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Umrah Prices Rise Sharply
CategoriesNews Economy Ramadan

Umrah Prices Rise Sharply as Pilgrims Rush to Book Flights for Ramazan

LAHORE: With the commencement of Ramazan, the holiest month for Muslims, demand for Umrah travel has risen sharply, leading to a significant increase in airfare prices. Umrah, a pilgrimage to Mecca, Saudi Arabia, is a highly anticipated spiritual journey, especially during Ramazan, when many Muslims aim to complete their religious obligations.

The surge in demand has led to a noticeable increase in airline ticket prices, with domestic and international airlines raising fares. Reports indicate that business-class tickets, which were previously priced at around Rs 425,000–Rs 450,000, have now risen to an astonishing Rs 500,000. Similarly, economy and economy-plus tickets, which were available at rates of Rs 130,000–Rs 140,000 earlier, are now being sold at Rs 180,000–Rs 200,000. This price hike has left many pilgrims struggling to accommodate the rising costs in their travel budgets.

Travel agents attribute this surge to the seasonal rush, as many pilgrims prefer to undertake the journey to Mecca during the holy month of Ramazan. The influx of bookings, especially for flights departing in the early and later Ashra, or the ten-day periods, has led to limited seat availability. Consequently, airlines have raised fares to capitalize on the growing demand. Many flights are now fully booked, and only a few seats remain, often at premium prices.

For some pilgrims, this unexpected rise in airfares has made it more difficult to plan their pilgrimage. Families who had previously booked tickets months in advance at lower rates are now finding it difficult to cover the additional financial burden caused by the fare surge.

As the holy month progresses, the situation may become more challenging for individuals and families looking to embark on their spiritual journey, further underscoring the trend of rising airline costs during peak travel seasons.

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CategoriesNews Economy

SBP Pushes Banks to Deepen Agri-Finance

KARACHI: The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has called on banks to expand the agricultural borrower base, strengthen inclusion of small farmers, and accelerate digital delivery channels to support sustainable growth in the farming sector.

Speaking at a meeting of the Agricultural Credit Advisory Committee (ACAC) in Karachi on Thursday, the governor emphasised that agriculture remains vital for improving farm productivity, supporting rural livelihoods, and ensuring food security. He stressed the need to enhance agricultural financial intermediation to promote value addition, market linkages, and long-term sectoral growth.

During FY2024-25, agricultural credit disbursement reached a record Rs2,577 billion, reflecting a 16% annual increase. Building on this momentum, disbursements in the first half (July-December) of FY2026 amounted to Rs1,412 billion, while the number of borrowers rose to 2.97 million.

Highlighting macroeconomic improvements, Ahmad noted that Pakistan’s real GDP grew by 3.7% in the first quarter of FY2026, with full-year growth projected between 3.75% and 4.75%. Headline inflation moderated to 5.8% by January 2026, allowing monetary policy to support growth while maintaining price stability.

The governor urged banks to leverage initiatives such as the Risk Coverage Scheme for Small Farmers and Underserved Areas and Zarkheze, the SBP’s flagship digital agricultural lending platform. Zarkheze enables digital onboarding, standardised credit assessment, land record integration, and end-to-end loan traceability.

The committee also reviewed progress on upgrading crop loan insurance under the ADB-supported Pakistan Insurance Transformation Programme and discussed scaling up Electronic Warehouse Receipt Financing to enhance post-harvest liquidity.

Ahmad outlined three priorities for banks: expanding borrower outreach, deepening inclusion of small farmers, and extending agricultural finance to underserved regions.

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CategoriesNews Economy Investment Trade

Pakistan, Canada Review Trade and Investment Cooperation

ISLAMABAD: Pakistan and Canada have reviewed the status of bilateral trade and investment cooperation during a telephonic conversation between Commerce Minister Jam Kamal Khan and Canada’s Minister of International Trade Maninder Sidhu. The discussion focused on strengthening economic engagement and expanding collaboration across multiple sectors.

