Business Recorder Editorials 7th August 2026

Kashmir: the unfinished business of peace

EDITORIAL: The observance of Youm-e-Istehsal Kashmir is an annual reminder that the Jammu and Kashmir dispute remains one of South Asia’s longest-running and most consequential unresolved conflicts.

Seven years have passed since India’s unilateral decision of Aug 5, 2019 to revoke the special constitutional status of state of Jammu and Kashmir and alter the administrative structure of the disputed territory — a move Pakistan has consistently maintained was incompatible with the territory’s internationally-recognised disputed status and the relevant UN Security Council resolutions.

Yet the passage of time has neither diminished the centrality of the Kashmir dispute nor eased the suffering of its people. Instead, it continues to cast a long shadow over relations between South Asia’s two nuclear-armed neighbours.

The statements issued by Pakistan’s political and military leadership on the occasion reaffirm the country’s long-standing position that the people of Jammu and Kashmir have an inalienable right to self-determination in accordance with the relevant UN Security Council resolutions. Such declarations underscore an important reality: despite repeated international calls for restraint and dialogue, there has been little progress towards a political settlement. The prolonged absence of meaningful engagement has only entrenched mistrust and left successive generations of Kashmiris to endure uncertainty and conflict.

Equally disturbing are the persistent concerns over the human rights situation in Indian Illegally Occupied Jammu and Kashmir. International human rights organisations have documented prolonged restrictions on civil liberties, arbitrary detentions, custodial torture and death, curbs on political activity, limitations on media freedom and excessive use of draconian laws. Calls by independent observers for greater transparency, accountability and unrestricted access to the territory have largely gone unanswered. Sustainable peace cannot emerge where fundamental rights remain under strain and political space continues to shrink.

The international community also bears a responsibility that extends beyond periodic expressions of concern. Strategic and economic interests should not eclipse the imperative of upholding international law and protecting human rights. The United Nations, despite the constraints imposed by geopolitical rivalries, remains the principal forum for addressing disputes of this nature. A renewed diplomatic effort aimed at encouraging dialogue, reducing tensions and creating conditions conducive to a peaceful settlement is long overdue.

The wider costs of the unresolved dispute are equally evident. South Asia remains one of the least economically integrated regions in the world despite confronting common challenges such as climate change, food insecurity, energy shortages and economic vulnerability. The persistence of hostility diverts attention and resources from these pressing priorities. Meaningful regional cooperation will remain elusive unless India demonstrates the political will to reopen channels of communication, reverse measures that have deepened alienation in the occupied territory and engage in a serious process of dialogue.

As Youm-e-Istehsal Kashmir is observed, the occasion should serve not merely as a reaffirmation of solidarity with the Kashmiri people but also as a reminder that unresolved disputes do not disappear with the passage of time. Seven years after the events of Aug 5, 2019 and nearly 79 years after Independence the Kashmir issue remains central to peace and stability in South Asia. A durable settlement can only emerge through dialogue, respect for international law and a political process that reflects the aspirations of the people of Jammu and Kashmir. Until then, the region will continue to bear the costs of a conflict that has remained unresolved for far too long.

Digital monitoring deserves support

EDITORIAL: The government’s decision to accelerate the digital transformation of the Oil and Gas Regulatory Authority (OGRA) deserves broad support. For far too long, regulation of Pakistan’s downstream petroleum sector has relied on periodic inspections, manual reporting and enforcement actions that often came after market distortions had already occurred.

A technology-driven monitoring system that tracks petroleum products from ports and refineries to storage depots and retail outlets promises to fundamentally alter that equation.

The rationale is straightforward. A sector handling billions of rupees worth of petroleum products every month cannot continue to be regulated through fragmented information and delayed interventions.

Real-time visibility across the supply chain offers regulators an opportunity to identify hoarding, artificial shortages, unexplained inventory movements and supply disruptions before they evolve into full-blown crises. If implemented effectively, digital oversight can improve both market discipline and consumer confidence.

Pakistan has learnt this lesson the hard way. The findings of the Oil Inquiry Commission, constituted in the wake of the 2020 petroleum crisis, exposed deep structural weaknesses in the downstream petroleum market. Weak oversight, inadequate data, poor coordination among institutions and regulatory lapses allowed market manipulation to flourish, ultimately leaving consumers to bear the consequences. Several of the commission’s recommendations centred on strengthening monitoring, improving transparency, and embracing technology to make regulatory oversight more proactive than reactive.

Progress since then has been gradual, but the latest initiative suggests that at least some of those lessons are finally being translated into policy.

Be that as it may, digitalisation should be viewed as an enabler rather than a destination. Technology can identify anomalies; it cannot substitute for sound governance. The effectiveness of any monitoring platform will ultimately depend on the regulator’s willingness to act promptly, consistently and without fear or favour. Data has little value if enforcement remains selective or delayed.

The encouraging aspect is that the initiative appears to extend beyond simple vehicle tracking. Integrating depot telemetry, tanker tracking, digital sales reporting and centralised monitoring has the potential to create an end-to-end view of the petroleum supply chain. Such systems are commonplace in mature energy markets and significantly reduce opportunities for leakages, undocumented movements and inventory manipulation.

Yet digital monitoring should form only one pillar of a broader reform agenda.

Pakistan has already taken important steps towards liberalising the downstream petroleum market, including the recent move towards daily petroleum price adjustments. That reform better aligns domestic prices with international market movements and reduces the abrupt price shocks associated with fortnightly revisions.

The logical progression is towards a fully deregulated petroleum market where competition, rather than administrative intervention, increasingly determines commercial outcomes.

Such liberalisation, however, requires stronger—not weaker—regulation. Markets function efficiently only when participants compete on equal terms. Robust digital oversight can therefore complement deregulation by ensuring compliance, preventing collusion and identifying anti-competitive behaviour without unnecessarily interfering in commercial decisions.

There is also unfinished business elsewhere in the sector. The Inland-Freight Equalisation Margin (IFEM), originally designed to ensure uniform petroleum prices across the country, has frequently attracted criticism over its administration and utilisation.

Greater transparency in its operation, supported by digital data on product movement and freight costs, would help reinforce confidence that the mechanism serves consumers rather than creating unintended distortions.

Similarly, Pakistan continues to underutilise one of its most efficient transportation assets. White oil pipelines remain significantly cheaper, safer and environmentally preferable to road transport, yet a substantial share of petroleum products continues to move by tanker.

Encouraging greater pipeline utilisation where capacity exists would lower logistics costs, reduce road congestion, improve safety and minimise carbon emissions. A digitally monitored supply chain should also provide policymakers with better information to optimise transport choices across the network.

The proposed restructuring of OGRA itself is equally important. Modern regulatory systems require specialised expertise in data analytics, digital compliance, market surveillance and competition economics alongside traditional engineering and technical skills. Building institutional capacity will determine whether technological investments translate into better regulation or merely better reporting.

The profound challenge before policymakers is to ensure that digital transformation becomes part of a comprehensive modernisation of the petroleum sector rather than another standalone initiative.

Pakistan’s energy reforms have gathered welcome momentum in recent years, from refinery upgradation to downstream liberalisation. Strengthening regulatory capability through technology should reinforce that trajectory.

Consumers ultimately care little about the sophistication of regulatory platforms. They, actually, care about uninterrupted supplies, fair prices and competitive markets free from manipulation. If digital monitoring helps deliver those outcomes, it will represent far more than a technological upgrade. It will mark another important step towards building a petroleum sector that is transparent, efficient and increasingly governed by market principles rather than administrative discretion.