AGP Executive Report

Pakistan-Iran Mediation: Army chief Field Marshal Asim Munir will visit Tehran on Monday to boost bilateral cooperation and support peace as US-Iran talks remain stalled over security guarantees and Strait of Hormuz navigation. Sanctions Standoff: Iran’s President Masoud Pezeshkian defended the US-Iran MoU as the best route out of “neither war nor peace,” while Iran’s security leadership warned neighbours against joining Washington’s “economic war,” vowing retaliation. Crypto Regulation: Pakistan Virtual Assets Regulatory Authority (PVARA) has notified and legalised regulations for virtual asset services, setting a Sept 5 deadline for existing providers to seek NOCs or face closure. SME Policy: SBP revised SME prudential definitions for financing, but analysts say the update still leaves the segment structurally underserved by formal credit. Justice in Karachi: Sindh approved a judicial commission to investigate the Mir Raza Ali death, with civil court powers and a report due within 30 days. Cyber Scam Alert: Authorities warned of a WhatsApp courier impersonation scam targeting women, using OTPs to hijack accounts and demand money.

Makkah Pact Watch: Bangladesh has signalled openness to joining the Pakistan-Saudi-Turkiye “Makkah” joint defence framework, with Dhaka stressing a “Bangladesh First” approach and linking the move to trade and connectivity. Security & Governance: Pakistan approved deployment of three Army companies in Rawalpindi for six months under Article 245, while PM Shehbaz ordered an inquiry into a non-functional CT coronary angiography facility at PIMS. Energy & Prices: Dealers’ margin changes added Rs1.34 per litre to petrol/diesel costs; PM also directed financial assistance for monsoon rains and flood victims. Rail & Infrastructure: ML-1 groundwork is set for January 2027, with civil works on the first phase targeting the Karachi–Rohri/Sukkur corridor. Power Sector Restructuring: Cabinet Committee on Privatisation approved DISCOs Batch-I restructuring, including carving land assets into a holding company. Trade & Macroeconomy: July exports rose 13.1% to $3.94bn; trade deficit widened 26% in July-26/27 on higher imports. Digital Finance: Pakistan launched a virtual assets licensing regime with a September 5 deadline, aiming to support exports, remittances and SME financing. Markets: PSX ended the week down 1.63% amid US-Iran uncertainty. Business & Tax: FBR introduced independent scrutiny for customs litigation and set up a committee to review deferred refund claims.

Pakistan-Malaysia Security Push: Interior ministers Mohsin Naqvi and Saifuddin Nasution agreed to boost intelligence-sharing on counterterrorism, anti-narcotics, cybercrime and human smuggling, with joint working groups and expanded police training. Trade & Inflation Watch: Pakistan’s trade deficit widened 26% in July as imports jumped 19%, with higher bills for food, machinery, vehicles, textiles and metals. Healthcare Accountability: PM Shehbaz ordered an inquiry into a non-functional CT coronary angiography facility at PIMS, to check technical capability, staffing, software and coordination between cardiology and radiology. Economic Outlook: Ahsan Iqbal said macro stability is improving but must translate into transformation under URAAN Pakistan, with CPI easing to 9.2% in July. Remittances Upgrade: PVARA chief said regulated stablecoins could cut remittance costs and save up to $400m annually if fees fall by 1 percentage point. Energy & Transport: NEPRA directed review of pending solar net metering cases, while transporters demanded a fixed diesel-price mechanism after a fuel hike. Security Deployment: Govt approved six-month army deployment in Rawalpindi for “sensitive duties” amid concerns of unforeseen threats.

Energy Policy: Pakistan approved amendments to the National Electricity Plan (NEP) 2023-27 and the Integrated Energy Plan (IEP) 2027-60, aiming to tackle the power sector’s long-running distribution and governance failures rather than treating electricity, gas and petroleum as separate silos. Trade & Logistics: Exporters warned that the Pak-Afghan border closure has cost about $4.5bn and slashed bilateral trade, while a nine-day nationwide transporters’ strike triggered massive losses, vessel-space shortages and higher sea freight. Politics & Courts: PTI escalated its fight over Imran Khan’s medical examination, alleging the Supreme Court order was flouted; the National Assembly session was adjourned over quorum issues and the government says Khan was examined at PIMS under security. China & Security: Sindh and China discussed tighter security coordination for Chinese nationals, as Pakistan also pushed for stronger Pakistan-China economic cooperation. Digital Economy: Pakistan and Google signed an MoU for free one-year AI access for students, career certificates and an AI Centre of Excellence, while Commerce moved to digitise and secure trade data. Health Oversight: Sindh Ombudsman ordered an audit and corrective steps at Valika Hospital after 16 more children were diagnosed with HIV/AIDS. Infrastructure: Govt told NA the M-10 Karachi-Hyderabad motorway feasibility is done and completion is targeted for 2028.

