ISLAMABAD: Pakistan Institute of Development Economics (PIDE), a state-owned think tank, has asked the government to increase the minimum wage by at least 12.5 per cent to Rs45,000 and ensure its rule-based enforcement, rather than a notional announcement, given the country’s economic conditions and inflationary pressures.

“In a period marked by persistent inflationary pressures, food and energy shocks, labour market informality, and rising household vulnerability, minimum wage policy must evolve into a credible macro-social policy instrument capable of protecting workers while remaining economically sustainable and administratively enforceable,” PIDE said in its policy note to the government ahead of FY27 budget.

This policy brief called for a shift from discretionary and symbolic annual wage announcements towards a transparent, rules-based framework grounded in official evidence and aligned with International Labour Organisation principles.

“Rather than relying on a single indicator or arbitrary adjustment, the proposed approach combines purchasing-power protection, worker-family adequacy checks, labour-market affordability, partial productivity sharing, and provincial implementation realities,” it said, adding that the proposed reform architecture was based on four linked elements: transparent evidence-based wage setting, bounded provincial calibration, credible enforcement and compliance mechanisms, and annual reporting on wage-setting evidence and implementation outcomes.

Govt think tank urges rule-based enforcement, not symbolic announcements

Last year, the Centre made a departure from even a symbolic minimum wage announcement, and Finance Minister Muhammad Aurangzeb then said businesses were unwilling to pay even the previous year’s minimum wage.

The institute said that the application of the minimum wage framework to official data from the Pakistan Bureau of Statistics (PBS) and the Ministry of Planning, Development and Special Initiatives, suggested “a national minimum wage reference benchmark of Rs45,000 per month for 2026-27, representing a 12.5pc increase over the current notified wage of Rs40,000.

“Minimum wage policy cannot remain a ceremonial annual exercise disconnected from economic realities and labour welfare. Pakistan now requires a credible wage governance system that balances worker protection, productivity, business sustainability, and macroeconomic stability within a transparent institutional framework,” said PIDE Vice Chancellor Dr Nadeem Javaid.

He emphasised that a country aspiring for export-led growth and social stability could not afford working poverty, wage uncertainty, and fragmented labour market governance. Sustainable economic reform must also translate into dignity, predictability, and economic security for workers, he added.

Under the proposed “national reference benchmark with provincial calibration” model, provinces would retain constitutional authority to notify wages at or above the national floor in accordance with local economic conditions.

Indicative provincial calibrations suggest Rs45,000 minimum wage for Punjab and Rs46,000 for Khyber Pakhtunkhwa and Sindh due to relatively higher urban living costs and formal-sector concentration, and Rs45,500 for Balochistan reflecting geographic and market access vulnerabilities.

Dr S. M. Naeem Nawaz, Professor of Economics at PIDE and co-author of the study, said: “A credible wage floor must be one that workers can realistically receive and provinces can realistically enforce. That requires moving beyond CPI-only or poverty-line-only approaches toward a hybrid methodology that respects affordability, compliance capacity, and the reality that nearly 80pc of Pakistan’s employment remains informal.”

Published in Dawn, June 3rd, 2026

ISLAMABAD: The state-owned Oil and Gas Development Company Limited (OGDCL) on Wednesday said it made a significant oil and gas discovery from its exploratory well Bobi Deep-1, located in Sindh’s Sanghar district.

The company is the country’s largest oil and gas producer and, in April this year, began commercial production from Pakistan’s largest-ever oil and gas discovery from a single well.

In a statement issued today, OGDCL said the well successfully tested the Massive Sand interval of the Lower Goru Formation and produced 2,000 barrels of oil per day (bpd) and 1.1 million standard cubic feet of gas per day (mmscfd) through a cased-hole Drill Stem Test (DST), confirming the hydrocarbon potential of the reservoir.

A Drill Stem Test (DST) is a temporary well-completion procedure used in oil and gas exploration to assess the pressure, permeability and production potential of a geological formation. It helps determine whether a well has encountered a commercially viable reservoir without the need for costly permanent casing.

“The achievement marks a major milestone for OGDCL as the first hydrocarbon discovery from the Massive Sand play within the Bobi and Dhamraki Mining Lease,” the company stated.

“Beyond the discovery itself, the success has opened a new exploration window in the area, de-risking similar prospects in the surrounding region and creating opportunities for future reserve additions and resource growth,” said the oil company.

The discovery is particularly significant because the project had previously encountered complex subsurface challenges that led to the suspension of drilling operations.

“Rather than abandoning the prospect, OGDCL relied on indigenous expertise and adopted an innovative approach to address the issue,” it said.

A multidisciplinary team of geoscientists and engineers collaborated with the Centre for Pure and Applied Geology at the University of Sindh, Jamshoro, to investigate the formation through advanced geophysical surveys, subsurface studies and field evaluations.

The joint effort led to the development of a comprehensive geological and geophysical model, enabling OGDC to de-risk the prospect and resume operations. Multiple engineering safeguards, specialised civil works and extensive technical evaluations were carried out before the drilling rig was redeployed and the target depth successfully reached.

“The exploratory well Bobi Deep-1 success story stands as a testament to indigenous innovation, technical excellence and industry-academia collaboration. It demonstrates how local expertise can successfully resolve complex operational challenges and unlock new hydrocarbon resources for the country,” the company said.

