Category: 1. Pakistan

ISLAMABAD: The Ministry of Commerce (MoC) has reportedly sought “special incentives” for the export-oriented sectors to be effected due to ad-valorem tariffs of 19 per cent imposed by the United States of America (USA), sources close to Commerce Minister told Business Recorder.

Commerce Minister Jam Kamal Khan has sought Prime Minister Shehbaz Sharif’s support for materialization of “handholding” incentives for to be affected sectors, the sources added.

Sharing the details, sources said the Commerce Minister has informed the Prime Minister that President USA Donald Trump in an executive order of April 2, 2025, announced national emergency by imposing a base additional ad-valorem tariff of 10 percent with effect from April 5, 2025 on imports from all trading partners and additional tariff ranging from 10 percent to 50 percent with effective from 9th April 2025, with 29 percent reciprocal tariff imposed on imports from Pakistan.

Exports to US to face 19pc tariffs

On the directives of Prime Minister, the Ministry of Commerce on April 4, 2025 notified a Steering Committee (headed by the Finance Minister) and a Working Group (headed by the Secretary Commerce) to analyse the reciprocal tariffs in terms of their applicability on Pakistan’s exports and develop a strategy for subsequent trade negotiations with the U.S.

According to Commerce Minister, the base tariff of 10 percent additional ad-valorem tariffs took effect from April 5, 2025 on imports from all trading partners; however, the President of USA vide an executive order April 9, 2025 suspended implementation of additional tariff ranging from 10 percent to 50 percent on trading partners for period of 90 days, till July 9, 2025.

After thorough deliberation and consultation with private sector, the Ministry of Commerce formulated a strategy which Pakistani team led by the Finance Minister and Secretary Commerce negotiated with the US side through multiple rounds of virtual and in-person meetings in the USA.

As a result of successful trade negotiations, Pakistan was able to get additional ad-valorem tariffs of 29 percent reduced to 19 percent, lower than its regional competitors like Bangladesh, Vietnam and India. These announcements were made by the USA vide Presidential Executive Order of July 31, 2025.

Further, the USA on August 6, 2025 imposed additional tariff of 25 percent on India, giving Pakistan a competitive advantage of 31 percent.

Subsequently, on the directions of the Prime Minister, the Ministry of Commerce on August 11, 2025 held a meeting under the chairmanship of Federal Minister for Commerce and Special Assistant to the PM on Industries and Production with the leading exporters and SMEs from various sectors (including apparel and textiles, rice, salt, surgical goods, sports goods, electronics, food and agriculture, leather, and more) proposing to devise a way forward/ action plan to boost exports to the US.

Industry representatives, while appreciating the government’s efforts in trade diplomacy, urged the government for favourable and predictable policy support aiming towards providing enabling business environment and reducing cost of manufacturing.

In order to keep the export industries regionally competitive through consistent and favourable policy interventions and materialize the future business opportunities in the US, the Commerce Ministry has submitted the following recommendations to the Prime Minister based upon consultation with the export sectors.

For the Finance Division, authorization to the Ministry of Commerce for sanctioning of balance amount of Rs. 12 billion in August 2025 (out of budgetary allocation of Rs 15 billion in FY 2025-26) for clearance of verified DLTL claims on fist-in-fist-out (FIFO) basis by the SBP and allocation of supplementary grant of Rs. 12.32 billion for clearance of remaining verified claims under Government Support Schemes in 2nd quarter of current FY 2025-26.

For Federal Board of Revenue (FBR): processing of future refunds within 72 hours as per Sales Tax Rules, 2006, revaluation of custom valuation of mango pulp, in consultation with the industry and withdrawal of sales tax on purchases from local manufacturers, as of June-2024 level, withdrawal of exclusions of the few products recently notified under Export Facilitation Scheme (EFS) and rationalisation of double taxation on exporters.

For Power Division: removal of cross subsidy from industrial power tariff.

For Petroleum Division: resolve the issue of arrears in bills of RLNG on the OGRA determination, for which industry has been asked to immediately make payments to avoid disconnections. Rationalisation of RLNG Tariff for industrial consumers, including removal of off-the-grid levy, cross subsidy and, price disparity among various consumers.

Maritime Affairs Division: Reduction of shipping time to the USA from 48 days to 24 days.

Commerce Ministry: Announcement of new Drawback of Local Taxes and Levies (DLTL) incentive schemes for exporters.

Copyright Business Recorder, 2025

ISLAMABAD:

Prime Minister Shehbaz Sharif on Monday launched 10 million digital wallets for Benazir Income Support Programme (BISP) beneficiaries, terming it a historic milestone in Pakistan’s journey towards transparency, financial inclusion, and a cashless economy.

