Sound investment decisions are built on economic understanding. At Chakor, our Economy section covers the macroeconomic trends, policy shifts, market movements, and financial developments that directly influence real estate, construction, and investment across Pakistan.
Whether you are tracking inflation, interest rates, or GDP growth, we break down what matters and what it means for your decisions.
ISLAMABAD: Pakistan has dispatched its first commercial export consignment to Uzbekistan through a newly activated land route via Iran. The shipment, consisting of refrigerated trucks carrying frozen beef, departed from Karachi and crossed into Iran at the Gabd-Rimdan border point.
The transit is being conducted under the TIR convention, an international customs framework that allows goods to move across borders with minimal regulatory delay. The consignment is currently en route to Tashkent.
The route bypasses Afghanistan, offering Pakistan a more reliable alternative for accessing landlocked Central Asian markets. The Gabd-Rimdan crossing sits near Gwadar, effectively connecting the deep-sea port to regional trade networks.
Officials view the development as part of Pakistan’s broader push to expand its export footprint under the CPEC framework. Central Asia represents a combined market of over 70 million consumers.
The inaugural shipment is expected to strengthen trade ties between Islamabad, Tehran, and Tashkent, while boosting the commercial role of both Karachi and Gwadar ports.
ISLAMABAD: Pakistan’s benchmark KSE-100 Index dropped sharply on Monday morning following the breakdown of US-Iran peace talks held in Islamabad. At 9:34 AM, the index stood at 162,396.21, down 4,795.16 points or 2.87% from the previous close.
Selling pressure was broad-based, affecting key sectors including automobiles, cement, commercial banking, oil and gas exploration, power generation, and refining. Notable index-heavy stocks trading in the red included ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI.
The market decline followed US Vice President JD Vance’s announcement on Sunday that the American negotiating team was departing Pakistan after 21 hours of talks failed to produce a deal. Vance stated Iran had declined to accept American terms, which included a commitment not to develop nuclear weapons.
Iran’s parliamentary speaker Mohammad Baqer Qalibaf acknowledged no agreement was expected from a single round of negotiations, citing an ongoing trust deficit between the two sides.
The outcome reversed gains recorded during the previous week, when the KSE-100 had risen 1,673.87 points or 1.01%, buoyed by investor optimism over the then-ongoing diplomatic process.
Global markets also reacted negatively. Brent crude futures surged approximately 8% to $103 per barrel, while S&P 500 futures fell around 1%. The euro slipped roughly 0.5% against the dollar. Asian markets declined modestly, with Japan’s Nikkei down 0.4%, South Korea’s KOSPI falling 1.4%, and Australia’s ASX 200 slipping 0.6%.
ISLAMABAD: Prime Minister Shehbaz Sharif announced a significant reduction of Rs135 per litre in high-speed diesel (HSD) and Rs12 per litre in petrol prices on Friday, effective April 11, 2026, extending much-needed financial relief to millions of consumers grappling with sustained inflationary pressures.
Following the announcement, the Petroleum Division officially notified the revised rates, bringing HSD down from Rs520.35 to Rs385.54 per litre and petrol from Rs378.41 to Rs366.58 per litre, the steepest single-day diesel price cut in recent memory.
The Prime Minister attributed the decision to a decline in global oil prices, describing it as his “moral and political responsibility” to pass the full benefit on to the public. Notably, he disclosed that he had been advised to retain a portion of the savings to offset the Rs129 billion subsidy extended by the government in preceding weeks, a proposal he firmly rejected.
The announcement’s timing is particularly significant for Pakistan’s agricultural sector, as it coincides with the ongoing wheat harvest season. A reduction in diesel prices is expected to lower farm mechanisation costs directly, helping safeguard both farmer incomes and food affordability for the general public. Broader economic benefits are also anticipated, with logistics and public transport costs likely to ease in the near term.
The calming of global energy markets follows a two-week ceasefire between Iran and the United States, brokered with Pakistan’s diplomatic involvement. The truce has temporarily eased concerns over supply disruptions through the Strait of Hormuz, a critical corridor for global oil trade.
