Oil prices fell on Sunday with Brent crude falling below $72 amid sluggish demand and reports that Libya is close to agreeing to resuming crude oil exports. Crude oil futures were down in mid-morning Asian trade on September 8 due to losses after Brent markers dropped below $75 per barrel this week on a wave of sluggish developments on the …

Pakistan’s textile hub is in crisis as Faisalabad’s power looms industry is bearing the brunt of exorbitant electricity bills. The rising raw material costs have crippled loom owners, leaving workers unemployed. The once-thriving area of Ghulam Muhammad Abad, often referred to as “the Manchester of Faisalabad,” is now marked by silent factories and idle looms, with many small and large …

In a major development for Pakistan’s energy sector, top security officials have revealed the identification of the world’s fourth-largest oil and gas reserves in the seas off the coast of Pakistan. The officials said the discovery, which has the potential to transform the country’s economy, was confirmed following the completion of an extensive geographic survey that took more than three …

The total outstanding dues of various sectors of Pakistan State Oil (PSO) have climbed to Rs 786 billion. According to sources, the import bill for RNLG (Re-gasified Liquefied Natural Gas) has surpassed Rs 506 billion, while Sui Northern Gas Pipelines Limited (SNGPL) owes PSO Rs 506 billion for LNG supply. The power sector’s dues have also crossed Rs 186 billion, …

Pakistan’s government has formally requested a $1.75 billion loan from commercial banks at higher interest rates as part of its efforts to meet the conditions set by the International Monetary Fund (IMF) for loan approval. Finance Ministry sources revealed that officials are in talks with three major banks to secure the loan, with the possibility of long-term financing at an …

The Federal Board of Revenue (FBR) is likely to raise a 1 percent rate on 31 different kinds of withholding taxes from next month if the revenue shortfall continues in September 2024. In this regard, the FBR has drafted a mini-budget proposal on WHTs. According to the details, presently 31 types of withholding taxes are applicable on various financial transactions. …

Virtual discussions between officials from the Finance Ministry and the International Monetary Fund (IMF) mission took place on Tuesday evening, focusing on critical issues of external financing and revenue generation. Despite the ongoing negotiations, no deadline has been established for the approval of the loan by the IMF’s Executive Board, according to sources familiar with the matter. During the talks, …

Finance Minister Muhammad Aurangzeb has revealed that the International Monetary Fund (IMF) has no objections to implementing targeted subsidies. These subsidies, he said, could be distributed to eligible recipients through the Benazir Income Support Programme (BISP). To ensure uniformity, the minister indicated that discussions would be held with chief ministers this week, aiming to apply a consistent policy nationwide. He …

Economist Kaiser Bengali has emphasised that the government’s primary focus should be on reducing fiscal deficits, stating that closing down certain institutions could result in savings of PKR 30 billion. During a press conference in Karachi, Bengali announced his resignation from the High-Powered Committee for Rightsizing. He expressed concerns that the entire burden of restructuring is being placed on the …

The federal government has submitted a comprehensive plan to the International Monetary Fund (IMF) aimed at reducing electricity prices by Rs6 per unit. This proposal is part of the government’s ongoing efforts to provide relief to consumers burdened by high electricity costs. According to sources within the Power Division, the plan involves the federal and provincial governments jointly arranging funding …

Pakistan’s total export growth has managed to outpace its external debt in the past five fiscal years, according to latest data from the State Bank of Pakistan (SBP). The country’s External Debt to Total Exports ratio has fallen to 253 percent in FY 2023-24, compared to its peak of 314 percent in FY20. This suggests growth in exports has remained …

More than Rs1200 billion were paid to 26 such power plants across the country from 2015 to 2024, as per the data on the capacity payments made to power plants running on imported fuel over the last decade has come to light. The payments continued uninterrupted, even during periods when the plants were shut down or experiencing breakdowns. According to …

International rating agency Moody’s on Saturday upgraded the ratings of five major Pakistani banks, citing improved economic conditions in the country. The long-term deposit ratings of the five banks have been upgraded from Caa3 to Caa2. The banks include Habib Bank Limited, National Bank of Pakistan, United Bank Limited, Allied Bank Limited, and MCB Bank Limited. Moody’s also changed the …

The Federal Board of Revenue (FBR) is grappling with a significant shortfall in tax collection for the month of August, falling Rs113 billion short of its monthly target. According to sources within the FBR, the tax authority managed to collect Rs785 billion in the 30 days of August, against a set target of Rs898 billion. The FBR is hopeful that …

