INTERNATIONAL
THENEWS
Tuesday
sane 30,2026

Karachi Edition


~~ Volkswagen electric cars are seen at the ;
Volkswagen (Vi) electric fleet lead plant in ff
Emden, Germany, on February 18, 2025, The
German government aims to prevent domestic
plant closures at Volkswagen, Europe’s largest
carmaker, a spokesperson said on Monday, while

* stressing the decision ultimately rests with the &
company. The automaker, under pressure from §
Chinese rivals, US tariffs and dwindling demand

_ in Europe, is considering shutting four German
factories and ramping up job cuts to as many as
100,000, two people familiar with the matter said
* on Friday. Closures at such a major industrial
group would deal a further blow to the German
government's efforts to revive a sluggish economy
and improve weak poll ratings, “Our aim is to
prevent the closure of sites in Germany,” the

. Spokesperson said. “To achieve this, the right &
framework conditions must be in place, including
the necessary competitive mechanisms, Incentives
., . . must be provided to ensure that these sites
remain profitable,” he said. “In principle, however,
it is always up to the companies to make these
decisions on commercial grounds.” —Reuters -

IMF-driven tariff reforms set to end

j|Govt rushes

Ne   to secure

LNG as.
Hormuz
tensions
squeeze
supply

Rews Desk


Pakistan, Italy
sign 20m euros


protection for auto industry by FY80 | cvs! | psscsenenteomeae:

ay              asa         ofattac]                  t of Hor.

loan to boost              muz disrupts flows of the super-chilled fuel, according -

"By Jawwad | Fi     festo access regional export  lisation. They argue that assembly plants into export assembled vehicles,                    .         :                             to Bloomberg,

markets, --                                  _an influx of used vehicles hubs willalso requiredomes- As customs duties on CKD        agricultural             State-owned Paldstan LNG released a tender over the

LAHORE: The  automotive       ‘The proposed Auto Indus-' without strict safety, emis- tic manufacturers to renego- Kits and completely built-up                      ee                     weekend seeking to procure a shipment for June 30 to July

Sector 3s approaching a crid- try Development Plan (AIDP) sions and ago-limit require. tiate agreements with foreign units (CBUs) decline under|               training               4 delivery, with offers due on Monday, according toa docu-
cal juncture as the industry’s 2026-31 outlines a series of ments aligned with UNECE principals. Many existing the tariff rationalisation plan,                                         ment on its website, -

decades-long reliance on tar- structural reforms aimed at WP{dot]29 standards could contracts contain territorial the FBR may seek to shift       ey our Correspondent           : The unusually prompt purchase request underscores

iff protections comes to an safeguarding the country’s significantly undermine local restrictions that prevent the tax burden from imports                                              how buyers remain unable to count on cargoes transiting


end, forcing a shift towards manufacturing base.

an export-oriented and elec. .. However, the draft plan

tric vehicle (EV)}-driven eco- has already exposed divi-

systera.                                                      stons within the government,
- Under an IMF-mandated The Ministry of Industries

Tariff Rationalisation Plan and Production (MolP),

original equipment manufac: Pakistani subsidiaries from to domestic consumption
turers (OEMS)...      exporting to regional mar- through Federal Excise Duty
The uncertainty also risks  i industry stakeholders (FED) and Special Excise
discouraging investment, as argue that manufacturers Duty (SED) mechanisms.
foreign technology partners, should leverage Pakistan's Under the proposed

particularly Japanese and

extending to fiscal year 2029- which supports protect- Chinese automakers, may
90, the historical protections ing local investments, is at delay or suspend further

afforded to local Completely odds with the Ministry of localisation investments if and the Middle East.
Knocked Down (CKD) Commerce, the Ministry of market conditions become:

operations are set. Finance and the Federal increasingly unpredictable.
to be gradually phasedout. Board of Revenue (FBR), To create a level playing
+» Foremain competitive, the which favour accelerated field, experts say the govern-
domestic industry will needto tariff rationalisation and ment should introduce com:
move beyond protection for increased fiscal revenues. . prehensive legislation gov-
intemal combustion engine - Industry experts warn eming used vehicle imports,
CCE) vehicles, align with that, without a robust regue  including mandatory com-

geographic location to framework, imported non-
secure export mandates CKD vehicles would face
covering Africa, Central Asia higher FED and luxury sur-
charges to discourage for-