Both sides acknowledged ongoing trade ties and discussed measures to enhance market access and facilitate smoother commercial exchanges. Canadian authorities appreciated Pakistan’s support in enabling the resumption of canola shipments, describing it as a positive development for agricultural trade between the two countries.

The dialogue also explored opportunities to diversify trade beyond traditional areas. Pakistan highlighted its export capabilities in textiles and apparel, leather goods, agro-based products, surgical instruments, sports goods, paper, plastics, and footwear. The country’s growing capacity in value-added food processing and higher-value manufacturing segments was also outlined.

Investment prospects were discussed, particularly in the minerals and mining sector, which Pakistan identified as a priority area for industrial development. Canadian firms were encouraged to explore potential ventures in this field as part of broader economic cooperation.

Officials from both countries agreed to continue engagement at technical and policy levels to identify priority areas and address trade-related matters. The interaction reflects ongoing efforts by Islamabad and Ottawa to expand bilateral economic relations and explore new avenues for collaboration in trade and investment.

The meeting was also attended by senior officials, including representatives from diplomatic and trade missions, as part of continued dialogue between the two governments on economic cooperation.

Pakistan–Uzbekistan Economic Ties
CategoriesNews Developments Economy Investment Trade

$3.4bn Agreements Boost Pakistan-Uzbekistan Economic Ties, $2bn Trade Target

ISLAMABAD: Pakistan and Uzbekistan signed Business-to-Business (B2B) agreements worth $3.4 billion at the Pakistan–Uzbekistan Business Forum in Islamabad, marking a major step forward in bilateral economic cooperation.

The forum was attended by Prime Minister Shehbaz Sharif and visiting Uzbek President Shavkat Mirziyoyev, who is on a two-day state visit to Pakistan. Addressing business leaders and ministers from both sides, Prime Minister Sharif invited Uzbek firms to explore investment opportunities in Pakistan’s textile, pharmaceutical, mining, agriculture and tourism sectors.

The private-sector agreements span multiple industries, including textiles, pharmaceuticals, leather, engineering goods, and agriculture. Both leaders assured investors of a conducive business environment and pledged zero tolerance for corruption and bureaucratic hurdles. Prime Minister Sharif described himself as the “CEO of Pakistan” for the forum and assured business leaders that any bottlenecks would be removed promptly.

The two countries also signed a protocol to raise bilateral trade to $2 billion within five years. Both sides termed the target “ambitious yet achievable,” emphasizing that structured programs and policy frameworks are already in place to facilitate growth. Uzbekistan offered 10-year tax exemptions and support to Pakistani pharmaceutical companies and invited Pakistani expertise to manage approximately 30 high-tech textile enterprises.

Connectivity remained a central focus during the visit. Both countries reaffirmed their commitment to the Uzbekistan–Afghanistan–Pakistan (UAP) Railway Project and endorsed the Termiz–Kharlachi route, recognizing its importance for regional integration and trade expansion.

In addition, the Anti-Corruption Agency of Uzbekistan and Pakistan’s National Accountability Bureau signed an MoU to strengthen cooperation against corruption. Later, President Asif Ali Zardari conferred the Nishan-e-Pakistan upon President Mirziyoyev in recognition of his efforts to strengthen bilateral ties.

The visit underscored a shared commitment to deepening strategic partnership and expanding economic collaboration between the two countries.

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CategoriesNews Economy Investment

SBP Completes Redesign of Banknotes with Enhanced Security Features

ISLAMABAD: The State Bank of Pakistan (SBP) has completed the development of new banknote designs incorporating updated security elements and has submitted them to the federal cabinet for formal approval. The progress was shared during a meeting of the Senate Standing Committee on Finance and Revenue.

According to SBP Governor Jameel Ahmad, the proposed designs have already been cleared by the central bank’s board. He informed lawmakers that the printing process will commence once the cabinet grants its approval. The introduction of the new notes into circulation will take place gradually, beginning after sufficient stock has been produced to replace existing notes.

