Morning News: Budget talks with IMF successful: PM - By WE Research

Jun 3 2025



  • Prime Minister Shehbaz Sharif announced that talks with the IMF regarding the upcoming federal budget were successful, marking a transition from economic stability to sustained development. Speaking to journalists, he emphasized the absence of corruption during his government’s tenure and reaffirmed a commitment to institutional reforms. Sharif also expressed willingness to engage India in dialogue on key issues like Kashmir, water, trade, and terrorism, though he criticized Indian Prime Minister Modi’s recent comments. The forthcoming budget, now set to be presented on June 10 by Finance Minister Muhammad Aurangzeb, is expected to follow IMF guidelines, focusing on economic stabilisation and targeted relief. Meanwhile, development spending under the PSDP has been revised downward from Rs1.4 trillion to Rs1.096 trillion due to budgetary constraints.
  • Prime Minister Shehbaz Sharif announced that talks with the IMF regarding the upcoming federal budget were successful, marking a transition from economic stability to sustained development. Speaking to journalists, he emphasized the absence of corruption during his government’s tenure and reaffirmed a commitment to institutional reforms. Sharif also expressed willingness to engage India in dialogue on key issues like Kashmir, water, trade, and terrorism, though he criticized Indian Prime Minister Modi’s recent comments. The forthcoming budget, now set to be presented on June 10 by Finance Minister Muhammad Aurangzeb, is expected to follow IMF guidelines, focusing on economic stabilisation and targeted relief. Meanwhile, development spending under the PSDP has been revised downward from Rs1.4 trillion to Rs1.096 trillion due to budgetary constraints.
  • Headline inflation in Pakistan rose by 3.5% year-on-year in May 2025, surpassing the finance ministry's expectations, though it declined slightly by 0.2% on a month-on-month basis. The average inflation for the first 11 months of FY25 stood at 4.61%, a significant drop from 24.52% during the same period in FY24. Key urban price hikes included chicken (51.96%), pulse moong, fresh fruits, and motor vehicle tax, while rural areas saw similar trends with notable increases in chicken, milk powder, and personal effects. On a monthly basis, both urban and rural regions experienced spikes in egg, chicken, and sugar prices, alongside modest rises in non-food categories like clothing, healthcare, and education. The finance ministry had earlier cautioned about a potential inflation uptick due to slow growth in large-scale manufacturing, anticipating further pressure in June.

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Auto: SUV Sales Rebounded With 84%MoM Growth - By Sherman Research

Jun 13 2025


Sherman Securities


  • SUVs posted robust growth in sales with 2,638 units (up 84%MoM). This is the highest monthly sales numbers of the current year– barring one-off sales in January due to year end phenomenon.
  • Within SUVs, Tucson sales grew to 569 units compared to only 5 units last month. Havel sales also climbed by 70%MoM.
  • Company wise, highest sales was recorded by SAZEW ( Up 67%MoM) on back of elevated Havel sales. In 11MFY25, SAZEW lead the industry with the most sales growth (Up 2.3xYoY)
Pakistan State Oil (PSO): Corporate Brief in Corporate Briefing Key Takeaways - By Topline Research

Jun 13 2025


Topline Securities


  • Pakistan State Oil (PSO) conducted its Corporate Briefing Session today where management discussed financial performance and future outlook of the company.
  • As per management, efforts are ongoing to resolve circular debt, though no definitive plan is in place. The target is to recover both principal and Late Payment Surcharge (LPS). As of Mar 2025, PSO’s total receivables stand at Rs732bn, which included Rs325bn in principle from SNGPL alone. Overall LPS amount is over Rs200bn+. Investment plans are in place, pending liquidity, with options still under review.
  • Since Feb 2024, there has been no buildup in circular debt from SNGPL side as company has made it clear to Government and PSO that payments should flow on monthly basis. And this understanding is continuing and being implemented in true spirit. In contrast, OGDC and PPL receivables increased from Sui companies in 3QFY25
Pakistan State Oil Company Limited (PSO): Analyst briefing takeaways - By Insight Research

Jun 13 2025


Insight Securities


  • PSO has conducted its corporate briefing to discuss financial results and outlook of the company. We have highlighted key takeaways from the briefing
  • Regarding power circular debt resolution, management highlighted that there is no clarity on the amount PSO will receive post this settlement.
  • On market share, the company mentioned that it declined due to rising competition and discount offered by competitors. Management expect 3%- 5% growth in retail fuel offtake in FY26.

