$131BN regional auto trade at risk
Pakistan stands on the edge of a $131 billion regional automobile trade corridor, where even a 5 percent share could yield $6.5 billion in annual exports — 70 times higher than current levels. With its strategic geography and a vendor base already validated by leading Japanese, Korean and European automakers, Pakistan has the ingredients to become a significant player. Yet, a new report warns that abrupt tariff changes and the normalisation of used-car imports threaten to derail the progress made by the country’s auto-parts ecosystem.
The report by the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) highlights that Pakistan’s auto-parts ecosystem has been built painstakingly over decades. It now consists of more than 1,200 Tier-1, Tier-2 and Tier-3 suppliers. The industry supports 1.83 million skilled jobs, including 300,000 directly in the sector, and anchors localised production worth more than Rs300 billion annually. These are savings the economy would otherwise lose to foreign exchange outflows.
In Pakistan first ever economic census shows more mosques than factories
There are over 600,000 mosques and 23,000 factories in Pakistan, while the services sector employs 45 percent of the total workforce, debunking the myth that industry is the country’s main job-creating sector, according to the findings of Pakistan’s first-ever economic census.
The economic census also revealed that out of a total of 40 million permanent units in Pakistan, there were about 7.2 million employment structures where 25.4 million people were working as of 2023. The information had been obtained as part of the population census, but the report was officially released on Thursday by Minister for Planning Ahsan Iqbal. It was the third such detailed report launched by the planning ministry after the population census and the agriculture census, completing the missing pieces that had hindered information-based economic planning in Pakistan since 1947.
The report showed that Punjab and Karachi Division have the highest concentration of both economic establishments and workforce. It highlighted that there were 600,000 mosques in Pakistan, and over 36,000 religious seminaries, predominantly in Punjab. However, there were only 23,000 factories in addition to 643,000 small production units.
For Reko Diq mine, ADB to provide $410mn package
The Asian Development Bank (ADB) will provide a $410 million financing package to help develop the Reko Diq copper mine, one of the world’s largest untapped deposits, which will be operated by Barrick Gold, two sources said on Thursday.
Pakistan hopes the project will serve as a springboard to draw more foreign interest to its mineral sector, particularly to exploit rare earth deposits. The country has already attracted interest from the Trump administration and offered future concessions to US companies.
The loans and a financing guarantee will support the development of Reko Diq, which is expected to produce copper and gold from 2028 and generate about $70 billion in free cash flow over its lifespan.
The financing is composed of two loans totalling $300 million to Barrick and a $110 million financing guarantee for the government of Pakistan, both sources said ahead of the official announcement.
The $6.6 billion project in Balochistan is 50 percent owned by Barrick with the other half held by the federal and provincial governments. ADB, the petroleum ministry and Barrick did not immediately respond to requests for comment.
Pakistan-Bangladesh: eye value-added goods trade
Federal Minister for Commerce Jam Kamal Khan arrived in Bangladesh on Wednesday night to begin a four-day official visit, scheduled from August 21 to 24. Upon his arrival in Dhaka, he was received by Bashiruddin, Adviser for Commerce of Bangladesh, and Imran Haider, High Commissioner of Pakistan.
The visit is aimed at strengthening bilateral trade ties and enhancing economic cooperation. Jam Kamal held discussions with Bangladesh’s Adviser for Industries Adilur Rahman Khan to explore avenues for industrial cooperation.
They underscored the importance of leveraging their economic and industrial base to the mutual advantage of the two countries to address issues of food security, value addition in the food industry and aligning the industrial technology. Discussions focused on exchanging expertise across diverse sectors through mutual exchange of delegations and knowledge sharing.
OMCs warn fuel supply
Oil Marketing Companies (OMCs) have once again raised concerns over challenges being faced by the petroleum sector, urging the government to resolve long-standing issues that directly impact supply chain sustainability and the financial health of the industry.
In a letter addressed to the government and the Oil and Gas Regulatory Authority (OGRA), Oil Marketing Association of Pakistan (OMAP) Chairman Tariq Wazir Ali highlighted that despite repeated engagements with concerned authorities, several matters remain unresolved, creating uncertainty for companies operating in the sector.
The communication reflects the growing frustration within the OMC community over delays in decision-making and the absence of a clear policy direction. The letter points out that issues related to pricing mechanisms, margins, taxation complexities, and regulatory processes continue to weigh heavily on the sector’s overall performance. They argue that without timely government intervention, the sustainability of fuel supply to the public could face challenges, particularly at a time when the economy is struggling and energy affordability has become a national concern.
The letter further stated that the sector has remained patient despite increasing financial pressures. “The companies are performing a critical role in ensuring uninterrupted fuel availability, but we cannot sustain operations indefinitely under the current policy uncertainties.