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Punjab Government Mandates Full Transition to Digital Filing by July 1
The Punjab government has mandated that all provincial, regional, and district public offices transition entirely to the E-Filing and Office Automation System (e-FOAS) by July 1, effectively banning manual paper correspondence. This structural shift, overseen by the Punjab Information Technology Board, is expected to save billions in administrative costs while improving transparency, reducing processing delays, and accelerating the resolution of public grievances. Additionally, the Chief Secretary acknowledged the successful efforts of administrative teams in meeting solid waste management targets during the recent Eid-ul-Azha holiday.
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Freelancers Advocate for Continued 0.25 Percent Tax Rate on Foreign Earnings
The Pakistan Freelancers Association (PAFLA) has urged the government to maintain the 0.25% tax rate on foreign exchange earnings for the next decade to support the country's growing digital workforce. PAFLA also proposed state funding for capacity-building programs, the creation of regional freelancing hubs, and subsidies for international professional certifications. This request comes as freelancing export receipts reached USD 959 million between July and April of FY2025–26, marking a 49% increase from the previous year. Furthermore, PAFLA warned that imposing additional taxes on knowledge-based content creators or implementing complex tax mechanisms could drive freelancers toward informal financial channels, ultimately harming Pakistan's foreign exchange position.
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Federal Budget FY2026–27 Government Plans 20 Percent Cut in Power Sector Subsidies
The government plans to reduce power sector subsidies by 20% in the FY2026–27 federal budget, bringing the total allocation to Rs 830 billion. This move, which aligns with IMF requirements to cap subsidies at 0.6% of GDP, aims to manage circular debt and improve sector efficiency. While overall subsidies are declining, allocations for K-Electric are projected to rise significantly, and the government is shifting its strategy toward targeted cash transfers for low-income consumers via the Benazir Income Support Programme (BISP) rather than broad cross-subsidies.
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Concerns Mount Over Economic Impact of Upcoming Federal Budget
Former FPCCI Vice President Tariq Haleem has warned that the upcoming FY2026–27 federal budget, drafted under stringent IMF conditions, may impose significant hardships on the public and business community by stifling economic growth. To mitigate these risks, he urges the government to abandon aggressive revenue collection tactics in favor of broadening the tax base, implementing a single-digit General Sales Tax (GST), and offering targeted incentives for the maritime and shipping sectors. Ultimately, Haleem advocates for a strategic shift toward economic self-reliance by reducing dependence on external debt and prioritizing policies that foster employment and productivity.
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KP Government Outlines Self-Funded Financing Strategy for 360km Motorway
The Khyber Pakhtunkhwa (KP) government has unveiled a self-funded financing strategy for the proposed 360-kilometre Peshawar–Dera Ismail Khan Motorway, aiming to enhance regional connectivity between the province's northern and southern districts. Finance Adviser Muzzammil Aslam stated that the project, estimated to require an initial investment of PKR 200 billion to PKR 250 billion, will be executed through phased funding derived from provincial budgetary resources and improved fiscal management. This approach prioritizes internal resource mobilization to reduce reliance on external borrowing, with the government planning to roll out the construction in multiple stages as part of a broader, ongoing infrastructure development agenda.
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Punjab’s ‘Apni Chhat, Apna Ghar’ Recognized Globally at World Urban Forum in Baku
Punjab Chief Minister Maryam Nawaz Sharif recently showcased the province’s flagship Apni Chhat, Apna Ghar affordable housing initiative at the World Urban Forum in Baku, where it received international recognition as a leading innovative project. The programme has achieved significant milestones within its first year, including the completion of over 100,000 houses, with construction currently moving at a rate of 600 to 700 homes per day. By promoting a transparent, non-discriminatory loan distribution system, the initiative has attracted global attention from delegates and media, positioning Punjab’s housing model as a notable example of sustainable urban development.
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NEPRA Approves Reduced Rs 2.8bn Investment Plan for HAZECO
The National Electric Power Regulatory Authority (NEPRA) has approved a Rs 2.818 billion Distribution Investment Plan (DIP) for the Hazara Electric Supply Company (HAZECO) for the 2025-26 fiscal year. This approval is significantly lower than HAZECO’s revised proposal of Rs 4.268 billion, reflecting NEPRA’s concerns regarding the company’s operational inefficiencies, underutilised assets, and insufficient justification for higher spending. By mandating stricter adherence to regulatory frameworks and emphasizing better demand forecasting, the regulator aims to improve system reliability while protecting consumers from the unnecessary tariff hikes that would have resulted from the company’s original, more costly investment plan.
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President Zardari Grants Assent to SEZ Amendment Bill 2026 to Boost Investment
President Asif Ali Zardari has officially signed the Special Economic Zones (Amendment) Bill 2026 into law, aiming to bolster Pakistan’s investment climate and stimulate economic growth by streamlining business operations. The legislation introduces an expedited dispute resolution mechanism to support investors and mandates that federal and provincial governments provide essential infrastructure including electricity, gas, telecommunications, and road access to public sector SEZs within one year of their notification. Furthermore, the bill grants the Board of Investment the authority to extend similar government-funded infrastructure support to privately established SEZs on a case-by-case basis, provided they meet specific criteria set by the board.
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Pakistan Invites Global Partners to Develop Strategic Oil Reserves at Gwadar Energy City
Pakistan is inviting oil-producing nations to build strategic oil reserves at a new Energy City near Gwadar Port to enhance energy security and regional trade. With active interest from Kuwait and ongoing discussions regarding Saudi investment, the project focuses on expanding storage and handling capacity for oil, LNG, and LPG. This initiative is a vital component of the government's "Hundred Years Vision 2047–2147," which aims to transform Pakistan into a key energy and maritime logistics hub.
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