“The discovery is expected to contribute towards enhancing Pakistan’s indigenous oil and gas production, strengthening national energy security, reducing reliance on imported energy and augmenting the hydrocarbon reserves base of the country,” it concluded.

Last April, OGDCL announced the successful revival of oil and gas production from Chak#2-2 well, a joint venture in the Sinjhoro Block in Sanghar.

The Sinjhoro Block comprises OGDCL as the operator with a 62.5 per cent working interest, alongside Government Holdings (Pvt) Ltd (GHPL) with 22.5pc, and Orient Petroleum Inc. (OPI) holding a 15pc share.

ISLAMABAD: Following the apparent failure of the Tajir Dost Scheme announced a year ago to expand the tax net, the government on Friday unveiled another scheme, dubbed the ‘Fixed Tax Asaan Scheme’, for small traders and shopkeepers with an annual turnover of up to Rs200 million.

The announcement was made through a recorded message by Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiani, and Member, Federal Board of Revenue (FBR), Hamid Attique Sarwar. They said the fixed tax regime had been finalised in consultation with trader bodies and representatives in response to their demand for a simplified tax compliance mechanism.

Kiani, who led the government team in detailed negotiations with the trader community, said the new fixed tax scheme would apply to businesses with an annual turnover (total sales) of up to Rs200 million. Under the scheme, a tax of one per cent would be payable through a simple form that would be made available in all local languages.

The finance minister said the payable tax would be adjustable against withholding tax already paid, provided that a minimum of Rs25,000 was paid at the time of filing the tax form. Otherwise, the standard tax rate of 1pc would apply.

He said the scheme would be optional for traders, who could choose to join it or continue under the normal tax regime. Those opting for the fixed tax scheme would be issued a special plaque for display at their business premises, containing details such as their name, registration number and National Tax Number (NTN), along with a QR code.

According to the minister, a tax inspector would be able to scan the QR code on the plaque and, if it was found to be genuine, would not be permitted to enter the premises for tax-related inspections.

Kiani said those opting for the new scheme would be exempt from the Point-of-Sale (POS) requirement as well as from audits. In exceptional cases, any tax dispute that arose would be resolved in consultation with the relevant traders’ association.

Non-filers and existing filers would also be eligible to join the scheme, provided their annual turnover had not exceeded Rs200 million in any of the preceding three years and the minimum tax payable was higher than that paid in the previous year.

He said a third category of traders — those who remained outside both the fixed tax scheme and the normal tax regime — would be liable to a fine of Rs10,000 per month for the first month, rising to Rs25,000 per month in the second month and Rs51,000 per month in the third month.

The minister of state added that the new fixed tax scheme had been designed based on lessons learned from past failed schemes and “would be successful this time”.

He said kiosks and pushcart-based small traders would be exempt from the fixed tax scheme.

Sarwar said there were around 4.4 million traders, of whom about 3.5 million would be covered under the new scheme. He said larger traders, classified as Tier-1 and mostly operating in the branded sector, would not be allowed to opt for the scheme. The number of such Tier-1 businesses was estimated at between 50,000 and 100,000.

Sarwar said most of those falling under the new scheme were paying little or no tax, and even their small contributions would make a significant difference instead of burdening compliant taxpayers. He stressed that the scheme should not be described as an amnesty scheme.

Officials said the scheme would cover those who had operated a business for at least three years, maintained a shop or business premises, and belonged to professions other than specialised services. Small taxpayers who were already filing tax returns before 2025 could also join the simplified scheme if they met the required conditions.

Traders would be able to register through the FBR website, mobile apps or tax practitioners, and would be required to maintain simple and organised records of sales, expenses, purchases and other business transactions for ease of compliance.

Advantages like Active Taxpayer List (ATL) status, lower withholding taxes, and improved financial credibility would become available to those opting for the scheme.

The development comes ahead of the presentation of the federal budget for the next fiscal year (FY2026-27). Scheduled for June 10, the budget is expected to be formulated under the tight oversight of the International Monetary Fund (IMF).

• Govt and mining company conducting formal review of procurement plans for project
• Minister hints at gas tariff relief for domestic consumers from July 1

ISLAMABAD: Pakistan and Barrick Mining Corporation are working on upgrading the security requirements of the multi-billion dollar Reko Diq Copper-Gold Project in view of the prevailing situation, resulting in increased security costs.

A team of Barrick Gold is currently in Pakistan to discuss security upgrades, confirmed Ahmad Hayat Lak, chief executive officer of the Oil and Gas Development Company Limited (OGDCL), one of the key Reko Diq partners.

He told journalists that the Reko Diq project agreement had provisions for security arrangements and that the partners were discussing possible upgrades.

He said both sides were conducting a formal review of security arrangements and procurement plans for the project.

Lak added that the review, as required under the agreement, would suggest whether security upgrades and additional funding were needed, while stressing that Pakistan, as the host country, bore sole responsibility for protecting the site.

He said lenders had expressed confidence in existing security protocols during a recent meeting in Canada, having completed their own due diligence before committing funds.

New financiers are also showing strong interest in joining the venture, he added.

Petroleum Minister Ali Pervaiz Malik said Barrick Executive Chairman John L. Thornton had recently led a high-level delegation to Islamabad to discuss the security situation and procurement strategy with the government.