Pakistan-Syria Economic Push: Syrian FM Asaad Hassan Al-Shaibani’s first visit to Islamabad in nearly two decades focused on expanding ties across trade, investment, education and people-to-people links, with talks also covering direct flights and a business council. SBP Banking Oversight: The State Bank designated HBL, UBL and NBP as Domestic Systemically Important Banks for 2026, raising capital and supervisory expectations from March 31, 2027. Telecom Funding & 5G Rollout: Telecom operators contributed Rs18.28bn to Pakistan’s USF and R&D funds in FY2025-26, while reported 5G investment reached about $178.6m with 1,136 sites upgraded. Satellite Internet Roadmap: Pakistan is nearing a regulatory breakthrough for satellite broadband, with Starlink and Kuiper among potential entrants as licensing frameworks advance. Gold Prices Jump: Local gold rates rose again, with one tola up Rs5,200 to Rs477,136 amid firmer global bullion. PSX Momentum: The KSE-100 gained over 900 points to close the week above 177,500. Forex & Reserves: Foreign reserves edged up to about $22.5bn, supporting the broader push for stability. Energy & Costs: Dealers’ margins on petrol and diesel were increased, and fuel prices saw adjustments, keeping cost pressures in focus. Regional Trade Watch: Pakistan’s sugar industry is eyeing India after New Delhi opened duty-free imports under a TRQ, offering a potential outlet for surplus stocks. Security & Governance: MoFA reiterated Pakistan’s resolve against terrorism on the victims’ remembrance day, while reports also flagged heightened security around Hafiz Saeed.

Trade & Industry: In Sialkot, GPCCI and PRGMEA signed an MoU to boost readymade garment trade with Germany, with Planning Minister Ahsan Iqbal urging exporters to move up the value chain and target billion-dollar brands. Tax Administration: The Federal Tax Ombudsman Secretariat circulated draft Federal Tax Ombudsman (Investigation and Disposal of Complaints) Regulations, 2026 to modernise how tax complaints are handled, replacing a 2001 framework. Insurance Consumer Protection: SECP issued draft Market Conduct Rules for Insurers, 2026 for consultation, proposing strict claim and payment timelines and tighter disclosure for policyholders. Energy & Costs: Petrol rose 27 paisa and HSD by Rs1.64 for Aug 21, while OMCs pressed for an overdue Rs1.22/litre margin adjustment; FPCCI also objected to proposed July FCA increases. Public Finance Watch: An editorial flags that the fiscal deficit’s 22-year low (2.6% of GDP) may not mean deeper revenue strength yet. Digital Governance: Punjab made digital arms inventory mandatory for dealers; Punjab also doubled down on IT-led service delivery, while Google launched “Digital Pasban” with Urdu online safety tools for 200,000 households. Capital Markets/Banking: SBP data showed July profit repatriation down 11.5% YoY; BankIslami reported Rs4.31bn PBT for 1H’26. Politics & Courts: Supreme Court returned the government’s review plea on Imran Khan’s hospital transfer due to incomplete paper books; PM Shehbaz renewed talks invitation to PTI.

Forex Support Talks: Finance Minister Muhammad Aurangzeb says Pakistan has asked the US Treasury for a USD 10bn exchange-stabilisation facility to ease pressure on reserves and cut reliance on repeated emergency funding. Fuel Relief for Transport: In Lahore, transporters cut fares by 10% after petroleum price reductions, with public transporters also passing on the relief. US-Iran Economic Pressure: Donald Trump warns any country aiding Iran faces “severe” economic consequences, escalating US secondary sanctions as Tehran’s commercial channels tighten. Digital Safety Push: PTA and Google sign an MoU for a child online safety programme covering awareness, training for parents/teachers, and local-language outreach. Tech & Infrastructure: Zong plans a modern Karachi data centre under a PPP, investing over Rs4bn now and Rs14bn over 10 years. Banking Growth: BankIslami’s aik partners with Shalimar Express to digitise railway ticketing and cargo payments using Raast QR with voice confirmations. Markets Watch: Gold jumps in Pakistan to Rs471,936 per tola amid Middle East uncertainty; PSX sentiment remains mixed with recent volatility.

