ISLAMABAD: The government on Monday warned that drug prices must not be increased without valid justification and ordered a review of the existing pricing formula to ensure medicines are priced fairly without creating unnecessary hurdles for patients, importers or the pharmaceutical industry.
Economic Affairs Minister Ahad Cheema, who chaired a meeting of the Drug Regulatory Authority of Pakistan (Drap), directed officials to expedite the processing of pending drug-pricing cases after being briefed that their case-by-case evaluation was almost complete.
The minister appreciated the progress and acknowledged the efforts of Climate Change Minister Dr Musadik Malik and Drap officials in completing the evaluation.
Health Secretary Momin Agha, Drap Chief Executive Officer Dr Obaidullah Malik and other senior officials also attended the meeting.
The meeting was also informed that sufficient quantities of the trivalent influenza vaccine recommended by the World Health Organisation (WHO) were available in the market.
Drap had withdrawn the hardship case relating to the vaccine as its prices were controlled in the international market.
Officials told the meeting that Drap was reviewing the existing drug-pricing formula and examining provisions that could hinder the determination of fair and accurate prices.
Cheema suggested that Drap consider subscribing to specialised international databases on drug prices to strengthen independent assessment and provide more reliable benchmarks for pricing decisions.
“Public facilitation should remain the government’s top priority,” he emphasised, adding that any increase in medicine prices without valid justification was unacceptable.
The minister said price comparisons with other countries could provide useful benchmarks, but stressed the need for independent checks and balances in the pricing process.
Cheema ordered that the pricing mechanism should remain people-centred while avoiding unnecessary barriers for importers and pharmaceutical companies.
Pharma industry’s perspective
Meanwhile, the Pakistan Pharmaceutical Manufacturers Association (PPMA) urged the government to engage industry in the formula review so that the outcome could be workable and sustainable.
PPMA Vice Chairman Usman Shaukat told Dawn that the pharmaceutical industry fully shared the government’s objective that medicines must remain affordable and accessible to every Pakistani.
“No responsible manufacturer seeks an unjustified price increase, and we welcome Senator Ahad Cheema’s direction to expedite pending pricing cases and to review the pricing formula. A fair, transparent and predictable mechanism serves patients and industry alike,” he said.
“However, affordability and availability go hand in hand. The real threat to patients is not a justified price adjustment but a medicine disappearing from the shelf.”
Shaukat noted that products become unviable when the cost of active ingredients, packaging, energy, freight and compliance rises — most of which is imported and relies on the dollar — and prices remain frozen for years.
“Manufacturers are then forced to stop production, which creates shortages and pushes patients towards costlier imported alternatives, smuggled stock or spurious medicines,“ he explained.
Shaukat said that the industry supports the use of international benchmarks and independent databases, provided comparisons account for the cost of doing business within Pakistan, high financing costs, exchange-rate exposure and the fact that Pakistani medicine prices are already among the lowest in the region.
“Benchmarks should be a tool for fairness, not a ceiling that ignores input costs,” he highlighted.
“PPMA proposes that the revised formula include a clear, time-bound and rules-based mechanism, including periodic CPI and cost-linked adjustments, so that hardship cases do not pile up and decisions are not delayed for years,” Shaukat added.
LONDON – Arshad Khan, the Pakistani tea seller who rose to fame after his photograph went viral in 2016, has expanded his café business in Britain with a third outlet in New Malden, south London.
The new branch of Café Chaiwala Arshad Khan is being launched by British-Pakistani businessman Asif Khaliq, the brand’s UK master franchise holder. He opened the first outlet in Tooting in January 2025, followed by a second in Sutton.
Mr Khaliq said two more branches were planned within the next month as part of efforts to expand the business across Britain.
Speaking at the New Malden opening, he said demand for Pakistani tea and street food was growing among British Pakistanis, other South Asian communities and the wider public.
“We are doing our best to promote Pakistani culture through food and hospitality,” he said.
The café’s menu includes halwa puri, Lahori chanay, parathas, desi omelettes, samosa chaat and kebab rolls, alongside karak chai, doodh patti and Kashmiri chai.
Mr Khaliq said the response to the Tooting and Sutton outlets had encouraged further expansion. The aim, he added, was to introduce Pakistani flavours to customers from different communities.
Khan welcomed the brand’s progress under Mr Khaliq, crediting him with helping expand its presence in Britain.
From roadside stall to café business
Khan became an internet sensation in 2016 after photographer Javeria Ali photographed him serving tea at a roadside stall in Islamabad. The image drew international attention and led to modelling, advertising and business opportunities.
He established his café business in Pakistan in 2020 before pursuing overseas expansion through franchise arrangements. While his cafés in Pakistan have since closed, the overseas business has continued to grow.
Dispute with former franchise partners
The expansion follows a dispute involving an earlier UK franchise arrangement, which began with an outlet in Ilford, east London, in June 2023.
Khan and his business partner, Syed Kazim Hasan, became involved in a disagreement with former franchise partners Nadir Durrani and Yawar Akbar Durrani over contractual obligations, royalty payments, trademark registration and the commercial use of Khan’s name and image.
Khan and Hasan initiated proceedings at the UK Intellectual Property Office to challenge a figurative trademark registered by a former business partner.
In their legal case, they alleged that the registration used Khan’s likeness without continuing authorisation after the franchise relationship ended. According to their filing, the arrangement was terminated in April 2025, while the disputed trademark application was submitted in August that year.
The material provided did not include a response from the former franchise partners or an outcome of the proceedings.
ISLAMABAD – Clips doing rounds online as evidence of fierce clashes in Azad Jammu and Kashmir turned out to be manipulated, as artificial gunfire was added to create the impression of an armed confrontation.
The posts being pushed in bulk by Indian accounts claimed that widespread fighting had erupted in Chitra Topi, South Bagh and other locations, leaving parts of the region facing warlike conditions.
FAKE NEWS
Clashes Reported in Chitral, Topi, South Bagh and POK
The situation reportedly resembles a war zone, with security forces conducting operations across the areas. The scale of the activity has raised concerns among local residents. https://t.co/mRi407QZeE
Footage presented as proof of intense clashes had been edited through the addition of gunfire sounds. It said the editing gave viewers a misleading impression of the events shown. Several other clips show large-scale military operations in Chitral, Topi, South Bagh and Azad Kashmir and these are AI-generated or fabricated.
Indian-linked digital networks of repurposing unrelated footage and adding artificial audio to promote claims of unrest and action by state institutions. Establishing who created the videos, or whether their circulation was coordinated, would require further evidence.
Pakistanis are urged to check the original upload, location, recording date and credible local reporting before sharing footage presented as evidence of a security incident.
