Statement sought on subsidy for QR-based payments
The government has sought a report from the State Bank of Pakistan (SBP) on the impact of subsidy allocated for the adoption of QR-based payments.
During recent discussions held by the Economic Coordination Committee (ECC), the SBP apprised the forum that in a meeting of the Steering Committee on Cashless Economy, it was decided that Rs3.5 billion would be provided in annual subsidy to promote the large-scale adoption of Raast person-to-merchant (P2M) QR (quick response)-based payments.
The Finance Division suggested that the central bank should prepare a comprehensive report including the impact of subsidy, action values, modifications, proposals, etc. The ECC directed the SBP to come up with the report for review in July 2026.
Salaried class pays 21pc additional tax
Salaried individuals have paid 21 percent more in income tax during the first two months of this fiscal year, contributing Rs85 billion, showing that the nominal reduction in rates in the budget was insufficient to ease their financial burden.
Compared to Rs70 billion in income tax payments during July-August of the last fiscal year, their contributions surged to about Rs85 billion this year, government sources told. They paid roughly Rs15 billion, or 21 percent more, despite the government having nominally reduced their income tax rates in this year’s budget. Finance Minister Muhammad Aurangzeb acknowledged that the relief was minimal due to almost no fiscal space available.
The 21 percent increase in income tax payments was over and above an already higher base from last year when the salaried class’s contributions jumped by more than half due to abnormal increases in their rates.
Policy volatility hits green funds
Pakistan’s economy is grappling with deep-rooted structural weaknesses, intensifying climate risks, and a widening investment gap that threaten its long-term stability. Despite government commitments to an export-led growth model and sustainable development, experts warn that persistent challenges in attracting investment, managing climate vulnerability, and fostering sustainable business practices continue to weigh heavily on the country’s prospects.
A joint report by the Association of Chartered Certified Accountants (ACCA) and the Pakistan Business Council (PBC) highlights the urgency of reforms in sustainable finance, corporate governance, and policy frameworks.
Pakistan railways introduces property recovery worth Rs65bn
Federal Minister for Railways Muhammad Hanif Abbasi on Thursday unveiled reforms, recovery measures, and development projects aimed at modernising Pakistan Railways and making it more efficient, transparent, and business-friendly.
During a visit to the Karachi Chamber of Commerce and Industry (KCCI), Abbasi said that railway lands worth Rs15 billion had been recovered, while properties worth another Rs50 billion would be retrieved this year. He clarified that railway property is non-saleable, though revenue-sharing partnerships are being pursued for better use.
ADB accepts $130mn for Pak energy sector
Federal Minister for Power Sardar Awais Ahmad Khan Leghari on Thursday met with a delegation of the Asian Development Bank (ADB) led by Joonho Hwang, Director Energy.
The meeting focused on energy sector reforms in Pakistan, privatisation of distribution companies (DISCOs), the Public-Private Partnership (PPP) model and future areas of cooperation, said a press release.
The minister appreciated ADB’s continued support, especially in promoting the PPP model and integrated energy planning.
He informed that in the first phase, three DISCOs will be privatised, where both investment and technical assistance will be welcomed.
In fy2025, agriculture credit rises 16pc to Rs2.57tr
The government’s focus on improving agricultural productivity through input support and financial access led to higher credit disbursement and machinery imports in FY2024-25.
Agricultural credit rose 16.3 percent to Rs2,577.3 billion in FY2025, up from Rs2,215.7 billion in FY2024, according to the Monthly Economic Update and Outlook for August 2025. The increase reflects stronger access to affordable financing for farmers.
Mechanisation also gained momentum. Imports of agricultural machinery and implements surged 123.9 percent to $14.4 million in July FY2026, signalling rapid adoption of modern farming technologies.
Punjab devastation for Sindh’s crops, increases red flag
The Pakistan Business Forum (PBF) has raised alarm over the devastation caused by floods in Punjab and the looming threat to Sindh’s agricultural belt, urging urgent federal and provincial action to avert a worsening economic and humanitarian crisis.
In a letter to Prime Minister Shehbaz Sharif, PBF acknowledged government efforts in tackling national challenges but stressed that the agricultural emergency requires immediate, coordinated intervention.
Preliminary reports show thousands of acres of crops destroyed across Central and Southern Punjab. Around 60 percent of rice, 30 percent of sugarcane, and 35 percent of cotton have been lost. More than 1.8 million people in the Chenab, Ravi, and Sutlej river basins are severely affected. With floodwaters moving south towards the Indus, Sindh faces grave risks of similar destruction.
EFS dents performance of local industries
Industry experts have voiced concerns over the government’s Export Facilitation Scheme (EFS), claiming it is undermining the performance of local industries.
In the previous years, Pakistan’s export sector was supported through direct subsidies such as power and gas tariff relief, reduced corporate taxes and concessionary credit facilities. However, under mounting pressure from the International Monetary Fund (IMF), these subsidies have largely been curtailed.
Instead, support is now being offered through policies like the EFS which, critics argue, effectively subsidise exports at the expense of the domestic industry.