External Accounts: Pakistan’s current account deficit narrowed to $328m in July, with remittances (workers’ inflows $3.63bn) cushioning a $3.1bn goods and $228m services gap. Policy & Markets: The SBP raised Rs498bn via T-bills as yields climbed; the PSX slipped 1,109 points on fuel-price and Hormuz shipping worries. Energy & Industry: ECC allowed 108,000MT sugar exports (TCP tender), while the government tabled gas surcharge/cess bills in NA; K-Electric’s ICP dispute reportedly landed at SIFC. Tax & Digital Finance: Fixed Tax Asaan Scheme launched via app for small traders; easypaisa and 5th Pillar launched a Shariah-compliant Umrah savings plan; Daraz rolled out a licensed e-pharmacy. Tech Growth: Pakistan’s IT exports rose 18% YoY to $417m in July; Google inaugurated its first Pakistan office to boost the digital ecosystem. Governance & Local Development: ECP restored a PML-N lawmaker’s membership after SC order; Karachi mayor opened Rs145m uplift works; FGEHA faced questions over delays in Green Enclave-I and Lifestyle Residency.

FX Stabilisation Push: Finance Minister Muhammad Aurangzeb confirmed Pakistan has formally sought a $10bn US Exchange Stabilisation Support Facility, aiming to bolster reserves and stabilise the rupee, with progress expected by September while talks continue on extending bilateral loan maturities. Tax Net Expansion: The government launched a Retailer Scheme App to bring small shopkeepers into the tax system, making the fixed tax option simpler and optional via mobile filing. Fuel Price Relief Pressure: PM Shehbaz directed the petroleum minister to rush to Karachi and negotiate with local refineries for diesel price relief after recent upward revisions, as political parties renewed criticism over fuel pricing. Big Tech in Pakistan: Google inaugurated its first Pakistan office and met Interior officials on online safety; it also plans free one-year Gemini subscriptions for students and backs the $30bn IT export ambition. AI-Data Partnership: World Context partnered with Multinet Pakistan to support secure infrastructure for industrial data and robotics/AI training. Corporate & Markets: ABHI Bank reported record H1 profit after tax of PKR 1.502bn; PSX saw gains as KSE-100 reclaimed key levels. Energy & Industry: Burj Clean Energy signed a BOOT deal for a 7.5MW wind project; Hutchison Ports Pakistan approved a $76m electrification upgrade. Automotive Launch: Master Changan began deliveries of the Deepal E07, Pakistan’s “transformer SUV” under its House of Brands strategy.

Digital Finance & Inclusion: Bank Alfalah inaugurated Pakistan’s first Digital Islamic Consumer Finance Centre (ICFC) in Naya Nazimabad, offering one-stop Shariah-compliant financing with digital applications and self-service banking. Capital Markets: SECP approved the Offer for Sale prospectus of Naya Nazimabad Apartments REIT (NNAR) for listing on PSX, with 44.06m units (15% of scheme) via book-building. Banking Performance: ABHI Bank posted Rs1.502bn PAT for H1 ended June 30, 2026, while NESPAK set an all-time record by securing 180 new engineering projects in FY25-26. Consumer Protection: Fair Finance Asia urged Asian banks and regulators to close the gap between rules and real-world enforcement, citing Pakistan cases on women entrepreneurs’ access to finance. Food Prices & Governance: Punjab rolled out a new mechanism to fix prices of vegetables, fruits, greens, meat and milk, including geo-tagged inspections in the Qeemat App. Public Health: Health Minister expanded Hepatitis-C screening nationwide under the PM programme, prioritising ages above 12 and providing free medicines. Energy & Costs: JI threatened a countrywide strike over petrol/diesel price hikes unless withdrawn. Security: Security forces killed at least nine terrorists in Balochistan IBOs in Ziarat, Harnai and Surab.