It is worth noting that existing levies remain intact, including a petroleum levy of Rs80.61 per litre on petrol and a Rs2.50 per litre climate support levy across multiple fuel types. The government has not indicated how long the revised prices will remain in effect.
ISLAMABAD, April 10, 2026 —Pakistan stands at the centre of one of the most consequential diplomatic efforts in decades as Islamabad prepares to host the US Iran peace talks, positioning the country as the primary intermediary in efforts to stabilise a conflict that disrupts global energy supplies and threatens wider regional escalation. The emerging framework, increasingly referred to by diplomats as the Islamabad Accord, follows a Pakistan-brokered ceasefire after weeks of intensive shuttle diplomacy.
The US Iran talks come after the US-Iran ceasefire announced on April 7–8, which emerged following sustained diplomatic engagement led by Pakistan’s civilian and military leadership. Islamabad facilitates backchannel communication, relays proposals, hosts regional meetings and coordinates with partners including China and Saudi Arabia. The agreement pauses hostilities shortly before a U.S. escalation deadline, underscoring the urgency surrounding the diplomatic push.
Analysts describe the development as a major diplomatic breakthrough. South Asia expert Michael Kugelman calls the mediation “one of Pakistan’s biggest diplomatic wins in years,” according to a France 24 report.
Conflict Triggered Global Energy Shock After Strait of Hormuz Closure
The crisis begins on February 28, 2026, when coordinated U.S. and Israeli airstrikes target Iran’s leadership and military infrastructure. Iran responds with missile and drone attacks and moves to close the Strait of Hormuz, the narrow waterway through which roughly 20 percent of global oil supply flows.
The closure of the Strait of Hormuz immediately disrupts global markets. The International Energy Agency warns the situation represents “the largest supply disruption in the history of the global oil market,” according to the IEA Oil Market Report cited in the document.
According to IEA data referenced in the report:
About 20 million barrels per day of oil are disrupted
Brent crude rises close to $120 per barrel
Analysts warn prices could reach $200 per barrel, according to Bloomberg
Global LNG supply drops around 20 percent
Gulf food imports fall by roughly 70 percent
Global GDP risk reaches −1.3 percentage points, according to Dallas Fed research
These figures illustrate the global stakes surrounding the US Iran peace talks and the urgency behind the Pakistan-brokered ceasefire.
Jet fuel prices double while U.S. gasoline prices rise about 30 percent, according to reporting cited from Time and industry data referenced in the report.
Pakistan Emerges as Only Credible Mediator
Pakistan mediates the US Iran crisis largely because of its unique diplomatic positioning. Islamabad maintains relations simultaneously with Washington, Tehran, Riyadh and Beijing, a rare diplomatic victory.
Pakistan shares a 900-kilometre border with Iran, maintains defence cooperation with Saudi Arabia and retains longstanding ties with the United States. It is also widely regarded as China’s closest regional partner, according to analysis cited from Al-Monitor.
Pakistan also has significant domestic and economic stakes:
Over 20 million Shia Muslims
Approximately 5 million workers in Gulf states
Annual remittances of $38.3 billion
Heavy reliance on energy imports through the Strait of Hormuz
Pakistan also emphasises neutrality. Officials condemn attacks by all sides and rule out military participation against Iran, strengthening Islamabad’s credibility as mediator, according to reporting cited from Al Jazeera.
Six Weeks of Shuttle Diplomacy Leads to Islamabad Accord
Pakistan launches diplomatic outreach immediately after the conflict begins.
On March 3, Foreign Minister Ishaq Dar tells Pakistan’s Senate Islamabad is ready to facilitate US Iran talks, according to Al Jazeera.
Prime Minister Shehbaz Sharif meets Saudi leadership in Jeddah on March 12, expressing solidarity while reassuring Iran. The move helps prevent further escalation, according to reporting referenced from CNN.
Regional foreign ministers meet in Riyadh on March 19 and again in Islamabad on March 29, aligning diplomatic positions for the US Iran peace talks.