Senior officials from Saudi Arabia, Pakistan, and Turkey, the three countries that form the new Mecca defense pact, visited Tehran on Monday and met with Iranian officials amid threats of another US-Israeli attack on Iran. The meeting was seen as an effort to avoid another escalation in the US war against Iran, and the Saudi […]
ISLAMABAD: The Senate on Monday blocked a private member’s bill seeking to withdraw the free-for-all issuance of diplomatic passports to ministers of state, advisers, special assistants and senior bureaucrats and rejected the motion for introduction of the Passports (Amendment) Bill, 2026.
The bill was moved by PTI Senator Faisal Saleem Rahman, chairman of the Senate Standing Committee on Interior, along with senators Samina Mumtaz Zehri and Saifullah Abro.
Declaring his opposition to the bill, State Minister for Interior Tallal Chaudhry said, “You are bringing an amendment to the authority of the cabinet which you have not seen.”
To this, Senator Faisal responded that the bill was about diplomatic passports, which only ministers should have. “There should be no distribution in the issuance of diplomatic passports,“ he observed.
PPP Senator Zamir Hussain Ghumro argued that a minister of state is also a representative of the Parliament.
According to the copy of the bill available with Dawn, it sought to amend the Passports Act 1974 by inserting a new Section 12A for restriction on diplomatic passport entitlement of ministers of state, advisers, special assistants, federal secretaries and director generals.
It provided that no diplomatic passport shall be issued, re-issued or renewed to a minister of state, adviser to the prime minister, special assistant to the prime minister, federal secretaries other than the foreign secretary, or director general, by virtue of holding such office, and any such passport already held shall be surrendered to the prescribed authority within 30 days of commencement of the Act.
The proposed bill clarified that nothing shall prevent such persons from obtaining or retaining an ordinary or official passport where otherwise entitled, and nothing shall affect any independent entitlement arising by virtue of any other office, appointment or diplomatic assignment which lawfully carries such entitlement.
The bill’s statement of objects and reasons noted that the Passports Rules 2021 provide for the issuance of diplomatic passports to various categories of public office holders, including state ministers and functionaries having the status of minister of state.
“A diplomatic passport is a special travel document of the state, and its issuance should primarily correspond to the nature and requirements of diplomatic or state functions rather than operate automatically as a privilege attached to rank or status,” the bill read.
It said the proposed amendment would not restrict official duties or official foreign travel, as a person may continue to obtain an ordinary or official passport where otherwise entitled.
The bill sought only to provide that holding, or having previously held, the office or status of minister of state, adviser, special assistant, federal secretary other than foreign secretary, or director general shall not, by itself, constitute an entitlement to a diplomatic passport.
It argued that the proposed amendment was intended to ensure a clear and reasonable distinction between diplomatic functions and political status and to promote a transparent and purpose-based system for issuance of diplomatic passports.
Heated exchange among allies triggers PPP walkout
The Upper House also witnessed an exchange of hot words between PML-N’s Nasir Butt and PPP’s Sherry Rehman during the passage of the Consumer Protection (Amendment) Bill 2026.
The bill, moved by Senator Zehri of the Balochistan Awami Party (BAP), was passed despite the PML-N-led government’s opposition.
Butt asked who the PPP was supporting, with PPP senators walking out after the episode.
The consumer protection bill secured 10 votes in favour and four against, after a vote was allowed for the second time.
Chaudhry opposed the bill, while Zehri criticised the government for opposing the legislation, saying it neither worked itself nor allowed others to work.
The House also unanimously passed a bill to amend the law banning plastic book covers in the federal capital to remove an exemption clause that allowed its misuse.
According to the statement of objects and reasons, the principal Act was enacted with the object of regulating and prohibiting the use of plastic book covers within ICT.
“During the examination of the provisions of the said Act, it has been considered necessary to review the exceptions and other provisions contained in section 3, particularly clause (a) of sub-section (2) thereof,” it read, adding that the continued retention of the said clause may result in an exception which is inconsistent with the intended purpose of the Act.
Speaking on the occasion, Senator Rehman said plastic covers were still being used on books in some big shops in Islamabad. She said a meeting with the Ministry of Interior had also been held on the issue.
“During checking, shopkeepers declare every plastic as biodegradable,” she said, adding that according to the interior ministry, there is no laboratory or scale available in the country to check biodegradable plastic.
The former climate minister highlighted that the purpose of the amendment was to remove legal ambiguity regarding plastic book covers.
“Under the amendment, there will be a complete ban on all types of plastic in Islamabad,” she said, adding that no one would have an exemption for the use of plastic.
The Senate also approved an amendment in the Code of Criminal Procedure (CrPC), while deferring the Islamabad Metro Bus Service Bill, 2026.
PTI voices concerns over re-description of KP constituencies
Meanwhile, PTI parliamentary leader in the Senate, Barrister Syed Ali Zafar, raised serious concerns over the “description” of several national and provincial assembly constituencies in Khyber Pakhtunkhwa, deploring that the revisions were made without hearing public objections.
Senator Zafar stated that constituencies determine the representation of people in Parliament and that any changes affecting them must be made strictly in accordance with the law, through a transparent process and with full public scrutiny.
“The Election Commission of Pakistan (ECP) cannot treat the law as optional,” he said, adding that Section 22 of the Elections Act 2017 lays down legal requirements relating to changes in constituencies. “If the prescribed procedure has not been followed, the legality of the entire exercise is called into question.”
He demanded clear answers from the ECP, asking why these changes were made without a transparent public process and who would be held responsible if the law had been violated.
Senator Zafar also expressed concern over the continued delay in appointing a successor to the chief election commissioner, whose five-year term expired on Jan 26, 2025.
While Article 215 provides for continuation in office until a successor takes over, he said this provision must not become an excuse for indefinite delay in making an important constitutional appointment. “The government must explain why the matter remains unresolved.”
“An ECP that commands public confidence must be above suspicion. It must not only act fairly; it must demonstrate fairness,” Senator Zafar said.
“Electoral decisions must not create the impression that political interests are being served at the expense of the law.”
The PTI senator called upon the government to take notice of the matter and ensure compliance with the law. He further demanded that the ECP provide a clear legal justification for its actions and that any failure to follow the prescribed procedure be addressed.
“Elections are the foundation of democracy. If the process is not transparent, public confidence in the electoral system will be undermined. The law must be respected, the people must be heard, and no institution, however powerful, is above the Constitution,” he remarked.
Responding to the concerns, Parliamentary Affairs Minister Tariq Fazal Chaudhry said the matter was being discussed on the basis of a newspaper report and asked members to share any official notification. He said he would seek further information from the ECP.
