparison between discounts ranging from US$0.20 per metric tonne to US$7.12 per metric tonne as a basis for an adverse finding. The company stated that the US$7.12-per-tonne discount cited in the ministry's letter related to a contract that remained unimplemented and was backed by a performance guarantee of approximately Rs5 million. It argued that the guarantee was only a fraction of the exposure required by PQEPC from its own suppliers, making the contract commercially unsustainable and an inappropriate benchmark. PQEPC also raised concerns over the procurement of Indonesian coal, arguing that historical discounts against the ICI-3 benchmark could not be treated as a permanent market entitlement when coal specifications, quality thresholds, availability and market conditions had changed. It specifically pointed to an increase in the applicable coal rejection threshold from a net as-received (NAR) calorific value of 4,000 to 4,200, which it said had raised the quality requirements for acceptable coal. The company also cited supply-side constraints in Indonesia following reductions in coal export quotas during 2026. According to its letter, seaborne coal exports from Indonesia in August 2026 declined by 23.34 per cent year-on-year, while market participants continued to report supply and logistical constraints. PQEPC argued that suppliers might therefore be unable to maintain discounts previously offered for coal meeting lower quality specifications and could require higher prices to secure coal meeting the revised requirements. It maintained that the absence of a historical discount, or the emergence of a premium for compliant Indonesian coal, should not automatically be treated as evidence of impropriety or non-compliance. The company also defended instances in which the same supplier offered different discounts to different independent power producers (IPPs), saying such variations reflected differences in risk profiles, contract tenures, quantities and payment terms. It further argued that securing backup suppliers at less favourable discounts was a prudent risk-management measure to protect continuity of fuel supply and avoid capacity-payment deductions and liquidated damages under power purchase agreements if the principal supplier failed to perform. Similarly, PQEPC maintained that procuring coal from a supplier offering a lower discount while a higher-discount contract remained in place could result from a shortfall or default by the principal supplier rather than an attempt to circumvent the benchmark. Opposing the proposed mandatory one-year cap on coal supply agreements, the company said the restriction would be commercially impractical and could weaken rather than strengthen security of supply. It argued that international coal miners and vessel owners generally did not enter into supply arrangements on a one-year horizon, particularly in the absence of minimum offtake commitments. PQEPC attributed the absence of minimum offtake commitments in its coal supply arrangements to CPPA-G's alleged failure to fulfil its minimum annual energy payment obligation under clause 9.2(a) of the power purchase agreement. The company also warned that mandatory annual re-entering could require a new tender to be launched before the preceding procurement process had concluded, leaving insufficient time for the necessary board, shareholder and regulatory approvals. It maintained that the existing framework already provided for monthly regulatory scrutiny of fuel costs through the fuel price adjustment mechanism under its tariff determination, offering NEPRA a continuing means of assessing procurement prices without imposing a rigid annual contract limit. On the proposed allocation of costs arising from supplier defaults, PQEPC said it did not oppose the principle that a defaulting supplier should bear the consequences of its failure to perform. However, it called for any such mechanism to apply only where a default had been established after due process and the company concerned had been given an opportunity to be heard. It also sought the explicit exclusion of force majeure events and other circumstances beyond the control of the supplier or the power producer. The company argued that a blanket cost-allocation rule could penalise an IPP for risks outside its control while simultaneously requiring it to assume full responsibility for fuel supplies under its power purchase and implementation agreements. Explaining its position on fuel procurement risks, PQEPC said it assumed the entire fuel supply risk under its contractual arrangements, earned no return on the fuel-cost component and recovered only actual and verifiable procurement costs through the tariff. It stated that it had absorbed losses when its procurement outcomes fell short of NEPRA's approved benchmark, including a pass-through loss of approximately US$0.58 per tonne in its most recent fuel price adjustment and losses of around Rs1.62 billion arising from the spot coal procurement guidelines. The company argued that it should not be penalised merely because the outcome of a procurement exercise differed from an industry average derived from transactions that were not directly comparable. PQEPC has asked the government and CPPA-G to limit assessments of its coal procurement to compliance with the project documents, reject discount variations across dissimilar tenders as evidence of irregularity in the absence of a demonstrated breach, and reconsider the proposed one-year contract limit. It has also called for any supplier-default cost-allocation mechanism to incorporate due-process safeguards and exclude force majeure and other circumstances beyond the company's control before amendments to the coal procurement guidelines are finalised and applied to it. Additionally, the company referred to NEPRA's recommendations in its mechanism and guidelines for imported coal procurement of June 22, 2026, and proposed that the government designate a public-sector agency or enterprise to assume unified responsibility for procuring and supplying the required quantities of coal to coal-fired power plants. Copyright Business Recorder, 2026