Tag Archives: Pakistan economy

SBP Cuts Policy Rate by 250bps and Updates Economic Outlook for FY25

The State Bank of Pakistan (SBP) announced a 250bps policy rate cut in today’s Monetary Policy Committee meeting, aiming to support economic activity while managing inflation and debt obligations. Here are the key highlights: External Debt Management For FY25, Pakistan faces external debt obligations totaling USD 26.1 billion, with USD 22 billion as principal and USD 4 billion in interest. …

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Pakistan Misses IMF Cash Surplus Target by Rs182 Billion

IMF

Pakistan Misses IMF Cash Surplus Target by Rs182 Billion Due to Punjab’s Performance Pakistan has failed to meet a major condition of the International Monetary Fund (IMF) to generate Rs342 billion in cash surplus from the four provincial governments. This shortfall, driven by Punjab’s underperformance, reached Rs182 billion, falling 53% short of the target in the first quarter of the …

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Urgent Action Needed on Wheat Support Price to Avoid $1 Billion Import Bill

Wheat

Ministry Urges Swift Action on Wheat Support Price The Ministry of National Food Security and Research has called on Prime Minister Shehbaz Sharif to quickly announce a new wheat support price and set procurement targets. The ministry warns that failing to act could lead to wheat imports worth over $1 billion. This urgency comes from conditions set by the International …

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Government Ends Energy Subsidies to Tackle Circular Debt Crisis

Energy

Government Withdraws Energy Subsidies In a bold move, the government has announced the withdrawal of all subsidies on electricity and gas. This applies to federal and provincial subsidies and is a part of efforts to address the ongoing circular debt crisis in Pakistan’s energy sector. The International Monetary Fund (IMF) has been informed about the new measures aimed at stabilizing …

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Pakistan’s Forex Reserves Cross $11 Billion Amid Positive Economic Indicators

SBP

Pakistan’s Forex Reserves Reach $11 Billion After 30-Month Gap Pakistan’s foreign exchange reserves, held by the State Bank of Pakistan (SBP), rose to over $11 billion as of October 11, 2024. This marks an increase of $215 million in a week and a significant milestone after 30 months. The reserves have grown for 12 consecutive weeks, reflecting an overall increase …

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Habib Bank Limited Reports PKR 14.5bn Profit for 3QCY24

HBL

HBL Reports PKR 14.5bn Profit for 3QCY24 with Strong Non-Funded Income Growth Habib Bank Limited (HBL) reported earnings of PKR 14.5 billion (EPS: PKR 9.85) for the third quarter of 2024 (3QCY24), reflecting a year-on-year (YoY) decline of 13% but a quarter-on-quarter (QoQ) increase of 1%. For the first nine months of 2024 (9MCY24), the bank’s total earnings reached PKR …

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PSX Rebounds with 578-Point Surge

PSX

PSX Gains 578 Points as Political Tensions Ease and Corporate Earnings Shine The Pakistan Stock Exchange (PSX) saw a sharp rebound on Tuesday, advancing by over 550 points driven by a surge in blue-chip stocks and renewed investor confidence during the corporate earnings season. The KSE-100 index initially dipped to an intra-day low of 84,856.21 points, reflecting losses from the …

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Banks Face Rs197 Billion Tax Burden Due to Excessive Lending to Government

Banks

Banks Face Rs197 Billion Additional Tax for Lending to Government A tax advisory firm, Tola Associates, has projected that banks in Pakistan will face an additional income tax burden of Rs197 billion due to excessive lending to the federal government. This tax will be imposed on 27 banks—both domestic and foreign—that have significant operations in the country. Additional Tax Due …

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Pakistan’s Commitments to IMF: Limiting Powers of SIFC

IMF

The Pakistani government has made written commitments to the International Monetary Fund (IMF) to limit the powers of the Special Investment Facilitation Council (SIFC) and the Sovereign Wealth Fund. These measures are part of broader reforms to ensure greater accountability and transparency. Additionally, Pakistan has agreed to phase out all Special Economic Zones (SEZs) by 2035. Limiting SIFC and Sovereign …

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Pakistan Approves 500,000 Metric Tons of Sugar Export

Sugar

The government on Friday approved the export of an additional 500,000 metric tons of sugar. This decision comes amid concerns of manipulated stock figures and consumption patterns, reflecting the strong influence of sugar barons on policy-making. The Economic Coordination Committee (ECC) based the approval on conflicting data compared to previous reports. This decision raises questions about transparency and the credibility …

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