Web Desk

ISLAMABAD: Pakistan&rsquo;s Federal Minister for Information and Broadcasting Attaullah Tarar on Friday said the Tehreek-e-Taliban Pakistan (TTP) is the state&rsquo;s enemy and vowed to eliminate the terrorist outfit. During a press conference in Islamabad, the information minister said that the state would act against the banned group, citing confidence in the armed forces, security agencies, and youth. &quot;As the minister for information, I state clearly: The TTP is Pakistan&rsquo;s enemy. Until our last breath, and until the last drop of blood has been shed, we will eliminate it. I am saying this with absolute resolve: We will eliminate it.&quot; He said the strength of the state came from faith and trust in the armed forces and security agencies, saying personnel leave their homes daily without certainty of return. He referred to families who send their children to fight, accepting the possibility of&nbsp;martyrdom. &ldquo;We stand by them, and we will prevail,&rdquo; he said. Economic revival Tarar also spoke about the economy. He said Pakistan had moved from the threat of default back into the ranks of emerging economies. &ldquo;We have successfully transitioned from the threat of default back into the ranks of emerging economies,&rdquo; he said. He said the stock exchange was breaking records every day. He attributed the performance to confidence among the business community, traders, and industrialists. &ldquo;Our stock exchange is breaking records every single day,&rdquo; he said. &ldquo;The business community, merchants, and industries trust the government&rsquo;s reforms and policies.&rdquo; The information minister said investors recognized that deep structural reforms were underway. He said that prime minister Shehbaz Sharif had taken difficult decisions for the country. &ldquo;They know the prime minister took difficult steps for the betterment of the country,&rdquo; he said. &ldquo;Those actions are bearing fruit now.&rdquo; Tarar said that the economic turnaround involved all government departments, for which he credited Chief of Army Staff and Chief of Defense Forces Field Marshal Syed Asim Munir, Prime Minister Shehbaz Sharif, and Deputy Prime Minister Ishaq Dar. &ldquo;They are the architects behind this ongoing economic revival,&rdquo; he said. Citing recent figures, the information minister&nbsp;said foreign remittances reached $3.6 billion in December. He said that marked a &quot;17% increase year-on-year&quot; and a &quot;13% rise month-on-month.&quot; &ldquo;I want to thank our overseas Pakistanis,&rdquo; he said. &ldquo;They are not only sending money home, but they are also breaking records.&rdquo; He said the government was working on foreign direct investment and that&nbsp;Pakistan&rsquo;s trade with other countries was increasing. &ldquo;Wherever the prime minister goes, he promotes Pakistan&rsquo;s exports,&rdquo; Tarar said, citing Malaysia&rsquo;s increased quota for Pakistani rice and halal meat. He said trade discussions were prioritized during official visits to Pakistan. The minister mentioned the government&#39;s achievements, citing defense and economic frameworks with Saudi Arabia. He referred to agreements with Malaysia and partnerships with the United Arab Emirates. He also mentioned Deputy Prime Minister Ishaq Dar being warmly received by China&rsquo;s Foreign Minister Wang Yi. &ldquo;With the launch of CPEC 2.0, all these economic frameworks are coming to Pakistan,&rdquo; he said. Tarar stated that the international community was viewing Pakistan with seriousness. He attributed that to the political leadership of PM Sharif and the military leadership of Field Marshal Munir. &ldquo;Because we have strong leadership, the world is taking Pakistan seriously,&quot;&nbsp;he said. He said investment was coming into the country and that an economic revival was underway.

Security

Attaullah Tarar, while citing support for the armed forces and security agencies, said that the Tehreek-e-Taliban Pakistan is Pakistan’s enemy and the state will take action against it.