The Khyber Pakhtunkhwa Revenue Authority (KPRA) has achieved a record tax collection of Rs7.1 billion in the first two months of the current fiscal year, marking a 44% increase compared to the same period last year. Khyber Pakhtunkhwa’s Finance Adviser Muzammil Aslam highlighted the remarkable performance of KPRA, contrasting it with the challenges faced by the Federal Board of Revenue …

Finance Ministry has presented a detailed debt repayment schedule to the National Assembly, outlining plans for the period from 2024 to 2040. As of June this year, Pakistan’s national debt stands at Rs71 trillion, with domestic debt accounting for 66% and foreign debt 34%. The breakdown reveals that Pakistan’s domestic debt exceeds Rs47 trillion, while foreign debt surpasses RS24 trillion. …

Prime Minister (PM) Shehbaz Sharif has unveiled an ambitious plan to boost remittances from overseas Pakistanis to $60 billion by 2034. According to sources within Finance Ministry, the foreign remittances currently, stands at $32 billion and the government aims to increase it by 10% annually. To achieve this target, 26 Community Welfare Attachés will be appointed in Gulf countries and …

The National Bank of Pakistan (NBP), one of the country’s largest commercial banks, failed to recover loan amounting to Rs23.35 billion from sugar mills. As per details, the report complied by Auditor General of Pakistan revealed NBP failed to recover the loan amount of Rs23.35 billion in FY2023-24. The report stated the bank, lent Rs15.28 bln to the sugar mills …

The long-delayed Pak-Iran gas pipeline project is once again under scrutiny at the highest levels, as Iran has raised concerns with the Pakistan government over further delays and issued the country a final notice. According to sources, Iran has expressed serious concerns to Pakistan over the continued postponement of the project, warning that no additional time will be granted for …

The Auditor General of Pakistan (AGP) has expressed serious concerns over the country’s deteriorating financial affairs, which have resulted in less than 4 per cent of the over Rs38.67 trillion budget being available for socio-economic services. Besides, around 93pc of supplementary grants, worth over Rs8tr, are not approved by the parliament and remain unspent, representing a loss of public resources. …

A shocking case of money laundering has been uncovered by the Federal Board of Revenue (FBR) under the guise of solar panel imports, with an extensive over-invoicing amounting to Rs69.5 billion between 2017 and 2022. The FBR’s detailed report on the matter reveals the involvement of two major companies that allegedly funnelled a staggering Rs72.83 billion out of Pakistan. According …

The Asian Development Bank (ADB) has identified remittances as a crucial potential pillar of Pakistan’s economy, highlighting their significant role in bolstering the country’s financial stability, especially during economic crises. According to a recent blog report by the ADB, remittances to Pakistan have become a vital component of the national economy, equivalent to 10% of the country’s GDP. The report …

Pakistan is seeking $4 billion from banks in Gulf countries to meet its external financing needs for IMF bailout approval. According to sources, the government is exploring alternative sources to meet its external financing needs including talks with Dubai Islamic Bank and Mashreq Bank to secure the funding. Sources revealed that Minister of Finance Muhammad Aurangzeb held an online meeting …

The recent nationwide slowdown in internet speed is creating multifaceted challenges for all sectors including commerce, health, education, financial & banking, and public sector operations. The Telecom Operators Association (TOA) has appealed to Prime Minister Shehbaz Sharif to intervene and resolve the ongoing internet slowdown crisis. They highlighted the following issues: The recent nationwide slowdown in internet speed is creating …

The International Monetary Fund (IMF) Executive Board is expected to approve a $7 billion bailout package for Pakistan in September. As per details, Finance Minister Muhammad Aurangzeb said that Pakistan is in contact with the IMF for the approval of the loan agreement. The finance minister mentioned that talks are being held with IMF to put the staff-level agreement for …

Pakistan has witnessed a decline in gas and oil production over the past decade, with no major discoveries of new reserves. According to the Pakistan Petroleum Information Service, the country’s oil production has decreased by 24,000 barrels per day over the past 10 years. In 2015, the daily oil production was 94,500 barrels, which dropped to 70,500 barrels in 2024. …

Pakistan’s current account deficit witnessed a sharp decline in July 2024, though it did not achieve a surplus. According to the current account statistics released by the State Bank of Pakistan (SBP), the country faced a current account deficit of $162 million in the first month of the current financial year. This figure represents a significant 78% decrease compared to the …