He said it was reassuring that Barrick, one of the world’s leading mining firms, remained committed to the project despite global and local challenges.

The delegation also reportedly explored the acquisition of advanced heavy-duty equipment through competitive bidding and the expansion of the project’s lending and credit structures.

‘Relief in gas tariff’

The minister hinted at relief in gas tariffs for domestic consumers in the upcoming pricing review from July 1, instead of an increase demanded by gas companies.“You will hear good news” on gas prices, he said.

He said the government had already decided to charge Rs2,000 per million British thermal units (mmBtu) for gas supplied to power generation, instead of Rs3,500 per mmBtu in the case of LNG, and that a formal summary would be moved for implementation shortly.

A summary would be sent to the federal cabinet to align the pricing of this gas with local rates and shield consumers from higher costs, he added.

The minister said local gas production had been increased by 400 million cubic feet per day in response to supply disruptions and that proposals had been prepared to address the chronic circular debt problem in the gas sector.

Petroleum Secretary Hamed Yaqoob Sheikh said the division was optimistic about receiving a positive response from the International Monetary Fund (IMF) regarding concessions aimed at facilitating the upgradation of local oil refineries.

He said the minister had made a strong case before the IMF and emphasised that failure to modernise refineries would not be in the country’s interest.

Published in Dawn, June 4th, 2026

• Rs4.7tr federal, provincial development plans may be revised
• Federal PSDP may rise above Rs1.3tr; provincial ADPs could be trimmed
• Mega projects face major cost, time overruns

ISLAMABAD: The National Economic Council (NEC) is set to meet on Monday (today) and may revise federal and provincial development plans worth Rs4.715 trillion for the next fiscal year amid conflicting fiscal needs of critical political and other institutional stakeholders.

The NEC — the highest economic decision-making forum of the federation, led by the prime minister and comprising the four chief ministers and four federal ministers — has a four-point agenda for the meeting.

The first item pertains to a review of the Annual Plan 2025-26, approval of the Annual Plan 2026-27 and a presentation on key socio-economic indicators of the provinces.

This will be followed by a review of Public Sector Investment (PSI) 2025-26, the proposed PSI 2026-27 and confirmation of changes made in the PSDP 2025-26 through addendums, corrigendums and adjustments on the directives of the prime minister, including a cut of around Rs175bn. The meeting will also include presentations on provincial annual development plans by the four chief secretaries.

Besides, the NEC will take up a progress report of the Central Development Working Party (CDWP) from April 1, 2025, to March 31, 2026, and schemes approved by the CDWP and the Executive Committee of the National Economic Council (Ecnec) during the same period.

Projects face delays, overruns

The Planning Commission will also present highlights of the monitoring and evaluation report of mega projects.

According to the report, the PSDP 2025-26 portfolio comprised 801 projects, including 734 ongoing and 67 new initiatives being implemented by 40 ministries, divisions and state-owned enterprises. Out of 240 projects selected for monitoring during the current financial year, 170 had been monitored by March 2026, including specially assigned cases.

Priority monitoring was accorded to mega projects, government special initiatives, donor-funded interventions and slow-moving schemes.

The monitoring exercise revealed that delays in project completion were mainly caused by inadequate financing, weak project planning and preparation, delays in land acquisition and no-objection certificates, litigation, procurement bottlenecks, delayed release of provincial shares, weak project management capacity and changes in scope.

“Analysis indicates that approximately 25 per cent of ongoing projects are facing cost overruns, while nearly 79pc are experiencing time overruns, placing additional burden on public finances and affecting development outcomes,” the report said.

Senior government officials said the consolidated federal and provincial development programme for next year, approved by the Annual Plan Coordination Committee (APCC) last week, could see significant changes because of the Centre’s greater financial needs while protecting the primary budget surplus at 2pc of GDP, or more than Rs2.8tr, as committed to the IMF.

However, the annual plan projections for next year cleared by the APCC are expected to remain mostly unchanged.

Officials said the federal PSDP of Rs1.126tr cleared by the APCC may go beyond Rs1.3tr, while the size of provincial annual development plans could be lower than the Rs3.138tr indicated last week.

They said the PSDP summary for next year contained the Rs1.126tr allocation with a request for enhancement by the NEC.

They added that these changes would be finalised during the NEC meeting as political engagements continued with coalition partners to reach common ground.

Officials said the Centre’s push for Rs1.7tr in additional fiscal space from the provinces, on top of a cash surplus of close to Rs2tr, or about 1.4pc of GDP, for next year had now been reduced by almost one-third to around Rs1tr.

However, allocations for coalition partners’ schemes and ruling party parliamentarians are expected to remain largely unchanged at Rs87bn and Rs70bn, respectively, for next year.

Slippages, targets

The NEC will also be briefed on slippages in the economic growth target, mainly because of external factors, with next year’s GDP growth target set at 4pc and inflation projected at 8.2pc.

The commodity-producing sectors are targeted to expand by 3.9pc next year, driven by 3.8pc growth in agriculture and 4.5pc growth in large-scale manufacturing.

Agricultural growth is expected to be supported by recovery in important crops, projected at 3.6pc, cotton ginning at 2.5pc and livestock at 3.9pc.

