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The government has cut petrol and high-speed diesel prices by Rs1.97 per litre, setting petrol at Rs297.53 and diesel at Rs309.50 for the week ending July 10. The reduction follows lower global oil prices, though levies limited the scale of relief for consumers.
Pakistan’s weekly inflation fell by 0.98 percent for the week ending July 2, mainly due to lower petrol, diesel and LPG prices. However, sharp increases in tomatoes, onions, potatoes, eggs and wheat flour show that household cost pressures remain uneven.
Pakistan and China’s Shandong Xinxu Group discussed potential investment across oil and gas production, refinery upgrades, energy equipment manufacturing and coastal energy infrastructure. The Petroleum Division will appoint focal persons to follow up on the company’s proposals.
Pakistan is preparing to host a major pharmaceutical investment conference in Karachi from July 17 to 19, with around 130 Chinese companies expected to participate. Officials hope the forum can attract $1 billion in investment for vaccines, medical devices, raw materials and surgical manufacturing.
PIA has resumed direct flights from Lahore to Manchester after six years, with the first flight carrying 325 passengers. The revived route is expected to benefit overseas Pakistanis, strengthen UK-Pakistan travel links and support the airline’s wider international recovery.
Planning Minister Ahsan Iqbal said Pakistan has moved from crisis stabilisation toward a new growth phase, with youth expected to lead the country’s next chapter. He made the remarks at the URAAN Pakistan overseas scholars programme, which selected 45 students from nearly 2,000 applicants.
The federal government has doubled the carbon tax on petrol and diesel from Rs2.50 to Rs5 per litre, effective from midnight on July 2. Officials have balanced the change by reducing the petroleum levy, but its full impact may emerge in the next fuel price review.
South Air has received an Air Operator Certificate from Pakistan’s Civil Aviation Authority, allowing it to begin flight operations in the country. The airline has already conducted test flights to Gwadar and Sukkur and is expected to launch services in the coming days.
The Pakistan Stock Exchange began FY27 with a sharp rally as the KSE-100 index gained more than 3,700 points and closed at 184,050.10. Investors responded to improving sentiment, lower oil price expectations and hopes of future policy rate cuts.
The World Bank has urged Pakistan to reform fiscal resource-sharing between federal, provincial and local governments. Its new report links fiscal pressure and weak service delivery to imbalances created after the 18th Amendment and 7th NFC Award.
The FBR has achieved its FY2026 tax target by collecting Rs13,601 billion in gross revenue and Rs13,003 billion after refunds. Officials say strong June collections helped the tax authority finish above its Rs12,983 billion target as the new fiscal year begins.
The Finance Ministry expects inflationary pressure to ease in FY2027 after the reopening of the Strait of Hormuz and lower global oil prices. Officials say improved remittances, IT exports, fiscal discipline and external stability could support Pakistan’s economic recovery, though risks remain tied to energy markets and regional tensions.