Pakistan Economy: Policy rate likely to remain ‘unchanged’ - By Taurus Research

Jun 13 2025


Taurus Securities


  • State Bank of Pakistan’s Monetary Policy Committee (MPC) is scheduled to meet on Monday June 16, 2025, wherein we expect the MPC to keep the benchmark policy rate ‘unchanged’ at 11%. Our expectations are primarily based on the following factors:
  • Geo-political developments: Recent escalation between Iran and Israel, as well as the war between Russia & Ukraine, continues to pose upside risks to commodity prices in particular oil. For context, oil prices are up ~9% following Israel’s attack on Iran. These pressures pose a significant risk to inflation expectations.
  • Core inflation remains elevated: Core inflation in Urban and Rural areas was recorded at 7.3% and ~9%, respectively in the latest NCPI reading for the month of May’25. We believe the MPC would like to see a more sustained decrease in the same.
Technical Outlook: KSE-100; Expected to trade range bound - By JS Research

Jun 13 2025


JS Global Capital


  • The KSE-100 index failed to sustain its intraday high of 126,718 and slid to close at 124,093, down 260 points DoD. Volumes stood at 1,025mn shares compared to 1,041mn shares traded in the previous session. The index is likely to test support at yesterdays’ low of 123,847 where a fall below initiating a corrective trend. However, any upside will face resistance in the range of 124,880-125,925 level, followed by 126,718. The MACD is rising, while the RSI has shown weakness, signaling no clear trading view. Investors are advised to view any downside as an opportunity to ’Buy’, keeping stoploss below 123,238 level. The support and resistance are at 123,054 and 125,925, respectively.
Morning News: IMF raises eyebrows over Rs344b grant - By Vector Research

Jun 13 2025


Vector Securities


  • The International Monetary Fund (IMF) has raised concerns over provision of Rs344 billion grants to various sectors without approval from the National Assembly. Sources said the multilateral lender termed the grant for defence, Independent Power Producers (IPPs) and other sectors without the nod of parliament a violation of the govt-IMF agreement. The federal government has additionally spent Rs344.66 billion during the current fiscal year in the shape of grants.
  • Pakistan slashed spending and pledged to stay the course on fiscal consolidation for the upcoming financial year, reinforcing the government’s commitment to its International Monetary Fund loan programme, reports Bloomberg. The budget plan unveiled Tuesday kept expenses unchanged, while proposing to increase taxes by 18 per cent to Rs2.56 trillion ($9 billion) for the year starting July, Finance Minister Muhammad Aurangzeb said in a parliament speech. That will lead to a primary balance surplus of 2.4 per cent of gross domestic product, said Aurangzeb, higher than the 1.6 per cent agreed with the IMF.
  • In a significant win for Pakistan, the International Finance Corporation (IFC) and the World Bank have approved a concessional loan of $700 million for the Reko Diq project, a major mining and resource development initiative. This approval, granted during a board meeting in Washington, is a significant diplomatic victory for Pakistan and a major setback for India, which had actively lobbied against the funding.
Pakistan Economy: Monetary Policy Survey 56% of the participants expecting status quo; we also expect no change - By Topline Research

Jun 12 2025


Topline Securities


  • State Bank of Pakistan (SBP) is scheduled to hold its Monetary Policy Committee (MPC) meeting on May 05, 2025.
  • In a Poll conducted by Topline Securities, 56% of the market participant expect a status quo in upcoming monetary policy meeting compared to 31% in last poll. While 44% are expecting a rate cut of at-least 50bps.
  • Out of total 44% rate cut participants, 19% are expecting 50bps cut , and 25% are expecting 100bps cut.
Highnoon Laboratories (HINOON): Corporate Briefing Key Takeaways - By Topline Research

