Tag Archives: Pakistan economy

On Wednesday, Jameel Ahmad, the Governor of Pakistan’s central bank, addressed the National Assembly Standing Committee on Finance, providing a mixed outlook for the country’s economy. Ahmad projected that inflation might surge in the coming months due to recent budgetary measures, rising energy prices, and ongoing geopolitical tensions in the Middle East. Despite these challenges, he assured that the foreign …

The grey currency market in Pakistan has reemerged, fueled by a surge in the smuggling of US dollars to neighboring countries. This shadowy market operates outside the official remittance channels, offering exchange rates that are significantly higher than those set by the government. According to Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan, the grey market is …

Introduction On Monday, the Pakistani government decided to defer the privatisation of the National Bank of Pakistan (NBP) due to legal hurdles, contradicting a prior commitment made to the International Monetary Fund (IMF). This decision highlights ongoing challenges in Pakistan’s efforts to reform state-owned enterprises (SOEs) and align with international agreements. Legal and Policy Challenges Last month, Pakistan assured the …

Overview of the New Budget Pakistan’s economic outlook is currently marred by fiscal challenges, as detailed in the Lahore School of Economics’ recent report. For the fiscal year 2024-25, the budget has been significantly expanded, with expenditures rising from Rs14.5 trillion to Rs18.9 trillion. This increase is largely driven by the government’s ambitious target to boost tax revenue from Rs9.4 …

On Monday, Fitch Ratings upgraded Pakistan’s long-term foreign currency issuer default rating (IDR) from CCC to CCC+. This upgrade reflects an improvement in Pakistan’s external liquidity and funding conditions, buoyed by recent agreements with the International Monetary Fund (IMF). Fitch highlighted the significant progress under the previous IMF arrangement, which helped Pakistan reduce its fiscal deficits and rebuild its foreign …

The State Bank of Pakistan (SBP) has announced a one percentage point reduction in its key interest rate, bringing it down to 19.5%. This decision was revealed by SBP Governor Jameel Ahmad during a media briefing following the recent monetary policy meeting. Ahmad attributed the rate cut to a gradual decrease in inflation and signs of economic recovery. The monetary …

In a recent report by ACE Money Transfer, a UK-based company, a startling revelation has come to light: illicit activities, including the black market trade and smuggling of United States Dollars (USD), are quietly siphoning off a staggering $23 billion from Pakistan’s economy every year. These clandestine operations, which encompass black market currency trade, oil smuggling, gold smuggling, and challenges …

In a recent report by the Asian Development Bank (ADB), Pakistan’s economic outlook appears increasingly challenging as it stands out as an outlier in Asia. The report predicts that Pakistan will experience the highest inflation rate while having the fourth lowest economic growth rate among all 46 economies in the region. The Asia Development Outlook, the flagship publication of ADB, …

Introduction: The upcoming fortnight in June brings mixed news for fuel consumers in Pakistan. While the price of petrol is expected to decrease by Rs1.87 per litre, diesel might become costlier by Rs3.29 per litre. These adjustments in fuel prices, based on the rates of petroleum levy and general sales tax, will have implications for both individuals and industries relying …