'TTP is our enemy, we will eliminate it': Pakistan's information minister

Pakistan TV

ISLAMABAD: Minister of State for Finance, Revenue and Railways Bilal Azhar Kayani said on Thursday that, following the successful privatisation of Pakistan International Airlines (PIA), the next phase would focus on electricity distribution companies, including IESCO, GEPCO, and FESCO, as the government remains firmly committed to sustainable and inclusive growth.&nbsp;Speaking in an exclusive interview with Pakistan TV, Kayani described the successful privatisation of Pakistan International Airlines (PIA) as a landmark achievement after decades of failed attempts, saying it would reduce the burden of loss-making state-owned enterprises on the national exchequer and help transform PIA into a profitable, world-class airline.&nbsp;&ldquo;The momentum created by the PIA deal will help generate greater investor and advisory interest going forward for the privatization program,&rdquo; he said.&nbsp;&ldquo;The next phase of privatisation is focused on electricity distribution companies, including IESCO, GEPCO and FESCO,&rdquo; Kayani added.&nbsp;The minister said Pakistan&rsquo;s economy has undergone a significant turnaround over the past two years, shifting from crisis management to macroeconomic stabilisation.&nbsp;He added that the government assumed office in February 2024, at a time when inflation was hovering between 20 and 25 percent and Pakistan had just entered a new IMF programme.&nbsp;&ldquo;Today, less than two years on, we have not only successfully completed IMF reviews but also restored economic confidence,&rdquo; he said.&nbsp;The minister highlighted key achievements, including an increase in the tax-to-GDP ratio from 8.8 percent to 10.2 percent within a year, a notable rise in foreign exchange reserves, and a significant jump in workers&rsquo; remittances. &ldquo;Pakistan&rsquo;s improving outlook has been recognised globally, with all three major rating agencies, Standard &amp; Poor&rsquo;s, Moody&rsquo;s and Fitch, upgrading the country&rsquo;s ratings outlook,&rdquo; he added.&nbsp;Kayani credited Prime Minister Shehbaz Sharif&rsquo;s direct oversight of reforms at the Federal Board of Revenue (FBR) for improved tax collection.&nbsp;&ldquo;Initiatives such as Faceless Customs, digitisation of tax systems, and enforcement measures have reduced leakages and enhanced efficiency, earning recognition from the IMF, which showcased Pakistan&rsquo;s reforms as a case study during its annual meetings.&rdquo;&nbsp;Looking ahead, Kayani said the government&rsquo;s priority is shifting from stabilisation to quality GDP growth driven by exports and private-sector investment. He stressed the importance of inclusive growth that benefits lower-income groups and expands employment opportunities.&nbsp;&ldquo;To this end, the government is engaging closely with the private sector through working groups and policy consultations,&rdquo; he added.&nbsp;He also pointed to record-breaking performance at the Pakistan Stock Exchange as a reflection of growing investor confidence, while acknowledging it as one of several indicators of economic health. Additionally, Kayani praised the Special Investment Facilitation Council (SIFC) for improving ease of doing business by providing a one-window platform for domestic and foreign investors.&nbsp;The minister said reduced inflation, lower policy rates and a focus on export diversification, including IT and value-added agriculture, would help ensure sustainable economic growth in the years ahead.

The Experts Corner

After PIA’s privatization, Pakistan plans to privatize power DISCOs, citing economic stabilisation, IMF-backed reforms, improved ratings, and rising revenues.

After PIA success, government to privatise electricity distribution companies: Bilal Kiyani   

Faraz Saeed

LAHORE: The Pakistan Stock Exchange (PSX) hit a fresh all-time high, crossing the 183,000 level during the opening minutes of Monday, before the benchmark KSE-100 index settled above the 182,000 level for the first time in history.&nbsp;The market opened on a positive trajectory and maintained an upward momentum through much of the session, reaching an intraday high of 183,964.37 before easing slightly towards the end. At close, the benchmark KSE-100 Index settled at 182,408.23, an increase of 3,373.31 points, or 1.88%.&nbsp;Buying interest was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, and power generation.&nbsp;Index-heavy stocks, including HUBCO, NBP, BOP, MARI, OGDC, POL, PPL, PSO, SNGPL, SSGC, HBL, MCB, MEBL, and UBL, traded in the green.&nbsp;The KSE-100 Index surged by 6,634 points, up 3.8% week-on-week, to a new all-time high of 179,035 points during the week ended on Friday.&nbsp;The index has also delivered a robust performance in calendar year 2025, posting a return of 51%, marking the third straight year of double-digit gains, following returns of 55% in calendar year 2023 and an exceptional 84% in 2024.&nbsp;Speaking to Pakistan TV, Waqas Ghani, Head of Research at JS Global, noted that Pakistan&rsquo;s &ldquo;equity market has delivered an exceptional return of 331% over the last three years, demonstrating the country&rsquo;s resilience and potential.&rdquo;&nbsp;Citing his 2025 outlook report at JS Global, Waqas added that there is room for the KSE-100 to continue progressing, though at a moderate pace.&nbsp;In his report, he mentioned that valuations at the KSE-100 remain supportive, &ldquo;trading at a P/E of 8x,&rdquo; and anticipated that there could be some re-rating at these levels. Steady earnings growth across sectors and decent dividend yields are expected to drive returns. He projects the index to reach the 225,000 level by December 2026.&nbsp;Similarly, Arif Habib Limited has set a December 2026 target for the KSE-100 Index at 208,000 points, implying an upside of 21.6% from the closing level on 23 December 2025. &ldquo;Our index target is based on target price mapping and justified P/E,&rdquo; according to Arif Habib Limited, Pakistan Investment Strategy 2026: The Equity Edge Continues.&nbsp;The report predicts that the Pakistan Stock Exchange is expected to remain the best-performing asset class in 2026, driven by improving macroeconomic stability, easing inflationary pressures, and sustained domestic liquidity.&nbsp;It added: &ldquo;In 2026, equities remain the top choice, with the KSE-100 projected to grow by 21.60%, significantly outperforming gold (5.15%), silver (7.89%), and T-bills (10.05%),&rdquo; the report said.&nbsp;Meanwhile, a report by AKD Research projected that the KSE-100 index would reach the 263,800 level, driven by further monetary easing and an improving external account position.&nbsp;The index is expected to deliver a robust return of 53% in 2026, reaching a historic market capitalization of $100 billion.&nbsp;

Economy

JS Global projects the index to reach the 225,000 level by December 2026.

