Category: 3. Business

ISLAMABAD:

The chief executive officer of Pakistan Revenue Automation Limited (PRAL) has refused to get a temporary extension in his tenure, creating fresh challenges for the government whose decision to either shut down or restructure the entity has already sent ripples among the employees.

The PRAL board had offered CEO Amir Malik an extension until a new head was appointed, according to correspondence seen by The Express Tribune. PRAL serves as the backbone of Pakistan’s tax system.

Malik’s extended tenure is ending next week, which comes just as Prime Minister Shehbaz Sharif has instructed that PRAL be wound up and replaced with a new, more efficient entity.

Sources said Malik did not accept the board’s offer to stay on temporarily, arguing that neither the PRAL board nor the Federal Board of Revenue (FBR) defended the organisation before the prime minister. The government has not yet advertised the position of chief executive in the press.

When contacted, a senior FBR official said that the government would hire a new full-time CEO from the market.

Malik did not respond to a request for comments.

Uncertainty about PRAL’s future first emerged when the prime minister directed its closure last month. Later, the government said the meeting minutes had not been properly recorded and that the PM wanted to restructure PRAL, not shut it down.

After a story appeared in The Express Tribune, the PRAL management and board issued a statement stating that the recent discussions on modernisation had led to a decision to pivot the existing structure of PRAL to a new, state-of-the-art organisation as part of FBR’s digital transformation strategy.

PRAL will deliver enhanced functionality, financial autonomy, and technological innovation, ensuring a world-class experience for both FBR and taxpayers, according to the statement.

It added: “We want to clarify that PRAL will continue its operations without interruption throughout this period. All current systems, services, and support functions will remain fully operational to ensure there is no disruption for our stakeholders.”

The statement further added that the transition will be gradual, well-coordinated, and seamless, ensuring stability for employees, users, and customers at every stage.

The CEO’s initial three-year term had ended in February this year, which the board of PRAL extended for a term of six months, which is going to end next week.

The decision to close or restructure PRAL has unsettled employees, raising fears over job security. A couple of senior officials have already tendered their resignations, one even seeking waiver of the notice period, according to the sources.

PRAL board members believed Malik had sought reappointment instead of a short-term extension. They said the board would advertise for a new chief executive, while Malik would have the option to contest for the post. Given his experience, they noted, he might have an edge over other candidates.

PRAL’s senior management was of the view that the entity was wrongly blamed for the outdated hardware and software systems, which have reached both end of life and end of service and are a reason for disruptions and lack of availability of some of the services.

They said the FBR also did not want to completely shut the STARR and FASTER systems, used for processing tax refunds but still running on Oracle 8.

Taxpayers file returns and pay taxes through PRAL’s system, which also serves as the depository of all tax transactions. However, the obsolete hardware and software have raised questions over the sustainability of services. The government had taken a foreign loan in 2019 to upgrade systems, but deadlines have since lapsed.

Management has also informed the board that PRAL faces difficulty in hiring experienced private-sector professionals, including a chief financial officer and chief product officer.

The PRAL management had also requested hiring of heads of software platforms and head of software development. The shortlisted names were sent to the board some time back but there were delays in finalising the candidates, said the sources.

The FBR, which relies on PRAL for its digital backbone, has also extended the income tax return filing deadline to October 31, 2025, which may also help it avoid operational disruption following PRAL’s pending closure or restructuring.

Last week, however, the PRAL board said that despite the planned restructuring the regular services will not be disrupted.

LAHORE:

Punjab is set to welcome a new wave of industrial investment as China’s Letin Auto Group has announced plans to set up a small electric vehicle (EV) manufacturing plant in the province.

A 15-member delegation of the company, led by its General Manager Xu Zhen, met with Punjab’s Minister for Industries and Commerce Chaudhry Shafay Hussain in Lahore to discuss details of the project and the potential incentives available.

The minister assured the delegation of full support from the provincial government and said Punjab was offering attractive facilities to investors, including a 10-year income tax holiday and duty-free import of machinery for plants being set up in the Special Economic Zones.

He added that Punjab was fast becoming a preferred destination for foreign industrialists due to its favourable climate for business. “New investment in the province is not only strengthening the economy but also creating employment opportunities for thousands of people,” he said.