Jun 12 2025


Topline Securities


  • Topline Securities organized Corporate Briefing Session of Highnoon Laboratories(HINOON), where management discussed financial performance and future outlook.
  • HINOON outperformed the industry, with its revenue growing at a 10-year CAGR of 23%, compared to the pharmaceutical industry’s 10-year CAGR of 15%.
  • HINOON’s revenue grew by 25% to Rs24.6bn in 2024, of which 8% was driven by volume growth and 17% by price increases. The management expects the growth momentum to continue in the coming period and to outperform industry growth
Auto: Pakistan Car sales in 11MFY25 up 39% YoY; 2/3 wheelers record ~ 3 year high - By Topline Research

Jun 12 2025


Topline Securities


  • Pakistan Car sales in Pakistan (as reported by PAMA) clocked in at 14,762 units in May 2025, reflecting a 35% YoY and 39% MoM rise.
  • MoM rise was mainly due to lower base as Apr 2025 saw road closure in Sindh (due to strikes over canal issues) which delayed deliveries and thus lower sales.
  • YoY growth is supported by a more stable macroeconomic environment, lower interest rates, easing inflation, and improving consumer sentiment.
Oil and Gas Development Company Ltd (OGDC): OGDC discovers oil and gas at Fakir-1 in Bitrism E.L., Sindh - By AKD Research

Jun 12 2025


AKD Securities


  • Oil and Gas Development Company Ltd (OGDC) has announced an oil and gas discovery at the exploratory well Fakir-1, located in the Bitrism E.L., Khairpur, Sindh. The company (95% working interest), successfully tested the results in the Lower Goru formation with gas flow reaching 6.4mmcfd, alongside crude oil of 55bpd. We anticipate the aforementioned discovery to contribute an annualized EPS impact of ~PkR0.36/sh for the company.
  • We reiterate our ‘BUY’ stance on OGDC with a Dec’25 target price of PkR371/sh, alongside a DY of 9% during the same period. Our outlook is strengthened due to the following aspects: i) strong production profile, ii) higher future exploration prospects on back of improving liquidity situation, iii) 8.33% stake in highly prospective Reko Diq Mining Project, iv) offshore working interest in Abu Dhabi Offshore Block-5, along with consortium partners and v) improvement in cash payouts.
Morning News: Housing scheme with SBP’s help: Rs5bn set aside for mark-up subsidy - By WE Research

Jun 12 2025



  • In the FY26 budget, the federal government has allocated Rs 5 billion for a mark-up subsidy under a new low-cost housing scheme, launched in partnership with the State Bank of Pakistan, along with Rs 1 billion for the Naya Pakistan Housing Authority, to address the country’s housing shortage and revitalize the construction sector. This initiative follows the suspension of the "Mera Pakistan Mera Ghar" scheme in 2022 and includes several tax incentives, such as reduced withholding tax on property purchases and the abolition of the 7% Federal Excise Duty on property transfers. Finance Minister Muhammad Aurangzeb also announced tax credits for home loan interest on properties of specific sizes. Experts, including U.S.-based real estate consultant Dr. Anosh Ahmed, have praised these measures as timely and essential for stimulating economic growth, job creation, and industrial development, highlighting their potential to support middle-income families and boost real estate investment.
  • In May 2025, the Securities and Exchange Commission of Pakistan (SECP) registered a record 3,609 new companies, bringing the total number of registered companies in the country to over 255,000. Nearly all incorporations (99.9%) were completed digitally, with over Rs2.7 billion in capital raised. Private limited companies constituted 59% of new registrations, followed by single-member companies at 37%. The IT and e-commerce sectors led with 718 new incorporations, followed by trading, services, and construction. The SECP also issued 56 licenses, including to NGOs, capital markets, insurance, and nonbanking finance entities. Additionally, foreign investment was reported in 98 of the newly registered companies.
  • In a post-budget press briefing, Finance Minister Muhammad Aurangzeb announced a major tariff reform, eliminating additional customs duties on 4,000 out of 7,000 tariff lines and reducing duties on another 2,700 to support industrial growth and boost exports. This move, part of Pakistan’s broader economic restructuring, aims to lower input costs for exporters, integrate the economy into global supply chains, and transition from import substitution to export-led growth. The minister also introduced fiscal measures for relief to salaried individuals and small businesses, and prioritized support for construction and agriculture through lower transaction costs and improved credit access. Reforms in the digital economy include a new e-commerce framework and mandatory tax registration for small online businesses, alongside the imposition of an 18% GST on solar plant imports to support local manufacturing. The government has generated Rs400 billion in additional revenue this year and aims to raise the tax-to-GDP ratio to 10.9% by FY26. Aurangzeb also shared plans for bond repayments and new international market issuances, including a Panda Bond, while stressing the importance of improving Pakistan’s credit rating. The press conference was briefly disrupted by a journalists' boycott over the lack of a traditional technical briefing.
Morning News:Rs1trn set aside for PSDP - By WE Research