PSX hit fresh all-time high, index crosses 183,000 level

ISLAMABAD: A majority of Pakistanis are entering 2026 with significantly higher expectations for economic prosperity and global peace than their neighbors in India, defying global trends of pessimism, according to a new survey. The &ldquo;End of Year Survey&rdquo; by the Gallup International Association highlights a distinct divergence in South Asian sentiment. While India records higher levels of general hope for the new year, Pakistan has outperformed its eastern neighbor on specific measures of economic confidence and expectations for a more peaceful world. Economic outlook On the specific question of economic prosperity, Pakistan has emerged as a regional outlier. The poll found that 53% of Pakistani respondents believe 2026 will be a year of economic prosperity, compared with just 39% in India. This confidence is particularly striking when viewed against the global backdrop. The world average for economic optimism sits at just 24%, meaning Pakistan&rsquo;s positive sentiment is more than double the international norm. <img src="https://paktv-assets-7d41fab8.s3.eu-west-2.amazonaws.com/uploads/f2a731dd-9f22-43c9-9612-7ab420f1a973-1.png" alt="1.png" class="fr-dib fr-fil"><figcaption class="caption-cover-image text-sm text-gray-600 italic" style="line-height: 2;">Source: Gallup International End of Year Survey 2026</figcaption> The contrast deepens when looking at the overall balance of opinion. Instead of just counting the optimists, the survey calculates a &quot;net score&quot; by subtracting the pessimists. In Pakistan, the hopeful outnumber the fearful by a solid margin of 26 percentage points. In comparison, India&rsquo;s lead is much slimmer, with optimists exceeding pessimists by only 13 points. &quot;Overall, the findings indicate that economic sentiment in Pakistan is notably stronger than both the global average and India, despite widespread global economic pessimism,&quot; the report noted. Hope for peace Pakistan&rsquo;s lead is even more pronounced regarding global stability. According to the data, 52% of Pakistanis expect the world to be more peaceful in 2026. In sharp contrast, only 26% of respondents in India share this view, a figure that aligns with the low global average.<img src="https://paktv-assets-7d41fab8.s3.eu-west-2.amazonaws.com/uploads/53d2c3d6-227f-4671-85dd-dad3f3256dfd-2.png" alt="2.png" class="fr-dib fr-fil"><figcaption class="caption-cover-image text-sm text-gray-600 italic" style="line-height: 2;">Source: Gallup International End of Year Survey 2026</figcaption> The divide is starkest when weighing hope against fear. While Pakistan remains firmly in positive territory (+31%), India actually slides into the negative. There, the pessimists outnumber the optimists by 9 points, meaning more Indians expect the world to become &quot;more troubled&quot; than &quot;more peaceful.&quot; General hope While Pakistan leads on specific economic and peace metrics, the survey indicates that India holds a stronger sense of general hope for the year ahead. When asked simply if 2026 will be generally &quot;better&quot; than 2025, 59% of respondents in India said yes, compared to 51% in Pakistan. However, the report noted that Pakistan&rsquo;s outlook remains resilient; its 51% optimism rate places it well above the global average of 37%. Drivers of optimism The surge in Pakistani optimism appears to be primarily driven by younger demographics. The report details that optimism is concentrated among those aged 18-34, while older age groups expressed more caution regarding the coming year. This year&#39;s figures represent a significant rebound in public sentiment. The report describes the current optimism as one of the highest recorded since tracking began in 1994, comparable only to peaks seen in the late 1990s and mid-2010s. Methodology The findings for Pakistan are based on a sample of 1,000 respondents interviewed via Random Digit Dialling across all four provinces by Gallup Pakistan, an affiliate of the Gallup International Association. Globally, the survey interviewed 59,636 people across 60 countries.

Defying global pessimism, Pakistan outpaces India in economic and peace optimism for 2026, marking a significant rebound in national confidence.