The redesign initiative is intended to strengthen safeguards against counterfeiting and modernise Pakistan’s currency framework. Officials indicated that more than one denomination may be printed at the same time; however, no details were provided regarding which notes will be released first.

At present, currency denominations in circulation include Rs10, Rs20, Rs50, Rs75, Rs100, Rs500, Rs1,000 and Rs5,000. The committee session, chaired by Senator Saleem Mandviwala, also addressed matters related to financial oversight and regulatory administration.

In a separate development, the SBP’s Monetary Policy Committee decided to maintain the benchmark interest rate at 10.5 percent in its first meeting of 2026. The rollout of the redesigned currency will proceed once the necessary approvals are completed and production benchmarks are achieved.

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CategoriesNews Construction Developments Economy Investment Urban Developments & Planning

Balochistan Government Establishing Business Facilitation Centre in Gwadar

GWADAR: The Balochistan government is in the process of setting up a Business Facilitation Centre (BFC) in Gwadar to provide administrative and regulatory services to the business community. The facility is expected to become operational in the near future.

The centre will operate as a one-window platform, bringing together representatives from various government departments to process applications and approvals required for business activities. Services to be offered include the issuance of no-objection certificates (NOCs), licenses, permits, and other regulatory clearances needed to initiate or expand commercial operations.

A digital coordination system is being introduced to connect relevant departments and support the processing of applications. Business Facilitation Officers will be stationed at the centre to assist applicants and manage documentation and procedural requirements.

The initiative is part of ongoing administrative measures aimed at improving service delivery for investors and businesses operating in Gwadar. The centre is intended to centralise procedures that are currently handled by multiple offices.

The decision to establish the facility was discussed during meetings between representatives of the business community and provincial authorities responsible for investment and trade. The Business Facilitation Centre will function as a dedicated point of contact for investors seeking regulatory approvals related to business operations in Gwadar.

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Industrialists Welcome PM’s Relief Package
CategoriesNews Economy Investment

Industrialists Welcome PM’s Relief Package as FBR Demands Raise Concerns

KARACHI: Business leaders across Pakistan have welcomed the relief package announced by Prime Minister Shehbaz Sharif, calling it a timely intervention to ease mounting cost pressures on industry and exporters. However, foreign investors have simultaneously raised concerns over fresh tax demands issued by the Federal Board of Revenue (FBR).

The prime minister’s package includes a reduction of Rs4.04 per unit in electricity tariffs for industry, lower wheeling charges, and a cut in the export refinance scheme rate from 7.5% to 4.5%. Exporters will also receive “blue passports” to facilitate international business travel.

While domestic industry leaders described the measures as bold and supportive, the Overseas Investors Chamber of Commerce and Industry (OICCI) urged authorities to show flexibility on tax compliance deadlines. Its chief executive, M. Abdul Aleem, suggested that outstanding super tax demands be adjusted against pending tax refunds before requiring additional payments, calling for a more business-friendly approach.

Export associations echoed the positive sentiment. Representatives of the Pakistan Hosiery Manufacturers and Exporters Association said the energy and financing relief would help struggling exporters remain competitive amid high global cost pressures and liquidity constraints.

Similarly, the Korangi Association of Trade and Industry noted that lower power tariffs and cheaper financing could stimulate production, revive industrial activity, and support export growth.

Despite fiscal challenges, the relief package has been widely viewed as a step toward stabilizing industry, though tax policy uncertainties continue to weigh on investor confidence.

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CategoriesNews Economy Investment

Gold, Silver Prices Plunge After Record Rally, Wiping Out $3.4 Trillion in Value

Global gold and silver markets experienced a sharp reversal after a historic price rally earlier this week, erasing roughly $3.4 trillion in market value as investors rushed to take profits and reduce exposure to volatile assets.