The industrial sector is targeted to grow by 4pc in 2026-27, mainly due to a revival in large-scale manufacturing, alongside growth momentum in mining and quarrying, construction and energy, including gas and water supply.

The services sector is targeted to grow by 4.2pc, underpinned by stronger performance in wholesale and retail trade at 4.2pc, transport, storage and communications at 3.7pc, financial services at 4.5pc, and information and communication at 7.7pc.

“These targets are contingent on effective macroeconomic management and stable external conditions,” the Planning Commission warned.

It projected national savings for the next fiscal year at 14.3pc of GDP compared to 14.1pc in the current fiscal year. The investment rate is targeted to reach 15pc of GDP, against 14.4pc in the current fiscal year.

Highlighting a risk, the Planning Commission said the external sector could face pressure as easing import controls and debt repayments were likely to widen the current account deficit next year.

Published in Dawn, June 8th, 2026

ISLAMABAD: Power Minister Awais Leghari said on Sunday that there had been “no sufficient outcome” of talks to secure discounts from Chinese power producers thus far, unlike over Rs3.5 trillion in savings secured through revised agreements with other independent power producers (IPPs) and public sector plants.

In March, the government had informed a parliamentary panel that about Rs3.5tr in savings had been secured through revisions to power purchase agreements with 29 private and some state-owned power plants, spanning their three to 20-year terms.

The move was aimed at reducing electricity rates.

When Leghari was asked about negotiations with IPPs set up under the China-Pakistan Economic Corridor (CPEC) for tariff rationalisation during a press conference on Sunday, he said, “Sufficient outcome has not come out yet.”

The minister explained that CPEC-related IPPs were set up under a framework. Under that framework, “we have been trying for concessions in the form of debt-reprofiling, but sufficient results have not materialised yet”.

He said a revision of the agreement could only take place while staying within a government-to-government arrangement, as both governments had provided enough guarantees.

“We also have to respect investments that flowed in when no investor was ready to look towards Pakistan”, he said, hoping that “an agreement would be reached towards an improvement”.

Leghari recalled that renegotiations with IPPs, the restructuring of agreements and the closure of old plants had helped secure Rs3.5tr in savings, and that the last agreements with IPPs would expire in 2053.

He also said that a reduction in system losses, transfer of old Genco staff to distribution companies and the use of fiscal space for reduction in circular debt had helped cut the power sector’s budgeted subsidy to Rs890bn this year from Rs1.287tr last year, and it would be further reduced to Rs830bn in the coming fiscal year.

In response to a question, the power minister said the Neelum-Jhelum Hydropower Project had been out of system for about a year and a half because the project had design flaws. He said the Water and Power Development Authority would take another year and a half or so to repair the over Rs500bn project.

“Its closure is causing remarkable losses, amounting to billions of rupees, and due to the non-availability of cheap electricity from this project, expensive electricity has to be arranged for,” he said.

He further stated that a burden of Rs250bn on industrial consumers was removed by ending cross-subsidy.

As a result, electricity tariffs fell across consumer categories over the past two years, he claimed.

Presenting a chart, the minister maintained that the average domestic power tariff had dropped by 16 per cent between May 2024 and 2026 while commercial rates fell by 8pc. The industrial sector got the biggest relief whose average tariff dropped by 33pc while tariffs for general services, bulk consumers and the agriculture sector came down by 10pc, 13pc and 14pc, respectively, he said.

The national average tariff reduced by 20pc to Rs42.26 per unit in May 2026, while this tariff was Rs53.04 per unit exactly two years back, he said.

Responding to a question, the minister said his attempts to remove the electricity duty on power bills did not bear fruit owing to resistance from provinces. However, he added, lowered tariffs had automatically reduced the impact of tax burden on consumers.

The minister also claimed that a “fake campaign was going on for weeks”, with allegations being made that the government was removing subsidies for low-end consumers.

“It is completely false,” he said, adding that the government had introduced a mechanism for the registration of consumers eligible for subsidy, given the increased use of alternative energy sources, such as solar power, that reduced consumers’ dependence on electricity from the national grid.

“The government wants to ensure subsidies go only to the eligible consumers, not the ineligible ones. A QR code registration system has been launched,” he said, adding that the initiative had shown positive results with around two million single-phase consumers registered in about a month.

Leghari said the eligibility criteria for subsidy would be determined through public consultations and “verified eligible consumers will continue receiving their subsidy without interruption”. But, he also said that the subsidy could not be provided to those keeping their consumption below 200 units by the simultaneous use of solar power through multiple meters.

Moreover, he said the law restricted the government to make public sector power purchases except for hydropower plants under implementation with about 9,000MW and about 1,200MW nuclear power capacity.

Even in the case of the Diamer-Bhasha Dam, the government would finance the transmission line outside the power tariff. These projects, he said, were allowed in the indicative generation expansion plan in the public sector because investments had already started for those plants.

The minister also said solar power self-generation capacity was estimated to expand to 50,000 megawatts in 10 years from less than 20,000MW at present despite a shift from the net-metering mechanism to net-billing.

• Member (oil) steps down after FIA quizzing on price differential claims
• Legal cover for appointment of civil servant to head regulator ‘on the cards’

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) is in disarray after one of its three members stepped down amid pricing investigations, amid a government move to depute civil servants to run the otherwise autonomous regulator.

