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Business Recorder
3 days ago
- Business
- Business Recorder
Hydrocarbon production output in FY25 hits 20-year low
KARACHI: Pakistan's hydrocarbon production plunged to its lowest level in over two decades in FY25, with oil and gas output down sharply as surplus imported LNG in the system forced curtailment of domestic supply. Industry data shows oil production dropped 12 percent year-on-year to an average of 62,400 barrels per day, while gas volumes fell 8 percent to 2,886 million cubic feet per day. The downturn was even steeper in the April–June quarter, when oil output declined 15 percent and gas 10 percent compared to the same period last year. The slump has been attributed to increased RLNG availability—bolstered by the diversion of captive industrial users from gas to the national grid—and government measures that made gas-fired captive generation costlier than grid electricity. The off-grid levy of Rs791 per mmbtu pushed total gas tariffs for captive use to Rs4,291 per mmbtu. Several key fields recorded double-digit production declines. The Tal Block, accounting for nearly 17 percent of Pakistan's oil output, saw volumes tumble 22 percent year-on-year in the fourth quarter. Within the block, Maramzai and Mardankhel fields posted declines of 54 percent and 52 percent, respectively. On the gas side, Qadirpur and Nashpa fields registered 36 percent and 34 percent annual declines in the same period, largely due to curtailments by Sui gas companies. Topline Research estimates the loss of local production added more than $1.2 billion to Pakistan's foreign exchange outflows in FY25, as greater reliance on imported fuels became necessary. Looking ahead, the brokerage warns production could slip further in FY26, with current flows hovering near 58,000–60,000 barrels of oil per day and 2,750–2,850 mmcfd of gas. However, it sees a potential upside if the government renegotiates its RLNG supply deal with Qatar in March 2026, which could pave the way for a recovery in domestic exploration and production volumes. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
RLNG import glut: Pakistan oil, gas production hit over two-decade low in FY25
KARACHI: Pakistan's oil and gas production hit over two-decade low in the financial year 2024-25 (FY25), with oil output declining by 12% and gas production dropping by 8% year-on-year (YoY), according to Topline Research. The historic decline is mainly attributed to the government's preference to utilise the oversupplied imported gas (RLNG), driven by long-term 'take-or-pay' agreements with global suppliers, which left the country with no option but to continue imports regardless the steep decline in domestic demand for the fuel. The government's strategy to first utilise the surplus imported gas (RLNG) agreed local oil and gas exploration and production companies (E&P) to curtail outputs of hydrocarbons at local fields. 'This curtailment of local production has resulted in an estimated strain of over $1.2 billion on the country's foreign exchange reserves during FY25,' Topline Research's analyst Sania Irfan said in a commentary titled 'Excess RLNG takes a toll on domestic oil and gas production'. OGDCL revives well in Hyderabad, enhances oil production The RLNG turned into huge surplus in the country after the government relocated industrial consumers from gas-based captive power plants to the national power grid. 'On top of this, the government also imposed off-grid levy on captive consumption at the rate of Rs791/mmbtu (total rate: Rs4,291/mmbtu), making the cost of generation on gas more expensive than grid rates,' she said. 'We believe that the government will …renegotiate pricing on the RLNG agreement with Qatar in March 2026, which may result in improved volumes from domestic E&P companies.' Oil production averaged at 62,400 barrels per day (bpd) in FY25, with volumes down 3-46% across major fields including Makori East, Nashpa, Maramzai, Pasakhi and Mardankhel. Gas volumes averaged at 2,886 million cubic feet per day (mmcfd ), with major gas fields like Qadirpur and Nashpa posting YoY production declines of 22% and 23% in FY25, 'due to gas curtailment by Sui companies. ' The decline was sharper in the fourth quarter (Oct-Dec) of FY25 when oil production fell 8% on quarter-on-quarter (QoQ ) and 15% YoY. The gas output declined 7% QoQ (-10% YoY), 'reflecting persistent strain on the sector's performance,' the analyst added. 'We expect production to further decline in FY26, with current oil and gas flows hovering around 58,000–60,000 bopd and 2,750–2,850 mmcfd, respectively, due to the factors mentioned.' Sania said.