Energy Policy: The Cabinet Committee on Energy approved amendments to the National Electricity Plan 2023-27, covering tariffs, conservation, renewable power for remote areas, cross-border trade and transmission expansion, alongside a High Level Design for an Integrated Energy Plan 2027-2060 and updates on circular debt in power and gas. Food Security: Pakistan approved importing 1 million tonnes of wheat after PASSCO’s strategic reserves neared depletion, with ECC oversight via Trading Corporation of Pakistan and a steering committee for pre-shipment checks and provincial funding. Market Watch: PSX slid as investors weighed US-Iran peace uncertainty and oil supply risks, with KSE-100 down 1,806 points in early trade. Competition & Real Estate: CCP will hold an open hearing on Aug 27 over deceptive marketing and hidden charges in Pakistan’s real estate sector. Banking & Finance: ABHI Microfinance Bank posted Rs1.5bn profit in H1 2026, while SECP approved a public offering of New Nazimabad Apartments REIT on PSX. Energy Supply Risk: OGRA warned LPG shortages and price pressure could rise as security concerns disrupt Balochistan supply routes. Geopolitics/Shipping: Fresh attacks near the Strait of Hormuz underline ongoing risks to commercial shipping as Iran restricts traffic. Politics: Supreme Court ordered Imran Khan’s transfer to Shifa International Hospital for medical checks.

Digital Finance Push: Pakistan’s digital banking users hit 137 million, with digital government payments rising to 76% as the state expands Raast and QR-based payments. Cashless Economy Initiative: Z-Wallet is set to be showcased at the next cashless-economy meeting as a model linking banks, telecom and tech. Banking Liquidity: SBP injected about Rs11.6tr into the banking system via reverse repo, while the rupee edged up slightly. Tax Ruling: The Federal Constitutional Court allowed corporate taxpayers to adjust tax credits against super tax, backing Zong’s case. Energy & Markets: PSX closed higher by 398 points as investors tracked refinery upgrade optimism and stronger crude sentiment. Petroleum Pricing Pressure: JI protests against petroleum levy and IPP agreements continue across cities, with women joining sit-ins. Fiscal Oversight: A US report flags the need to strengthen Pakistan’s parliamentary oversight of public finances, including debt and military/intelligence budgets. Public Health: Hepatitis screening of federal employees in Islamabad begins today with free PCR tests and medicines for positives. Trade & Industry: Pakistan targets ICT exports of $25.1bn by 2030; FPCCI urges proactive ASEAN engagement. Infrastructure & Jobs: Port Qasim’s proposed 400-acre apparel zone aims for $2.2bn exports and 138,000+ jobs in the first phase.

NADRA ID Upgrade: Pakistan is rolling out a new QR-based Smart National Identity Card, replacing chip-only checks with smartphone-readable verification via PakID, aiming to make identity checks at banks, telecoms, hospitals and police faster and more accurate. Solar Strain on Grid: The solar boom is cutting electricity demand and distribution sales, shrinking revenue while fixed generation costs remain—raising pressure on the power system as households and businesses buy less from the grid. Oil Supply Shift: Cnergyico is increasing US crude purchases as Hormuz and Gulf disruptions expose supply risks, with trade-finance support and spot buying under review. Refinery Modernisation: Pakistan’s refinery upgrade plan is gaining momentum with up to $5bn investment across major plants to expand capacity and move toward cleaner fuels. Gold Moves: Gold prices in Pakistan jumped again, with 24-karat up Rs2,000 to Rs461,936 per tola amid global uncertainty. Remittances Rise: Roshan Digital Account inflows climbed to $13.647bn by end-July, with nearly 957k accounts and growing investments in Naya Pakistan Certificates. Trade Ties: Pakistan is seeking stronger trade and investment links with Tanzania through new agreements and joint ventures, targeting sectors including IT and AI. Corporate Tax Clarity: Pakistan’s Federal Constitutional Court backed corporate taxpayers on super-tax credit adjustments, easing a key tax dispute. Digital Banking Push: ABHI Microfinance Bank launched DIY Banking with self-service ATMs, cash deposit machines and kiosks to expand access. Governance Watch: The World Bank warned Pakistan against redirecting flood-housing funds in Balochistan, citing risks of deeper poverty and misuse concerns. Regional Security: Trump backed the Saudi-Türkiye-Pakistan “Mecca” defence pact, while the pact’s collective-defence implications keep drawing strategic debate.