In order to give legal cover to the appointment of civil servants in Ogra, the government has reportedly initiated the process to amend the Ogra law through a presidential ordinance before the budget.

According to sources, Ogra member (oil) Zainul Abideen Qureshi tendered his resignation from the position following his interrogation by the Federal Investigation Agency (FIA) Karachi over controversial payments to an oil marketing company (OMC) on account of price differential claims (PDCs) arising out of subsidised oil pricing after the US-Iran war.

The FIA found misreporting of oil stocks and sales, apparently for pricing benefits, leading reportedly to Rs14bn questionable claims.

While Go Petroleum secured a stay order against the FIA probe from the Sindh High Court, the federal government constituted a committee led by an additional secretary of the Ministry of Finance and comprising senior representatives of the petroleum division, the FBR, the auditor general and Ogra to examine in detail the integrity of PDC payments.

The FIA, however, quizzed Mr Qureshi and Director (Oil) General Imran Ahmad in separate sessions spanning over 72 hours. While otherwise defending the oil pricing and PDC reconciliation process, Mr Qureshi tendered his resignation upon returning to the capital last week.

On the other hand, the government has inducted at least three officers of the district management group — renamed Pakistan Administrative Service — in Ogra without legal cover. On April 8, the government appointed Secretary Establishment Nabeel Ahmed Awan as Ogra chairman for three months.

The post had fallen vacant almost 18 months ago but the government did not make a new appointment for unknown reasons.

Under the Ogra law, the vice chairman holds the charge in the absence of the chairman. Shahzad Iqbal, member gas, had actually taken over the chairman’s slot but was denotified by the government in the middle of oil supply arrangements following the Gulf conflict.

Meanwhile, even tho­ugh Mr Awan’s appointment as the Ogra chairman was challenged in the Islamabad High Court, he has acquired the services of at least two more officers on deputation last week. They include Majid Mohsin Panhwar of BS-20 and Imran Ali Sultan of BS-18.

According to sources, the cabinet committee on legislative cases has already cleared amendments to the Ogra law to provide for the appointment of BS-21 and 22 officers against the position of the chairman for four years, extendable for another term, along with the deputation of other civil servants to assist the chairman.

The amendments to the Ogra law may be made through a presidential ordinance ahead of budget sessions later this week, before the court could take cognisance of the matter.

Published in Dawn, June 8th, 2026

• Nepra holds public hearing after CPPA asks for additional fuel cost adjustment due to Iran war disruptions
• Regulator seeks report from K-Electric over ‘excessive loadshedding’ in Karachi

ISLAMABAD: The price of electricity is likely to be increased by Rs1.74 per unit in next month’s bills due to the higher fuel cost adjustment, in light of an official demand for over Rs16 billion in additional recoveries from power consumers.

The National Electric Power Regulatory Authority (Nepra) held a public hearing on the Central Power Purchasing Agency’s (CPPA) request for an additional fuel cost recovery of Rs1.73 per unit from consumers for the June billing month.

CPPA Chief Executive Officer Rehan Akhtar told the hearing that the reference fuel cost for April had been set at Rs8.25 per unit, but the actual cost turned out to be Rs9.975 per unit, mainly because of the US-Iran war and the resultant disruption in LNG supplies, thus necessitating an additional charge of Rs1.73 per unit on consumers in the billing month of June.

Technical constraints in shifting cheaper power sources in Sindh to load centres in the upcountry regions facing shortages also contributed to the higher fuel cost adjustment (FCA). The net increase would be Rs1.74 per unit, as an existing minor negative fuel adjustment had also come to an end.

The CPPA official said the government decided to undertake load management and limit the use of furnace oil and diesel for power generation, which helped contain the additional FCA at Rs1.73 per unit.

He said special arrangements were made for LNG imports and the government decided to charge Rs2,000 per unit for its price instead of Rs3,500 per unit under normal circumstances to limit the tariff hike.

In response to a question, he confirmed that lower availability of the Karachi Nuclear Power Plant Unit-2 (K-2) had also contributed to the higher FCA, while its past claims worth Rs3.4bn were another factor behind the increase.

Another official explained that the K-2 plant was only partially available because of forced outages due to the problems in the nuclear reactor. The regulator was informed that power supply from the national grid to Karachi continued to benefit both K-Electric consumers and those connected to the national grid.

“If KE had not been provided electricity from the national grid, an overall increase of Rs1.46 per unit in FCA and an increase of Rs2.80 per unit in capacity purchase price (CPP) would have resulted for consumers, with a total impact of Rs4.26 per unit for the month of April 2026,” Rehan reported.

He said overall power consumption in April this year was 8.5pc lower than last year, as demand declined across all consumer categories except the industrial sector, where the impact of gas disconnections for captive power plants and the incremental tariff package contributed to a 13.5pc growth.

Industrial consumers from Karachi, including Rehan Javed, Tanveer Barry and Arif Bilwani, complained that the incremental tariff package had benefited only a few consumers because of its “faulty design”. They called for the package to be reviewed. It was reported that consumption in the domestic sector dropped by almost 15pc, followed by declines of 9.5pc in the commercial sector, 7.2pc in general services, 53pc in agriculture and about 13pc among bulk consumers.