The minister emphasised that the government was focused on the promotion of EVs and wanted Punjab to play a leading role in the country’s clean mobility transition.

In 2023, the group, with its trading name Levdeo Automobile Group, applied for bankruptcy in China and completed its bankruptcy reorganisation in 2024. Auto sector experts believe that the group may want to relocate and make Pakistan its base for local sales and exports, since Pakistan, particularly Punjab, is offering decent incentives and has won the least US tariff of 19%.

The arrival of Letin Auto adds to a growing list of Chinese EV makers entering Pakistan in recent years. Brands such as BYD, Changan and British brand MG have already introduced EV models in the local market, while others are exploring assembly and production options. Industry watchers believe this influx shows the growing confidence of Chinese companies in Pakistan’s EV sector, which is still in its infancy, but holds significant potential due to the rising cost of fuel and the government’s policy incentives.

While consumers may welcome more choices, existing auto players are watching the development closely. An official of a Japanese-origin car assembler admitted that the entry of another Chinese automaker would intensify competition. “This means we cannot sit idle anymore. We have to accelerate our EV plans and bring affordable models to the market,” he said.

A senior executive representing another brand said that Chinese EVs, if priced competitively, could quickly capture market share. “Chinese companies have a reputation for speed and affordability. This will put pressure on established players, but in the long run it will benefit customers.”

Some local joint ventures are also preparing to join the EV race. A senior official of Hyundai Pakistan said that the company has already begun internal studies for introducing its EV line in Pakistan in the next few years. “Globally, Hyundai is moving aggressively towards electric mobility and Pakistan will not be left behind. The arrival of new Chinese players will further push us to bring our EV technology here sooner,” he said.

Industry experts believe that this competition will reshape the local auto landscape, forcing companies to move away from the comfort zone dominated by conventional combustion vehicles. At the same time, observers say, the rapid entry of multiple Chinese EV brands reflects a bigger trend where emerging economies like Pakistan are seen as promising markets for future growth. Car enthusiasts, meanwhile, see this as a welcome change. Salman Ali, an EV enthusiast from Lahore, said that affordable small EVs could be a game changer. “With fuel prices going up every month, people are desperate for alternatives. If these Chinese EVs are introduced at competitive prices, they will give the middle class a real chance to switch to cleaner mobility,” he said.

Analysts also point out that Pakistan’s EV policy has given a significant push to this momentum. Reduced customs duties on EV parts and favourable tariff structures have already encouraged imports, but local assembly and manufacturing is the next step. If companies like Letin Auto move ahead with their projects, it will not only help reduce reliance on imports but also support the development of an entire supply chain, including battery and component industries.

For Punjab, the benefits are clear. More foreign plants mean fresh jobs, technology transfer and a stronger industrial base. For consumers, it means more options on the showroom floor. For local auto assemblers, it signals a race against time to remain competitive. “Chinese companies don’t just bring cars, they bring disruption. Those who adapt will survive, those who don’t will be left behind,” said the Japanese auto company official. Analysts further say that for decades, the market has been dominated by a few players offering limited choices, but the arrival of Chinese EV makers is breaking that pattern. Whether it is local assembler preparing its own electric models or new entrants promising affordable alternatives, the competition is set to redefine the way Pakistanis buy and use cars.

We came across a bullish thesis on Fair Isaac Corporation on Compound & Fire’s. In this article, we will summarize the bulls’ thesis on FICO. Fair Isaac Corporation’s share was trading at $1,335.29 as of August 13^th. FICO’s trailing and forward P/E were 52.24 and 37.17, respectively according to Yahoo Finance.

TaLaNoVa/Shutterstock.com

FICO is a pioneering leader in credit scoring and analytics, best known for its FICO Score, which enables businesses to assess risk, optimize decisions, and manage credit efficiently. The company has built a strong financial foundation with exceptional margins, consistent growth, and shareholder-friendly practices, including meaningful share reductions and operating cash flows that consistently exceed net income.