Pakistan outpaces India in economic and peace optimism for 2026: Global survey

ISLAMABAD: After years of twin deficits, Pakistan has achieved fiscal and current account surpluses and is now pivoting toward export-led growth and structural reforms to secure long-term economic stability and investment opportunities.&nbsp;This was stated in an article by Pakistan&rsquo;s Finance Minister Muhammad Aurangzeb, published by USA Today on Dec. 22. From deficits to surpluses&ldquo;The country&rsquo;s long battle with twin deficits &mdash; fiscal shortfalls and external imbalances &mdash; appears to have taken a decisive turn,&rdquo; Aurangzeb writes, adding, &ldquo;For the first time in years, Pakistan has recorded a primary surplus on the fiscal side alongside a current account surplus.&rdquo; He credited remittance inflows for providing &ldquo;much of the strength behind this improvement.&rdquo; Highlighting the country&rsquo;s achievements on the economic front, Aurangzeb states, &ldquo;inflation, once running at a crippling 38%, has fallen into the single digits, while foreign reserves have climbed to cover two and a half months of imports, surpassing $14.5 billion.&rdquo;&nbsp; &ldquo;The rupee has also shown rare stability, reinforcing investor confidence that Pakistan has moved beyond its latest crisis cycle.&rdquo; Moving beyond consumptionAbout the country&rsquo;s macroeconomic position, the Pakistani finance minister underlined that &ldquo;the economy expanded by 2.7% in the last fiscal year, which, although positive, remains well below what is needed to generate employment for a rapidly growing population.&rdquo;&nbsp; Historically, Pakistan&rsquo;s growth spurts have been fueled by consumption and debt, only to collapse into renewed balance-of-payments problems.&nbsp; This time, Aurangzeb insists, the strategy is different. Export-led growth&nbsp;The government is steering toward export-led growth, supported by a new budget that introduces structural reforms in taxation, energy, and state-owned enterprises.&nbsp; Tariff reform, in particular, is designed to end decades of protectionism and force industries to become globally competitive.&nbsp; As the minister noted, &ldquo;If they are competitive, then we move towards export-led growth.&rdquo; This shift also reflects a recognition that global demand is changing, and Pakistan must carve out its share in international markets.&nbsp; Information technology services, textiles, and agricultural exports are areas where the government sees potential to scale up and capture greater value. The finance minister writes that, &ldquo;Pakistan&rsquo;s IT exports surpassed four billion US dollars last year, and officials believe this figure could double within five years if regulatory clarity and infrastructure investments continue.&rdquo;&nbsp; &ldquo;The finance ministry has also been working to simplify tax regimes for exporters, aiming to reduce the bureaucratic bottlenecks that have often discouraged competitiveness,&rdquo; he writes.&nbsp; Aurangzeb underlines that &ldquo;By redirecting focus from short-lived consumption to long-term productivity, Islamabad is trying to rewrite the country&rsquo;s economic playbook.&rdquo;&nbsp; Resilience for long term&ldquo;Beyond fiscal stability, Pakistan&rsquo;s reform agenda is broad and ambitious,&rdquo; the finance minister writes, adding, &ldquo;Privatization of state-owned companies, tariff liberalization, and new regulatory structures in the energy sector are intended to reduce inefficiencies that have long drained the exchequer.&rdquo;&nbsp; Aurangzeb stressed that these moves are about more than short-term savings.&nbsp; The finance minister further states, &ldquo;They form the foundation of what the World Bank has described as Pakistan&rsquo;s potential &#39;East Asia moment,&#39; recalling how liberalization spurred the economic rise of Southeast Asia.&rdquo;&nbsp; &ldquo;Islamabad has already signed a landmark ten-year Country Partnership Framework with the World Bank, the first of its kind, which prioritizes climate resilience and population management alongside economic reform,&rdquo; he adds. Existential priorities&ldquo;Population growth and climate change,&rdquo; Aurangzeb underscores, are &ldquo;existential challenges that must be addressed urgently.&rdquo; &ldquo;Child stunting, learning poverty, and especially the exclusion of girls from education risk constraining the country&rsquo;s productive capacity for generations.&rdquo;&nbsp; &ldquo;We have to address that.&rdquo;&nbsp; On climate, the minister writes, &ldquo;Pakistan is leveraging technical assistance and financing from multilateral institutions to build resilience against increasingly severe floods and droughts.&rdquo; Risks on the horizonAurangzeb states, &ldquo;Global commodity price shocks, particularly in oil, could undo some of the progress on inflation and the current account.&rdquo; &ldquo;Political instability remains a perennial concern, with reforms often stalling amid shifting alliances.&rdquo; The finance minister maintains, &ldquo;The burden of external debt also looms large, making Pakistan dependent on continued discipline and international support.&rdquo; Opportunities for investorsAbout opportunities for investors, Aurangzeb writes that &ldquo;agriculture remains a priority&rdquo;, adding, &ldquo;minerals and mining sector is another area drawing attention.&rdquo; &nbsp; &ldquo;The Tethyan Copper Belt in Balochistan, home to one of the country&rsquo;s first copper projects, is being framed as a supply-side answer to global shortages.&rdquo; Aurnagzeb states, &ldquo;The government is also focusing on the new economy &mdash; data centers, artificial intelligence, and other digital services.&rdquo; Regulatory frameworks are being updated to ensure Pakistan is not left behind in emerging sectors.&nbsp; &ldquo;Technology change is a real game changer for Pakistan,&rdquo; writes Aurangzeb, encouraging US investors to take a closer look. Message to the worldIn his message to the world, Aurangzeb writes: &ldquo;Come and visit us. It can be trade or investment. But most of all, it&rsquo;s a beautiful country.&rdquo;&nbsp; &ldquo;By marrying structural reform with an invitation to partnership, Pakistan is presenting itself not as a perennial risk story but as an emerging opportunity in South Asia.&rdquo;&nbsp; &ldquo;Investors willing to look beyond past turbulence may find in today&rsquo;s Pakistan a market at the cusp of transformation,&rdquo; he concludes.

Pakistan has entered the 2025 fiscal year on a strong footing, with Finance Minister Muhammad Aurangzeb highlighting a combination of fiscal surplus, external balance, and structural reforms as the country positions itself for sustainable growth.

