Reko Diq project cost increased to $7.7bn
Pakistan on Thursday revised upward the cost of the first phase of the Reko Diq copper and gold mines project for the second time in six months. The cost has now jumped 79 percent to $7.7 billion from the initial estimate due to higher cost of loans being taken for the project and to offset any future price shocks.
The Economic Coordination Committee (ECC) of the Cabinet approved the second revision in the total cost of the first phase of the project. Finance Minister Muhammad Aurangzeb chaired the meeting. The ECC also cleared signing of implementation agreements to formally launch the strategically important project.
Pakistan’s external account deficit widens
Pakistan’s external account is once again showing signs of fiscal year 2015-16, when an uptick in the economy increased imports due to rising demand widened the current account deficit (CAD).
Heavy primary income outflows, and sluggish foreign investment are all also contributing to widening the CAD.
Fresh data released by the State Bank of Pakistan (SBP) paints a sobering picture of the country’s balance of payments for August 2025 and the first two months of FY26.
The country posted a current account deficit of $245 million in August 2025, a sharp rise from the $82 million shortfall recorded in the same month last year. According to Arif Habib Limited (AHL), this increase was driven primarily by stronger import demand.
Ogra: public hearing faces objections to gas marketing licences
The Oil and Gas Regulatory Authority (Ogra) conducted a public hearing on Thursday for granting gas marketing and distribution licences based on dubious supply deals with hydrocarbon producers, which sparked concern among different stakeholders.
Interveners present at the hearing pointed out that applications had been submitted by third parties partly depending on future gas discoveries, which was contrary to Ogra’s licensing framework that required evidence of firm supply.
Following the approval of a new government policy that has increased the allocation of newly discovered gas to third parties from 10 to 35 percent, various buyers are approaching Ogra to obtain licences.
Pakistan stock exchange surges 1,776 points on Saudi pact
Bulls roared at the Pakistan Stock Exchange (PSX) on Thursday as the benchmark KSE-100 index surged 1,776 points to close near the record high at 157,953.
The rally, fuelled by the landmark Saudi-Pakistan Strategic Mutual Defence Agreement signed in Riyadh, was further supported by strong blue-chip performance and robust trading activity, with volumes soaring to nearly 2 billion shares and value crossing Rs56.9 billion. Arif Habib Limited (AHL) wrote in its report that the stock exchange hit its weekly upside draw of 158,000 points during Thursday’s session as the benchmark KSE-100 index continued its upward trajectory.
Market breadth remained positive with 76 shares advancing and 21 declining. The biggest contributors to the index gains were Engro Holdings (+4.1 percent), NBP (+4.09 percent) and Mari Petroleum (+2.01 percent). On the other hand, Pakgen Power fell 1.74 percent, Sazgar Engineering slipped 0.72 percent and TRG Pakistan shed 0.95 percent, it said.
Pakistan: Yamaha exits
“Yamaha’s exit from a country with the 5th largest population in the world, where motorcycles are the preferred mode of transport for more than 80 percent of the people, is a sorry state of affairs.” This was stated by Abdul Waheed Khan, Director General, Pakistan Automotive Manufacturers Association (PAMA).
According to media reports, Yamaha Motorcycles Pakistan Limited, in a letter addressed to its dealers, informed them of its decision to discontinue operations in Pakistan, 10 years after its return in 2015.
“Yamaha had made significant strides in indigenisation, job creation, technology transfer, and skills development. In the two-wheeler industry, after Honda, only Yamaha was able to localise engine production in Pakistan. This is no small feat by any means,” he added.
Partnerships unlikely with no regional stability
Turkmenistan Ambassador Atadjan Movlamov has stressed that economic cooperation is inseparable from regional stability and asked diplomatic missions to encourage exchange of business delegations and sector-specific dialogue that will result in real projects.
He mentioned trade facilitation, energy cooperation, technology exchange and cultural diplomacy as fertile areas for collaborative projects and encouraged both government and private-sector actors to work together to remove practical bottlenecks.
He was speaking at the “Ambassadors Dinner”, hosted by the Lahore Chamber of Commerce and Industry (LCCI) to deepen Pakistan’s diplomatic ties and accelerate economic cooperation with the outer world.
EU-Pakistan business forum
The European Union has planned to fully revive and activate the EU-Pakistan Business Forum, with a meeting planned for the first half of next year, which will serve as a catalyst for enhanced economic cooperation.
Newly appointed EU Ambassador Raimundas Karoblis stated this in a meeting with Federal Minister for Finance Muhammad Aurangzeb at the Finance Division on Thursday.
The ambassador noted that the GSP Plus regime had been instrumental in boosting Pakistan’s exports to the EU as over 30 percent of Pakistan’s exports were destined for the EU market.
Government seeks Polish support to boost farm exports
Federal Minister for National Food Security and Research, Rana Tanveer Hussain, on Thursday met the Polish Ambassador in Islamabad to discuss ways to expand agricultural trade and cooperation. As per a statement, the talks focused on boosting Pakistan’s exports to Poland and addressing sanitary and phytosanitary (SPS) challenges that restrict access to European markets.
Hussain noted that Poland is among Europe’s leading agricultural producers, ranking second globally in rye exports and third in apple exports, while also producing wheat, barley, oats, sugar beet, tobacco, fruits and potatoes. He said Pakistan and Poland could benefit significantly from collaboration in cereals, fruits, livestock and food processing.