Morning News: Pakistan set to hold policy rates - By Vector Research
Jun 16 2025
Vector Securities
- Central bank is expected to hold its policy rate on Monday, a Reuters poll showed, as many analysts shifted their previous view of a cut in the wake of Israel’s military strike on Iran, citing inflation risks from rising global commodity prices.
- Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has said that the government has to obtain approval from International Monetary Fund (IMF) for every taxrelated proposal including any exemption, reduction in tax rates or any changes in tax regime.
- In a major leap for Pakistan’s economy, the Reko Diq Copper Project is set to contribute nearly 1 percent to the country’s GDP annually, positioning it as one of the most significant industrial ventures in country’s history. “Backed by latest major financing package from the International Finance Corporation (IFC)- including a US$300 million direct loan and US$400 million in blended finance - the project marks IFC’s first mining investment in Pakistan and signals renewed global confidence in the country’s economic potential,” said Dr Tauqir Shah, top aide to the prime minister. A media report claimed that as a result of this approval, the private sector is expected to invest $2.5 billion in the Reko Diq project. Dr Shah has played a key role in this achievement.