Jun 11 2025



  • The 2025–26 budget allocates Rs1,000 billion for the federal Public Sector Development Programme (PSDP), marking a 28.5% decline from the previous year’s Rs1,400 billion, with provincial Annual Development Plans totaling Rs2,869 billion. A separate Rs355 billion is set aside for state-owned entities, up from Rs196.8 billion last year. The highest PSDP allocation goes to transport (Rs225 billion), followed by water resources (Rs184 billion), while climate receives a minimal Rs5.26 billion despite Pakistan’s vulnerability. Key dam projects—Bhasha, Dasu, and Mohmand—receive Rs60, Rs20, and Rs15 billion, respectively. Allocations also include Rs70 billion for merged districts, Rs74.5 billion for special areas (AJK and GB), Rs24.7 billion for health, Rs23 billion for IT and telecom, Rs61 billion for higher education, and smaller amounts for skills training, education endowment, and disease control. The PSDP vision, “Uraan Pakistan,” emphasizes inclusivity and national potential.
  • The Finance Bill 2025–26 proposes to withdraw the 3% federal excise duty (FED) on the transfer of residential and commercial properties, effective July 1, 2025, which was initially imposed through the Finance Act 2024 and became subject to litigation. The government had earlier considered withdrawing it via ordinance but did not proceed. Additionally, withholding tax rates under Section 236K on property purchases are proposed to be reduced: 1.5% for properties up to Rs50 million, 2% for Rs50–100 million, and 2.5% above Rs100 million. In contrast, withholding taxes under Section 236C for sellers are being increased to 4.5%, 5%, and 5.5% for the same value brackets. Though no justification is provided for this disparity, it may incentivize buyers to prefer properties from builders and developers over the secondary market.
  • In the 2025–26 budget presented by Finance Minister Muhammad Aurangzeb, modest tax relief has been proposed for the salaried class, though it falls short of expectations. The new tax policy exempts annual incomes below Rs 600,000, with the next slab (Rs 600,000–1.2 million) seeing the tax rate drop from 5% to 1%, providing an 80% tax cut. Those earning between Rs 1.2 million and Rs 3.2 million will see rates reduced slightly, while the top two slabs (incomes above Rs 3.2 million) remain unchanged at 30% and 35%. Despite an average relief of 29%, higher earners benefit more proportionally—with individuals earning over Rs 1 crore getting a 27% cut—while the majority of salaried workers see minimal impact. The salaried class, contributing Rs 430 billion in taxes in the first ten months of FY 2024–25 (over 10% of total tax collection), remains the most taxed segment, especially when compared to retailers and exporters. With taxes deducted at source by employers acting as withholding agents, this group has little room to evade taxes unlike others, reflecting continued fiscal pressure despite marginal relief.
Morning News: ADB approves $800m financing for Pakistan - By WE Research