While FICO carries a notable amount of intangibles, its moderate leverage and disciplined capital allocation make it a highly resilient and efficient value-creation engine. Over the past decade, its credit scoring and analytics solutions have demonstrated both market dominance and the ability to compound returns, reflecting a durable competitive moat. The company’s Investment Readiness Score of 85.5 underscores its capacity to navigate economic cycles with precision, combining steady financial performance with strategic discipline.

For investors, FICO presents a compelling proposition: a business with strong free cash flow generation, high margins, and a track record of consistent capital returns, all supported by a balance sheet that avoids excessive debt risk. Its operational efficiency, combined with a deep understanding of credit analytics, positions it to maintain leadership in a sector where data-driven insights are increasingly critical.

Overall, FICO represents a uniquely attractive investment opportunity, offering both stability and growth potential, with multiple levers for enhancing shareholder value. The company’s combination of analytical expertise, financial discipline, and capital efficiency creates a robust framework for long-term performance, making it a standout candidate for quality-focused investors seeking both resilience and high return potential.

Previously, we covered a bullish thesis on Fair Isaac Corporation (FICO) by @FluentInQuality in May 2025, which highlighted FICO’s market leadership, high margins, and disciplined capital allocation. The company’s stock price has depreciated by approximately 11.12% since our coverage. The thesis still stands as FICO continues to generate strong free cash flow and maintain operational efficiency. Compound & Fire shares a similar perspective but emphasizes its Investment Readiness Score and resilience across economic cycles.

We came across a bullish thesis on Airbnb, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on ABNB. Airbnb, Inc.’s share was trading at $120.03 as of August 7^th. ABNB’s trailing and forward P/E were 29.13 and 27.62, respectively according to Yahoo Finance.

Photo by Karsten Winegeart on Unsplash

Airbnb delivered a strong Q2 2025 performance, with revenue rising 12.7% year-over-year to $3.1 billion, beating estimates by 2.5%. Adjusted EBITDA reached $1.04 billion with a 33.7% margin, while net income hit $642 million and EPS of $1.03 exceeded expectations by 12%. The business remains highly profitable, underpinned by a 20.7% net margin and robust average daily rates of $174.50. Free cash flow stood at $1 billion for the quarter and $4.3 billion over the trailing 12 months, despite a 6.9pp YoY decline in FCF margin.

Nights and Experiences booked grew 7.4% YoY to 134 million, with strong demand in APAC and Latin America offsetting slower growth in the U.S. Airbnb continues to expand globally, with emerging markets growing twice as fast as core regions. Strategic initiatives such as the cohosting model, flexible payments in Brazil, and a redesigned app interface improved engagement and conversion. The relaunch of Experiences and introduction of Services added new monetization layers, with high guest satisfaction but limited near-term revenue contribution.

AI integration reduced human support needs by 15%, and future plans include embedding AI in travel planning and search. The platform’s ability to cross-sell homes, services, and experiences gives it an edge over search-dependent OTAs. A $1 billion share buyback was completed in Q2, followed by a new $6 billion authorization, reflecting confidence in long-term free cash flow. While U.S. and EMEA growth is moderating and Q4 presents tough comps, management remains focused on scaling new verticals, optimizing supply, and sustaining margin strength.

Previously, we covered a bullish thesis on Airbnb, Inc. by Chit Chat Stocks in May 2025, which highlighted the company’s expansion into Experiences and Services. The company’s stock price has declined approximately 12% since our coverage as monetization is still early. Sergey shares an identical thesis but emphasizes Airbnb’s strong Q2 results and initial traction across new verticals.

Airbnb, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held ABNB at the end of the first quarter which was 54 in the previous quarter. While we acknowledge the potential of ABNB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Abu Dhabi [UAE], August 17 (ANI/WAM): Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) has welcomed its largest cohort for its Fall 2025 intake, enrolling 403 new students.

This includes its inaugural undergraduate class, new graduate cohorts in existing programmes in Computer Science, Computer Vision, Machine Learning, Natural Language Processing, and Robotics, and the first intakes into the Master of Science in Statistics & Data Science and Master in Applied Artificial Intelligence.

This semester received more than 8,000 applications across the university’s Bachelor and graduate programmes, yielding an acceptance rate of 5 per cent, and reinforcing the university’s prestigious position and ability to attract the best talent in the UAE and from around the world.