Resolution on occupied Kashmir unanimously adopted
The House also witnessed a show of unity as it unanimously adopted a resolution reaffirming Pakistan’s unequivocal support for the right to self-determination of the people of India-occupied Kashmir (IoK) on the occasion of Kashmir Black Day to be observed tomorrow (Oct 27).
The resolution was moved by Minister for Kashmir Affairs and Gilgit-Baltistan Amir Muqam.
The resolution declared that the entry of Indian forces into occupied Jammu and Kashmir on Oct 27, 1947, followed by the unlawful and forcible occupation of the territory and the situation that ensued, marked a significant turning point in the history of the Kashmir dispute.
It paid tribute to the people of occupied Kashmir for their continued struggle and sacrifices in pursuit of their right to self-determination.
It emphasised the importance of a peaceful settlement of the Jammu and Kashmir dispute in accordance with the relevant resolutions of the United Nations Security Council and of ensuring the right of Kashmiri people to determine their own future.
The resolution reaffirmed Pakistan’s principled position that a just and lasting settlement of the dispute is not possible without respecting the aspirations of Kashmiris and their right to self-determination, for which it called upon the UN to play an effective role through its relevant resolutions.
The resolution also urged the international community to take due cognisance of human rights violations in IoK and to play an effective role in safeguarding the fundamental rights of Kashmiri people.
It called upon the government of Pakistan to continue extending political, moral and diplomatic support to the people of IoK and to intensify its efforts to highlight the Kashmir dispute at the international level.
The House reaffirmed its unwavering resolve and commitment that the Senate of Pakistan shall continue its support to the legitimate struggle of the IIOJK people and to uphold their right to self-determination.
Meeting marks first high-level contact between Iranian officials and their Saudi, Pakistani and Turkish counterparts since regional conflict spilled over to desert kingdom and Yemen
ISLAMABAD: The federal government on Monday cleared three major infrastructure projects worth Rs100 billion in Khyber Pakhtunkhwa, recommending them to the Executive Committee of the National Economic Council (Ecnec) for formal approval.
The decision was taken at a meeting of the Central Development Working Party (CDWP) presided over by Minister for Planning, Development and Special Initiatives Ahsan Iqbal.
“Federal government reaffirms commitment to KP’s development,” said Iqbal, referring to CDWP’s recommendation for a Rs69.89bn irrigation project to boost agriculture and rural livelihoods in the province.
Since the imposition of emergency and governor’s rule in KP, the Centre has pledged to work on the province’s development and progress, besides its top priority of combatting terrorism.
The CDWP meeting also cleared another 11 projects throughout the country with an estimated investment of nearly Rs126.50bn, including a mega project worth Rs85.34bn in Punjab.
This brought the total number of projects cleared by CDWP to 14, with an estimated cost of Rs226.48bn.
Of them, Rs40.9bn worth of 10 smaller projects were approved by the CDWP, while four other larger projects were recommended to Ecnec for formal approval.
Under financial rules, CDWP can itself approve projects costing up to Rs7.5bn, while it technically clears larger projects for approval by Ecnec.
The projects, including two mega water and agriculture sector projects worth around $550 million in KP and Punjab, would also unlock around $460m in foreign loans from the Asian Development Bank (ADB).
In the water resources sector, two mega climate-resilient infrastructure projects were recommended to Ecnec for approval.
The project aims to rehabilitate the Pehur Main Canal, construct the Mulkhow Irrigation Distribution System, and extend the Pehur High Level Canal.
The second mega project recommended to Ecnec was the Integrated Hill Torrent Management (Chachar-Mithawan) project in Dera Ghazi Khan and Rajanpur districts, worth Rs85.34bn.
Manila-based ADB would also be co-financing this project with a Rs73.06bn ($260m) share, while the Punjab government will be contributing Rs12.28bn.
The initiative seeks to implement modern spate irrigation, flood protection channels, telemetry systems, and centralised Supervisory Control and Data Acquisition (Scada) monitoring to strengthen regional water security.
The meeting also cleared Rs13.32bn Prime Minister’s Solar Scheme for Newly Merged Districts (NMDs) and referred it to Ecnec to provide off-grid solar energy solutions to households in merged districts.
In the transport and communications sector, the CDWP recommended a project for the improvement and widening of the 39-kilometre Chakdara-Timergara section of N-45, costing Rs17.01bn to Ecnec.
To be financed through foreign funding via Exim Bank, the project will upgrade a vital transport corridor linking Chakdara, Timergara, Dir, and Chitral, significantly boosting trade, road safety, and tourism across the Kalash, Shandur, and Kumrat valleys.
Approved projects
The CDWP itself approved a total of 10 projects.
The first one, pertaining to the construction of an eight-lane overhead bridge at Imamia Colony Railway Crossing, Shahdara (N-5)-Lahore, was approved at an estimated cost of Rs7.49bn.
This includes construction and rehabilitation of connecting link roads to alleviate urban congestion in Lahore’s Shahdara Town.
In the education and training sector, the CDWP approved in principle three initiatives to expand quality educational access.
It approved in principle the establishment of Daanish Schools across Azad Jammu and Kashmir, Gilgit-Baltistan, Balochistan, KP, and Sindh, with the preparation estimated at Rs122.4m.
Similarly, the establishment of a Daanish School in Islamabad’s Kuri, costing Rs7.36bn was approved in principle to expand educational infrastructure in the federal capital.
Additionally, the establishment of a Daanish School in Kan Mehterzai of Balochistan’s Qila Saifullah district, valued at Rs4.53bn was approved in principle, subject to a technical review by a committee led by the member for infrastructure.
In the higher education sector, four key youth development initiatives were processed.
The PM’s Youth Development Centres project, valued at Rs4.15bn was approved in principle, incorporating third-party validation and structured monitoring frameworks to ensure effective resource utilisation.
The forum also approved the PM’s Talent Hunt Youth Sports League (Phase-I), worth Rs3.99bn, where a steering committee under the Pakistan Sports Board will coordinate efforts across all provinces and regions.
The CDWP also approved Rs1.97bn worth of PM’s National Innovation Award and the establishment of PM’s Youth Programme Sports Academies (High Performance and Resource Centre) and Youth Olympics, worth Rs2.956bn, to foster talent and modern sports infrastructure.
Furthermore, the meeting approved in principle the revamping of Pakistan Television Corporation at an estimated cost of Rs3.96bn.
The project seeks to modernise public broadcasting through digital transformation, international asset commercialisation, and long-term financial sustainability.