‘Come and visit us’: Finance minister Aurangzeb says Pakistan 'emerging opportunity' for investors

ISLAMABAD: Pakistan recorded a <a href="https://www.pakistantv.com/article/pakistan-records-fy26s-first-current-account-surplus-marks-economic-turnaround" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">current account surplus</a> of $100 million in November 2025, reversing a deficit of $291 million in October, the State Bank of Pakistan (SBP) reported on Wednesday.&nbsp;The surplus contrasts with $709 million recorded in the same month last year.&nbsp;In November, Pakistan&rsquo;s total exports of goods and services stood at $3.09 billion, down over 10 percent from $3.44 billion in October. Meanwhile, total imports fell to $5.68 billion, a nearly 12 percent decline from the previous month.&nbsp;Workers&rsquo; remittances remained strong at <a href="https://www.pakistantv.com/article/pakistan-remittances-rise-9-to-319b-yoy-in-nov-reach-161b-in-5mfy26" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">$3.19 billion</a>, although slightly lower than $3.42 billion in October.&nbsp;For the first five months of the current fiscal year (FY26), Pakistan recorded a cumulative current account deficit of $812 million, compared with a surplus of $503 million in the same period last year.&nbsp;Pakistan&rsquo;s foreign exchange reserves rose to $14.68 billion, up 21 percent year-on-year, indicating improved external buffers despite ongoing structural pressures.

The surplus follows a defecit of $291 million in October 2025.

Pakistan posts $100 million current account surplus in November

ISLAMABAD: Pakistan&#39;s public debt has fallen by more than Rs1,371 billion ($4.847 billion), the largest quarterly reduction in 69 months. In a post on X (Twitter), the advisor to the country&rsquo;s Finance Minister, Khurram Schehzad, wrote that this was the first quarterly decline in nearly six years, with the last drop occurring in December 2019. <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-1" scrolling="no" frameborder="0" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 720px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-1&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1990401813116276974&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=b93cea67d457c50ae4be591fd9102aada938c5a8&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</iframe></div></div> The decline, from Rs80,518 billion ($284.9 billion) in June 2025 to Rs79,146 billion ($280 billion) in September 2025, represents a 1.7% reduction. The decrease is attributed to the country&rsquo;s strong fiscal management and the strategic early retirement of high-cost debt, which has helped reduce the country&rsquo;s future borrowing requirements and refinancing risks. Schehzad&nbsp;noted that this shift would strengthen Pakistan&rsquo;s medium-term financial stability and provide the government with greater fiscal flexibility moving forward. &ldquo;Lower debt servicing will create fiscal space for priority spending on development, social protection, and growth,&rdquo; the advisor wrote. The drop in debt also signals improving policy credibility and boosted investor confidence, he added.

Banking

This was the first quarterly decline in nearly six years, with the last drop occurring in December 2019.

Pakistan cuts public debt by $4.8 billion in largest 6-year drop

ISLAMABAD: Pakistan&rsquo;s Finance Minister Muhammad Aurangzeb and his economic team outlined a comprehensive set of structural reforms during a press conference on Thursday, aiming to pave the way for sustainable economic growth. The reforms are designed to address long-standing economic challenges and take advantage of both domestic and international opportunities. The government stated it aimed transform the country&rsquo;s economic landscape, with a special focus on improving the taxation system and addressing fiscal and energy sector inefficiencies. Structural reforms The goal of the government&#39;s reform agenda is clear: to ensure Pakistan&#39;s long-term economic stability and avoid the cyclical boom-and-bust scenarios that have plagued the economy in the past. Key to this vision is a series of structural reforms that will address fundamental issues in taxation, energy, state-owned enterprises (SOEs), and government rightsizing. The Finance Minister said that these reforms are already underway and will be institutionalized as part of a &ldquo;whole-of-government&rdquo; approach. He stated that this was not just about planning or discussing what needs to be done, but rather ensuring these reforms were actively implemented and embedded in Pakistan&rsquo;s institutional framework. Leveraging geopolitical opportunities The government is also positioning Pakistan to capitalize on its favorable geopolitical environment. With strong relationships with global economic powers such as China, the United States, and GCC countries, the Finance Minister said it was importance to leverage trade and investment flows to support the nation&rsquo;s growth. Diplomatic and economic engagements, particularly in Washington and Riyadh, are seen as essential to securing funding and long-term partnerships that will benefit Pakistan&rsquo;s economy. Taxation reform One of the key highlights of the press conference was the government&#39;s ambitious plan for taxation reform. FBR Chairman Rashid Mahmood Langrial provided an update on the tax-to-GDP ratio, which saw a 1.49% increase in just one year.&nbsp;The improvement comes on the back of measures introduced in the June 2024 budget and is expected to form the foundation of future fiscal policies. However, the government acknowledged that substantial progress is still needed to reach its long-term target of an 18% tax-to-GDP ratio over the next 3-4 years. This target includes contributions from both federal and provincial governments. The federal government is expected to contribute 15%, including FBR&rsquo;s target of around 13.85%, while the provincial governments are tasked with contributing 3%. &ldquo;The reform of Pakistan&rsquo;s tax system is a long-term commitment. While significant progress has been made, the ultimate goal is to expand and deepen the tax base by broadening the number of tax filers and ensuring the top earners contribute a fair share.&rdquo; The FBR chairman also revealed that the number of tax filers significantly increased this year compared to last year. However, the government remains committed to addressing key criticisms that the tax system is deepening but not broadening. The focus will be on increasing the number of tax filers and ensuring that a broader portion of the population participates in the tax system. Road ahead for FBR The FBR acknowledged challenges in meeting revenue targets, particularly in the months of July to September 2025, where a shortfall of around Rs275 billion was recorded. While the chairman admitted the setback, he reassured that some of the shortfall would be recovered in subsequent months. &ldquo;Reforms within the FBR will be bottom-up, focusing on data-driven strategies and improved compliance. We are rethinking how taxes can be broadened and deepened, and we will ensure that the top 1% of earners pay their fair share,&rdquo; he said. Energy sector reforms The government announced energy sector reforms, including a Rs1,200 billion debt agreement to cut circular debt by Rs700 billion within a year. Power tariffs has been reduced, with industrial users seeing a Rs16 per unit cut. The EV tax also dropped from 71% to 39% to encourage new sectors while maintaining fair taxation. The Competitive Trading Bilateral Contract Market (CTBCM) is set to launch by early 2026 to improve electricity trading and reduce reliance on government power purchases. Energy Minister Awais Leghari said these steps aim to lower costs, improve service, and make the sector more sustainable. Privatization and SOE reforms The government is also focusing on the privatization and restructuring of state-owned enterprises (SOEs). Privatization Advisor discussed the ongoing sales of banks and the planned privatization of PIA and DISCOs. Meanwhile, Prime Minister&rsquo;s Coordinator for Rightsizing announced that 20 ministries have been restructured, 54,000 vacant positions abolished, and loss-making entities like PASSCO shut down to ease the fiscal burden. The broader vision The government&rsquo;s reform agenda includes&nbsp;addressing taxation, energy, debt management, SOE restructuring, rightsizing of government institutions, pension reforms, and digital transformation. The reforms are aimed at ensuring sustainable economic growth and addressing the challenges of macroeconomic instability. &ldquo;The goal is to create a system where all sectors of the economy are working together towards a single vision of sustainable growth. This isn&rsquo;t about isolated changes &mdash; it&rsquo;s about making structural adjustments that will last for decades,&rdquo; the finance minister said.