Pakistan relays a 15-point U.S. ceasefire proposal to Tehran on March 25. Iran rejects the proposal but submits its own conditions, keeping negotiations alive.
On March 31, Pakistan and China announced a joint five-point peace initiative calling for cessation of hostilities and restoration of navigation in the Strait of Hormuz, reinforcing momentum toward the Islamabad Accord.
Further negotiations follow. Pakistan presents a two-phase ceasefire framework in early April. The exchange culminates in the US-Iran ceasefire announced April 7–8, according to reporting from CNN, Al Jazeera and France 24.
Historic Significance of US Iran Peace Talks
Analysts describe the US Iran peace talks in Islamabad as unprecedented. The mediation marks the first time Pakistan brokers a ceasefire between adversaries during active escalation, according to expert assessments cited from Al Jazeera.
The engagement also represents the highest-level US Iran talks since 1979, according to Time.
Economic Stakes Linked to Ceasefire
The US-Iran ceasefire and potential Islamabad Accord carry major economic implications.
A diplomatic breakthrough could revive the Iran–Pakistan gas pipeline. The project:
Length: 2,775 km
Gas flow: 21.5 million m³/day
Power generation: 4,000 MW
Savings: $2.3 billion annually
Penalty risk avoided: $18 billion
These figures come from IPRI Pakistan research cited in the report.
The conflict also threatens remittances from Gulf-based Pakistani workers. About five million workers send home $38.3 billion annually, according to Time.
Global Reaction to Pakistan Mediates Ceasefire
International leaders welcome the Pakistan-brokered ceasefire.The United Nations calls for compliance with terms. European Commission President Ursula von der Leyen welcomes de-escalation. UK Prime Minister Keir Starmer calls the deal a “moment of relief.”
These reactions are cited from international coverage referenced in the report, including Reuters and Al Jazeera.
China says it works actively to help bring about the US-Iran ceasefire, while Iran confirms acceptance of the agreement.
Islamabad at the Centre of Global Diplomacy
Pakistan mediates the crisis at a moment when global markets remain sensitive to disruptions in the Strait of Hormuz and regional escalation risks. The Pakistan-brokered ceasefire pauses what analysts describe as the largest oil disruption in modern history and positions Islamabad as a central diplomatic actor.
The US Iran peace talks, expected to shape the emerging Islamabad Accord 2026, now place Pakistan at the centre of global diplomacy; with energy security, regional stability and geopolitical alignment all hinging on the outcome.
RAWALPINDI: The ambitious District Kachehry underpass, overhead bridge, and pedestrian bridges project in Rawalpindi has witnessed significant cost escalation, with the budget rising from Rs16 billion to Rs19 billion. Authorities attribute the sharp increase to skyrocketing prices of key construction materials, including cement, sand, and steel, which have placed considerable financial strain on the infrastructure initiative.
In addition to the cost overrun, the project has suffered a 30-day delay in its scheduled completion. Eid holidays and persistent heavy rainfall over the past three weeks have disrupted construction timelines, pushing the expected completion date from April 30 to May 30, 2026. Preparations for the inauguration ceremony have consequently been suspended until further notice.
Rawalpindi Commissioner Aamir Khattak has taken strict notice of the setback and issued firm directives to the concerned authorities to ensure the project is completed by May 30 without any further extension. During a recent site visit alongside Frontier Works Organisation officials, the commissioner reviewed construction progress firsthand and received detailed briefings from engineers and contractors.
Current figures indicate that overall construction progress stands at 76 percent, with work being carried out in double shifts to compensate for lost time. Physical progress at Kachehry intersection stands at 74 percent, 72 percent at Iftikhar Janjua, and 71 percent at Annex Chowk. Utility ducts are 83 percent complete, pedestrian bridges 50 percent, the tube well 96 percent, and the retaining wall 98 percent complete.
The project has also sparked controversy following the closure of the 200-year-old main gate of the district courts and adjoining access routes serving multiple judicial institutions. Judges, lawyers, and court staff have formally protested the closure, prompting the matter to be escalated to the High Court. Authorities have cited security concerns as justification, while legal community representatives have deemed alternative routes unsafe.