Timothy Baldwin, MBZUAI Provost and Professor of Natural Language Processing, said, “This year, MBZUAI welcomes our largest cohort of graduate students alongside our inaugural undergraduate class. Artificial intelligence is transforming the world at a pace that vastly outstrips traditional education models. To realise its full global potential, MBZUAI invests heavily in reviewing and updating our programmes to reflect modern AI research methodology and workflows, based on our bleeding-edge AI research credentials and grounded in societal and industrial needs. As a young institution, MBZUAI has already earned a place among the world’s top 10 AI universities based on our research credentials. With the introduction of our undergraduate and Master’s in Applied AI programmes, we continue to build world-leading programmes aligned with the UAE’s National Strategy for AI 2031 and supporting Abu Dhabi’s rapidly growing AI ecosystem.”

The newly launched Bachelor of Science in Artificial Intelligence programme offers two streams, AI for Business and AI for Engineering, combining technical rigor with leadership, hands-on entrepreneurship, and in-situ industry experience. The first class consists of 115 undergraduate students from more than 25 countries, over 25 per cent of whom are UAE Nationals.

Professor Baldwin said, “The jobs of tomorrow are being shaped by AI today, and we must ensure that future generations are equipped with the tools and skills to navigate that shift. Our extraordinarily talented students don’t just learn about AI, but learn with it, through it, and for it. This is an extraordinary value proposition across all our programmes, but especially for our undergraduate students, who will be studying towards a bachelor’s degree in AI that I believe sets a new global benchmark in terms of technical depth, real-world relevance, and the high-end AI job-readiness of the students.”

The key highlights for the Fall 2025 intake include MBZUAI’s total student body totalling more than 700, representing over 47 nationalities.

Nationalities represented in the undergraduate programmes are Bulgaria, China, Egypt, Georgia, Greece, India, Indonesia, Kazakhstan, the UAE and the UK. Postgraduate programmes bring together students from Canada, China, Egypt, France, India, Italy, Kazakhstan, Serbia, UAE, UK, USA and Vietnam.

MBZUAI continues to attract exceptional students, with 151 of the incoming graduate students (27.5 per cent) holding degrees from the world’s top 100 computer science universities (CSRankings), including Cornell University, Tsinghua University, the University of Edinburgh, and the University of California, San Diego.

In welcoming the new students, MBZUAI has begun its immersive Orientation Week, introducing new students to the university’s culture of academic excellence, AI-driven innovation, and community engagement. The programme combines academic sessions, mentorship activities, and cultural programming celebrating UAE heritage and life in Abu Dhabi.

Highlights include the Orientation Mini Fair, where internal and external partners showcase resources for academic success, career development, and student life. Orientation Week is designed to foster a strong sense of belonging and connection, laying the foundation for academic success and life-changing university experiences. (ANI/WAM)

(This content is sourced from a syndicated feed and is published as received. The Tribune assumes no responsibility or liability for its accuracy, completeness, or content.)

KARACHI: The Pakistan Stock Exchange (PSX) extended its bullish run for the eighth consecutive week, underpinned by Moody’s sovereign rating upgrade, strong corporate earnings and optimism over policy continuity. Despite intermittent volatility, the KSE-100 index touched an all-time high of 147,005 points during the four-day trading week before settling at 146,492 points on Friday, gaining 1,109 points or 0.8 per cent on a week-on-week basis.

Analysts attributed the uptrend largely to mutual fund buying and improved sentiment following Moody’s decision to raise Pakistan’s rating to Caa1 with a stable outlook from Caa2. The upgrade reflected progress on external buffers, fiscal consolidation and reforms under the IMF programme. The index’s resilience also mirrored a broader shift in market confidence, even as challenges such as circular debt payments and weak monthly auto sales weighed on specific sectors.

According to Topline Securities, the average daily traded volume rose 8pc week-on-week to 606 million shares, while the traded value increased 13pc to Rs40.6bn. However, participation was still 7pc lower compared with the prior week, indicating cautious optimism among investors.