The government’s reform agenda includes addressing taxation, energy, debt management, SOE restructuring, rightsizing of government institutions, pension reforms, and digital transformation.

Pakistan sets ambitious 18% tax-to-GDP target to stabilize economy

LAHORE: For years, Pakistan&rsquo;s economy has often been discussed through broad narratives of crisis and decline. But analysts say that much of this discourse overlooks the actual data, which now points to a phase of stabilization and gradual recovery under severe external and climate-related pressures. The contrast between perception and performance, they argue, has rarely been more pronounced. The comparison with India frequently dominates headlines. India&rsquo;s growth rate, hovering near 7%, is widely showcased as a regional success story. Yet, as economists note, growth alone does not define economic well-being. India currently ranks 105th on the Global Hunger Index 2024, categorized in the &ldquo;serious&rdquo; hunger bracket, with more than 800 million people reliant on free food rations. Meanwhile, the richest 1% own 40% of national wealth, leaving the bottom half with just 6.4%. Economic expansion has not prevented inequality from reaching levels deeper than the colonial era. Pakistan, by contrast, has weathered multiple overlapping crises: record flooding in 2022 displaced 33 million people and caused more than $30 billion in losses; new floods in 2025 again hit Punjab, damaging crops and supply chains just as stabilization had begun. These shocks came amid global inflation, volatile energy markets, and disruptions at the Afghan border. Despite this, the economy held together. A data-based correction to recent pessimistic commentary came from Khurram Schehzad, advisor to the finance minister, after BBC Urdu&rsquo;s recent report painted a bleak picture of Pakistan&rsquo;s economic trajectory. In a detailed post on X, Schehzad challenged the narrative with updated performance metrics. He noted that GDP growth rose from 2.5% in FY24 to 3.0% in FY25, with projections of 3.6&ndash;4.0% in FY26. Per capita income climbed to $1,830, the first significant increase in years. Inflation fell sharply, from 23% to 4.5%, its lowest in nine years, while the policy rate dropped from 22% to 11%, reopening avenues for investment and credit. The external account improved in parallel. Pakistan recorded its first current account surplus in 14 years, reaching $2.1 billion in FY25. Foreign exchange reserves rose to $14.5 billion, about 55% higher than a year earlier. The primary fiscal surplus reached a record 2.4% of GDP. The overall deficit hit a nine-year low. Debt metrics also improved. Debt-to-GDP declined from 75% to under 70%, and the government posted a fiscal surplus of Rs1.5 trillion (&asymp; $5.34 billion) in the first quarter of FY26. Ratings agencies responded in kind: Fitch upgraded Pakistan to B&ndash; (April 2025) S&amp;P matched the upgrade (July 2025) Moody&rsquo;s raised Pakistan to Caa1 (August 2025) Each cited strengthened reserves, improved fiscal discipline, and credible reforms. These reforms are wide-ranging. The tax system has shifted to digital e-invoicing, provinces have begun agriculture income tax enforcement, and the energy sector is being restructured through tariff rationalization and governance changes. Industrial and agricultural tariffs have been brought down from Rs38 to Rs23 per unit, with three-year price certainty, reducing production costs. Privatization, stalled for years, has resumed: the First Women Bank was recently acquired by a UAE investment group. Under the Medium-Term Debt Strategy, Pakistan has already repaid Rs3.5 trillion (&asymp; $12.45 billion) in early debt retirements. Regulatory simplification has reduced compliance costs by over Rs300 billion (&asymp; $1.07 billion) annually. This shift is reflected in trade and markets. Exports grew across goods (+7%), services (+15%), and technology (+18%) in FY25. Large-scale manufacturing expanded 9% between July and September 2025. The Pakistan Stock Exchange surged 60% in FY25, with its investor base growing 28%, surpassing one million individual investors. The ICT and freelance economy now leads the transformation. Between July&ndash;September FY26, ICT exports reached $1.06 billion (+20.5% YoY); September alone recorded $366 million (+25.3%), the highest month ever. ICT now contributes 48% of total services exports, generating a $953 million trade surplus. This progress has attracted renewed foreign investment. Saudi Arabia has advanced commitments in refining and minerals, China&rsquo;s CPEC 2.0 has brought $1.5 billion in new B2B projects, and the UAE and US have expanded investment in banking, renewables, ports, mining, and digital infrastructure. The picture that emerges is not one of triumph, but of resilience combined with gradual structural repair. Inflation is down. Interest rates are down. Reserves are higher. Fiscal and external accounts are in surplus. Exports and ICT earnings are at record levels. Investment appetite is returning. Structural reforms, long delayed, are underway. Global headlines may continue to frame Pakistan&rsquo;s economy as collapsing. But the data shows an economy that is stabilizing, reforming, and quietly rebuilding, under extraordinary constraints. The story, as the numbers tell it, is not one of decline, but of recovery under pressure, real, uneven, but unmistakably underway.