The CDWP also evaluated two energy initiatives in the power sector. It approved in principle the installation of a pilot Battery Energy Storage System at the 220 kV Jhimpir-I Grid Station at an estimated cost of Rs4.40bn, to support grid stabilisation and renewable integration.
ISLAMABAD: Pakistan on Monday sought investment from US financial institutions in its oil refinery upgradation projects as the two countries discussed increasing cooperation in the energy sector.
The development came during a meeting between Petroleum Minister Ali Pervaiz Malik and US Chargé d’Affaires Natalie Baker.
During the meeting, Malik briefed the US envoy on measures Pakistan was taking to ensure energy security amid the evolving geopolitical situation, an official statement said.
Malik highlighted that the ongoing conflict in the Middle East had created challenges for fuel availability, requiring proactive measures to maintain uninterrupted supplies, it said.
The minister underscored Pakistan’s commitment to securing its energy needs and highlighted the ongoing engagement between the teams of both countries to explore opportunities for cooperation.
“He noted that Pakistan’s refinery upgradation programme could offer investment opportunities for US financial institutions,” the statement said.
Baker, for her part, congratulated Pakistan on efficiently managing the fuel supply situation, noting that the country had not experienced a fuel shortage despite the challenging regional circumstances, it added.
The US envoy expressed her country’s desire to work closely with Pakistan to address its energy needs. She emphasised the importance of creating opportunities for US companies in Pakistan and expressed optimism about establishing long-term energy supply contracts, noting that such arrangements would be mutually beneficial and create opportunities for American businesses, it said.
During the meeting, the managing directors of Pakistan State Oil and Pakistan LNG Limited briefed the participants on the interest shown by US companies in LNG supply to Pakistan.
Malik also invited US companies to participate in the upcoming Pakistan Minerals Investment Forum, highlighting the investment opportunities available in Pakistan, the handout said.
He expressed deep appreciation for US support and emphasised that enhanced bilateral engagement would help strengthen energy cooperation and contribute to Pakistan’s long-term energy security, the statement concluded.
The development comes after four of five local refineries finally entered into formal agreements with the government last month to upgrade their refining technologies for cleaner product quality and increased production, with an estimated investment of about $5 billion in five years.
Former army chief retired Gen Abdul Waheed Kakar, who played a decisive role in resolving Pakistan’s 1993 political crisis, passed away in Rawalpindi on Monday at the age of 89. He leaves behind a legacy that will continue to figure in discussions on the country’s civil-military relationship.
His passing was announced by Inter-Services Public Relations, which said in a note that the Chief of Defence Forces and Chief of Army Staff, Field Marshal Asim Munir, and all ranks of the Pakistan Army expressed sorrow over his passing and paid tribute to his “distinguished military career, leadership and invaluable services”. President Asif Ali Zardari and Prime Minister Shehbaz Sharif also conveyed their condolences.
Gen Kakar is best remembered for helping end a serious confrontation between then-president Ghulam Ishaq Khan and then-prime minister Nawaz Sharif in 1993, when the country seemed on the brink of another prolonged political crisis and the government stood paralysed. His intervention led to the resignations of both the president and the prime minister, the installation of a caretaker government, and fresh elections that brought the late Benazir Bhutto back to power. The whole episode popularly came to be known as the “Kakar Formula”.
That episode is still referenced in modern discourse because the army under Gen Kakar not only avoided getting involved in the ongoing politics, but also stopped well short of imposing martial law or assuming direct governance. The Kakar Formula instead gave the stakeholders a way out of the political dispute, allowing the political process to continue.
Professional career
Born on March 23, 1937, in Peshawar, he belonged to the Kakar tribe, whose roots lie in Balochistan. Gen Kakar studied at Edwardes College in Peshawar before joining the army and was commissioned into the Frontier Force Regiment in October 1959. He saw combat in both the 1965 war with India, where he served in the Chawinda sector, and the 1971 war, where he served as a brigade major in the Sulemanki sector.
His subsequent career included command and staff appointments, including commanding the 16th Infantry Division and serving as chief of staff of II Corps in Multan. He attended the Command and Staff College in Canada, and later studied at the National Defence College in Rawalpindi.
As adjutant general at General Headquarters (GHQ) from 1987 to 1989, Kakar acquired a reputation for insisting on professional standards and merit. He was appointed commander of XII Corps in 1989 and positioned in Quetta.
Gen Kakar assumed command of the army on Jan 12, 1993, after his predecessor, Gen Asif Nawaz Janjua, died suddenly just months before the Ishaq-Nawaz dispute blew up.
His appointment by president Ishaq had come as a surprise because several lieutenant-generals senior to him were superseded, journalist Mariana Baabar, who had met Gen Kakar at the Armoured Mess shortly after his appointment, told Dawn.
Gen Kakar’s tenure saw Pakistan continue its missile development programme, including work that contributed to the Shaheen missile series.
Kakar resisted intense diplomatic pressure from the Clinton administration, which had offered to deliver the blocked F-16s if Pakistan agreed to a verifiable cap on its nuclear programme. He stood firm, refusing to compromise on the country’s strategic deterrent for conventional hardware.
In 1995, the army uncovered a conspiracy, which came to be known as Operation Khilafat, involving serving and retired military officers who were plotting to overthrow the government and assassinate Kakar and then-prime minister Benazir. The plot was foiled before it could be carried out.
Honours and retirement
Gen Kakar completed his three-year term on Jan 12, 1996, and declined an extension. He later retired from public life and settled in Rawalpindi, staying largely out of the public eye.
Baabar, who met him multiple times, recalled that he never showed an inclination towards any party, neither during his service nor afterwards. She also described him as moderate on religion, noting that he always advocated keeping professionalism and religion separate.
Gen Kakar received several military honours during his career, including the Nishan-i-Imtiaz (Military) and the Hilal-i-Imtiaz (Military). However, his place in the country’s history books rests less on the decorations he received and more on the events of 1993 and his decision, three years later, to retire without seeking to prolong his service.
Gen Kakar, who was said to be bedridden for several years before his passing, is survived by his wife, a son and a daughter.
LAHORE – Judicial Commission member Ahsan Bhoon has filed a Rs5 billion damages claim against Captain (retd) Muhammad Safdar in the Punjab Defamation Tribunal.
The tribunal declared the claim maintainable and issued a notice to Captain (retd) Muhammad Safdar for November 11, 2026.
In his claim filed before the Defamation Tribunal, Ahsan Bhoon stated that Captain (retd) Muhammad Safdar made allegedly defamatory remarks in TV interviews and on social media regarding his law degree and his eligibility to practise law.
According to the claim, Ahsan Bhoon obtained his law degree from the University of the Punjab, and it has also been verified by the relevant authorities.