Jun 4 2025



  • The Asian Development Bank (ADB) has approved an $800 million program to enhance fiscal sustainability and public financial management in Pakistan through the Improved Resource Mobilization and Utilization Reform Program, Subprogram 2. This includes a $300 million policy-based loan and ADB’s first-ever policy-based guarantee of up to $500 million, expected to attract $1 billion from commercial banks. Originally scheduled for May 28, the ADB board meeting was delayed due to a request from the Indian executive director and later held on June 3. The program supports reforms in tax policy, public expenditure, digitalisation, and private sector development, aiming to reduce Pakistan’s fiscal deficit and debt while fostering sustainable growth. ADB and Pakistani officials emphasize the country's recent macroeconomic improvements and the importance of coordinated efforts for long-term fiscal resilience.
  • President Asif Ali Zardari has summoned the National Assembly and Senate to convene on June 10 at 5 p.m. for the federal budget session for the fiscal year 2025–26. Finance Minister Senator Muhammad Aurangzeb is expected to present the budget and Finance Bill during these sessions, called under Article 54(1) of the Constitution. The National Assembly Secretariat has issued special passes for press, officials, and other attendees, while a comprehensive security plan has been put in place for the Parliament House to ensure safety during the proceedings.
  • Pakistan’s budget team, led by Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb, is working to convince the IMF to drop its demand to raise the Federal Excise Duty (FED) on fertilizer from 5% to 10% in the 2025–26 budget. The government also aims to avoid a proposed 5% FED on pesticides, with both moves intended to ease pressure on the struggling agriculture sector. In exchange, Pakistan has highlighted provincial amendments to the Agriculture Income Tax (AIT), which will begin collection in the next fiscal year. The Federal Board of Revenue (FBR) has been asked to assess the impact of proposed tariff rationalization on imports, amid concerns about potential tax evasion. Meanwhile, the IMF has rejected requests to continue GST exemptions for the former FATA/PATA regions, with a reduced 12% GST now likely to be imposed. The negotiations reflect a balancing act between IMF conditions and domestic political and economic challenges, particularly in the agricultural sector.
Morning News: Budget talks with IMF successful: PM - By WE Research

Jun 3 2025



  • Prime Minister Shehbaz Sharif announced that talks with the IMF regarding the upcoming federal budget were successful, marking a transition from economic stability to sustained development. Speaking to journalists, he emphasized the absence of corruption during his government’s tenure and reaffirmed a commitment to institutional reforms. Sharif also expressed willingness to engage India in dialogue on key issues like Kashmir, water, trade, and terrorism, though he criticized Indian Prime Minister Modi’s recent comments. The forthcoming budget, now set to be presented on June 10 by Finance Minister Muhammad Aurangzeb, is expected to follow IMF guidelines, focusing on economic stabilisation and targeted relief. Meanwhile, development spending under the PSDP has been revised downward from Rs1.4 trillion to Rs1.096 trillion due to budgetary constraints.
  • Prime Minister Shehbaz Sharif announced that talks with the IMF regarding the upcoming federal budget were successful, marking a transition from economic stability to sustained development. Speaking to journalists, he emphasized the absence of corruption during his government’s tenure and reaffirmed a commitment to institutional reforms. Sharif also expressed willingness to engage India in dialogue on key issues like Kashmir, water, trade, and terrorism, though he criticized Indian Prime Minister Modi’s recent comments. The forthcoming budget, now set to be presented on June 10 by Finance Minister Muhammad Aurangzeb, is expected to follow IMF guidelines, focusing on economic stabilisation and targeted relief. Meanwhile, development spending under the PSDP has been revised downward from Rs1.4 trillion to Rs1.096 trillion due to budgetary constraints.
  • Headline inflation in Pakistan rose by 3.5% year-on-year in May 2025, surpassing the finance ministry's expectations, though it declined slightly by 0.2% on a month-on-month basis. The average inflation for the first 11 months of FY25 stood at 4.61%, a significant drop from 24.52% during the same period in FY24. Key urban price hikes included chicken (51.96%), pulse moong, fresh fruits, and motor vehicle tax, while rural areas saw similar trends with notable increases in chicken, milk powder, and personal effects. On a monthly basis, both urban and rural regions experienced spikes in egg, chicken, and sugar prices, alongside modest rises in non-food categories like clothing, healthcare, and education. The finance ministry had earlier cautioned about a potential inflation uptick due to slow growth in large-scale manufacturing, anticipating further pressure in June.
Morning News: High-powered delegation in US to argue Pakistan’s case - By WE Research