Foreign principals, how- eign exchange outflows and
ever, are unlikely to permit maintain competitiveness
exports of lower-technology for domestic assemblers.
vehicles. As a result, local Locally assembled ICE vehi-
plants will need to upgrade cles would be subject to 2
manufacturing capabilities moderate, tiered FED struc
to meet international qual- ture designed to preserve
ity standards, Standardising  government revenues while

ISLAMABAD:  Pakistan and | Hormuz, a key conduit for about a fifth of the world’s LNG.
Italy have signed a con-| Pakistan has been grappling with an energy shortfall sin
cessional loan agreement. | the war disrupted shipments from its top supplier, Qatar,
According to an announce-| forcing purchases of pricier fuel from the spot market wer
ment by the Econontic Affairs | the past few months. =
Division, Pakistan and Italy} . On Saturday a ship carrying Qatari oil was altacked in
have agreed on a 20 million   the strait, days after a Singapore-flagged container ship was -
euro (approximately Rs6.3 | hit. Following the strikes, the Joint Maritime Information
billion) concessional loan | Center — which liaises between navies and merchant ship- ;
to support the Professional | ping — raised its threat level in the region to substantial,
Capacity Building and Exten-| Transits of inbound and outbound LNG carriers through
sion in Agriculture project | the waterway have paused since then, ship-tracking data
under Pakistan's Technical | show. That includes an empty LNG tanker that was.
and Vocational Education | into the Persian Gulf via the strait before Unuming on Fri:
and Training (TVET) National | day. Ithas remained in theGulfofOman _....
Reform Progranune.          .        It isn’t guaranteed that Pakistan will purchase a ship-
Pakistan was represented | ment, and the country often scraps tenders if a deliv oy :


global UNECE WP{dot]29 latory framework goveming
regulations, and restructure used vehicle imports after

between foreign 2030, the sector could face
penciabend local subsidiar- severe capacity underuti-

pliance certification, testing components to meet regional  encouraging a gradual tran-
tequirements and strict age requirements could also ena- sition towards EVs, High-end
liraks at ports, |                     ble local vendors to export

Transformit ng local parts independently of fully            Continued on page a


KCCI seeks accountability

SBP forex reserves fall $1.3bn

for unrestored roads after| to $15.9bn as of June 19 on debt:

pipeline works

By our Correspondent    or have remained in a dam
aged condition for extended

KARACHE Chairperson of periods, creating difficulties
the Businessmen Group forcommuters, transporters,
(BMG) Zubair Motiwala and residents and businesses.

President of the Karachi — Theystated that the dete
Chamber of Commerce and riorating condition of roads

repayments

“Byour correspondent reserves as on June 30, surpass ‘its $181 billion FY26
.                 Loe     2026," it added.               reserve target,” Hanif said.
KARACHI: Pakistan's cen- — The country’s total quid “The improverent rein-
tral bank foreign exchange foreign reserves dropped by forces Pakistan’s exter-
reserves decreased by $1.257 billion to $21.44 bil- nal liquidity position and
$1.05 billion to $15.916 bil. lion in the reporting week. provides a stronger buffer
tion during the week ended However, the reserves of against near-term extemal

Industry (KCCD Muhammad has worsened traffic conges- | June 19 due to external debt- commercial banks rose by financing needs,” he added.

Rehan Hanif have expressed tion, increased travel times
Serious concem over exten- and transportation costs,
sive road excavation works caused damage to vehicles
being carried out by Sui and created safety risks for
Southern Gas Company motorists, motorcyclists and
(SSGC) across Karachi for pedestrians, The situation is
the laying, replacement, particularly conceming in
rehabilitation and upgrading commercial and industrial
of gas pipelines,                 . areas, where the movement
While acknowledging of goods, employees, cus-
the importance of modem- tomers and suppliers has
{sing gas infrastructure to been adversely affected.
improve service delivery, | Given Karachi's position
enhance safety standards as the country’s economic
and reduce leakages, they hub, any disruption to mobil-
said the manner in which the ity directly affects business
work is being carried out has productivity and economic
caused significant hardship activity, they said,       .
for residents and businesses | The two business lead
acrossthecity,           ers said it was difficult to
~ Ina letter to Sindh Chief understand how large-scale
Minister Syed Murad Ali excavation activities could
Shah, Motiwala and Hanif be permitted without a com-
noted that roads in numer- prehensive and enforceable
ous commercial, industrial mechanism for the timely
and residential areas have restoration of affe