AKD Securities noted that the market opened positively on the back of robust earnings announcements and speculation that the government may phase out the super tax over five years under its upcoming industrial policy. Nonetheless, delays in settling circular debt dented the exploration and production (E&P) and oil marketing company (OMC) sectors, dragging the index by 214 and 159 points, respectively.

Benchmark KSE 100 index gained 0.8pc to close at 146,492 points

Beyond the bourse, several developments influenced sentiment. The rupee appreciated for the fourth consecutive week, closing at 282.06 to the dollar, up 0.14pc week-on-week. Finance Minister Muhammad Aurangzeb indicated that Pakistan expects to secure the third $1bn IMF tranche soon.

Meanwhile, Prime Minister Shehbaz Sharif received an invitation from the Saudi crown prince to attend an investment conference. In parallel, Islamabad pressed Beijing for progress on the Gwadar plan, while power-sector circular debt fell to Rs1.61tr by June, offering some respite on the fiscal front.

On the trade front, Pakistani officials continued discussions with the United States over a prospective deal, while Washington designated the Balochistan Liberation Army (BLA) a terrorist organisation — a long-standing demand of Islamabad.

Sector-wise performance remained mixed. Leasing companies, textile spinning, and auto parts outperformed, rising 13.5pc, 7.7pc and 6.2pc respectively week-on-week. In contrast, woollen, jute, and OMC shares declined 5.7pc, 3.2pc and 2.7pc respectively. Flow-wise, banks and other organisations offloaded $9.8m and $4.2m worth of shares, while mutual funds absorbed most of the selling with a net purchase of $15.3m.

Among individual performers, Airlink led the market with a 19.7pc weekly gain, followed by Thal Ltd (16.8pc), Yousuf Weaving (15.1pc), Faysal Bank (8.7pc) and First Habib Modaraba (8.4pc). On the losing side, Unity Modaraba fell 8.3pc, Gadoon Textile Mills 7.8pc, PSX Ltd 5.9pc, Bannu Woollen 5.7pc and Pakistan Petroleum 4.7pc.

In the automotive sector, passenger car and LCV sales rose 28pc year-on-year in July to 11,034 units, though volumes plunged 49pc month-on-month due to high base effects and seasonal weakness. Oil production edged up 0.8pc week-on-week to 59,604 barrels per day, aided by higher output from Makori East and Nashpa fields.

Arif Habib Ltd said the KSE-100’s current forward price-to-earnings ratio stands at 7.45x for FY26, below its 10-year average of 8x, while offering a dividend yield of 6.8pc versus the historical average of 6.5pc. This, combined with the result season, is expected to keep select stocks in focus.

Looking ahead, brokerages expect the market to remain supported by earnings momentum, a benign interest rate outlook and improving liquidity in the energy chain. AKD Securities projected the index could reach 165,215 points by December, driven by strong bank returns, steady fertiliser earnings, and enhanced cash flows in E&Ps and OMCs. However, the sustainability of the rally will hinge on progress in resolving the circular debt and continued adherence to IMF-backed reforms.

Published in Dawn, August 17th, 2025

Story Continues

global talent crunch is looming. By 2030, more than 85 million vacancies worldwide could be unfilled due to a lack of skilled workers, a Korn Ferry report warns. For a young population like Pakistan’s, where 64 percent of the population is under 30, this is both a warning and a wake-up call. The country’s demographic dividend is a potential game-changer, but only if our youth are equipped with the right skills for the evolving job market.

Pakistan faces a widening gap between the skills our workforce possesses and those demanded by the 21st-Century economy. Traditional education systems and training programmes have not kept pace with rapid technological change, leaving millions unemployed or under-employed. This is especially evident in high-growth sectors like information technology, healthcare and renewable energy, where employers report difficulty finding qualified workers.

The emergence of artificial intelligence (AI) offers a unique opportunity—not as a threat, but as a transformative force that can upskill the workforce and create new employment avenues. For Pakistan, the real potential of AI lies in strengthening skill education, introducing AI-related skills into vocational training and preparing the youth for a digital-first future.

From skills gap to opportunity

Pakistan’s skills gap is particularly stark in the technology sector. Despite the IT industry contributing over $2.6 billion in exports annually, there is a chronic shortage of skilled developers, AI specialists and data scientists. Meanwhile, youth unemployment stands at 11.1 percent. Many university graduates lack the technical or job-ready skills required by employers.

