MH Insights

Executive Summary This briefing synthesizes critical developments across Pakistan's economy, global financial markets, and key regulatory and corporate sectors as of early January 2026. The analysis reveals a dual narrative for Pakistan, where a booming stock market and record tax revenues coexist with significant trade imbalances and challenges in the export sector. The Federal Board of Revenue (FBR) is escalating its enforcement measures, introducing stricter scrutiny for exporters and codifying its authority to arrest for major tax crimes, a move that has drawn concern from business leaders. Globally, financial markets have commenced 2026 with remarkable strength, with major indices in the UK, Europe, India, and Hong Kong reaching new record highs, largely propelled by sustained optimism in the Artificial Intelligence (AI) sector. Concurrently, significant regulatory actions are shaping corporate behavior, evidenced by the Competition Commission of Pakistan's substantial pen...

Executive Summary This briefing synthesizes key economic, financial, and industrial developments at the start of January 2026. In Pakistan, the new year began with a robust performance on the Pakistan Stock Exchange (PSX), which surged to a new all-time high, reflecting strong investor optimism. Concurrently, the Federal Board of Revenue (FBR) is intensifying efforts to meet revised tax targets for FY2025-26 after experiencing a significant shortfall in the first half, considering new excise duties and continuing desk audits for exporters. The Sindh Revenue Board, however, reported strong 21% growth in tax collection. The corporate sector saw significant activity, including a Rs 15 billion capital injection into U Bank by PTCL Group, the successful IPO and listing of Pak-Qatar Family Takaful Limited, and the launch of the Lucky Islamic Energy Fund. Key strategic industrial initiatives are underway, notably the plan to establish Pakistan's first semiconductor chip manufacturing unit...