Government to close untargeted subsidies
Pakistan has assured the International Monetary Fund (IMF) to end untargeted electricity subsidies for all residential consumers and give any further subsidies only through the Benazir Income Support Programme (BISP) as part of conditions agreed for a $1.2 billion climate support loan.
This will impact residential consumers having up to 300 units of monthly consumption, particularly lower and middle?income people who have installed multiple electricity meters to divide their consumption. By spreading monthly consumption over two or three meters, these users avoid abnormally high rates that hit consumption of more than 300 units.
Pakistan has promised to shift from untargeted subsidies to the new mechanism of giving money through BISP by January next year. This will free roughly Rs500 billion that are allocated to tariff differential subsidies, mostly for up to 200? unit consumers, agriculture tube wells, and consumers in tribal areas and Azad Jammu and Kashmir.
In August 5g rollout, devices scarce
Amid low availability of 5G handsets in Pakistan, telecom companies are set to commercially roll out 5G services across the country by mid-August this year, allowing people to enjoy high-speed internet.
Mobile phone operators have proposed that the government could launch an installment scheme for mobile phones with a condition that a defaulter will be banned from getting a mobile SIM from any telecom company.
Meanwhile, 5G services will not be available to iPhone users as Apple is expected to allow 5G on iPhones in Pakistan in 2027.
At present, Apple is not ready to allow 5G services immediately for Pakistani users. IT and telecom ministry officials say that Apple has conveyed it will open a 5G option on iPhones for Pakistani users after evaluating the market size in 2027.
For now, the government has imposed massive taxes on imported mobiles, especially iPhones, that have shrunk the market size for Apple. However, 5G services are available on Samsung handsets.
Pakistan: salt firm transitions to hybrid solar-battery system
In a move towards industrial energy self-reliance, Pakistan’s HubSalt has signed a first-of-its-kind agreement with Chinese firm Livoltec to install a hybrid solar and battery storage system. The agreement was signed in Karachi by Hub Salt CEO Ismail Sattar and Livoltec’s Asia-Pacific Director Max Ma.
Under the agreement, the project will be executed on an Engineering, Procurement and Construction (EPC) basis, with responsibility assigned to Optimizen, which will work in collaboration with its Chinese technology partner Livoltec.
The project involves installation of a 1.44-megawatt solar photovoltaic (PV) system integrated with a 2.35MW-hour battery energy storage system (BESS). This initiative will significantly reduce the company’s reliance on imported diesel.
Speaking on the occasion, Ismail Sattar termed the project a transformative development that would serve as a model for the local industrial sector. He said that the integration of advanced renewable technologies would not only improve operational efficiency but also set a benchmark for promoting green energy in Pakistan’s industrial landscape.
Pakistan, US eye fair trade contract
Federal Minister for Commerce Jam Kamal Khan held a virtual meeting with Rick Switzer, Deputy US Trade Representative (USTR), to discuss bilateral trade ties, advancing ongoing negotiations and exploring new avenues of economic cooperation between the two countries, according to an official statement issued on Wednesday.
Deputy USTR Switzer appreciated Pakistan’s constructive role in promoting regional stability and acknowledged its efforts in facilitating dialogue during recent regional developments. He noted that such contributions support a conducive environment for global trade and economic cooperation.
Responding to these remarks, Khan appreciated US recognition of Pakistan’s constructive role in regional peace efforts and reaffirmed Pakistan’s commitment to responsible global engagement and mediation.
Minister Ahad vows swift CPF execution with provinces
Federal Minister for Economic Affairs Ahad Cheema has assured the World Bank that the federal government is closely coordinating with all provincial governments to effectively implement the 10?year Country Partnership Framework (CPF) for Pakistan, which includes $20 billion for development projects and reform programmes, according to an official statement issued on Wednesday.
During a meeting with World Bank Country Director Bolormaa Amgaabazar, Cheema discussed key outcomes of the CPF, which covers FY2026-FY2035. He emphasised that the federal government and all provinces are on board and remain committed to achieving the framework’s intended outcomes.
Mutual funds, insurers seek budget incentives 2026-27
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held separate meetings with delegations of the Mutual Funds Association of Pakistan (MUFAP) and the Insurance Association of Pakistan (IAP) to discuss proposals for the federal budget 2026-27, according to official statements issued on Tuesday.
By 2035 Pakistan to double farm exports
The government plans to double agricultural exports to China and the Gulf region by 2035 by adopting climate?smart techniques under the newly unveiled Pakistan Climate Prosperity Plan, according to an official document.
The plan integrates climate resilience and green growth initiatives with the China-Pakistan Economic Corridor (CPEC), upgrading highways, ports and energy transmission systems to withstand environmental stress. It also includes developing Pakistan’s first agricultural trade hub at Gwadar Port to leverage CPEC connectivity for larger markets and improved cold-chain logistics.
Existing special economic zones will be transitioned into green economic zones, adopting clean energy and circular economy practices to meet international standards and boost export competitiveness.