Pakistan’s imports of completely built-up cars rose sharply in September 2026, reaching 4,861 new and used vehicles. The surge has alarmed local auto-parts manufacturers, who say imports can displace domestic component demand, reduce production scale and put jobs and investment at risk. The industry estimates that the imports could represent about Rs7.3 billion in potential displaced demand for locally made parts, while emphasizing that this is not a confirmed revenue loss. Pakistan Association of Automotive Parts & Accessories Manufacturers chairperson Abdur Rehman Aizaz acknowledged that imported used cars can widen consumer choice and offer competitive prices, but urged policymakers to weigh those benefits against effects on manufacturing and employment.

Pakistan’s 2020 mobile-device manufacturing policy attracted more than 35 handset makers and created about 40,000 jobs, but local value addition remains at 10–15 per cent. Industry sources say the policy has stalled because the government did not implement its localisation roadmap and tariffs favour imported components in complete-knocked-down kits over the raw materials needed to make components locally. India’s contrasting approach—low tariffs on production inputs, higher duties on imported components, and incentives for manufacturers—has helped raise local value addition to about 20 per cent, build a component supplier base of more than 400 companies, and support mobile phone exports exceeding $30 billion.

Pakistan’s KSE-100 Index could recover next week if economic data remains firm and oil prices ease, while investors await the State Bank of Pakistan’s policy decision. The index fell 0.4% to 166,420 points over the week amid high crude prices, Middle East tensions and domestic political uncertainty. Brent reached $107 a barrel as supply disruptions and attacks on Saudi energy sites outweighed emergency oil releases. Economic indicators were mixed: September brought a current-account deficit, while remittances increased, reserves edged higher and textile exports grew. Inflation trends and the central bank’s response will shape expectations for interest rates and market direction.

Pakistan’s passenger car sales rose 43% year-on-year in the first quarter of FY27, alongside growth in most vehicle categories, supported by easing inflation and improving economic conditions. The recovery is clouded by uncertainty over auto policy and sales tax, which industry representatives say is delaying investment and constraining monthly sales. PAMA expects policy approval within weeks and calls for fair taxation, while warning that increased vehicle imports could worsen the balance of payments and harm domestic value addition. September performance varied among automakers: Indus Motor grew, while Honda Atlas, Pak Suzuki and Hyundai Nishat recorded year-on-year declines. Analysts nevertheless expect positive full-year momentum, supported by new variants and new brands.

The KSE-100 Index fell 0.6% over the week and may remain volatile as investors assess elevated oil prices, Middle East tensions and the upcoming monetary policy decision. Analysts cite easing inflation, stronger economic indicators and attractive valuations as support for a recovery, while rising bond yields and possible rate increases could restrain buying. Trading volumes declined, but economic indicators were mixed to positive: the IMF reached review agreements with Pakistan, foreign reserves increased, and banking deposits, cement sales and cotton arrivals grew. Mutual funds were the largest net sellers, while sector and stock performance varied.

MIGA has proposed a guarantee of up to $508.25 million to cover Pakistan government non-payment risk on trade finance for imports including oil and LNG. Supporters say it could help maintain short-term energy supplies and liquidity, while economists and climate advocates warn it may make fossil-fuel imports easier to finance without addressing dependence. Pakistan's fuel-import bill remains large even as rapid rooftop solar adoption cuts grid demand, and IEEFA estimates the country could face a surplus equivalent to 177 LNG cargoes from 2026 to 2031. Experts call for transparent disclosure, robust environmental and social screening, and a credible transition strategy; the guarantee's scope and participating lenders have not been disclosed, and it remains before MIGA's board.

Pakistan’s fuel-relief scheme offers a targeted subsidy of Rs 100 per litre to eligible two- and three-wheelers and small cars, but its vehicle-based limits and initial registration and purchase rules frustrated users. The government has also introduced fuel and budget cuts, travel restrictions, procurement bans, and earlier closing times for businesses; grocers warn that shorter hours could hurt sales and employment. Economist Raza Ali Khan says targeted relief cannot fully offset inflation flowing through transport, agriculture, manufacturing, and trade, and argues for flexible petroleum levies, a stabilization fund, vulnerability-based assistance, and transparent reporting of government savings. Longer-term solutions include improved public transport, more efficient vehicles, and reduced dependence on imported petroleum. Relief shifts rather than eliminates costs, which may ultimately fall through taxes, borrowing, spending cuts, or inflation.

AKD Research expects Pakistan's stock market to strengthen in the coming week, citing improving economic indicators and an approaching IMF review; a possible US-Iran agreement could also ease oil prices. The KSE-100 ended the latest week almost unchanged at 170,765 points, while daily trading volume surged. Four Pakistani refineries signed upgrade agreements worth about $5 billion over five years to modernise capacity and produce cleaner fuels. Other indicators were mixed: foreign-exchange reserves edged up, but inflation accelerated, fertiliser sales declined, and higher oil and electricity costs remained concerns.

Pakistan is weighing commercial cultivation of genetically modified maize as its agricultural sector faces rising costs, climate stress, falling exports and food-affordability problems. Supporters argue biotechnology could improve yields, reduce pesticide use and strengthen food security; critics warn that small, fragmented farms make GMO crop segregation difficult, potentially jeopardizing exports, while corporate control of seeds could weaken farmers and biodiversity. The article emphasizes that higher yields alone will not resolve hunger and argues that any adoption should be paired with independent safety assessments, strong biosafety and traceability rules, investment in local research, and reforms to agricultural markets and infrastructure.

Pakistan’s KSE-100 Index rose 372 points over the week and may continue recovering, with investors watching an upcoming IMF review and the possibility of a US-Iran agreement that could ease oil prices. Stronger economic indicators—including a narrower current-account deficit, record central-bank reserves, increased foreign direct investment, and higher IT exports—supported sentiment. Oil-market volatility and higher domestic fuel prices remained concerns, prompting the government to reinstate austerity measures and approve a Rs75 billion fuel-relief subsidy. The article also notes plans to address gas-sector circular debt and expand Pakistan’s currency swap line with China, while sector and investor performance on the exchange was mixed.