Pakistan’s economy is showing signs of stabilization, with lower inflation, rising reserves, export growth and structural reforms underway, despite recent climate shocks and external pressures, according to officials and analysts citing updated macroeconomic data.

Behind headlines: Pakistan’s economy shows stabilization amid crises, reform

Maham Khan

ISLAMABAD:&nbsp;At first glance, it feels almost anachronistic&mdash;two countries announcing a barter agreement in the third decade of the 21st century, in a world hurtling towards a cashless economy. Yet, this is precisely the economic route countries like Pakistan, Iran, and Russia seem to be charting in 2025. On Sunday, Pakistan and Iran formally signed an amended Business-to-Business (B2B) Barter Trade Mechanism, first introduced in 2023, aimed at boosting bilateral trade between the two sanction-hit economies. The news was confirmed by Pakistan&#39;s Ambassador in Tehran, Muhammad Mudassir Tipu. According to Tipu, the revised statutory regulatory order (SRO) followed &ldquo;an exhaustive process of deliberations,&rdquo; and addressed longstanding concerns of the business communities in both countries. He expressed optimism that the framework would &quot;substantially elevate Pakistan-Iran trade and diversify its base.&quot; Business bodies and chambers of commerce were encouraged to circulate the SRO among their members to enable them to capitalize on what he termed &ldquo;mutually-beneficial trade dividends.&rdquo; This development follows another high-profile barter deals. In October 2024, Pakistan signed a barter deal with Russia in Moscow. According to Pakistan&rsquo;s Special Investment Facilitation Council (SIFC), the agreement involved Russian firms and Pakistani companies exchanging agricultural commodities such as chickpeas, rice, mandarins, potatoes, and lentils. The deals were sealed during the first-ever Pakistan-Russia Trade and Investment Forum, with over 60 Pakistani firms showcasing goods and services with a combined export value exceeding $500 million. The forum also featured high-ranking Russian officials and banks, who expressed an interest in alternative payment mechanisms given the continuing SWIFT sanctions on Russia. Why barter? Why now? The resurrection of barter as a tool of statecraft and economic survival has not gone unnoticed. Once relegated to history books, barter has made a curious comeback. To be clear: this isn&rsquo;t romantic nostalgia for ancient trade routes or a step toward alternative economic utopias. Rather, it is a direct response to modern geopolitical and financial constraints, especially in economies heavily burdened by sanctions, currency volatility, and restricted access to global banking infrastructure. According to economist Dr Ikramul Haq, barter offers developing countries like Pakistan a strategic lifeline in a world where Western-dominated financial institutions and reserve currencies&mdash;primarily the US dollar&mdash;remain gatekeepers of international trade. For nations under sanctions such as Iran and Russia, barter becomes less of an option and more of a necessity. &ldquo;The bartering system helps to end dependence on keeping foreign exchange reserves and mitigate fluctuations,&rdquo; Dr Haq explained. &ldquo;In case of Iran and Russia, the additional reason is sanctions on banks imposed by the US and other states.&rdquo; This also explains why Dr Haq advocates for Pakistan to expand such mechanisms to all &quot;Golden Ring&quot; countries&mdash;a term sometimes used to refer to the emerging bloc of Russia, China, Iran, Turkey, and Pakistan. Iran: A crisis economy Iran&rsquo;s embrace of barter is less a strategic pivot than an act of economic survival. Its 2025 macroeconomic outlook is, by most accounts, grim. According to the World Bank, Iran is projected to experience a 1.7% contraction in GDP this year, with the Iranian Parliament&#39;s own research center forecasting -0.3% growth in the first half alone. This is compounded by inflation, with the International Monetary Fund (IMF) projecting a 43.3% inflation rate for 2025, up from 32.6% in 2024. Sanctions are at the heart of Iran&rsquo;s economic woes.