Jun 2 2025



  • Pakistan has launched a comprehensive diplomatic campaign in the United States to counter India’s growing influence and present its own narrative regarding recent regional tensions. A high-level delegation, including former diplomats and a current minister, arrived in New York for meetings with top UN officials, Security Council representatives, and the Organisation of Islamic Cooperation. Starting June 3, the group will also engage with U.S. officials, lawmakers, think tanks, and media to voice concerns over India’s “escalatory moves” and prevent efforts to reframe the conflict in ways detrimental to Pakistan, such as revisiting its FATF status. The initiative is part of a dual-track strategy combining official diplomacy and informal outreach. Meanwhile, parallel Indian delegations are also active in Washington, prompting Pakistani officials to emphasize their commitment to transparency, reform, and mature diplomacy. Additionally, Pakistan and the UK agreed to enhance multilateral cooperation, particularly at the UN, during a recent call between their foreign ministers.
  • The International Monetary Fund (IMF) has raised concerns with the Pakistani government for allocating 2,000 megawatts of electricity to Bitcoin mining and AI data centers without prior consultation or resolving the legal status of cryptocurrency. The IMF emphasized that such decisions should align with the agreed framework of its financial program and be made collaboratively. Virtual consultations are planned, with the IMF expected to press the government on this and other fiscal matters during upcoming budget discussions. The initiative, led by the Pakistan Crypto Council and supported by the government, aims to utilize surplus electricity, attract foreign investment, and position Pakistan as a global leader in digital innovation. Future phases include renewable energy-powered facilities and partnerships with top blockchain and AI firms.
  • The news highlights ongoing negotiations between Pakistan and the IMF over proposed tax relief for the salaried class in the 2025–26 budget, with the IMF showing conditional support for reducing tax rates across income slabs—potentially offering relief worth Rs56–60 billion. However, this comes amid serious fiscal challenges, including a widening revenue shortfall and difficulty in meeting the current year’s revised tax target of Rs12.33 trillion, making the ambitious Rs14.2 trillion target for the next year appear unrealistic. While tariff rationalization is being considered to stimulate economic activity, it may result in a revenue loss of up to Rs200 billion, and raise enforcement concerns over import misdeclarations. Additionally, the IMF has objected to Pakistan's recent decision to allocate 2,000MW of electricity for cryptocurrency mining without prior regulatory approval, compounding tensions around fiscal and policy coordination. Overall, the situation reflects a delicate balancing act between offering taxpayer relief, maintaining revenue targets, and satisfying IMF program requirements.
Morning News: Bulls dominate as PSX rise by 600 points due to budget expectations - By WE Research

May 30 2025



  • On Thursday, the Pakistan Stock Exchange (PSX) saw a strong bullish trend, with the KSE-100 index rising by 638.5 points (0.54%) to close at 118,971.40. The rally was driven by positive investor sentiment fueled by expectations of a favorable upcoming federal budget and strong corporate earnings. Samiullah Tariq of Pak Kuwait Investment Company noted that optimism around the budget contributed to market performance. Meanwhile, the federal budget's announcement has been postponed from June 2 to June 10 due to ongoing discussions with the IMF regarding taxation and fiscal policies, including meetings with Finance Minister Muhammad Aurangzeb.
  • The government has confirmed that the federal budget for the fiscal year 2025–26 will be presented on June 10, 2025, as reaffirmed by Khurram Schehzad, Advisor to the Finance Minister, amid speculation of further delays due to Eid holidays. Originally set for June 2, the date was pushed back, but Schehzad clarified via a post on X that both the budget and the Pakistan Economic Survey FY25 remain on schedule. The Economic Survey will be released on June 9, expected to fall on the third day of Eid-ul-Adha, with the budget announcement following on the fourth day.
  • Fitch Ratings upgraded Pakistan’s economy, citing macroeconomic stabilization supported by improved fiscal performance, a current account surplus, and record-low inflation, which enabled a policy rate cut. Revenue growth outpaced expenditures, reducing the fiscal deficit, while exports and remittances boosted the current account to a $1.9 billion surplus. Although Large Scale Manufacturing showed mixed results, the automobile and export sectors grew strongly. Agricultural productivity improved with better credit and input availability. Inflation dropped to 0.3% YoY in April, supporting consumer purchasing power. Despite geopolitical pressures impacting the stock market, government fiscal discipline, expanding credit, and new green financing initiatives signal a positive outlook for sustainable economic growth.
Morning News: Forex reserves exceed $16bn mark on IMF tranche - By WE Research