The petitioner’s stance is that the alleged statements damaged his legal services spanning several decades and his professional reputation.
Ahsan Bhoon has asked the tribunal to order Captain (retd) Muhammad Safdar to pay Rs1 billion in general damages, Rs2 billion in special damages and Rs2 billion in punitive damages.
Ahsan Bhoon has further prayed that Captain (retd) Muhammad Safdar be ordered to withdraw the alleged statements, offer an unconditional apology, and be restrained from making such statements in the future.
ISLAMABAD – The Pakistan Medical and Dental Council (PMDC) has issued the Medical and Dental Admission Policy 2026. Medical and dental colleges that violate the policy will face heavy fines.
According to the PMDC, a medical college will be fined Rs500,000 for delay in issuing the merit list, with a further Rs50,000 for every additional day of delay.
For irregular admissions, colleges will be fined an amount equal to the students’ actual annual fee, and their seats will also be reduced in the next session.
Under the new policy, colleges that admit students beyond their allocated seats will be fined an amount equal to the actual annual fee for each additional student, and their seats will be cut by double the excess number in the next session.
The PMDC has also set heavy fines for administrative negligence by medical colleges: Rs50,000 per student for delay in student registration, Rs75,000 per student for delay in reporting graduation, and Rs30,000 per student for delay in reporting annual examination results.
Similarly, a fine of Rs100,000 will be imposed for delay in reporting a student’s transfer or withdrawal, and Rs200,000 for violating rules on students’ prescribed fees and other charges.
According to the policy, for delay in registration, a fee of Rs150 per student per month has been set for public institutions and Rs300 per student per month for private colleges.
The PMDC has made it mandatory for medical and dental colleges, universities and students to submit all documents through the designated online portal.
Documents submitted outside the prescribed format and the PMDC’s online portal will not be accepted, and fines may also be imposed for failing to meet online reporting requirements.
The new policy makes a minimum one-year house job mandatory for obtaining a full license. The teaching hospital must submit the certificate to the PMDC within 10 days of completion of the house job.
The PMDC said that before imposing a fine, the institution concerned must be issued a notice and given an opportunity to present its position. For repeated violations, further admissions may be stopped or action may be taken under the law.
ISLAMABAD: Energas, a consortium of the Lucky Group and Qatar Energy, has given up a multi-million-dollar plan to establish a liquefied natural gas (LNG) terminal at Port Qasim, citing fundamental changes to Pakistan’s energy policy, requirements and longstanding unresolved policy and fiscal matters, it emerged on Monday.
On the other hand, the Port Qasim Authority (PQA) has warned Energas of terminating its final letter of intent (LOI) unless an “unconditional acceptance” is received on or before Nov 30, 2026, along with an updated status of the project.
This would also result in forfeiture of the $2 million initial concession fee, PQA said.
Subsequently, Energas has approached the prime minister for the refund of $2m, absolving it of any contractual lapse and instead blaming the government and factors beyond its control for not moving ahead.
Informed sources told Dawn that Qatar Energy had booked an LNG terminal and committed to supply additional LNG quantities at around 10.2pc of Brent — almost the same rate it contracted to Pakistan State Oil under a second-term contract — to ensure full utilisation of terminal capacity on its own.
Qatar has been seeking pipeline capacity allocation for LNG transportation through the terminal it planned with local partners near Karachi, a level playing field for LNG marketing and a terminal, and exemption from third-party access (TPA) that requires certain terminal capacity for use by government entities.
These were officially conveyed to the Qatari counterpart by then-petroleum minister Musadik Malik for re-engaging on LNG sector cooperation, including speedy completion of the LNG terminal and another long-term contract for more gas supplies on top of two existing long-term contracts, in addition to LPG supplies.
While the energy situation kept changing, the project could not move forward over the subsequent three years as Pakistan sought diversion of its existing contracted LNG cargoes even before this year’s closure of the Strait of Hormuz following the Feb 28 US-Israel attacks on Iran and suspension of Qatar’s LNG production.
Quoting past correspondence, Energas’ chairman Muhammad Ali Tabba complained to PM Shehbaz that PQA was “demanding” Energas’s unconditional acceptance of the final LOI by Nov 30, 2026, failing which PQA will cancel the final LOI and forfeit the $2m initial concession fee paid by Energas.
He said the Lucky Group Consortium had taken up a self-funded project in good faith and in response to Pakistan’s energy requirements prevailing at the relevant time, which had since materially changed.
“Energas’s inability to proceed with the project is attributable to two critical factors: firstly, a fundamental change in national energy policy and requirements, resulting in a clear frustration of purpose; and secondly, the persistent and longstanding unresolved policy and fiscal matters with the government, PQA and other government bodies/authorities, which have continuously impeded the viability,” he noted.
The Energas chairman contended that those issues remain unresolved to date, which could have led to a final investment decision (FID) by Qatar Energy and Pakistani partners.
“The government had committed to resolving these matters following discussions with the State of Qatar. However, despite the passage of time, the aforesaid matters remain unresolved, thereby adversely affecting investor interest,” Tabba said.
He added that the national energy requirements and the policy environment had materially evolved since the project was originally conceived and Energas had already approached PQA for the return/refund of the partial concession fee.
Energas said Pakistan’s official Integrated Energy Study (IES) — Final Report of March 28, 2025 confirmed that no new LNG terminals were required over the next five years.
According to Energas, this “unequivocal admission” on the part of the government materially alters the circumstances and context in which the Energas project was conceived and directly affects the necessity and economic rationale for the project, resulting in a clear frustration of purpose from an investor’s perspective.
It recalled that at the time of issuance of the provisional LOI in May 2020, the LNG Policy 2011 provided LNG terminal operators with a five-year tax holiday commencing from the Commercial Operations Date, but the exemption was withdrawn in June 2021 for new terminals while existing terminal beneficiaries continued to avail the exemption.
This was attributed to conditions imposed by the International Monetary Fund (IMF); thus, the proposed LNG terminal became “redundant and infructuous”, Energas said.
In its letter to Energas, PQA said the $2m deposited by Energas was not an ordinary refundable advance but an initial/partial concession fee under Clause 2.6(i) of the Project Guidelines 2019 that provides that this amount may be forfeited if the developer fails to fulfil the required conditions within the prescribed time, unless the parties agree otherwise. Furthermore, paragraph 27 of the final LOI required LOI termination and forfeiture of $2m in the absence of unconditional acceptance within the deadline.
