Latest News

Pakistan's banking sector voluntarily reduced the Export Refinance Facility (ERF) markup by 3%, lowering the end-user rate to 4.50% for exporters to boost foreign exchange earnings and economic recovery. This supports surging private sector credit (Rs 1.1T in FY25), SME/agriculture growth, and national efforts like circular debt reduction and PIA privatization. PBA Chairman Zafar Masud hailed it as backing exporters and the nation.

Pakistan's proposed power tariff reforms will stoke inflation by shifting IMF-mandated subsidy cuts to middle-class households, while cutting industrial prices 13-15% for export relief. Middle-class bills may rise 50%, with 100-300 unit users facing up to 76% hikes from new fixed charges; low-income households get PKR 400 fees. NEPRA's solar export rate cuts spark review to avert grid defection amid utility strains.

Saudi Arabia expressed keen interest in investing in Pakistan's rice sector via corporate farming, mechanization, and logistics to secure long-term supplies, as discussed in a meeting between Commerce Minister Jam Kamal Khan and Saudi Assistant Minister Ibrahim Al-Mubarak. Talks covered broader agriculture (rice, fodder, meat), Saudi financing for export projects, productivity boosts in crops like cotton, joint market access in Central Asia/Africa/ASEAN, vocational training for healthcare/hospitality workers, and opportunities in building materials, pharmaceuticals, and manufacturing.

Pakistan met 3 of 5 IMF fiscal targets for its next $1B tranche, hitting primary surplus (PKR4.1T), provincial cash surplus (PKR1.18T), and tax revenue goals, boosted by SBP profits and PKR823B petroleum levy. FBR missed PKR6.49T collection by PKR330B and retail income tax target despite broader scope. Provinces led gains; federal spending hit PKR7.1T under $7B IMF program.

SBP Governor Jameel Ahmad prioritizes economic stability over aggressive rate cuts, citing Pakistan's post-crisis phase with 5-7% inflation, current account surplus, and recovering reserves. Focus shifts to sustainable growth via development finance, as sharp easing risks inflation rebound; exporter aids include tariff cuts and Export Finance tweaks amid $7B IMF EFF ending 2027.

Pakistan International Bulk Terminal Limited (PIBT) will manage over $5 billion in annual mineral exports from Reko Diq starting 2028, with Barrick's Reko Diq Mining Company signing a port deal for copper-gold concentrate at Port Qasim. The project—Balochistan's massive undeveloped deposit (50% Barrick, 25% each federal/provincial)—projects 800K-1M tonnes yearly, scaling from $2.7B to $5B post-expansion, backed by $150M terminal upgrades within a $7.7B investment. Chinese/Pakistani firms expand mining leases nearby, with PIBT eyeing barite, phosphate, iron ore, sand exports and Gulf partnerships amid government security pledges.

PM Shehbaz Sharif launched a 58.8 MW solar panel scheme for Gilgit-Baltistan, providing free panels to 147,873 verified households and SMEs to combat electricity shortages. Beneficiaries handle batteries, inverters, and transport; applications via online portal or district offices ensure transparent, merit-based selection. The initiative boosts remote area living standards and sustainable development.

The federal government has approved a Rs13 billion expansion for the Armed Forces Institute of Cardiology (AFIC) and the National Institute of Heart Diseases (NIHD) in Rawalpindi. The project aims to alleviate severe overcrowding and treatment delays at the facility, which serves both military and civilian patients. To navigate fiscal constraints, the government will fund the expansion by diverting savings from slow-moving projects within the Public Sector Development Programme (PSDP) and securing Rs6 billion from foreign sources. This expansion was part of a larger Rs240 billion development package approved by ECNEC, which also includes the Karachi Yellow Line BRT and the Prime Minister’s Youth Skill Development Programme.

The FBR has officially increased property valuations in Islamabad by 15% to 75% via a new notification (SRO.163), though DHA areas remain notably excluded. The updated framework sets building values at Rs3,000 per sq. ft. for structures up to five years old and Rs1,500 for older ones. While rural areas will still follow DC rates, the FBR clarified that the higher value will always apply in case of a conflict. This revised policy follows a brief suspension of previous, more aggressive rates to accommodate feedback from real estate stakeholders.