ISLAMABAD: Pakistan is scrambling to contain inflation and protect low-income households as devastating floods wreak havoc on its agricultural heartland, threatening to derail a fragile economic recovery.
Macro
SBP says banks show resilience amid lending dip
KARACHI: The banking sector expanded assets and bolstered solvency in the first half of 2025 despite a contraction in lending, the State Bank of Pakistan (SBP) said in its Mid-Year Performance Review released on Wednesday.
Pakistan’s govt debt surges 13 percent to Rs77.9 trln in FY24 – central bank
KARACHI: The government debt surged 13% in the fiscal year ended June 30, reaching Rs77.888 trillion, as the nation leaned heavily on domestic and external borrowing to plug a widening budget deficit and cover escalating interest costs, central bank data showed on Tuesday.
Pakistan, China to share trade data electronically to curb under-invoicing
ISLAMABAD: Pakistan and China have agreed to exchange trade documents and data electronically to curb rampant under-invoicing that’s plagued Pakistan’s economy, as the two nations seek to deepen ties in trade, defence and technology amid ongoing regional tensions.
Pakistan, China to form lenders’ consortium for $7 bln ML-1 rail project
ISLAMABAD: Pakistan and China have agreed to establish a consortium of bilateral and multilateral lenders to finance the $7 billion Mainline-1 (ML-1) railway project and have outlined a four-year plan for the second phase of the China-Pakistan Economic Corridor (CPEC), focusing on agriculture, industry, and security cooperation, a minister said on Monday.
Floods to cost economy $1.4 bln, hit growth and inflation – report
KARACHI: Pakistan’s 2025 monsoon floods are expected to cause economic losses of about $1.4 billion, or 0.33% of gross domestic product, with agriculture suffering the most damage and threatening to slow growth while pushing up inflation, analysts said.
Pakistan, China pledge to fast-track CPEC 2.0 projects, sign raft of MoUs in Beijing
ISLAMABAD: Prime Minister Shehbaz Sharif and Chinese Premier Li Qiang reaffirmed their commitment on Thursday to advancing the second phase of the China-Pakistan Economic Corridor, a multibillion-dollar infrastructure initiative central to their strategic partnership, during a meeting Sharif described as “warm and most productive.”
Trade deficit jumps 30 percent in August as imports surge, exports falter
ISLAMABAD: Pakistan’s trade deficit widened sharply in August, surging 30.4% to $2.87 billion from a year earlier, driven by a spike in imports and a steep drop in exports, according to data released on Tuesday by the Pakistan Bureau of Statistics.
Inflation falls to 3 percent in August, beating forecasts
KARACHI: Consumer price inflation slowed to 3% in August 2025, dipping below government and analyst expectations and marking a significant retreat from the record highs seen two years ago, according to data released by the Pakistan Bureau of Statistics on Monday.
Govt retires Rs1.6 trillion of central bank debt in under two months
KARACHI: The government has retired more than Rs1.6 trillion of debt owed to the central bank in less than two months, a record achievement that underscores efforts to bolster fiscal discipline and reduce borrowing risks, a senior official said on Sunday.