May 23 2025



  • Pakistan's foreign exchange reserves rose by $1.034 billion in one week, reaching $16.649 billion as of May 16, 2025, largely due to a $1.023 billion IMF loan tranche under the Extended Fund Facility (EFF). This marks the highest level in four months. While the State Bank of Pakistan’s (SBP) reserves increased, commercial banks' reserves dipped slightly by $9 million. The IMF also approved a $1.4 billion Resilience and Sustainability Facility (RSF) to help Pakistan address climate challenges and support growth. The IMF funds are expected to attract further international financial support, with SBP projecting reserves to exceed $14 billion by June 2025.
  • World Bank Managing Director Anna Bjerde praised Pakistan’s recent economic reforms as a “globally recognised model,” crediting Prime Minister Shehbaz Sharif’s leadership for driving the transformation. During a high-level meeting in Islamabad, Bjerde highlighted Sharif’s focus on sustainable policies, political unity, and development that prioritizes people. She referred to Pakistan’s Country Partnership Framework as the “Pakistan Model,” citing its successful implementation. Sharif thanked the World Bank for its support, especially following the 2022 floods, and noted the partnership will lead to over $20 billion in development investment. Both sides reaffirmed their commitment to continued collaboration.
  • Prime Minister Shehbaz Sharif met with a World Bank delegation led by Managing Director Anna Bjerde to discuss development cooperation and the Country Partnership Framework, which is expected to bring over $20 billion in financing to Pakistan. Sharif emphasized the government’s efforts to fully leverage this investment and thanked the World Bank for its support during the 2022 floods. Bjerde praised Pakistan’s progress on macroeconomic stability and called the partnership a global model, now referred to as the “Pakistan Model.” The meeting reaffirmed strong cooperation between Pakistan and the World Bank, with several senior officials in attendance.
Morning News: $2.5bn surplus in trade with US: Aurangzeb - By WE Research

May 22 2025



  • Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, reported that Pakistan recorded a trade surplus of $2.5 billion with the United States during the current financial year 2024-25 (up to March), with exports at $4.4 billion and imports at $1.9 billion. In the previous year, 2023-24, exports were $5.3 billion and imports $2.2 billion, resulting in a $3.1 billion surplus. Key exports include garments and medical instruments, while major imports consist of cotton, steel scrap, computers, and petroleum products. The U.S. has imposed a 30% reciprocal tariff on Pakistani imports, currently suspended for 90 days, which exporters see as a challenge but also a potential opportunity due to higher tariffs on competitors. In response, the prime minister has formed a Steering Committee and a working group, with the Ministry of Commerce coordinating a comprehensive strategy to engage with U.S. authorities.
  • Gold prices in Pakistan rose significantly on Wednesday, with 24-karat gold reaching Rs349,400 per tola after an increase of Rs6,600, and 10 grams priced at Rs299,554, up Rs5,659, according to the AllPakistan Gems and Jewelers Sarafa Association. The price of 22-karat gold also increased to Rs274,601 per 10 grams. Silver prices followed suit, with 24-karat silver rising to Rs3,466 per tola and Rs2,971 per 10 grams. Internationally, spot gold traded near $3,302 an ounce, up 0.39%, marking its third consecutive daily gain, driven by a softer dollar and heightened safe-haven demand amid global economic and geopolitical uncertainties.
  • Pakistan’s per capita income rose by 9.75% to a record $1,824 in FY2024–25, up from $1,662 the previous year, with the economy’s total size reaching $410.96 billion—a 2.68% annual increase—according to provisional estimates by the Pakistan National Accounts Committee (NAC). In rupee terms, per capita income grew 8.27% to Rs509,174. This growth, driven mainly by a 3.99% rise in the services sector and a modest 1.18% increase in agriculture, helped Pakistan join the world’s 40 largest economies, despite a continued 1.14% contraction in the industrial sector. The NAC also revised earlier quarterly GDP growth estimates and finalized FY23 growth at -0.21% and FY24 at 2.51%. Analysts see the rebound as a sign of resilience amid global and domestic challenges, marking the highest GDP since FY18, when it last approached similar levels before facing economic and political instability.
Morning News: SIFC facilitates $2.3 billion in foreign investment since inception, NA informed - By WE Research

