Islamabad Capital Territory

Islamabad | ReNews Pakistan
The International Monetary Fund has urged Pakistan to continue taking measures to ensure fiscal stability, manage the growing debt burden and contain the rising circular debt in the energy sector.

The IMF review mission visiting Pakistan has also called for alternative sources of revenue to compensate for any potential loss in government income if a reduction in the petroleum levy is proposed.

According to sources, Finance Minister Muhammad Aurangzeb held a virtual meeting with the visiting IMF review mission led by Eva Petrova for the completion of the fourth review under the $7 billion Extended Fund Facility.

The Pakistani side assured the IMF that structural reforms would continue despite the start of the ongoing Gulf war. The government also indicated that the impact of higher fuel prices would be passed on to consumers, while targeted subsidies have been introduced to provide support to vulnerable segments of society.

The IMF expressed concern over Pakistan's rising debt burden, the growing volume of circular debt in the energy sector and the need to maintain continuity in structural reforms.

The Fund also stressed that tariff reforms under the National Tariff Plan should continue over the stipulated five year period. The implementation of the agreed tariff reform measures was discussed as part of the broader reform programme.

According to sources, the IMF also expressed concern over the government's failure to complete legislation relating to the sovereign wealth fund. Both sides may make further progress towards agreeing on a new deadline for the relevant structural benchmark so that approval can be obtained from Parliament within the current calendar year.

The discussions covered fiscal stability, energy sector circular debt, tariff reforms, petroleum levy, structural reforms and measures aimed at maintaining the agreed fiscal framework.

The Pakistani authorities reiterated their commitment to continuing the reform process and taking measures to meet the fiscal and structural targets under the Extended Fund Facility, while protecting vulnerable segments through targeted support.

Islamabad | ReNews Pakistan
Four Pakistani refineries that signed agreements with the government on September 24 for major brownfield upgrades have yet to formally submit their detailed project plans to Inter State Gas Systems.

Inter State Gas Systems is a government owned company designated to oversee the implementation of refinery upgrade projects and manage the associated upgrade incentive accounts.

The four refineries that signed the agreements are Attock Refinery Limited, National Refinery Limited, Pakistan Refinery Limited and Cnergyico Pakistan Limited.

The refineries have committed to investments aimed at improving the production capacity and quality of petroleum products in the country. Their planned investments include green fuel production, bottom of the barrel conversion, expansion of production capacity and improvement in the quality of petroleum products.

According to sources, the projects are currently at different stages of engineering, technical assessment and feasibility studies. The detailed plans are therefore yet to be finalised and formally submitted to Inter State Gas Systems.

The brownfield refinery upgrade programme is aimed at modernising existing refining facilities and improving their technical and production capabilities. The projects are also expected to support increased production of higher value petroleum products and improve the overall quality of refined products.

The proposed investments are expected to include upgrades in processing facilities, conversion capabilities and production systems. However, the final scope and implementation timelines of the individual projects will become clearer once the detailed engineering and feasibility plans are formally submitted.

The four refineries will also be required to complete further technical and administrative processes with the relevant government authorities as part of the implementation of their respective upgrade agreements.

The development is part of the broader effort to modernise Pakistan's existing refining infrastructure, improve the domestic production of petroleum products and enhance the capacity of local refineries to meet changing market requirements.

Islamabad | ReNews Pakistan
The Government of Pakistan has allocated PKR 5 billion under the Public Sector Development Programme (PSDP) 2026-27 for the relocation of a 102-kilometre section of the Karakoram Highway between Thakot and Raikot, a major infrastructure project that could have significant implications for land use, property development and real-estate activity in the surrounding areas.
The overall project carries an estimated cost of PKR 502.6 billion and involves the realignment of sections of the N-35 Karakoram Highway affected by dam and reservoir development along the Indus River.
The relocation will include new road alignments, bridges and tunnels designed to maintain connectivity as the construction of reservoirs changes the existing landscape. Beyond its transportation significance, the project could influence the future development pattern and land-market dynamics along the Thakot-Raikot corridor.
Improved road connectivity generally increases accessibility to previously less-connected areas, potentially making land more attractive for residential, commercial, tourism and hospitality-related development. Better access can also facilitate the movement of construction materials, agricultural products and other goods, supporting economic activity in communities located along the highway.
The Karakoram Highway connects northern Khyber Pakhtunkhwa with Gilgit-Baltistan and the rest of Pakistan, making it an important route for passenger and freight movement, tourism and access to remote communities. Any major improvement or realignment of the corridor therefore has implications beyond transportation, particularly for settlements and land located near the new infrastructure.
The project is also expected to alter the accessibility of certain areas affected by reservoir construction. This could result in changes in land-use patterns, with some locations gaining improved connectivity while other areas may experience restrictions or relocation pressures depending on the final alignment and reservoir footprint.
For the real-estate sector, the key impact will depend on the precise route of the relocated highway, availability of developable land, planning regulations and the expansion of supporting infrastructure such as utilities, markets and public facilities.
The PKR 5 billion allocation for 2026-27 is an initial funding component of the much larger project, with financing expected to continue over multiple years because of the project's substantial overall cost.
The government has linked the initiative with the broader infrastructure objectives of URAAN Pakistan, particularly improved connectivity and regional development. If implemented alongside planned economic and tourism infrastructure, the Thakot-Raikot corridor could gradually emerge as a more accessible development zone, with potential implications for land values, tourism-oriented property and commercial activity in surrounding communities.
However, the actual impact on property prices and investment activity will depend on the final highway alignment, land acquisition arrangements, compensation mechanisms, zoning decisions and the pace of associated infrastructure development.