Highlighting Energas’s reasons regarding pipeline capacity allocation, execution of Gas Transportation Agreements (GTAs) with gas companies, allocation of tie-in area, exemption under TPA Rules and the income-tax exemption issue, PQA asserted that Energas was responsible for these developers’ obligations.
“Project Guidelines require the developer to undertake the necessary surveys, investigations, environmental studies, hydraulic studies, detailed design and other project-related studies, and to obtain the requisite governmental and regulatory approvals,” PQA pointed out.
It added that it was also the developers’ responsibility to have financing, design, construction, relevant access, regulatory compliance and other project requirements.
KARACHI – The Board of Intermediate Education Karachi (BIEK) has announced the results of the Annual Examinations 2026 for Intermediate Part I in the Science Pre-Medical, Science General, Commerce (Regular and Private), Arts (Regular and Private), Special Candidates (Arts Regular) and Home Economics groups.
It should be noted that the results of all optional subjects of the Science groups were prepared through E-Assessment, using the latest OMR and E-Marking system.
Giving details of the results, Controller of Examinations Zareena Rashid said that in the Science Medical group, 25,157 candidates registered and 24,544 appeared in the examinations, of whom 11,966 passed all six papers.
In the Science General group, 30,991 candidates registered and 30,386 appeared, of whom 15,036 passed all six papers.
Announcing the Commerce (Regular) results, the Controller said that 23,549 candidates registered and 22,693 appeared, of whom 9,332 passed all seven papers.
Similarly, in the Commerce Private group, 1,485 candidates registered and 1,413 appeared, of whom 628 passed all seven papers.
In the Arts Regular group, 11,171 candidates registered and 10,678 appeared, of whom 3,748 passed all six papers. In the Arts Private group, 1,702 candidates registered and 1,623 appeared, of whom 692 passed all six papers.
In the Special Candidates (Arts Regular) examinations, 99 candidates registered and 97 appeared, of whom 58 passed all six papers.
In the Home Economics group, 146 candidates registered and 141 appeared, of whom 41 passed all seven papers.
It may be recalled that, in line with the decision of the IBCC and the Universities and Boards Department of the Government of Sindh, a new grading system has been introduced this year in the Intermediate Part I annual examinations. Under the new system, any candidate scoring less than 40 percent in a paper will be declared “Ungraded” and will not be considered to have passed that paper.
Such candidates, if they meet the other eligibility requirements, will have to retake the exam in that paper. The results of all the above groups for the Annual Examinations 2026 (Part I) have been uploaded to the board’s website. Candidates can also check their results on the official Android app of the Board of Intermediate Education Karachi, which can be installed on a mobile phone by searching for “BIEK” on the Google Play Store.
KARACHI – India has arrested four Pakistani fishermen in Sir Creek on charges of violating maritime boundaries and has seized their boat.
According to Noor Muhammad Thaimoor, vice chairman of the Fisherfolk Forum, the four fishermen, Abdul Qadir Thaimoor, Muhammad Musa, Asghar Thaimoor and Ehsan, had gone into the deep sea to catch fish and shrimp, where Indian security forces arrested all four Pakistani fishermen.
The vice chairman of the Fisherfolk Forum said that all four fishermen belong to the coastal area of Chhachh Jahan Khan in Sujawal.
The Fisherfolk Forum has demanded that immediate information be provided about the well-being and legal status of the arrested fishermen, and that the necessary steps be taken on humanitarian grounds for their early release and return to the homeland.
Saudi Arabia, Turkey and Pakistan made a rare joint visit to Tehran amid reports that the U.S. and Israel were drawing up plans to renew their attacks on Iran.
Mohsen Rezaei, the head of Iran’s Supreme National Security Council, in July. He will meet with a delegation from countries in the Mecca Pact to discuss conflict in the region, according to an Iranian official.
ISLAMABAD: Incarcerated human rights lawyer Imaan Mazari and her husband, Hadi Ali Chattha, on Monday approached the Supreme Court to challenge the Islamabad High Court’s (IHC) Oct 19 order refusing to stay the trial before an anti-terrorism court (ATC) in the security breach case.
The case pertains to the alleged disruption of the security route of an international cricket team and incitement to public unrest. The couple, accused of removing barriers from the route, was indicted on October 7.
On Oct 19, the IHC took up appeals filed by Imaan and Hadi against the Oct 10 ATC order that rejected their petitions challenging the framing of charges and the inclusion of terrorism-related provisions. While issuing notices, the IHC had said it would decide how to proceed once the parties’ responses were received.
Subsequently, the couple, through senior counsel Faisal Siddiqui, filed separate near-identical petitions before the SC on Monday, challenging the IHC’s Oct 19 order.
The plea argued that the trial court proceeded with unprecedented haste by recording the examination-in-chief of six prosecution witnesses on Oct 10 and 14, and accepting the prosecution’s request to shift the trial to jail.
The decision to conduct the trial in jail had also been challenged before the IHC, with the petition pointing out that the trial court had appointed state counsel.
The petitions alleged that the ongoing trial was nothing but persecution aimed at subverting the SC’s order suspending the petitioners’ 17-year sentences in the controversial social media post case and at preventing their eventual release through an allegedly frivolous and mala fide case that had mysteriously resurfaced.
Imaan’s petition argued that the IHC had “erroneously refused to exercise its discretion to grant ad interim relief to stay the criminal trial, despite multiple factual and legal reasons warranting such relief and repeated requests”.
It said it was settled law that ad interim relief could not be denied in the presence of a prima facie case and where the balance of convenience favoured the petitioner, as she would otherwise suffer irreparable loss.
The petition pleaded that Imaan had a clear prima facie case because recording evidence in their absence violated Section 353 (evidence to be taken in presence of accused) of the Code of Criminal Procedure (CrPC), as well as their due process and fair trial rights guaranteed under the law.
It further argued that the balance of convenience favoured the petitioner because delaying the trial for some time would not prejudice the prosecution.
The plea claimed that the petitioner would suffer irreparable loss given the alleged gross violations of due process and fair trial principles in the proceedings, adding that it was apparent that the trial was leading to her criminal conviction.
The petitioner’s liberty was at stake because of the denial of ad interim relief, the petition contended, adding that the IHC’s order was without jurisdiction, illegal and liable to be set aside.
It further pointed out that the trial court had never dispensed with the petitioner’s personal attendance during the recording of evidence and that no proceedings under Section 540-A (power to summon material witness or examine person present) of the CrPC had been initiated.
The trial court’s order of Oct 10 recorded that counsel had left the rostrum and the accused had left the video link. The Oct 14 order also noted that the accused had again moved away from the camera while their counsel had left the rostrum during the examination-in-chief of witnesses. Despite this, the court proceeded to record the examination-in-chief of six prosecution witnesses on the two dates.