Launched on November 3, 2025, the project remains on course for its revised May 2026 deadline.
KARACHI: Gold prices in Pakistan witnessed a significant single-day surge on Wednesday, with the per-tola rate climbing by Rs15,700 to reach Rs504,162, as international bullion markets rallied on a temporary breakthrough in the geopolitical standoff between the United States and Iran.
The All-Pakistan Gems and Jewellers Sarafa Association confirmed that the price of 10 grams of gold also rose by Rs13,460, settling at Rs432,237. Silver followed the upward trend, gaining Rs440 to trade at Rs8,184 per tola. The gains came a day after gold had declined, with the per-tola rate having closed at Rs488,462 on Tuesday.
On the international front, spot gold climbed 1.2 percent to $4,756.37 per ounce during mid-session trading, having earlier touched a gain of over 3 percent its strongest level since March 19. June delivery futures on US exchanges advanced 2.1 percent to $4,782.70 per ounce.
The primary catalyst behind the rally was a two-week ceasefire agreement between Washington and Tehran, reportedly facilitated through Pakistan’s diplomatic engagement. The truce prompted a retreat in both oil prices and the US dollar, conditions that traditionally bolster demand for gold as a store of value and safe-haven asset.
The Pakistani rupee registered a marginal gain of Rs0.01, settling at 279.05 against the US dollar, as the greenback touched a one-month low in global currency markets. Analysts anticipate continued volatility in gold prices, with movements closely tied to developments in the Middle East and signals from the Federal Reserve in the near term.
ISLAMABAD: Over 12 million Pakistanis live and work outside the country. Until now, the government had no formal system to register, track, or serve them. The OPF is moving to change that, and its chairman is personally carrying that message to every major diaspora hub.”
Every year, Pakistanis living abroad send billions of dollars back home. Last year, that figure hit a record $38.3 billion. Yet, despite that contribution, the government had no formal, structured relationship with these citizens. That is now changing, and changing fast.
OPF Chairman Syed Qamar Raza Shah is currently on an international tour spanning Japan, South Korea, Germany, and the UAE. At each stop, he has been sitting with Pakistani community members, listening to their concerns, and making commitments on the spot. The tour is not just a goodwill exercise. It is laying the ground for the most significant changes to the Overseas Pakistanis Foundation in its 45-year history.
In Japan, community leader Haji Syed Saleem Shah described the visit as a turning point. Pakistanis there raised long-standing problems, including jobs, education, legal disputes, and property matters back home. For many, it was the first time such issues were heard at a senior government level. The OPF Chairman gave direct instructions for urgent cases to be resolved immediately.
“This visit has given new hope to the Pakistani community in Japan. For the first time, their issues were seriously heard at such a high level.”
— Haji Syed Saleem Shah, Chairman, Ahl-e-Bait Foundation Japan
The same pattern repeated in the UAE. There, the OPF Chairman went a step further — announcing a formal proposal to make OPF membership compulsory for all overseas Pakistanis worldwide. Under the proposal, every Pakistani abroad would be required to register with the foundation and pay a one-time fee of Rs10,000 (around $35). The proposal now awaits approval from Prime Minister Shehbaz Sharif.
To go alongside the obligation, OPF has launched the Overseas Pakistanis Education Fund (OPEF), a scholarship program for children and spouses of overseas Pakistanis studying in Pakistani universities and colleges. The deadline to apply is April 30, 2026.
Two moves together tell the full story: the government wants to register its diaspora, fund its operations through their fees, and in return, invest in their families back home.
ISLAMABAD: The Pakistan Stock Exchange (PSX) recorded one of its sharpest single-day gains on Wednesday, with the benchmark KSE-100 index rising 12,362 points, or 8.15%, to close at 164,035.83. The surge was triggered by news that Pakistan had mediated a two-week ceasefire between the United States and Iran, pausing an escalating military conflict in the Middle East.