Business Recorder
10-07-2025
- Automotive
- Business Recorder
Car sales in Pakistan jump 43% in fiscal year 2024-25
KARACHI: Car sales in Pakistan jumped by 43% in the fiscal year 2024-25, the Pakistan Automotive Manufacturers Association (PAMA) reported on Thursday, an increase that analysts attributed to stable macroeconomic environment, introduction of more variants, lower interest rates, and improving consumer sentiment. In FY25, car sales (including jeeps and pick-ups) stood at 148,023 units, against 103,829 units reported in FY24. In June 2025, car sales clocked in at 21,773 units, reflecting a 64% year-on-year (YoY) and 47% month-on-month (MoM) rise. 'The YoY growth is supported by a more stable macroeconomic environment, introduction of more variants, lower interest rates, easing inflation, and improving consumer sentiment,' said Myesha Sohail from Topline Research in a statement. Auto sector in Pakistan posts strong growth in 11MFY25; car sales surge 35pc YoY According to PAMA data, except for farm tractors, sales of all vehicles including two, three and four-wheelers gained momentum. Sales of jeeps-cum-pickups increased by 61% to 35,820 units. Trucks and buses sales went up by 103.2% to 4,444 units and by 73.6% to 788 units, respectively. Sales of motorcycles and rickshaws also shot up by 32.1% to 1,518,752 units. Meanwhile, sales of farm tractors sharply fell down by 36.4% to 29,192 units as both farmers and progressive farmers face economic issues due to climate change and lower prices of their output. New Year effect: Pakistan car sales soar 73% MoM in January 2025 Talking to Business Recorder, auto sector expert Muhammad Sabir Shaikh said tractor sales fell because growers could not get better prices of their respective last agricultural produce. A dramatic decrease in the interest rate and easy leasing policies of banks pushed up car sales and customers are nipping down to new vehicles while getting rid of old ones, Shaikh added.
Business Recorder
14-06-2025
- Business
- Business Recorder
‘Bloodbath' on PSX
KARACHI: The Pakistan Stock Exchange (PSX) plunged on Friday as escalating regional tensions, following Israel's strikes on nuclear and other sites in Iran, triggered a wave of intense selling. The sharp drop wiped out recent gains and marked a clear shift from the week's earlier cautious optimism to deepening bearish sentiment. The benchmark KSE-100 Index bled throughout the day, closing with a massive loss of 1,949.56 points, a 1.57 percent decrease, to settle at 122,143.57 points. The index fluctuated between an intraday high of 123,058.06 and a low of 121,604.60. The steep decline on Friday was a severe intensification of Thursday's performance, where the index had only shed 259.56 points to close at 124,093.12 points. On Friday, the BRIndex100 dropped by 207.55 points or 1.57 percent to close at 13,037.26 points with a total trading volume of 698.1 million shares. The BRIndex30 also fell by 745.25 points, or 1.94 percent, ending at 37,726.29 points with 400.1 million shares traded. Analysts noted that the sell-off was broad-based, dragging down all major indices. Topline Research noted that KSE-100 Index largely traded in negative zone during the trading session in line with international and regional, which came down on Israel attack on Iran. Top negative contribution to the index came from ENGROH, FFC, LUCK, BAHL, MEBL, SYS and PPL, as they cumulatively contributed 863 points to the index. The widespread sell-off was accompanied by a significant drop in market activity compared to previous day. The total traded value in the ready market slumped to Rs 29.56 billion from the previous day's much healthier Rs 50.54 billion. Similarly, turnover decreased to 968.34 million shares from 1.02 billion shares traded on Thursday. The overall market capitalization too eroded substantially, falling to Rs 14.75 trillion from Rs 14.95 trillion a day earlier, wiping out Rs 20 billion in investor wealth. Despite the downturn, several companies saw heavy trading volumes. Pervez Ahmed Co was the volume leader with 116.66 million shares traded, closing at Rs 2.93. It was followed by WorldCall Telecom, which saw 100.89 million shares change hands to close at Rs 1.45. Capital Sec was also active, with a turnover of 85.32 million shares and its closing rate was Rs 3.06. The market remained highly volatile throughout the day. Supernet Technologies Limited led the gainers, rising by Rs 41.74 to close at Rs 873.40. Faisal Spinning Mills Limited also performed well, adding Rs 29.96 to reach Rs 329.96. On the losing side, PIA Holding Company Limited saw the biggest drop, falling by Rs 2,098.79 to close at Rs 18,889.10, while Khyber Textile Mills Limited lost Rs 199.39, ending at Rs 1,794.55. As the market was mostly negative, selling pressure dominating the session. Out of 469 active companies, 304 saw their share prices fall, 130 gained, and 35 remain unchanged. The BR Automobile Assembler Index closed at 20,814.19 points, down by 215.84 points or 1.03 percent, with a trading volume of 11.3 million shares. The BR Cement Index ended at 10,509.01 points, losing 275.45 points or 2.55 percent, as 