Pakistan’s debt-to-GDP ratio fell to a 6-year low in the financial year 2023-24 to 70 percent, as nominal GDP has grown faster than debt driven by higher inflation. The State Bank of Pakistan (SBP) reported a 3.4 percent rise in the country’s total external debt and liabilities, which reached $130 billion by June 30, 2024, up from $126.142 billion last …

Deputy Prime Minister Muhammad Ishaq Dar chaired a meeting to address challenges faced by Exploration and Production (E&P) companies and vowed government’s commitment to ensuring energy security and fostering economic growth was at the forefront, as new measures were outlined to attract both local and foreign investment in the sector. Ishaq Dar led the first meeting of a newly formed …

Danish shipping company Maersk has announced to invest $2billion in Pakistan’s port and transport infrastructure over the next two years. According to state-owned news agency, the investment under this project will contribute to the infrastructure development and economic improvement. In this regard, Minister for Maritime Affairs Qaiser Ahmed Sheikh will visit Denmark this month for the signing of a Memorandum …

The International Air Transport Association (IATA) has formally reached out to the Federal Board of Revenue (FBR) chairman, raising concerns over the challenges airlines face due to the lack of federal excise duty (FED) differentiation for labour visas to Gulf countries. In its letter, the IATA emphasized that airlines will struggle to differentiate and verify passengers based on the specific …

The cellular internet in Pakistan is currently experiencing severe slowdowns, profoundly impacting digital activities across the country. The ongoing internet issues are causing significant disruptions, with the internet industry reportedly losing $50 million per day. This has particularly affected IT exports, which are losing around $13 million daily, highlighting the specific impact on the technology sector. Reports indicate that the …

ISLAMABAD: The State Bank of Pakistan (SBP) said Thursday that its foreign exchange reserves reached around 9.3 billion U.S. dollars during the week ending on Aug. 9, marking an increase of 119 million dollars. Net foreign reserves held by commercial banks came at around 5.4 billion dollars, the central bank said in a statement. Total liquid foreign reserves held by …

Pakistan’s economic crisis continues to worsen despite a recent dip in the inflation rate, according to a report on the country’s economy by Bloomberg. The report says that while inflation has slightly decreased, it remains at the highest level compared to other Asian countries, placing immense pressure on the nation’s struggling population. It noted that the government was compelled to …

In an important development for the Pakistani stock market, Morgan & Stanley Capital International (MSCI) has included seven Pakistani companies in two of its prominent indices. This update brings the total number of Pakistani companies listed in MSCI indices to 82, reflecting the growing presence of Pakistan in global financial markets. According to experts, this inclusion is expected to boost …

ISLAMABAD: Governor State Bank of Pakistan Jameel Ahmad on Wednesday stressed the need for adopting new and innovative strategies to resolve perennial economic issues in Pakistan. The central bank is particularly addressing challenges in the context of digital innovations and emerging cybersecurity threats, Ahmad said. He urged the banking industry to upgrade their systems to enhance cybersecurity and inform their …

The Ministry of Finance has unveiled its Medium-Term Macroeconomic Framework, projecting a favourable economic outlook for the upcoming fiscal year, with expectations of increased economic growth and reduced inflation. According to the Finance Ministry report, the Gross Domestic Product (GDP) growth is anticipated to reach 4.8% for the fiscal year 2025-26. In addition to this growth, inflation is expected to …

The three-day Food and Agricultural International Exhibition held at Karachi’s Expo Centre has come to an end. At the conclusion of the exhibition, the Trade Development Authority of Pakistan Chief Executive Officer Zubair Motiwala presented a briefing. He said that the value of trade agreements at the current expo was 200% more than the volume at the previous exhibition. Pakistani …

Balochistan has enormous variable renewable energy (VRE) potential which can electrify the province and help Pakistan in achieving the 30 percent VRE target, besides reducing the approximately $500 million annual losses by 2028, contributing to reducing the circular debt in the sector, says the World Bank. The bank in its latest report, “Balochistan Renewable Energy Development Study”, stated that enhancing …

The federal government has failed to convince the International Monetary Fund (IMF) on giving tax exemption on stationery items. Despite the Federal Board of Revenue’s (FBR) efforts during virtual talks, the IMF has refused to lift the 14 percent sales tax on these stationery items. Last month, traders announced a nationwide strike against the 14 percent sales tax imposed on …