Ayesha Mir

ISLAMABAD: Pakistan is fully prepared for the upcoming review by the International Monetary Fund and is confident about its economic trajectory, Finance Minister Muhammad Aurangzeb said.&nbsp;Speaking to Pakistan TV Digital, Aurangzeb confirmed that the IMF mission has begun its technical discussions in Karachi and that he will meet the team in Islamabad on Monday for the third review under Pakistan&rsquo;s ongoing program.&nbsp;&ldquo;We are getting ready for the third review,&rdquo; Aurangzeb said. &ldquo;It will cover both performance benchmarks and structural benchmarks, as well as a forward-looking assessment of the program.&rdquo;&nbsp;He added that Pakistan is entering the review from a position of strength. &ldquo;It is premature to say how it will go,&rdquo; he said. &ldquo;But I would say we are well-positioned for this review.&rdquo;&nbsp;Strong economic fundamentalsAurangzeb highlighted the country&rsquo;s consolidation of macroeconomic stability over the past two years. Consecutive primary fiscal surpluses, a stable currency, easing inflation, and rising foreign exchange reserves reflect these gains, he said.&nbsp;Inflation has fallen into single digits, allowing the policy rate to drop to 10.5%, while reserves have grown from roughly two weeks of import cover in July 2023 to about 2.5 months.&nbsp;&ldquo;If the current trajectory continues, we expect to reach the international benchmark of three months of import cover by year-end,&rdquo; he said.&nbsp;Remittances rose to $38 billion last fiscal year and are projected to reach around $42 billion this year. IT exports are also strengthening, expected to reach $4 billion to $5 billion, alongside traditional export sectors.&nbsp;From aid-led to investment-led growthAurangzeb emphasized that Pakistan is shifting from an aid-led model to a trade and investment-focused approach, targeting business-to-business engagement with international partners.&nbsp;&ldquo;We are very focused on sectors like oil and gas, minerals, mining and IT to attract further trade and investment,&rdquo; he said.&nbsp;He noted recent diplomatic and economic initiatives, including CPEC Phase 2.0 with China and strengthened ties with GCC countries and the United States. Tariff negotiations with the US have reduced Pakistan&rsquo;s trade duties, further supporting competitive exports.&nbsp;Reform and continuityThe finance minister outlined ongoing reforms to strengthen fiscal sustainability.&nbsp;These include modernization of the Federal Board of Revenue, pension restructuring, government right-sizing, privatization of select state assets and enhanced debt management, which saved about Rs850 billion last year.&nbsp;&ldquo;We are focused on continuity, credibility, and reform,&rdquo; Aurangzeb said. &ldquo;Our engagement with the IMF is part of a broader strategy to ensure lasting stability, sustainable growth, and increased private-sector investment for Pakistan.&rdquo;&nbsp;The IMF mission will also examine governance reforms, electricity tariff adjustments, and the FY2026-27 federal budget framework. Completion of the review is expected to unlock $1.2 billion in funding, reinforcing Pakistan&rsquo;s recovery and reform momentum.

Federal Minister for Finance Muhammad Aurangzeb speaks with Pakistan TV Digital ahead of the IMF review mission. (Pakistan TV Digital)

Economy

Pakistan is well-prepared for IMF reviews this week, Muhammad Aurangzeb said, with $1.2 billion funding pending. Officials report program targets on track, including fiscal, monetary, and governance benchmarks.