Excessive loadshedding in Karachi

During the hearing on Tuesday, Nepra also sought a detailed report from K-Electric over “excessive loadshedding” in Karachi amid scorching temperatures.

Nepra pointed out that an increasing number of complaints were being received about excessive loadshedding in Karachi.

A senior Nepra official reported that these complaints were coming from both high-loss and low-loss areas, which was a matter of concern as loadshedding schedules were not being followed.

Moreover, power cuts caused by technical faults were also not being accounted for by the power utility under load management schedules, which was against regulatory performance standards.

The K-Electric management, available live online, was asked to provide a detailed report on an urgent basis so the matter could be examined. KE promised to submit its report at the earliest but did not immediately respond to the allegations.

In a statement issued after the hearing, a KE spokesperson said that its loadshedding practices were aligned with the principles of the National Electricity Policy 2021, and blamed development work in the city by civic authorities for any localised faults that were reported.

Published in Dawn, June 3rd, 2026

• Approves Rs100bn financing facility for PSO
• Oil company facing over Rs900bn receivables from SOEs
• Special honoraria expanded to more ministries, departments
• Rs10.15bn cleared for Pakistan Navy’s Hangor Project
• Rs4.38bn granted to Gilgit-Baltistan ahead of elections

ISLAMABAD: Less than a week before the next budget, the Economic Coordination Com­mittee (ECC) of the cabinet on Friday approved more than Rs40 billion in supplementary grants and a Rs100bn sovereign-guarantee-backed financing facility for the Pakistan State Oil (PSO), which is facing over Rs900bn in receivables from other state-owned enterprises, raising concerns about smooth oil supplies.

And despite financial constraints forcing development cuts in the name of IMF restrictions, the ECC meeting, presided over by Finance Minister Muhammad Aurangzeb, also allowed Rs10bn additional funds for parliamentarians’ development schemes and expanded the scope of special honoraria running up to six-month additional salaries to more ministries and departments involved in federal budget preparations.

The benefit, already available to officials in around a dozen ministries and entities, including finance, revenue, planning, development, FBR, National Assembly, Senate and the Prime Minister’s Office, was expanded to the Law and Justice Division, Commerce Division and the Accountant General of Pakistan Revenue (AGPR). The fiscal impact was not disclosed.

The meeting also changed the composition of a committee set up to settle about Rs60bn in petroleum levy dues charged to consumers but allegedly withheld by Cnergyico Refinery since 2019, citing concerns over conflict of interest, and ordered a tightened recovery plan.

An official statement said the ECC approved a summary submitted by the Cabinet Division for Rs7.026bn through a technical supplementary grant for the Sustainable Development Goals Achievement Programme (SAP).

“The allocation will facilitate continuity of development projects, prevent cost escalations, and timely achievement of programme objectives,” the statement said.

Officials said the finance minister was under pressure from the leadership to provide funds for parliamentarians’ schemes in the outgoing fiscal year despite an about Rs175bn cut in the core development programme.

The ECC also approved a summary of the Ministry of Defence for Rs10.15bn for the Hangor Project of the Pakistan Navy under the Rafale Aircraft and Force Development Package (RAFDP)-2030.

The committee approved letters of comfort and government guarantees worth Rs100bn for PSO through a syndicated running finance facility to address its liquidity constraints and ensure uninterrupted oil supplies.

The meeting was informed that state-owned enterprises, particularly gas companies, owed more than Rs904bn to PSO, making it increasingly difficult for the company to manage supply challenges under current geopolitical conditions.

Instead of arranging recovery of those payments, the ECC approved borrowing of Rs50bn each from Habib Bank and Bank of Punjab to meet oil requirements. The borrowing will appear on PSO’s balance sheet.

The meeting also took up the Deed of Settlement with Cnergyico PK Limited, which had collected petroleum levy from consumers but allegedly did not deposit it in the government treasury. The company is also seeking benefits under the Refining Policy for the upgradation of existing brownfield refineries.

The ECC had earlier approved the constitution of a committee under the Special Investment Facilitation Council (SIFC) to resolve the late payment surcharge issue.

Subsequently, the Law and Justice Division proposed amendments to strengthen safeguards for government revenues by requiring Cnergyico to deposit incremental incentives in a joint escrow account with Ogra and restricting withdrawals until the outstanding petroleum levy and late payment surcharge amounts were fully settled.

The ECC was informed that the composition of the committee needed to be reviewed due to concerns over potential conflict of interest arising from the inclusion of the Cnergyico chief executive officer.

A new committee was constituted under the convenership of the finance secretary, comprising representatives of the Law and Justice Division, Petroleum Division and SIFC, to resolve the late payment surcharge issue with Cnergyico and strengthen recovery of around Rs60bn, including Rs47.5bn in principal amount.

The committee approved seven grants for the Ministry of Interior and Narcotics Control worth Rs2.826bn.

These included Rs693m for security arrangements for the Islamabad peace talks, Rs241m as compensation for the suicide bombing at Imambargah Khadijah-tul-Kubra in Taralai, Islamabad, Rs528m for the Pakistan Land Ports Authority, Rs800m for procurement of fast patrol boats for the Pakistan Coast Guards, Rs1.884bn for the expansion of the Safe City Islamabad project, Rs150m for the National Counter Terrorism Authority and Rs414m for security charges relating to the Reko Diq project.