With a symbolic palm touch, the premier inaugurated the system in the presence of federal ministers, BISP leadership, and international partners, including GIZ.

He congratulated BISP Chairperson Senator Rubina Khalid, the BISP team, and partner institutions for the “landmark decision that will safeguard genuine recipients and protect them from undue difficulties.” “The digital wallet system is in its true sense blessed by the soul of Shaheed Mohtarma Benazir Bhutto, as it empowers BISP beneficiaries with safe, transparent, and direct access to financial assistance,” the premier said.

He emphasized that BISP remains a “great initiative for poverty alleviation and employment generation,” but stressed that continued efforts were needed to expand its impact.

The prime minister termed the launch “a great leap towards a cashless economy.” He recalled that during Ramazan, 78 per cent of the relief package was successfully disbursed through digital channels despite skepticism and resistance from vested interests.

“Cashless transactions are the pressing requirement of our times. They save time, end corruption, and bring efficiency, helping Pakistan progress rapidly,” he remarked.

The prime minister revealed that he personally chaired multiple meetings on digitization despite initial “indifferent attitudes and boredom” on the issue, underlining his resolve to transform government-to-government, business-to-business, and personal transactions into digital channels.

The prime minister concluded by paying tribute to all stakeholders SBP, IT Ministry, Pakistani banks, and development partners for their contributions. “We are not just disbursing aid, we are raising an army of architects and workers to build the nation,” he said.

PM awards Rs2.5m each to three shepherds

The prime minister awarded cash prizes to three shepherds from Gilgit-Baltistan (G-B) who saved around 300 people by warning of an impending glacial lake outburst in the Ghizer district. He presented cheques of Rs2.5 million each to Wasit Khan, Ansar and Muhammad Khan at the Prime Minister House in Islamabad, praising their courage and presence of mind.

“You are the heroes of Gilgit-Baltistan,” the prime minister told them. “Because of your timely action, the entire Pakistani nation, including myself, is proud of you.”

QUETTA:

Balochistan Chief Minister Mir Sarfraz Bugti on Monday chaired a consultative meeting to review preparations for the forthcoming National Finance Commission (NFC) Award, emphasizing fairness, inclusivity, and consensus in the process.

Provincial Finance Minister Mir Shoaib Nosherwani briefed the session on the province’s financial position and urgent priorities. The chief minister said consultations would be held with all political parties and subject experts, including those outside parliament, to build a unified stance for Balochistan.

Bugti said the NFC Award must recognize the province’s unique challenges and ensure transparent distribution of resources. He described the award as an opportunity to strengthen federal harmony and foster national solidarity.

“The aspirations of the people of Balochistan must be reflected in the award,” he noted, adding that input from economists and intellectuals would also guide the province’s case.

The chief minister expressed hope that a fair share of resources would accelerate development and prosperity across Balochistan. He concluded that the true success of all stakeholders lay in a stronger federation and that the NFC Award should become a means of national trust and unity.

ISLAMABAD:

A government official said on Monday that the import of accidental cars will be banned, and a 40% new tax will be imposed at the time of opening commercial imports of used cars next month to protect the local industry, delaying any benefits to the consumers from trade liberalisation.

But the local assemblers have claimed that despite trade liberalisation, there will not be any reduction in prices, as the government charges 30% to a whopping 61% of the total price in taxes on the locally assembled cars.

In a policy statement during a joint meeting of the Senate standing committees of finance and industry, Joint Secretary Trade Policy Mohammad Ashfaq said that the import of accidental and low-quality vehicles would not be allowed. He said that under the understanding reached with the International Monetary Fund (IMF), there would be an additional tariff protection of 40% compared to the new vehicles from this fiscal year.

The joint secretary further stated that the government has also not yet decided whether the special schemes for car imports would continue or end after lifting restrictions on commercial imports.

At present, the commercial import of cars is not allowed, and cars are imported by misusing the schemes of transfer of residence, baggage, and gift. These imports meet one-fourth of the total local demand, as consumers prefer imported mildly accidental used vehicles over locally produced cars.

The IMF has imposed a condition on Pakistan to allow the commercial import of used cars of up to five years from September and then completely lift age and other restrictions from July next year.

Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) have started lobbying against the government and IMF decisions, and also gave presentations to the standing committee.

In the next four years, the 40% additional import tariff would be brought to zero on the import of used and old vehicles. In the future, the import of six to eight-year-old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles do not create environment-related problems in the country, said Ashfaq.