This is where skill-focused education—particularly in AI and emerging technologies—can make a difference. Unlike traditional academic degrees, skill education can rapidly adapt to market demands. By incorporating AI-related skills such as machine learning, data analytics, cloud computing and automation into technical and vocational education and training (TVET), Pakistan can empower its youth to seize new economic opportunities.

AI-driven skill Education

AI can enhance the delivery of skill education. Platforms like Sabaq.pk and Taleemabad are already integrating AI to personalise learning for students, adjusting content to match individual learning needs and progress. This adaptive learning approach increases engagement and ensures learners master foundational skills before progressing.

DigiSkills.pk, a government-backed platform, has trained over 3 million individuals in digital freelancing and AI-related courses. With global freelancing markets booming, valued at $1.5 trillion globally in 2023—this equips Pakistanis to earn online, especially in areas like AI training data labelling, social media automation and chatbot development.

Indian model

India’s digital economy offers a model for Pakistan. India invested early in IT education and skills development through initiatives like NASSCOM’s FutureSkills Prime, which aims to skill over 4 million individuals in AI, cloud and cybersecurity. As a result, India now exports over $200 billion in IT services annually and is home to more than 80,000 start-ups, including many in AI.

AI is not just a tool; it is a catalyst for transformation. With the right investments in AI-driven skill education and employment pathways, Pakistan can turn its demographic challenge into a demographic dividend. 

Pakistan can emulate this trajectory by aligning its TVET sector with AI and digital economy needs. Integrating micro-credentials, certification programmes and partnerships with global tech companies—like Google, Microsoft and Coursera—can create a steady pipeline of AI-ready professionals.

AI as an employment enabler

Much of the global narrative around AI focuses on job losses. While some roles will be automated, new job categories are emerging. These include AI trainers, prompt engineers, ethical AI auditors and automation supervisors, to name a few. The World Economic Forum estimates that AI will displace 85 million jobs by 2025 and create 97 million new ones, most requiring reskilling or upskilling.

In Pakistan, organisations like Telenor and Jazz are already upskilling employees in AI-related tools like data analytics, digital marketing automation and chatbot operations. The Punjab Skills Development Fund is also exploring AI-based assessments to better match learners with relevant training, enabling quicker transitions into high-demand roles such as solar technicians and e-commerce managers.

By integrating AI-related modules such as data analytics, robotic process automation (RPA), cloud computing and prompt engineering into vocational training, the PSDF is ensuring that its programmes remain relevant to the future job market. The PSDF deploys AI-powered learning management systems (LMS) that personalise content, tracks learner progress and recommend adaptive learning paths, especially for remote and underserved communities.

Youth and economic mobility

For Pakistan’s youth, AI represents a ticket to upward mobility, especially in underserved and rural areas. With internet penetration now at over 39 percent, and growing mobile broadband access, more young people can tap into digital learning and remote work. AI-powered platforms reduce barriers to entry by offering personalised paths to learning, low-cost certifications and gig economy access.

AI is enabling fairer hiring practices. Platforms like Rozee.pk and Mustakbil are using AI to match candidates with jobs based on skills, not just degrees, reducing bias and leveling the playing field. Pakistani startups like TalentHue use AI to assess soft skills and cultural fit, helping youth land jobs that suit their strengths.

Building an AI-skilled workforce

To fully harness AI’s potential, Pakistan must:

Integrate AI and emerging technologies into TVET curricula nationwide.

Partner with global platforms to offer scalable, industry-aligned certifications.

Invest in digital infrastructure to bridge the connectivity gap, especially in rural areas.

Ensure ethical and inclusive AI deployment to avoid bias and protect privacy.

Empower institutions like the PSDF to scale AI-driven training and employment services.

AI is not just a tool; it is a catalyst for transformation. With the right investments in AI-driven skill education and employment pathways, Pakistan can turn its demographic challenge into a demographic dividend. The future of work is digital. With strategic planning, the Pakistani youth can not only compete globally but lead the way.

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The writer is the CEO of the Punjab Skills Development Fund.