Trading was briefly halted following the rapid climb and resumed at 10:42 AM. The previous session had closed at 151,673.45 points.
The ceasefire was agreed upon less than two hours before a deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz. Iran’s Foreign Minister Abbas Araqchi confirmed that Tehran would halt counter-attacks and ensure safe passage through the waterway, conditional on the cessation of attacks against Iran.
Prime Minister Shehbaz Sharif announced that he has invited the leadership of both nations to Islamabad on April 10 for further negotiations aimed at reaching a conclusive agreement.
The diplomatic development was accompanied by a sharp decline in international oil prices, which fell approximately 15%. Analysts noted that lower energy costs ease fears of imported inflation and reduce pressure on Pakistan’s external accounts.
Maaz Mulla of Topline Securities described the session as a broad-based rally driven by two simultaneous tailwinds: diplomatic de-escalation and softer energy prices. He noted that with Islamabad set to host peace talks on April 10, investors moved quickly to price in reduced geopolitical risk.
Prior to Wednesday’s session, the KSE-100 had corrected by 20% to 22%, largely due to regional tensions and global macroeconomic uncertainty. Wednesday’s gains represent a significant reversal of that decline, though analysts caution that the rally’s sustainability will depend on the outcome of the April 10 talks.
ISLAMABAD: Pakistan’s Federal Minister for Finance and Revenue, Muhammad Aurangzeb, met with United States Chargé d’Affaires to Pakistan, Natalie Baker, on Thursday to discuss bilateral economic ties, trade, and investment.
The meeting, held at the Finance Division in Islamabad, covered the state of Pakistan-US relations, current economic developments, and ways to expand cooperation in key sectors, including energy, mining, technology, and logistics.
Baker highlighted a recent symposium held in Washington by the Pakistan Caucus in the US Congress, which brought together policymakers, diaspora representatives, and business leaders to explore areas of future cooperation. She described the overall direction of bilateral engagement as positive.
Aurangzeb briefed the US delegation on steps taken by the Pakistani government to address challenges in the energy sector, including procurement, pricing, and targeted subsidies for vulnerable groups such as small farmers and public transport users. He also pointed to the effects of rising global oil prices on Pakistan’s import costs, inflation, and broader economic stability.
The two sides discussed Pakistan’s ongoing engagement with international financial institutions, including progress under its current International Monetary Fund programme. Aurangzeb reaffirmed the government’s commitment to fiscal discipline while noting the need for flexibility in light of global and regional developments.
Baker expressed US support for Pakistan’s economic reform agenda and interest in expanding investment across multiple sectors. Both sides discussed participation in upcoming forums, including the Select USA Investment Summit, and explored collaboration on infrastructure, digital connectivity, and regional trade.
The finance minister stressed Pakistan’s focus on structural reforms, export-led growth, and creating a more business-friendly environment to attract foreign direct investment.
GWADAR: Gwadar Port has received a cargo shipment of 14,629 metric tons from Malaysia, port authorities confirmed on Monday. The shipment was successfully unloaded at the port, which is located along the Arabian Sea coast in Balochistan, Pakistan.
Port officials stated that the arrival of this shipment indicates that more international trading partners are choosing Gwadar as a preferred entry point for goods into the region. The port has seen a steady rise in incoming vessels over recent months, with shipments arriving from multiple countries.
This increase in activity is partly linked to changes in global shipping. Ongoing tensions in the Gulf region have prompted many shipping companies to seek safer, more reliable routes. Gwadar, due to its location near key trade lanes, has become a practical choice for several carriers.
Pakistan’s ports as a whole have recorded stronger numbers in early 2026. Karachi Port handled over 11,000 cargo containers in March 2026, a figure that exceeds the entire volume processed throughout 2025. Gwadar is also seeing more vessels arriving compared to previous periods.
Authorities noted that Gwadar Port offers storage benefits and modern handling facilities, which continue to attract foreign shipping interest. Experts have called on the government to keep improving port services and keep costs competitive so that this growth can be maintained over the long term.