Under the IMF programme, Pakistan is bound to cut its import tariffs from 20.2% to 9.7% over five years – a 52% drop, according to the joint secretary’s presentation. In the first year (FY26), the tariff rate would drop to 15.7%, cutting the protection wall by 22.3%. This will be achieved by reducing average customs duty to 11.2%, additional customs duty to 1.8%, and regulatory duty to 2.7%.

Additional customs duties will be phased out in four years, regulatory duties in five years, and exemptions within five years. The number of slabs will shrink to four, with a top rate of 15% within five years.

Auto sector products with 35% customs duty are covered under the Auto Policy. These duties will be phased out from July 1, 2026.

“I do not understand what the IMF has to do with the consumers,” remarked Senator Aon Abbas, chairman of the standing committee on industry, while commenting on the IMF’s condition to open commercial imports.

The Chief Executive Officer of Indus Motors, Ali Asghar Jamali, made the presentation on behalf of the local assemblers. He told the committee that the prices were high because of government taxes, which range from 30% to 61% of the total price of the vehicle.

Jamali said that the tax component in the case of a small car is 30%, including Rs32,935 of the recently introduced levy on combustion engines.

In the case of the Altis, taxes account for 44% of the vehicle price and increase to 60% in the case of the LCV pickup, he added. Against a total price of Rs18.8 million, the government charges Rs11.3 million in taxes, said Jamali.

The SUV Fortuner’s total price is Rs24.42 million, and Rs14.8 million or 61% is the cost of taxes, revealed the chief executive.

“Our marketing has been bad, and everyone feels that we are the bad people,” admitted Jamali after members of the committees criticised the local assemblers for charging very high prices and giving low-quality cars.

He plainly stated that it was not the responsibility of the private sector to create jobs, as job creation is the function of the government – a statement contrary to Finance Minister Muhammad Aurangzeb’s stance that the private sector should create jobs.

Jamali said that under the new policy, it would be lucrative for the local manufacturers to import used cars and sell them instead of manufacturing them.

The representative of Pak-Suzuki Motors, who happens to be a Japanese national, said that “producing locally is very costly and a lot of efforts have to be made, and it is now better to stop production and easier to import and sell the cars.”

Senator Qadir supported the government’s policy to withdraw protection, which according to him will bring efficiency and help improve safety standards.

Jamali and the representative of Pak-Suzuki Motors admitted that compared to six safety bags, there were only two bags in locally produced cars. But both claimed that the quality of the local and imported vehicles was the same, which the committee members did not agree with.

The Federal Board of Intermediate and Secondary Education (FBISE) will announce the results of the HSSC Part I and II (Intermediate Class 11th and Class 12th Examinations 2025) on Tuesday, August 26, at 11:30 AM.

Federal Board HSSC Result 2025 Date Official Announcement

According to the board, the result ceremony will be streamed live through official channels, while individual results will be available on the FBISE website. Students can also contact the FBISE helpline at 111 032 473 for assistance or visit the official website at www.fbise.edu.pk to view their marksheets once the results are live.

Recent Result 2025 Timeline

This announcement follows shortly after the declaration of 9th class results by the Punjab boards earlier this month, which saw notable performances from both boys and girls across multiple districts. The academic calendar continues to move swiftly toward university admissions, with HSSC results being a pivotal requirement.

HSSC Part I and Part II Result Importance

The HSSC Part I and II results are critical for students planning to pursue higher education, apply for scholarships, or appear in competitive examinations. These marks often determine placements in medical, engineering, and other professional programs nationwide.

LAHORE:

Stage actress Samar Rana was arrested on Monday after her domestic worker levelled rape and torture charges against her. After a First Information Report was lodged, Nawab Town Police raided the actress’ house and arrested her, Express News reported.

The police stated that a 14-year-old girl was allegedly raped by five people at Samar Rana’s house, while the actress is accused of torturing and intimidating the domestic worker.

According to Nawab Town police, the suspects allegedly raped the domestic worker and made a video of the gruesome incident.

SP Investigation Saddar Division Mian Moazzam Ali said that efforts are underway to arrest other suspects involved in the incident, while the domestic worker and her family will get justice at all costs.

The Punjab government has announced the second phase of its free laptop distribution scheme for students, aimed at promoting digital learning and academic excellence.

According to the Higher Education Department, merit-based laptops will be distributed starting next month, following a formal schedule. The Chief Minister of Punjab is expected to inaugurate the distribution ceremony in the first or second week of September.

The first phase of the initiative saw 14,000 laptops handed over to students in Lahore, and the new phase will expand to cover deserving students across the province, ensuring broader access to technology and enhancing learning opportunities.