Pakistan confident ahead of IMF review, eyes investment-led growth

Faraz Saeed

LAHORE: The Securities and Exchange Commission of Pakistan has said that media reports have &ldquo;inaccurately interpreted&rdquo; the data on the exit of foreign companies from Pakistan, clarifying that 79 new foreign companies were registered, whereas &ldquo;only 19 foreign companies have ceased operations in Pakistan during 2022 to 2025.&rdquo; For months, headlines have painted a grim narrative: that foreign companies were leaving Pakistan, investment was drying up, and confidence in the country&rsquo;s markets was collapsing.&nbsp; However, the reality, according to the country&rsquo;s top corporate regulator, was far more nuanced and optimistic. The SECP stepped in to correct misconceptions, clarifying that the oft-cited numbers in the media were misleading.&nbsp; In a statement issued earlier this week, the regulator said: &ldquo;Only 19 foreign companies have ceased operations in Pakistan during 2022 to 2025, whereas 79 new foreign companies were registered during the same period.&rdquo; The SECP also highlighted a common source of confusion: &ldquo;The figure of 125 ceased foreign companies, cited in some media reports, represents the cumulative total of companies that ceased operations since 1977 to date. This does not reflect the number of companies that exited in the last three years.&rdquo; As of February, 1,157 foreign companies remained registered and operational in Pakistan, a figure that underscored the continued investor confidence in the country&rsquo;s regulatory and business environment. The inflow of foreign capital was not limited to a single sector.&nbsp; In energy, giants such as Saudi Aramco, Wafi Energy, Gunvor Group, Turkish Petroleum, and SOCAR expanded their presence, while UAE-based DP World entered a joint venture with the National Logistics Corporation, reinforcing Pakistan&rsquo;s logistics and supply chain infrastructure. Technology and digital services also saw significant activity.&nbsp; Global firms such as Google, Samsung, IceWarp, and Russoft Synercon were expanding operations, and local companies such as Woot Tech received substantial foreign investment. In a notable deal, Bazaar Technologies acquired Wemsol, and Saudi Arabia&rsquo;s Waqub Data Company took an 80% stake in Woot Tech. The telecommunications sector has been witnessing consolidation, with PTCL acquiring Telenor Pakistan. In the pharmaceuticals sector, Pfizer transferred its Karachi manufacturing plant to Lucky Core Industries to ensure production continuity, and Sanofi sold its majority stake to a local investor consortium, renaming the company Hoechst Pakistan Limited. Agriculture, mining, and even emerging sectors such as electric vehicles also drew attention.&nbsp; Italy&rsquo;s Euricom S.p.A. acquired a 50% stake in Fatima Euricom Rice Mills, while mining and minerals companies, including Barrick Gold, Strategic Metals US, and Nova Minerals US, continued their investment. Electric vehicle companies like BYD, Chery Automobile, and NWTN Motors were also exploring Pakistan&rsquo;s market potential. Foreign investors already in the country are doubling down. The SECP noted: &ldquo;Mashreq Bank has launched and is expanding Pakistan&rsquo;s first digital bank. Kuwait-backed Raqami Digital Bank plans to invest $100 million. Nestl&eacute; is investing an additional $60 million, and the Engro Jazz consortium is committing more than $550 million toward digital infrastructure expansion.&rdquo; The China-Pakistan Economic Corridor (CPEC) Phase II also accelerated industrial cooperation.&nbsp; To date, 24 business-to-business agreements worth $1.5 billion and memoranda of understanding totaling more than $7 billion have been signed, spanning agriculture, renewable energy, information technology, minerals, and industrial relocation. The SECP&rsquo;s data painted a clear picture: Pakistan was not witnessing an exodus of foreign companies.&nbsp; Even in January alone, foreign investors invested in 82 local companies from diverse countries, including China, the US, the UK, Germany, South Korea, Australia, and more. The narrative of panic is misleading. Companies have continued to enter the market, existing investors have continued to expand their commitments, and foreign capital has continued to flow. As the SECP concluded: &ldquo;Foreign investment is continuing, partnerships are expanding, and Pakistan&rsquo;s regulatory environment continues to inspire confidence among international investors.&rdquo; In an environment where fear often dominates headlines, the numbers tell a different story. Pakistan is not just holding steady; it is growing, attracting strategic investments, and positioning itself as an increasingly attractive destination for foreign capital.

For months, headlines have suggested a grim narrative stating that foreign companies were leaving Pakistan, the investment was drying up, and the confidence in the country’s markets was collapsing. 

