Tag Archives: Economic Policy

Pakistan’s $30 Billion Debt Challenge: What’s Next?

Debt

Introduction Pakistan’s central bank has announced that the country will repay $30.35 billion in foreign debt and interest between August 2024 and July 2025. This includes significant loans that bilateral creditors roll over every year, adding pressure on the nation’s finances. Breakdown of Debt and Interest Payments The State Bank of Pakistan (SBP) reports that it needs $26.48 billion to …

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Pakistan’s Inflation Hits 3.5-Year Low at 6.9%

Inflation

Pakistan’s annual inflation rate dropped to a 3.5-year low of 6.9%, largely driven by a favorable base effect and lower prices of non-perishable food items. This significant decline, reported by the Pakistan Bureau of Statistics (PBS) on Tuesday, opens up the possibility for the central bank to implement multiple interest rate cuts to stimulate the economy, which has been struggling …

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Federal Cabinet Approves Export of Additional 100,000 Metric Tons of Sugar Amid Controversy

In a significant development, the federal cabinet of Pakistan has approved the export of an additional 100,000 metric tons of sugar, a decision that contrasts with Prime Minister Shehbaz Sharif’s earlier stance of withholding further exports due to concerns over local market prices and supply stability. Cabinet’s Approval Process and ECC’s Role The cabinet ratified the summary through circulation on …

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BOJ Deputy Governor Signals Caution on Interest Rate Hikes Amid Market Volatility

Shinichi Uchida, Deputy Governor of the Bank of Japan (BOJ), has signaled that the central bank will refrain from increasing interest rates while market conditions remain unstable. Uchida’s comments, made on Wednesday, contrast with the recent hawkish stance of BOJ Governor Kazuo Ueda, who last week surprised markets with an unexpected interest rate hike. Uchida’s remarks came amid sharp market …

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Pakistan’s Cotton Crisis: Declining Production Threatens Agriculture and Textile Industry

Pakistan’s cotton crop, a cornerstone of its agricultural and textile sectors, is facing a dramatic decline in production. After a relatively strong yield of 10.2 million bales in the previous fiscal year, recent reports from the Pakistan Cotton Ginners Association reveal a staggering 48% decrease in production in the first 15 days of FY-25. This sharp decline is raising serious …

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Federal Finance Minister Hints at Potential Interest Rate Cuts, Advocates for Economic Reforms

Federal Finance Minister Mohammad Aurangzeb recently suggested that there may be opportunities for further reductions in interest rates. Speaking at an event hosted by the Karachi Chamber of Commerce, Aurangzeb emphasized the crucial role of effective macroeconomic governance in fostering economic growth. He noted that structural issues in the economy often lead to balance of payment problems, particularly as growth …

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