IMF talks start with reform gaps
As the International Monetary Fund (IMF) began talks from Karachi, Pakistan managed to show progress on fiscal and monetary numbers, which would lead to the release of loan tranches, but it failed to meet a few conditions related to an increase in spending on education and healthcare and improving governance.
In addition to reviewing the implementation of programme conditions till June this year, the IMF mission on Wednesday also simultaneously began Article-IV consultations – a comprehensive and deeper dive to gauge the health of Pakistan’s economy.
On the opening day, the IMF had a bird’s-eye view of Pakistan’s macroeconomic outlook and the external sector situation in the light of the Middle East conflict and its implications for Pakistan’s economy, according to officials privy to the discussions.
ADB keeps Pakistan’s growth at 3.7pc
The Asian Development Bank (ADB) on Wednesday kept Pakistan’s economic growth forecast at 3.7 percent, the third lowest in South Asia and below the official target, and said that the government may have to slash expenses due to any shortfall in tax collection by the Federal Board of Revenue (FBR).
In its flagship Asian Development Outlook, the Manila-based lending agency said that household consumption in Pakistan would remain subdued in the current fiscal year due to a rising cost of living. It put the inflation forecast at 8.3 percent for the new fiscal year, the second highest in the region after Bangladesh. Inflation will remain above the central bank’s medium-term target range, complicating monetary policy, according to the ADB. It said that economic growth was projected to remain at 3.7 percent in fiscal year 2026-27 as lingering effects from the Middle East conflict dampened macroeconomic momentum.
Pakistan: fuel levy poses bigger inflation risks
The inflationary impact of fuel prices extends well beyond their relatively small direct weight in Pakistan’s Consumer Price Index (CPI), as higher petroleum costs feed into transport, logistics, agriculture and business operations before eventually reaching consumers, economists said.
Motor fuel accounts for 2.91 percent of the urban CPI basket, according to the Pakistan Bureau of Statistics (PBS) data. But the broader transport group has a 6.14 percent weight, while transport services alone carry a 1.75 percent weight. In August, motor fuel prices were 24.43 percent higher year-on-year, while the transport group rose 21.79 percent. Economist and IBA Assistant Professor Adil Nakhoda said motor fuel’s direct contribution to the CPI could appear limited, but its multiplier effect could have a much wider impact on the economy.
Federal board of revenue vows simpler, digital-first tax system
The Federal Board of Revenue (FBR) is working to make the country’s tax system simpler, more transparent and easier for taxpayers to navigate, with a particular focus on expanding digital facilities, the tax authority’s chairman said.
Speaking to a delegation from the Lahore Tax Bar Association on Wednesday, FBR Chairman Rashid Mahmood Langrial said consultation with stakeholders, including tax practitioners, would be strengthened to ensure quicker resolution of tax-related problems and more inclusive policymaking. “Facilitating taxpayers and modernising the tax administration system through technology remain among the board’s core priorities,” he said.
Pak, Bangladesh eye agrifood partnership
Federal Minister for National Food Security Rana Tanveer Hussain held a meeting with Bangladesh’s Minister of Environment, Forest and Climate Change Abdul Awal Mintoo and Minister of State for Fisheries and Livestock Sultan Salauddin Tuku on the sidelines of the FAO Global Conference for Actions on One Health in Agrifood Systems in Rome.
The meeting focused on strengthening bilateral cooperation in agriculture, livestock, fisheries, climate adaptation and the One Health approach, with discussions centred on shared challenges and opportunities for advancing sustainable and resilient agrifood systems.
Artificial intelligence a powerful engine for financial inclusion
Pakistan Virtual Assets Regulatory Authority Chairman Bilal Bin Saqib has said that artificial intelligence and tokenisation can become the developing world’s most powerful engines for financial inclusion, provided they are built for people left outside of the financial system.
He delivered a keynote address on financial inclusion, AI and tokenisation at a forum marking 50 years of microcredit at the 81st Session of the United Nations General Assembly.
Speaking at the Social Business, Youth and Technology Forum, Saqib, who is also the minister of state, spoke about the choice now facing emerging economies as the rules of global finance were rewritten.
Ambassador sees scope to expand trade
The European Union ambassador has said that there is significant scope for expanding economic and commercial relations between Pakistan and the European Union through higher exports, greater investment, technology transfer and stronger business-to-business (B2B) cooperation.
EU Ambassador Raimundas Karoblis was talking to an All Pakistan Business Forum (APBF) delegation, where the two sides discussed bilateral trade and investment, joint ventures, GSP+ market access, small and medium-sized enterprises (SMEs), technical and vocational education and training (TVET), and emerging regulatory requirements in the European market.
Selective buying lifts PSX after mid-session decline
Pakistan Stock Exchange (PSX) on Tuesday overcame a bout of profit-taking in the afternoon and ended trading on a firmer note as renewed buying helped the market recoup losses.
Investor interest was bolstered by expectations of a breakthrough in efforts to resolve the US-Iran conflict, although profit-booking later in the session trimmed gains. The decline proved temporary as buyers returned to lift the market back into the green. The benchmark KSE-100 index closed up 248.92 points, or 0.15 percent, at 171,402.08. During the proceedings, it hit the intra-day high of 171,680.74 and the low of 170,866.94. Oil and gas exploration, cement and power stocks led the recovery, while weakness in commercial banks and fertiliser shares kept the advance modest.