KARACHI: Pakistan’s central bank has withdrawn two long-running incentive schemes that paid commercial banks to attract overseas remittances, after the cost of the programmes swelled to a level that drew the attention of the International Monetary Fund, according to central bank circulars and sources in the financial sector.
Economy
Senate panel to seek FIA, NAB probes into power sector graft, brief prime minister
ISLAMABAD: A Senate committee decided on Thursday to brief Pakistan’s prime minister on alleged irregularities and corruption in foreign-funded power sector projects, and to ask two federal investigative agencies directly to open inquiries, after the government’s Economic Affairs Division said it lacked the authority to order a probe into projects run by another ministry.
Pakistan Army to get all-local wheat supply from 2026-27 crop
ISLAMABAD: The government approved the supply of 175,000 tonnes of fresh, wholly domestic wheat to the Pakistan Army for the 2026-27 crop year, ending a four-year arrangement under which troops were fed flour milled partly from imported grain that soldiers had repeatedly complained about.
Pakistan seeks fresh S&P rating upgrade to unlock $2 billion in bond sales
ISLAMABAD: Pakistan has formally asked S&P Global Ratings for a further upgrade to its sovereign credit rating, seeking to raise around $2 billion this fiscal year through additional international bond sales, local media reported on Friday.
Pakistan’s trade deficit widens 21.6 percent to $39.47bln in FY26, missing export target by $5.2bln
ISLAMABAD: Pakistan’s trade deficit widened by 21.57% to $39.471 billion in the fiscal year that ended in June, as exports fell and imports climbed, official data showed on Thursday, missing the government’s export target by more than $5 billion and adding fresh strain to the country’s external finances.
Pakistan doubles climate levy on fuel, cuts petroleum levy to hold pump prices steady
ISLAMABAD: The government has doubled a climate-related levy on petrol and diesel while cutting a separate petroleum levy by the same amount, a revenue manoeuvre that leaves retail fuel prices unchanged even as the tax structure underpinning them shifts.
Pakistan tax revenue nearly doubles in two years, finance minister says
ISLAMABAD: Finance minister Muhammad Aurangzeb said on Wednesday that the country’s tax authority had met its revised revenue collection target for the fiscal year that ended this week, crediting administrative reforms and staff at the agency for what he called a landmark result in the government’s push to overhaul the tax system.
Pakistan stocks jump over two percent to open new fiscal year on inflation relief
KARACHI: Pakistani stocks extended a record-breaking rally on Wednesday, with the benchmark KSE-100 index jumping more than 3,700 points to open the new fiscal year, as investors bet that easing inflation will pave the way for interest rate cuts and cheaper oil bolsters the outlook for the import-dependent economy.
World Bank approves $70 million loan for Punjab digital push
ISLAMABAD: The World Bank’s Board of Executive Directors has approved a $70 million loan to help Pakistan’s Punjab province expand broadband internet access, strengthen digital public services and reduce reliance on cash transactions, the lender said.
Pakistan inflation eases to 11.1 percent in June as fuel, food costs soften
KARACHI: Pakistan’s annual consumer inflation slowed to 11.1% in June from 11.7% in May, official data showed on Wednesday, as lower fuel and transport costs offered households some relief even as food prices remained volatile and overall price growth stayed well above the central bank’s target range.