May 21 2025



  • Since the formation of the Special Investment Facilitation Council (SIFC) in June 2023, Pakistan has attracted around $2.3 billion in foreign investment, with the council credited for easing investor hurdles and streamlining processes. Federal Minister Dr. Tariq Fazal Chaudhry linked SIFC's work to addressing regional security issues, including tensions related to Indian proxies. Meanwhile, the Ministry of Climate Change highlighted Pakistan’s top ranking on the 2025 Climate Risk Index due to the catastrophic 2022 floods, which caused significant human and economic losses. In cybersecurity, Pakistan advanced into the top tier of the UN Global Cyber Security Index 2024, attributed to institutional reforms and the creation of a national emergency response team. With over 20,700 registered IT companies, the government emphasized its ongoing commitment to economic stability, climate resilience, and technological growth through global collaboration.
  • Pakistan’s leading oil refineries have pledged over $6 billion in refinery upgrade projects aimed at modernizing the country’s refining infrastructure and ensuring long-term energy security. In a meeting with Federal Minister for Petroleum Ali Pervaiz Malik, refinery CEOs expressed appreciation for the government's resolution of a long-standing sales tax issue, which they said fosters a more investment-friendly and efficient environment. The CEOs reaffirmed their commitment to upgrading facilities to produce cleaner, Euro-V compliant fuels in line with the Prime Minister’s vision for sustainable energy. Minister Malik emphasized policy consistency and government support as key to sector viability and attracting foreign investment. The upgrades are expected to enhance fuel quality, reduce emissions, cut dependence on imports, and contribute to environmental sustainability, forming a central part of Pakistan’s broader energy and economic strategy.
  • Kot Addu Power Company Limited (KAPCO) has announced that the National Electric Power Regulatory Authority (NEPRA) has approved the TriPartite Power Purchase Agreement (TPPA), involving the Central Power Purchasing Agency (CPPA-G), KAPCO, and the National Grid Company of Pakistan. As per NEPRA’s directives in a letter dated May 19, 2025, the signing of the TPPA is contingent upon conducting the Initial Capacity Test (ICT) and Heat Rate Test (HRT). An Independent Engineer will assess and submit the plant's efficiency benchmarks, including Simple Cycle Efficiency and Heat Rate, to NEPRA. Once these steps are completed, the TPPA will become operational, enabling the power plant to commence operations under the new agreement.
Morning News: IMF tightens conditions for Pakistan to get fresh loans: report - By WE Research

May 20 2025



  • The International Monetary Fund (IMF) has imposed stricter conditions on future loans to Pakistan, urging significant economic reforms and warning of risks stemming from U.S. trade policies and rising tensions with India. As part of its agreement, Pakistan must secure parliamentary approval for its next federal budget, implement agricultural tax reforms, and outline a plan to phase out industrial incentives. The IMF also demands timely adjustments in energy tariffs and legislative action to restructure energy sector debt. Despite avoiding default in 2023, Pakistan continues to face economic uncertainty due to high interest payments and global trade disruptions, with the IMF estimating a need for over $100 billion in external financing by 2029. Recently, the IMF disbursed $1 billion and approved an additional $1.4 billion for climate resilience, though geopolitical tensions with India, particularly over Kashmir, pose continued fiscal and reputational risks.
  • During a visit to the Korangi Association of Trade and Industry (KATI), Chief Commissioner Inland Revenue Zubair Bilal announced potential relief for the salaried class in the upcoming federal budget and reiterated the Federal Board of Revenue’s (FBR) zero-tolerance stance on corruption. He encouraged KATI to submit budget proposals for review and assured regular consultations to address industry concerns, emphasizing that business growth directly benefits the national economy. KATI President Junaid Naqi criticized recurring issues such as arbitrary FBR notices, lack of comprehensive policies, and the burden on compliant taxpayers, especially under IMF-driven tax targets. He strongly opposed FBR’s proposed presence in industrial units, citing constitutional violations. Other KATI leaders echoed concerns over tax system inefficiencies and called for digitization, accountability for evaders, and fair treatment of honest taxpayer.
  • Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb reaffirmed the government's commitment to harnessing private sector expertise to drive structural reforms, productivity, and export -led growth during a meeting with a Deloitte delegation. The discussion, a follow-up to earlier talks at the IMF/World Bank Spring Meetings 2025, focused on collaboration in critical sectors like energy, minerals, health, and climate, particularly through the operationalisation of the Country Partnership Framework (CPF). The Minister emphasized Pakistan’s priority areas—climate resilience and population management—highlighting strategic support over financing needs, supported by the recently approved $1.3 billion Resilience and Sustainability Facility. Deloitte expressed support for Pakistan’s reform agenda, and both sides agreed to maintain close coordination to identify high-impact, outcome-based initiatives.