ISLAMABAD: Despite a stringent austerity drive and aggressive efforts to downsize the federal bureaucracy, the government spending on civil administration and pensions has continued to surge, with double-digit increases in the first quarter of the current fiscal year, according to fiscal data released by the Ministry of Finance.
Macro
FM Aurangzeb opens crucial NFC talks, signals flexibility on revenue sharing
ISLAMABAD: Finance Minister Muhammad Aurangzeb pledged an open-minded approach to negotiations on sharing federal tax revenues with provinces, kicking off the first meeting of the 11th National Finance Commission amid strains from floods, security threats and IMF-mandated reforms.
Saudi Arabia extends $3 billion deposit at Pakistan central bank for a year
KARACHI: Saudi Arabia agreed to roll over a $3 billion deposit held with Pakistan’s central bank for another year, providing a boost to the cash-strapped South Asian nation’s foreign exchange reserves amid ongoing economic pressures.
Lawmakers slam govt after IMF flags deep governance flaws
ISLAMABAD: Lawmakers sharply rebuked the government on Wednesday for what they described as systemic failures in combating corruption, citing a scathing new assessment from the International Monetary Fund that laid bare weaknesses across state institutions, from the judiciary to tax authorities.
Pakistan business confidence jumps to multi-year high despite tax, inflation risks
KARACHI: Pakistan’s business sentiment has surged to its highest level in years, with confidence jumping 11 percentage points to 22%, even as executives flagged persistent hurdles like taxation, inflation and corruption that threaten to derail growth.
Pakistan starts new NFC round with wide gulf between federal, provincial priorities
ISLAMABAD: The government has convened the inaugural meeting of the 11th National Finance Commission on Thursday, kicking off what are expected to be contentious negotiations over the division of federal tax revenues between the central government and the provinces amid mounting fiscal pressures.
Trade gap widens 33 percent in November on export drop
ISLAMABAD: Trade deficit widened sharply to $2.86 billion in November, jumping 33% from a year earlier, as exports tumbled and imports climbed, according to data released Tuesday by the Pakistan Bureau of Statistics.
Floods to cut GDP growth by 0.5 percent, finance minister warns of eroding recovery
ISLAMABAD: Finance minister said this year’s climate-driven floods are expected to shave 0.5% off the country’s GDP growth forecast, warning that the economic cost of extreme weather is now eroding the nation’s recovery prospects.
Inflation eases to 6.1 percent in November as food, energy pressures moderate
ISLAMABAD: Pakistan’s inflation cooled slightly to 6.1% in November, staying within the government’s forecast range as moderating fuel costs and improved crop supplies helped offset lingering pressures from floods and border disruptions.
FM Aurangzeb sees IMF critique as spur for urgent reforms
ISLAMABAD: Finance Minister Muhammad Aurangzeb pushed back against opposition criticism of a recent International Monetary Fund report that flagged financial irregularities in the country, describing the document not as an attack but as a “catalyst for accelerating long-overdue reforms.”