Precious metals had surged to unprecedented levels in recent sessions, with gold approaching around $5,600 per ounce and silver crossing above $120 per ounce, benchmarks rarely seen outside exceptional market conditions. However, a broad sell-off in major equities, particularly in U.S. technology and artificial intelligence sectors, dampened risk sentiment and triggered significant declines in commodity trading.

Gold prices fell sharply from their record peak, retreating by nearly $500 per ounce in recent trading. Silver also surrendered gains, sliding after reaching new highs that had drawn speculative interest from investors seeking safe-haven assets amid global uncertainty.

Analysts note that the steep drop highlights how rapidly prices can adjust after an intense surge driven by speculative inflows. Bullion markets, which saw unprecedented turnover and record trading volumes in the weeks leading up to the retreat, reacted sensitively to shifts in broader financial markets as traders recalibrated positions and exited volatile holdings.

Despite the recent pullback, longer-term factors such as geopolitical tensions, inflationary pressures, and ongoing central bank purchases continue to lend structural support to gold and silver. Still, the swift reversal serves as a reminder that even traditionally defensive assets can experience dramatic price swings when market sentiment shifts.

Investors are watching closely to see whether the latest correction signals a temporary pullback or the beginning of a wider recalibration in precious metals markets.

CategoriesNews Construction Economy Investment

Pakistan, Russia Push Ahead with Steel Mills Revival Roadmap

ISLAMABAD: Pakistan and Russia have agreed on a target year of 2027 to begin reconstruction and expansion work on the long-inactive Pakistan Steel Mills (PSM). This timeline was outlined during a review session, where officials shared plans to move the stalled revival project toward implementation. 

The next major milestone for the project will be the signing of a formal Engineering, Procurement and Construction (EPC) contract with the Russian side, after which physical work on the mill’s rehabilitation is expected to commence. An EPC agreement is being drafted to ensure the project’s financial viability and readiness for execution.

Progress toward the revival has been ongoing since late 2025, when Pakistan and Russia formalised cooperation through a protocol aimed at rehabilitating and modernising the steel complex. As part of preparatory efforts, a Russian engineering firm conducted a technical audit of the mill and evaluated its assets, which are currently estimated to have a book value of roughly Rs. 139 million.

During discussions, lawmakers also raised legacy issues related to past disputes, including disagreements over gas supply contracts with a former operating partner. The session also addressed the status of shareholdings at the mill: the majority stakeholder has divested most of his equity, while a remaining small share cannot be transferred without regulatory approval. Government authorities retain the right to seize these shares if contractual obligations remain unmet.

The agreed 2027 timeline reflects renewed cooperation between Pakistan and Russia to restart operations at Pakistan Steel Mills, which remains one of the country’s largest industrial assets and a key component of its heavy industry sector.

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CategoriesNews Economy Investment

Gold Hits Historic High of Rs 506,362 per Tola

KARACHI: In a significant development, the price of 24-karat gold in Pakistan surged to Rs. 506,362 per tola, reaching an all-time high, following a sharp increase in international prices. Gold prices rose by $127 per ounce in global markets, reaching $4,840 per ounce, driven by geopolitical tensions, trade wars, and investment movements.

On Wednesday, the domestic gold price rose by Rs. 12,700 per tola, adding further pressure on buyers, especially during the peak wedding season. Investors, however, are showing optimism, with gold emerging as the leading asset in returns, outpacing stocks. As of January 1, gold prices have surged by Rs. 232,762 per tola, following a $2,216 per ounce rise in the international market.

Meanwhile, silver prices also saw a significant rise. The one-tola silver rate reached Rs. 9,933, up by Rs. 64 per ounce, while the 10-gram silver rate climbed to Rs. 8,515. Due to high demand, silver is now being sold at a premium, ranging between Rs. 13,500–14,000 per tola in local markets.

Despite high demand for both metals, gold remains in abundant supply in Pakistan, with investors leading market trends, while jewellery buyers appear less active. Market rates vary, with jewellery shops offering slightly lower prices than official rates, mainly influenced by demand and supply dynamics.

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