Pakistan likely to cut 2026 Hajj costs after Saudi firm lowers bid, minister says

Muslims pray around the Kaaba, Islam's holiest shrine, at the Grand Mosque complex in in the holy city of Mecca on the first day of Eid Al-Adha, the feast of the sacrifice, early on June 6, 2025. (AFP/ file)
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Updated 27 October 2025
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Pakistan likely to cut 2026 Hajj costs after Saudi firm lowers bid, minister says

  • Saudi Arabia’s Al-Rajhi Tawafa company has reduced its Hajj service cost by $53 per pilgrim for Hajj 2026
  • Pakistan refunded $12.2 million to 66,000 pilgrims this year as actual costs were lower than projected ones

ISLAMABAD: Pakistan’s Religious Affairs Minister Sardar Yousaf on Monday hinted at reducing costs for next year’s Hajj after a Saudi service provider offered a lower bid to accommodate pilgrims.

Under Pakistan’s Hajj scheme, the estimated cost of the government package ranges from Rs1,150,000 to Rs1,250,000 [$4,049.93 to $4,236], subject to final agreements with service providers.

Yousaf said this cost is estimated, with some margin, to make up for any contingency and to ensure the Hajj process is smooth but hinted at refunding any saved amount to Pakistani pilgrims at a later stage.

“[Saudi Arabia’s] Al-Rajhi company, has reduced its cost by 200 riyals [$53.33],” the minister told Arab News, after a meeting of the Pakistani Senate committee on religious affairs.

“Whatever amount is saved will go back to pilgrims.”

Out of a total 19 firms, five Saudi companies were shortlisted to present their bids for 2026 Hajj, according to Pakistani officials.

Al-Rajhi, a licensed Tawafa company responsible for assisting foreign pilgrims in Mina, Arafat and Muzdalifah, offered the lowest bid of 2,635 Saudi riyals ($702) per pilgrim for next year’s Hajj, compared to 2,875 riyals ($766) this year. The company provided amenities such as air-conditioned tents and sofa beds at Hajj sites for Pakistani pilgrims this year.

“The company has provided the services to the satisfaction of Pakistani pilgrims and even the prime minister of Pakistan has appreciated that,” Pakistani Religious Affairs Secretary Dr. Syed Ata-ur-Rahman told senators who attended Monday’s meeting.

This year, around 66,000 Pakistani pilgrims were given Rs3.45 billion ($12.2 million) refunds as the actual cost of the pilgrimage was less than the projected cost, according to the religious affairs minister.

“If there is any savings in that [Hajj costs], then it becomes their (pilgrims) right,” Yousaf said.

He hoped that next year’s Hajj will be better than this year’s in terms of services and pilgrims’ ease.

“Hajj is a big responsibility,” Yousaf said. “We want to make it better and transparent so that pilgrims have the best experience.”


Pakistan stocks close at record high over current account surplus, falling bond yields

Updated 18 December 2025
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Pakistan stocks close at record high over current account surplus, falling bond yields

  • KSE-100 index gains 1,646.79 points or 0.97% to close at new high of 171,960.64 points
  • Pakistan’s central bank posted a current account surplus of $100 million in November

KARACHI: Pakistani stocks closed at an all-time high of 171,960.4 points on Thursday, with financial analysts attributing the surge to increasing investor confidence stemming from a current account surplus reported in November and a drop in government bond yields.

The benchmark KSE-100 index gained 1,646.79 points or 0.97% to close at an all-time high of 171,960.64 points on Thursday. The previous day, Pakistani stocks surged to 170,313.85 points at close of business. 

Ahsan Mehanti, chief executive officer at Arif Habib Commodities, said the optimistic mood at the stock exchange was fueled by the $100 million current account surplus reported by the central bank in November.

“Speculations ahead of year-end close and fall in government bond yields up to 70 basis points after the SBP (State Bank of Pakistan) policy easing played the catalyst role in bullish activity at PSX,” Mehanti told Arab News. 

The surplus was a welcome development for Islamabad as Pakistan’s central bank reported a $291 million deficit in October.

Topline Securities, a Pakistani brokerage firm, said in its daily market review that strong buying by local funds followed a drop in Pakistan Investment Bond (PIB) yields, which boosted investor confidence.

PIB yields are the returns on bonds or government-backed securities that pay fixed semi-annual interest, with rates influenced by market demand and SBP auctions.

“Strength in ENGRO (Engro Corporation), FFC (Fauji Fertilizer Company), UBL (United Bank Limited), LUCK (Lucky Cement) and BAHL (Bank AL Habib) underpinned positive momentum, collectively contributing 1,504 points to the index,” the brokerage firm wrote on X. 

“This upside was partly offset by declines in PIOC (Pakistan International Oil Company), DHPL (D.H. Corporation Limited) and MLCF (Millat Tractor Limited), which together subtracted 176 points.”

The sustained rise in equities comes amid improving liquidity conditions and continued investor participation, with market participants focusing on corporate earnings, sector-specific developments and broader macroeconomic signals.

Earlier on Monday, Pakistan’s central bank cut its key policy interest rate by 50 basis points to 10.5%, a move that surprised analysts and followed four consecutive policy meetings where rates were held unchanged.

The cut came despite an International Monetary Fund staff report earlier this month cautioning against premature monetary easing.

Inflation eased to 6.1% in November, remaining within the SBP’s target band, though analysts have warned that price pressures could resurface later in the fiscal year as base effects fade and food and transport costs remain volatile.