The petitions emphasised that the absence of the petitioners and their counsel was forced as a protest and had been recorded as such, but did not amount to a waiver of the right to be present during the recording of evidence.
IHC hears plea against jail trial, appointment of state counsel
Meanwhile, the IHC heard arguments on a petition filed by Imaan and Hadi challenging their trial at Adiala jail and the appointment of a state counsel.
A division bench comprising Justice Raja Inaam Ameen Minhas and Justice Shahrukh Arjumand continued the proceedings, with advocates Riasat Ali Azad and Zainab Janjua appearing for the petitioners.
During the proceedings, Advocate Azad noted that the decision to conduct the trial inside the jail had been challenged before the IHC. He contended that the accused should have been heard before such an arrangement was approved.
Justice Minhas questioned the legal basis of the challenge, asking who had the authority to decide the venue of a trial and whether an accused could dictate where the proceedings should take place.
In response, Azad said the petitioners were being brought before what he described as a “jail court”, effectively a cage, where access to the proceedings was restricted.
He argued that the summary for conducting the jail trial had been initiated by an Islamabad superintendent of police and subsequently approved by the chief commissioner. According to him, the police officer lacked the authority to initiate such a summary, which he maintained fell within the federal government’s domain.
The judge questioned whether a summary concerning a jail trial would have to be placed before the cabinet and also asked about the legal concept of an open court.
Azad said he had not been heard before the decision was taken, despite the need to hear the defence. He pointed out that journalists and members of the public were not permitted to attend the proceedings inside the jail.
He further submitted that the defence had requested the trial judge to pass a formal judicial order regarding the arrangement, but the judge declined, telling the lawyers to challenge the matter before the high court.
The lawyer also objected to the appointment of a state counsel during the jail trial.
Justice Minhas observed that the defence lawyers’ vakalatnamas (powers of attorney authorising legal representation) were still on the court record.
Advocate Janjua clarified that she had initially represented the accused but subsequently withdrew her vakalatnama, explaining that travelling to Adiala jail every day was incompatible with managing her legal practice.
Azad added that travelling to and from the jail took around two hours each way.
When the judge again asked whether his vakalatnama remained on record, Azad said the defence had effectively been sidelined. He alleged that when he sought a single adjournment, a state counsel was appointed and the cross-examination of prosecution witnesses was conducted in his absence.
Questioning the urgency of the proceedings, Azad said the first information report (FIR) had remained concealed for two years and that the accused had been arrested in the case immediately after securing bail from the SC.
He further contended that although the original charges were bailable, a terrorism-related charge had subsequently been added.
The counsel requested the IHC to restrain the trial court from delivering its final verdict until the petition was decided.
Justice Minhas observed that the accused could also be acquitted, asking the lawyer why he was seeking such an order.
Advocate Azad reiterated the request that the trial court be restrained from announcing its final verdict.
After hearing the arguments, Justice Minhas remarked that the court would examine the matter.
The bench did not announce a final decision on the request during the proceedings.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei says a meeting in Tehran with senior officials from Turkey, Pakistan and Saudi Arabia could lay the groundwork for a regional security framework based on the interests and decisions of countries in the region.
Speaking at a weekly press conference on Monday, Baghaei said Tehran would host Saudi Arabia’s defense minister, Pakistan’s army chief and Turkey’s intelligence chief as part of an initiative to discuss regional security.
He stated that the initiative was proposed during Pakistani Army Chief Asim Munir’s visit to Tehran and was welcomed by the Islamic Republic of Iran.
Responding to a question from IRNA about the purpose and format of the gathering, Baghaei said the participation of senior officials from the three countries reflected efforts to explore mechanisms for regional security.
“From our perspective, the fact that regional countries are seeking to establish, or at least consider, regional security mechanisms based on their own interests and concerns is a welcome development,” he said.
“This meeting could serve as a prelude to further steps toward shaping endogenous security, an issue we have insisted on for decades. We have consistently emphasized that regional security can only be ensured by relying on the will and security considerations of the countries of the region,” Baghaei added.
He noted that developments over the past two years, particularly the past eight months, had demonstrated the importance of cooperation among regional countries.
“Recent events have shown that sustainable and reliable security in our region can only be achieved through building trust and cooperation among regional countries,” the spokesman said.
Baghaei said the visiting officials would hold discussions with the Iranian president and the secretary of the Supreme National Security Council.
As this is the first meeting of its kind, he said, a range of issues would be on the agenda, with regional security challenges expected to feature prominently.
“Such a meeting cannot be held without taking into account the consequences of the United States’ military aggression against Iran for the security of the entire region,” Baghaei said, describing the issue as another important subject that should be considered within the framework of regional security discussions.
Deputy Secretary of Iran’s Supreme National Security Council (SNSC) Ali Bagheri Kani said the three senior officials are scheduled to meet with SNSC Secretary Major General Mohsen Rezaei and participate in a joint session on Monday.
Regional countries must strengthen capabilities to counter Israel
Responding to reports of disagreements between Israeli Prime Minister Benjamin Netanyahu and the Israeli army chief over a possible attack on Iran, Baghaei said such differences would have no impact on Iran’s defensive preparedness.
“Despite possible differences in tactics, this group is united in its aggression and expansionism,” he said, adding that the regime’s actions across the region showed it was pursuing a common course aimed at undermining regional security.
He stressed that regional countries must enhance their capabilities to confront the Israeli regime’s threats and destabilizing actions.
Iran unconcerned about who rules in Israeli regime
Commenting on the upcoming Knesset elections in the occupied territories, Baghaei dismissed the process as a genuine democratic election, describing it instead as competition among rival groups seeking to commit greater crimes.
“For us, it makes no difference who ultimately takes the helm of the Zionist regime,” he said, noting that its record had brought nothing to the region but violence and bloodshed.
Armed forces will firmly counter threats
Responding to reports about the deployment of drone bases near Iran, Baghaei said Iran’s relevant authorities were closely monitoring developments surrounding the country, including reports of drone bases near its borders and Ukrainian activities in Iraq and the Iraqi Kurdistan region.
“Those responsible for monitoring these developments are following the situation carefully and will act whenever necessary to defend the country and repel hostile actions and threats,” he said.
He emphasized that Iran’s armed forces had firmly defended the country whenever threats or hostile activities targeted its territory and would continue to do so.
Europe part of the problem
Baghaei expressed doubt that European countries had genuinely changed their approach toward Iran, pointing out that their renewed emphasis on diplomacy could amount to a political gesture.