&nbsp;Renewed UN sanctions, reinstated in September 2025, have severely impacted the country&rsquo;s oil revenue and foreign exchange reserves. The 12-day war with Israel only accelerated inflationary expectations and currency depreciation. Meanwhile, Iran&rsquo;s currency&nbsp;is in free fall. While officially pegged at 42,000 IRR per USD, the free-market rate is substantially worse. In the most pessimistic&mdash;but widely accepted&mdash;scenario outlined by the Iranian Chamber of Commerce, inflation could hit 90% and the exchange rate could reach 165,000 tomans (equivalent to 1.65 million rials) per dollar by the end of the year. Poverty is escalating just as quickly. The World Bank estimates that 32.7 million Iranians, out of a population of 86 million, now live on less than $8.30/day, the international poverty threshold. Despite a life expectancy of 77.7 years, Iran&rsquo;s per capita GDP stands at $5,528.9, with total GDP at $475.3 billion (in 2024). Against this backdrop, barter offers Tehran a path&mdash;however limited&mdash;to bypass the dollarized international system and maintain trade flows without exhausting its dwindling reserves and navigating sanctioned banking channels. Russia: Sanctioned but still trading The Russian economy, though more resilient than Iran&rsquo;s, is also being dragged toward alternative trade arrangements by necessity. Following years of Western sanctions over the war in Ukraine, Russia&#39;s access to the global banking system remains severely constrained. The IMF&rsquo;s 2025 report revised Russia&rsquo;s GDP growth forecast to 0.6%, down sharply from 4.3% in 2024. While not collapsing, the Russian economy is clearly losing steam. Several factors are contributing to this slowdown: 1. &nbsp; &nbsp;High interest rates imposed by the Central Bank to curb inflation 2. &nbsp; &nbsp;Reduced oil revenues due to global price volatility and export limits 3. &nbsp; &nbsp;Dwindling fiscal reserves, which had previously cushioned the impact of sanctions Inflation remains persistent, projected at 9% in 2025&mdash;more than double the global average. Meanwhile, the ruble, which has seen periods of extreme volatility, is currently trading at around 81 per USD. Some analysts predict a gradual devaluation, with one Central Bank survey expecting it to average 102 per USD before year&rsquo;s end. Still, Russia has adapted in typical Kremlin fashion&mdash;by building elaborate sanctions evasion networks and deepening ties with countries willing to trade outside the dollar-based system. India, the UAE, and China continue to do business with Moscow, albeit with their own forms of risk mitigation. For Pakistan, therefore, entering a barter arrangement with Russia isn&#39;t just symbolic&mdash;it&rsquo;s practical. It offers access to agricultural exports, manufacturing goods, and even energy commodities, without dealing with SWIFT-related complications. Is barter a long-term economic model? Barter is not without its critics. Most mainstream economists and leading financial institutes&mdash;including Merwan Engineer, Shouyong Shi and even David Graeber&mdash;consider it inefficient or inherently limited. Without a standard medium of exchange, trade requires perfect bilateral balance&mdash;something rare in complex global supply chains. There are also logistical challenges: matching needs, coordinating delivery timelines, and ensuring equivalency in value. However, in sanction-heavy geo-economic environments, these inefficiencies are often deemed a worthwhile price to pay for strategic autonomy. As Dr Haq noted, barter arrangements allow developing economies to maintain trade relationships, conserve foreign reserves, and resist dependency on Western financial systems. That said, barter alone is not a remedy. For it to function as a sustainable supplement&mdash;not just a sanction workaround&mdash;countries must build legal frameworks, logistics networks, and valuation protocols. The involvement of chambers of commerce, as seen in the Pakistan-Iran SRO, is a step in that direction. But the elephant in the room remains: is this a temporary adaptation, or a signal of a deeper shift in the global economic order? Beyond barter Some experts see the return of barter not as nostalgia, but as a prelude to a new parallel financial system&mdash;a multipolar world where dollar hegemony is diluted by yuan, and local currencies backed by commodity exchange or digital tokens. Efforts like Russia&rsquo;s Mir payment system, China&rsquo;s digital yuan, and bilateral clearing mechanisms between BRICS nations indicate that barter may be a stepping stone toward broader de-dollarization efforts. If so, Pakistan, Iran, and Russia are early adopters of a model born not of economic idealism but of necessity&mdash;required due to sanctions, resource constraints, and diplomatic isolation. Final thoughts Barter, once dismissed as archaic, now occupies an unlikely position in the toolbox of 21st-century economic diplomacy. While unlikely to replace modern financial systems, it offers a stopgap&mdash;and in some cases, a strategy&mdash;for nations navigating a world of geopolitical fragmentation and asymmetric economic power.

People barter goods in San Miguel market, on the outskirts of Buenos Aires, Argentina. (REUTERS)

Business

Developing nations like Pakistan, Iran, and Russia are reviving barter trade as a strategic workaround to bypass dollar dependence, financial sanctions, and restricted global banking access.


Articles tagged with "pakistan economy"