The ECC approved Rs733m for Pakistan Television Corporation for payment of salaries for June 2026 and Rs183.5m for the Special Communication Organisation for installation of telecom sites and towers in Shigar district of Gilgit-Baltistan.

It also approved Rs120m for the Ministry of Parliamentary Affairs to meet employee-related expenditures arising from revised salaries and allowances of parliamentary secretaries during FY26.

The meeting approved two grants for the Ministry of Housing and Works for placement of development funds into the current account of Pakistan Infrastructure Development Company Limited. These included Rs8.759bn for Karachi and Hyderabad Urban Infrastructure Deve­lopment Packages and Rs2.84bn for parliamentary schemes in Khyber Pakhtunkhwa.

The ECC also granted Rs1.3bn for the Modernisation and Upgradation of Pakistan Mint Phase-II-A and Rs4.377bn to the Gilgit-Baltistan government to support current expenditure requirements and priority initiatives launched ahead of elections.

The committee also approved budget estimates of IPO-Pakistan for FY26, submitted by the Ministry of Commerce, comprising regular expenditure of Rs914.7m and projected revenue receipts of Rs918m.

The ECC also approved a summary of the Ministry of Maritime Affairs regarding the operational continuity of Engro Vopak Terminal Limited.

Published in Dawn, June 6th, 2026

The government on Friday cut the petrol price by Rs4 per litre and kept the diesel rate unchanged with immediate effect for the week ending June 12, owing to changes in global prices over the past week.

Accordingly, the ex-depot price of high-speed diesel (HSD) will remain fixed at Rs380.78 per litre for another week. The government made adjustments in taxes and other levies to maintain the diesel price, which is otherwise considered on the higher side.

The price of diesel has come down from a peak of Rs520.35 recorded on April 10. HSD is considered the most inflationary fuel, given its extensive use in freight transportation.

The ex-depot price of petrol was cut by Rs4 to Rs377.79 per litre, from the current Rs381.78 per litre.

This is the fourth consecutive weekly reduction in petrol prices, with a cumulative decline of about Rs37 per litre.

Last week, the government announced a reduction of Rs22 per litre in the prices of petrol and high-speed diesel.

The government is currently charging about Rs100 per litre on HSD in the form of customs duty, petroleum levy and climate support levy, besides the inland freight equalisation margin.

Meanwhile, the total tax on petrol stands at Rs125 per litre, including petroleum levy, customs duty and climate levy.

The government is also charging about Rs21 per litre as petroleum levy on kerosene and about Rs16 per litre on light diesel oil.

Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.

ISLAMABAD: Having missed the growth target by half a percentage point, recording growth of 3.7pc this year, the government has set an economic growth target of 4pc and inflation at 8.2pc for the next fiscal year.

The macroeconomic framework for FY2026-27 was cleared here on Monday at a meeting of the Annual Plan Coordination Committee (APCC) for formal approval by the National Economic Council (NEC) on June 3.

The NEC — considered as the country’s highest national economic policy making body — is led by the prime minister and represented by all four provincial chief ministers besides as many federal ministers.

The daylong APCC meeting is being presided over by Planning Minister Ahsan Iqbal and is being attended by provincial development ministers, along with senior federal and provincial bureaucrats.

“For FY2026–27, Pakistan’s economy is targeted to grow by 4pc, signalling a continued growth trajectory,” the APCC working paper noted, while stating that GDP growth stood at 3.7pc in FY2025–26 against a target of 4.2pc.

Growth rate for FY2024-25 had finally settled at 3.2pc.

The commodity-producing sectors are targeted to expand by 3.9pc next year, driven by 3.8pc growth in agriculture and 4.5pc growth in large-scale manufacturing (LSM).

Agricultural growth will be supported by a recovery in important crops (3.6pc) and cotton ginning (2.5pc), as well as robust performance in livestock (3.9pc).

The industrial sector is targeted to grow by 4pc in FY2026-27 mainly due to a revival in LSM, alongside growth momentum in mining and quarrying, construction and energy (gas and water supply).

The services sector is targeted to grow at 4.2pc, underpinned by stronger performance in wholesale and retail trade (4.2pc); transport, storage and communications (3.7pc); and financial services (4.5pc) as well as information and communication (7.7pc).

“These targets are contingent on effective macroeconomic management and stable external conditions,” the planning commission warned as the macroeconomic framework moves to the NEC.

Under the macroeconomic outlook for FY2026-27, national savings are targeted to grow by 14.3pc of GDP compared to 14.1pc in the current fiscal year (CFY), while investment is targeted to reach 15pc of GDP, against 14.4pc in CFY.

The planning commission added that this reflects a narrowing savings-investment gap to be financed through modest external inflows.

Public investment is targeted to remain at 3pc of GDP next fiscal year instead of 3pc in CFY, while private investment is targeted to rise to 10.3pc of GDP from 9.6pc in CFY.

Inflation rate has been targeted at 8.2pc due to anticipated supportive fiscal consolidation and improved macroeconomic stability.

Highlighting a risk, the planning commission said the external sector may face pressures as easing import controls and debt repayments are likely to widen the current account deficit next year.

However, strong remittance inflows, export recovery and anticipated external financing are expected to help cushion these pressures and support external sustainability, it said.