Cash vs Digital Paradox: Pakistan’s cash in circulation hit a record Rs11.94tn in FY26, even as mobile banking and digital payments expanded—showing money is moving digitally but being converted back to cash before spending. Water Security: Rawalpindi is rolling out a Rs500m tube-well monitoring network to track steep groundwater decline and plan recharge measures. Transport Economy: Goods transporters suspended a nationwide strike for 40 days after talks with federal and Sindh authorities on fuel pricing, tolls, parking and axle-load rules. Fiscal Accountability: The NA’s commerce panel will summon the Finance Secretary and SBP governor over Rs342.947bn TCP dues, including Rs265.719bn markup. Fuel Protest Pressure: JI staged sit-ins in Karachi and Lahore against petroleum levy and rising fuel prices, warning protests could escalate. Climate Resilience: Pakistan will install 286 early warning systems in GB and KP under a $37m GLOF-II project to prepare for glacial floods. Safe Water for Coastal Sindh: SCF with PPAF support installed four RO plants for about 4,000 Thatta villagers. Hajj 2027 Logistics: Hajj applications now start Aug 18 via Habib Bank, with quota and instalment rules unchanged. Foreign Nationals Crackdown: FIA and cyber agencies transferred 231 detained foreigners to jails in Rawalpindi division. Medical Tourism Push: An editorial argues Pakistan can scale medical tourism, citing global market growth and local cost/doctor advantages.

Construction Reform Push: The federal government is drafting a sweeping package to revive Pakistan’s construction sector, including a Construction Industry Development Board, a dedicated Construction Development Bank, policy rationalisation on imports/exports and targeted tax changes, with regulators and industry brought under tighter oversight. Trade & Markets: A Jordan-Pakistan Business Council is set up after an MoU between the Jordan Chamber of Commerce and FPCCI to boost joint ventures and delegation exchanges, while Sialkot exporters are scouting South Africa for new buyers in sports goods, leather and surgical instruments. Iran-US Tensions via Pakistan Mediation: Iran says no decision has been made to resume US negotiations, stressing the Islamabad MoU’s focus is on ending the war, as US leaders weigh further sanctions that could shape nuclear-policy talks. Regional Security Deal: Saudi Arabia, Turkey and Pakistan signed the Mecca Joint Defence Pact, with analysts debating whether it’s a NATO-style alliance or mainly political insurance. Business & Finance Signals: World Bank officials visited WASA Lahore to discuss wastewater treatment investment prospects, and gold prices slipped Rs500 per tola to Rs459,936. Public Pressure: Jamaat-e-Islami launched sit-ins/protests against petrol price and petroleum levy hikes, with traffic disruptions reported in Karachi.

Keti Bandar Push: Sindh CM Murad Ali Shah ordered an urgent PPP model to turn Keti Bandar into a modern deep-sea port and integrated economic corridor, covering port, industry, logistics, fisheries, energy and tourism. Mir Raza Murder Probe: Karachi investigators added two more officers, taking the Mir Raza Ali case team to nine; his smartwatch and phone are being sent for forensic examination in Lahore, while the court has granted investigators time till Aug 24. Freight Strike Hits Economy: Goods transporters’ wheel-jam strike entered its eighth day, with containers stranded and losses put at over Rs50bn; talks are set with provincial and federal sides. Oil Pipeline Incident: A crude oil leak from an old underground pipeline turned a DHA road into a slick pool, prompting a traffic shutdown and barricades. Flood Plan Delayed: Pakistan’s Fourth National Flood Protection Plan is stalled due to missing donor funding, leaving protection targets unmet. ML-1 Rail Milestone: Pakistan Railways set Oct 30, 2026 for completing ML-1 review and starting the next market consultation on Sept 8, with Karachi-Rohri section cost pegged at $2.04bn. Construction Sector Overhaul: Govt is studying a major construction package including a CIDB and possible Construction Development Bank, plus import/export and tax rationalisation. Power Circular Debt: Circular debt rose by Rs364bn in FY25-26 despite subsidies, worsening governance and recoveries issues. Food Safety Crackdown: Punjab Food Authority discarded 700kg of expired, disease-infected meat from an illegal slaughterhouse. Punjab AI Drive: CM Maryam Nawaz set a target to make Punjab South Asia’s most AI-enabled province by 2029. Gold Prices: Gold prices in Pakistan drifted lower, with tola down to Rs459,936.