75.1 million shares were traded. The BR Commercial Banks Index settled at 36,417.30 points after shedding 464.59 points or 1.26 percent, with 67.7 million shares changing hands. In contrast, the BR Power Generation and Distribution Index inched up by 15.09 points or 0.07 percent, closing at 22,355.69 points with a turnover of 28.0 million shares. The BR Oil and Gas Index dropped 163.83 points or 1.39 percent to finish at 11,610.90 points, with 44.3 million shares traded. Meanwhile, the BR Technology and Communication Index declined by 60.59 points or 2.04 percent, closing at 2,902.99 points, leading the market in volume with 154.4 million shares traded. According to Ahsan Mehanti of Arif Habib Corp, Stocks at the Pakistan Stock Exchange (PSX) plunged on Friday as escalating tensions in the Middle East triggered a wave of panic selling. Market sentiment took a sharp hit after reports of Israeli strikes on Iranian targets, raising fears of a broader regional conflict, he added. The pressure intensified as global equities tumbled on geopolitical risks, while a weakening rupee added to the nervousness among investors the combination of heightened regional uncertainty and a falling local currency played a catalytic role in driving the market's sharp downturn. Copyright Business Recorder, 2025
Business Recorder
09-06-2025
- Business
- Business Recorder
‘Lowest in 9 years': Pakistan agriculture sector projected to grow only 0.56% in FY25
Pakistan's agriculture sector will grow marginally by 0.56% in the financial year 2024-25, as per the provisional data unveiled in the Economic Survey for FY25, against 6.40% growth recorded in the sector in 2023-24. The growth in the FY25 would be the 'lowest in 9 years', Topline Research said in a statement. 'Agri sector is expected to post lowest growth of 0.56% in 9 years (FY16: +0.41%) vs. 5 years avg. growth of 3.38%,' it said. The lower growth was attributed to decline in important crops production and cotton ginning by 13.5% and 19.0%, respectively. While other crops posted growth of 4.78%, livestock, forestry and fishing are expected to post growths of 4.72%, 3.03% and 1.2% respectively. On the other hand, important crops and cotton are expected to post declines of 13.49% and 19.03%, respectively. 'The crop sub-sector witnessed negative growth as a result of weather-related adverse challenges,' read the Economic Survey. 'Overall, the agriculture sector in FY25 showed a combination of resilience and challenges across its sub-sectors. The growth trend emphasizes the sector's enduring importance, while also highlighting the urgent need for modernisation, climate adaptation, knowledge enhancement, and productivity improvements to sustain its contribution to economic growth and social well-being.' In the Kharif 2024 season, water availability was 60.5 million acrefeet (MAF), lower than average system usage and Kharif 2023. For Rabi 2024-25 water availability remained at 29.4 MAF. The Rabi season observed reduced rainfall, while the Kharif season saw above-average rainfall, according to the survey. Agriculture in South Asia is shaped by a shared agro-climatic context, but countries vary in crop priorities due to policy choices, market demands and natural resource endowments. The Economic Survey said the country's cotton ginning sector showed volatility and cyclical patterns in the last six years. In FY 2025, the sector witnessed a contraction of 19.03% over exceptional growth of 47.23% the previous year. 'This decline reflects underlying structural challenges, adverse weather conditions and pest outbreaks.' To address challenges in the sector, the survey mentioned that the government is pursuing a 'multi-pronged approach focused on improving irrigation efficiency, advancing seed sector reforms, scaling up digital agriculture initiatives, and strengthening R&D and extension services'. 'These measures are essential not only for short-term stability but also for fostering a resilient, self-sustaining agriculture sector capable of driving inclusive economic growth and rural transformation,' the Economic Survey said. 'Agriculture in South Asia is shaped by a shared agro-climatic context, but countries vary in crop priorities due to policy choices, market demands and natural resource endowments.' Last week, Pakistan Kissan Ittehad Council (PKIC) President Khalid Mehmood said the agriculture sector witnessed a dramatic slowdown in the FY25, as he claimed that the farmers collectively suffered losses of around Rs2.2 trillion in wheat alone Khokhar stated that since May 2024, farmers have collectively suffered losses of around Rs2,200 billion in wheat alone — equivalent to 23.15% of the crop sector's contribution to gross domestic product (GDP) for the fiscal year 2023–24. The resulting financial strain had weakened farmers' purchasing power and affected the productivity of other crops as well, he said. PKIC has also warned the government against imposing general sales tax (GST) on agricultural inputs in the upcoming budget, stating that such a move would deal a final blow to the already struggling agricultural sector and further damage the national economy.