The APCC also targeted an increase in employment of two million in FY2026–27 through higher investment and improved economic growth.

This is based on the premise that public investment crowds in private investment, thereby expanding employment opportunities across all sectors.

The Planning Commission said ongoing federal and provincial employment generation programmes are further strengthening labour market participation, entrepreneurship, technical skills and job-matching mechanisms.

These efforts are expected to create 1.1 million jobs in the services sector, 0.5 million in the industrial sector and 0.4 million in the agriculture sector in FY2026–27.

“Thus, the increasing trend of employment creation is expected to support broad-based, inclusive, and employment-intensive economic growth,” it said.

Referring to the current fiscal year, the Annual Plan document said Pakistan’s economy had demonstrated “notable stabilisation” in the first eight months, despite flash floods and the impact of the US-Iran war.

During the first eight months of the fiscal year, average inflation remained contained. Large-scale manufacturing (LSM) showed a sustained recovery after two consecutive years of contraction, reflecting a broader stabilisation of the macroeconomic environment.

Improved external sector conditions, supported by strong remittance inflows and rising services exports, strengthened the balance of payments, leading to higher foreign exchange reserves and greater exchange rate stability.

Reinforced by these gains, investor confidence improved markedly, driving the stock market to record highs, the Planning Commission noted.

However, external price shocks resurfaced inflationary pressures following the outbreak of the conflict in late February 2026, resulting in a sharp surge in global oil prices from approximately $72 per barrel (pre-conflict) to a peak of nearly $120 per barrel.

Thus, average inflation during July–April FY2025-26 rose to 6.2pc, compared to 4.7pc in the same period of the previous fiscal year.

More notably, monthly inflation rose to 10.9pc in April 2026 compared to 0.3pc in April 2025.

Pakistan’s GDP growth in FY2025–26 rose to 3.7pc from 3.2pc in the previous fiscal year, reflecting broad-based improvements across agriculture, industry and services, although several targets were missed.

Large-scale manufacturing (LSM) showed a notable turnaround, posting growth of 6.1pc in FY2025–26 compared to a contraction of 0.7pc in FY2024–25.

On the external side, weakening exports and a recovery in import demand led to a widening of the trade deficit.

However, robust remittance inflows and growing services exports helped contain pressures on the external account, supporting the balance of payments.

The resulting improvement in foreign exchange reserves contributed to exchange rate stability, while continued fiscal discipline and prudent macroeconomic management reinforced overall economic stability.

• Regulator allows Rs1.19 per unit FCA collection in June bills
• Grants Rs1.99 per unit reduction for three months, until August

ISLAMABAD: The National Ele­­ctric Power Regulatory Autho­rity (Nepra) on Thursday notified about 80 paisa per unit net reduction in national power rates for June and then Rs1.99 per unit for July and August, with a cumulative financial impact of about Rs56 billion.

The unusual relief over the three months — June to August — has resulted owing to the combined effect of two concurrent tariff adjustments — one for the monthly fuel cost for April and another for quarterly tariff adjustments for the first quarter (January-March 2026).

In its first determination relating to the monthly fuel cost adjustment for the consumption month of April, Nepra worked out and notified Rs1.19 per unit increase in fuel costs to be recovered from consumers in the current month’s (June) billing, with an additional fiscal gain to distribution companies (Discos) of Rs11bn.

Nepra “has decided that positive FCA for April 2026 i.e (Rs1.1907/kWh)…shall be applicable to all the consumer categories of KE and XWDISCOs except lifeline consumers, Electric Vehicle Charging Stations (EVCS) and pre-paid electricity consumers of all categories who opted for pre-paid tariff”, the notification read.

It adds that positive FCA shall also apply to consumption falling under the incremental consumption package, and Discos and KE shall reflect the FCA in respect of April in the billing month of June. The Discos had demanded Rs1.74 per additional fuel cost to mop up Rs16bn more funds from consumers but the regulator scaled it down.

Simultaneously, in its second determination under quarterly tariff adjustment (QTA) for the January-March period, Nepra notified Rs1.99 per unit reduction in rates with a total financial impact of Rs67bn over three months — June, July and August.

The adjustments will be applicable to all consumer categories, except lifeline consumers, units billed for incremental consumption package, and prepaid consumers, the notification read. The Discos had proposed Rs64bn refund to consumers under QTA at the rate of about Rs1.75 per unit.

As such and with concurrent application of both notifications, the consumers would get a net relief of about Rs56bn over three months. Practically, therefore, the consumer’s rates would be down by about 80 paisa per unit in June i.e. application of Rs1.99 per QTA reduction minus Rs1.19 per unit increase in FCA. The negative Rs1.99 per unit QTA would then continue for July and August.

The net financial impact of two decisions would thus work out at Rs56bn in favour of consumers i.e. Rs67bn in relief over three months, minus Rs11bn in additional fuel cost for current month.

The lower QTAs have chiefly emerged on account of adjustments in capacity charges, transmission charges and market operator fee, the impact of incremental consumption package announced by the government for industrial and agricultural consumers for three years, besides the impact of transmission and distribution losses on monthly fuel costs and variable operations and maintenance charges for the 1st quarter of CY2026 i.e. Jan to March 2026.

Published in Dawn, June 5th, 2026