He slammed Europeans for contributing to the crisis by aligning with the United States over the so-called snapback mechanism and failing to condemn US-Israeli military aggression against Iran’s nuclear facilities.
Baghaei said Tehran hoped the three European countries would assess regional developments more realistically and adopt an independent and constructive approach toward West Asian affairs.
Brazilian people resisted unfair pressure
Commenting on Brazil’s presidential election and the defeat of the right-wing camp aligned with US President Donald Trump, Baghaei said the outcome demonstrated the Brazilian people’s determination to make independent political choices.
“The people of Brazil showed that they would not submit to misleading narratives and unjustified pressure, and that they would choose what they consider to be in their country’s best interests,” he said.
ISLAMABAD – There are fears of cyberattacks on key digital systems, including the country’s government and financial institutions, and the National Cyber Emergency Response Team (National CERT) has issued an advisory.
According to details, flaws in e-Mudhra’s digital security certificates have created the risk of cyberattacks on government, financial and critical information infrastructure.
It has been revealed that eight private security keys of e-Mudhra’s certificate authority have been compromised, of which six are used for TLS certificates and two for code signing. The weak keys create the risk of forged digital certificates, impersonation of websites and online services, interference with internet traffic, surveillance and data tampering.
National CERT has directed the relevant institutions to immediately update operating systems, browsers and software, block the affected certificates and update security trust stores. Mobile apps, computer software and other systems that use separate certificate stores have also been told to take protective measures.
According to the advisory, organizations should monitor for suspicious certificates, unusual network activity and connection redirection, and report any suspected forged certificates or data interception incidents to National CERT Pakistan.
The State Bank of Pakistan (SBP) on Monday raised the key policy rate by 50 basis points to 12 per cent, its first increase since April as inflation, fuelled by high energy costs due to the Gulf conflict, remained above target.
In a statement, the Monetary Policy Committee (MPC) said it had decided to increase the policy rate, with a majority decision of nine out of ten members.
It noted that the “intensification in the Middle East conflict and low prospects of its near-term resolution” were keeping global energy prices at persistently elevated levels.
“While the impact of this global shock on the domestic economy has remained contained so far amidst proactive monetary policy adjustment and continued fiscal discipline, geopolitical developments have worsened the inflation outlook as compared to the earlier assessment,” it said.
It went on to say that although the external account and growth outlook remained broadly unchanged, risks had also increased.
“Considering these developments and the evolving risks, the MPC deemed today’s decision as necessary to keep inflation expectations anchored, contain second-round effects of the ongoing supply shock and bring inflation within the target range of 5-7pc. This will help preserve macroeconomic stability, which is necessary for sustainable economic growth,” it said.
It said that forex reserves had remained stable at around $21bn, Pakistan had reached a staff-level agreement with the International Monetary Fund (IMF) and that real gross domestic product (GDP) growth had been revised at 3.7pc, almost unchanged from the initial estimate.
It further said that the Federal Board of Revenue had exceeded its revenue collection target during the first quarter of the current fiscal year, major central banks had raised interest rates in the wake of rising inflationary pressures and the IMF had also revised its global inflation projections upwards.
“While noting these developments and the increasing frequency of global supply shocks, the MPC emphasized the importance of increasing external and fiscal buffers to further strengthen the economy’s resilience. The committee also reiterated that continuing the prudent monetary and fiscal policy mix, alongside timely implementation of structural reforms, is essential for achieving higher and sustainable economic growth,” the statement said.
Regarding inflation, which eased to 10.3pc in September from 11pc in Augus, the MPC said that the re-escalation in the Middle East conflict and domestic wheat supply frictions were two major factors keeping inflation at elevated levels
It said that their expected continuation over the next few months had “worsened the inflation outlook”. It added that there was a risk that elevated food and energy inflation may further increase inflation expectations, which may seep into core inflation going forward.
“In view of these developments and increasing risks to the inflation outlook, the committee assessed today’s decision as important to keep the real policy rate adequately positive on forward-looking basis. This is necessary to bring inflation within the target range over the medium term. The inflation outlook is subject to multiple risks, including geopolitical tensions, global commodity price volatility, unanticipated adjustments in energy tariffs, further uptick in wheat and allied product prices and adverse weather conditions,” it said.
Regarding the external sector, the statement said that exports were recovering, adding that remittances had remained resilient and were projected to turn out higher than the earlier assessment.
It said that the current account deficit in FY27 was assessed to remain within the earlier projected range of 0-1pc of GDP.
“This, along with higher financial inflows, is expected to increase SBP’s FX reserves beyond the current level. This outlook, however, remains susceptible to multiple risks, including elevated global commodity prices, tightening international financial conditions, and supply constraints,” it said.
As per the statement, the committee expected GDP growth to remain within previously projected ranges of 3.5pc to 4.5pc in FY27. However, it added that the outlook was susceptible to risks from escalation in the Middle East conflict and adverse climate events such as El Niño conditions.
SBP governor cites inflationary outlook
SBP Governor Jameel Ahmed also addressed a press conference to announce the decision and said there were many “underlying factors” behind the decision, especially the inflation outlook.
He cited the US-Israel war on Iran and its impact on energy and oil prices, developments in the domestic market and the subsequent impact on inflation.
He said that nine out of ten MPC members voted to raise the policy rate, while one member had a different view; they were of the opinion that it should be raised further.
He said that consumer expectations and other forecasters’ views were taken into consideration, as well as other macro factors, especially the impact of global commodity and oil prices on the external account and the impact of remittances and export trends.
Ahmed noted a deterioration in the current account since the last MPC meeting. However, he added: “The good thing is that its impact is still between zero and one per cent of GDP and it will stay between that.”
He also shared that the central bank revised its outlook on remittances, from $44 billion to $45bn. On exports, the SBP governor said the trend was witnessing an improvement; however, it was not yet in line with the economy’s needs. He added that the bank estimated imports to be close to $71bn.
He said it would take longer than planned for inflation to get within the target range and revised GDP growth to 3.7pc for the current fiscal year ending June 30, 2027.
Meanwhile, Topline Securities said the central bank had raised the policy rate “in line with our expectations”.
Previously, the policy rate was 11.5pc. The central bank had held the rate steady since raising it by 100 basis points in April in response to rising global energy prices and supply chain risks — its first increase in nearly three years.
The SBP has cut the key rate by a cumulative 1,050 basis points since mid-2024, from a record 22pc reached in June 2023, as inflation cooled sharply from multi-decade highs.
Last week, the IMF called for Pakistan’s fiscal policy to go beyond achieving primary balance targets and protecting debt sustainability by reinforcing policy credibility, fostering economic recovery and creating space for public investment and social spending to support stronger long-term growth.
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