Benefits for Students:

• Encourages digital literacy and e-learning among students
• Provides access to modern educational tools for research and assignments
• Reduces the digital divide, especially for students from underprivileged backgrounds
• Supports merit-based academic achievement

The government’s initiative aligns with efforts to modernize education and equip students with the skills needed in a technology-driven world. Students are advised to check the official schedule and eligibility criteria to participate in the program.

ISLAMABAD:

Pakistan has decided to settle over Rs100 billion in dues owed to Chinese power plants ahead of Prime Minister Shehbaz Sharif’s upcoming visit to Beijing, reducing the country’s outstanding obligations to Chinese producers by nearly one-fourth. This move aims to address one of Beijing’s major concerns.

The Ministry of Finance has issued instructions to release the funds from the power sector subsidies earmarked in this fiscal year’s budget, according to government officials. They said that it is expected the Rs100 billion will be disbursed to the Chinese power producers within a couple of days.

In addition to the Rs100 billion, Rs8 billion is also allocated from the regular budget for the Chinese power producers.

The development comes days before PM Shehbaz’s visit to China, where he is set to attend the Heads of State meeting of the Shanghai Cooperation Organization (SCO) this weekend. The premier is also expected to participate in an investment conference organised by the Pakistan embassy.

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Sources said that the PM had instructed the Finance Ministry to clear the Rs100 billion payments to the Chinese Independent Power Producers by August 25.

As of June this year, the outstanding dues for China-Pakistan Economic Corridor (CPEC) power projects amounted to Rs423 billion. After this payment, the Chinese dues will be reduced by one-fourth, bringing the total to just over Rs300 billion.

There was a slow increase in Chinese outstanding dues last fiscal year, but the dues were still accumulating.

Since 2017, the country has already paid Rs5.1 trillion in energy costs to 18 Chinese power plants, which accounted for 92.3% of the billed amount, including interest. Pakistani authorities believe the actual remaining energy cost is less than Rs300 billion, with the rest attributed to late payment surcharges.

The government is in the process of taking nearly Rs1.3 trillion in fresh loans from local commercial banks to retire the circular debt owed to state-owned power plants, nuclear power plants, privately owned plants, and Chinese plants. However, the deal has not yet been formally concluded.

The Rs423 billion unpaid debts violate the 2015 CPEC Energy Framework Agreement, which mandates the government to fully clear the dues, regardless of whether authorities can recover the amounts from end consumers.

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Along with security concerns, non-fulfillment of CPEC contracts is one of the reasons for slow progress in financial and commercial relations between the two nations.

Under the CPEC Energy Framework Agreement, Pakistan was required to create a revolving fund with 21% of the power invoices to protect Chinese firms from the circular debt crisis.

However, the previous government opened a Pakistan Energy Revolving Account at the State Bank of Pakistan in October 2022, with Rs48 billion in annual allocations. But it limited withdrawals to Rs4 billion per month, leading to the current Rs423 billion debt stock.

Out of the Rs48 billion allocations for this fiscal year, the government has processed Rs8 billion in payments for the July-August period, sources said.

The Rs100 billion will be distributed among the Chinese power producers according to their billing, according to Ministry of Energy officials. They said the majority of this amount will go to the three largest coal-fired power plants.

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Pakistan owed Rs87 billion to the imported coal-fired Sahiwal power plant, which has received Rs1.14 trillion in the past eight years of its operations. The country also owed Rs69 billion to the coal-fired Hub power project, compared to the total claims of Rs834 billion.

The outstanding remaining dues of the coal-fired Port Qasim power plant were Rs85.5 billion, against total bills of over Rs1 trillion. The Thar Coal project dues stood at Rs55.5 billion, with total claims amounting to Rs566 billion.

The government’s energy sector circular debt reduced by over Rs800 billion by June this year, thanks to budgetary injections rather than any real improvement in sector performance.

The reported reduction in Circular Debt (CD) for FY 2024-25 is primarily attributed to a one-time stock payment of Rs801 billion, rather than any sustained operational efficiency gains, according to a report by the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) last week.

The report added that this settlement was financed through fiscal measures, not performance improvements in the power sector.

The FPCCI report also stated that the Rs801 billion was originally earmarked as a direct subsidy for consumers. However, it was instead utilised to reduce the circular debt stock, potentially distorting public perception by overstating the success of reforms and underrepresenting the benefit that consumers should have received.

While the headline suggests a net reduction in circular debt, the inclusion of one-off adjustments—such as Prior Year Adjustments totaling Rs358 billion—masks the actual trajectory, the report concluded.

Excluding the Rs801 billion stock payment and the temporary relief from these adjustments, the circular debt has, in fact, increased by approximately Rs379 billion, it added.