Pakistan defies panic as foreign investment continues to rise

Web Desk

ISLAMABAD: Pakistan&rsquo;s exports recorded a sharp month-on-month increase in January, rising by nearly 35% compared to December 2025, according to provisional figures released by the Pakistan Bureau of Statistics. The data shows that exports stood at Rs 857 billion ($3.06 billion) in January, up from Rs 635.7 billion ($2.27 billion) in December. This represents an increase of 34.8% in rupee terms and 35.0% in dollar terms. During the same period, imports declined by around 5%, falling to Rs1,622.3 billion ($5.79 billion) from Rs1,707.0 billion ($6.08 billion) in the previous month. As a result of higher exports and lower imports, the trade deficit narrowed to Rs765.2 billion ($2.73 billion), down from Rs1,071.3 billion ($3.81 billion) in December 2025, a 29% contraction. Year-on-year trendOn a year-on-year basis,&nbsp;<a href="https://www.pakistantv.com/article/pakistan-it-exports-surpass-400-million-monthly-for-first-time" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">exports increased</a>&nbsp;by 4.2% in rupee terms and 3.7% in dollar terms, rising to Rs857.0 billion ($3.06 billion) in January 2026 from Rs822.4 billion ($2.95 billion) in January 2025. Imports recorded a marginal decline of 0.8% in rupee terms and 1.4% in dollar terms, easing to Rs1,622.3 billion ($5.79 billion) from Rs1,635.4 billion ($5.87 billion) during the same period. The trade deficit also improved year-on-year, decreasing by 5.9% in rupee terms and 6.6% in dollar terms compared to January 2025. Cumulative performanceHowever, cumulative trade figures for July-January FY2025-26 indicate a decline in overall export performance. Exports during the period fell by 6% in rupee terms and 7.1% in dollar terms, amounting to Rs5,122.5 billion ($18.20 billion), compared to Rs5,447.9 billion ($19.58 billion) in the corresponding period of the&nbsp;<a href="https://www.pakistantv.com/article/pakistan-committed-to-promoting-exports-businessfriendly-environment-federal-minister" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">previous fiscal year</a>. Imports, meanwhile, rose by 10.8% in rupee terms and 9.4% in dollar terms to Rs 11,337.7 billion ($40.23 billion), resulting in a cumulative trade deficit of Rs 6,215.2 billion ($22.04 billion). PBS noted that data from the Directorate of Research and Statistics, Federal Board of Revenue, for January is still awaited, and that the figures are provisional. The bureau also cautioned that minor variations may occur due to rounding.

An aerial view shows stacked containers at the Shanghai Port container terminal in Shanghai on December 8, 2025. (Photo by AFP/File)

The data shows that exports stood at Rs 857 billion ($3.06 billion) in January, up from Rs 635.7 billion ($2.27 billion) in December.

Pakistan's exports surge 35% month-on-month

ISLAMABAD: Global credit rating agency Fitch Ratings on Wednesday reaffirmed Pakistan&rsquo;s long-term foreign-currency credit rating at B-, signaling continued economic stability. <a href="https://www.pakistantv.com/article/fitch-downgrades-frances-credit-rating-in-new-debt-battle-blow" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer" class="fr-green">Fitch</a> also assigned Pakistan a Recovery Rating of RR4, indicating average recovery for investors in the event of a default. Previously, Pakistan had been placed in the &ldquo;Under Criteria Observation&rdquo; category, a temporary status used when agencies reassess ratings under revised rules. It has now been removed. Improved financing conditionsThe rating agency had upgraded Pakistan&rsquo;s foreign-currency rating to B- with a stable outlook in April last year, reflecting improved external financing conditions and policy support under the International Monetary Fund program.&nbsp;Fitch warned that Pakistan&rsquo;s rating could come under pressure if fiscal reforms slow, debt levels rise, or external liquidity weakens, particularly due to delays in IMF program reviews.&nbsp;It said the rating could improve if Pakistan achieves sustained reductions in government debt, strengthens tax collection, and builds foreign exchange reserves beyond current forecasts.&nbsp;The decision was seen by market observers as a positive signal, as Pakistan retained its rating after a review under stricter criteria.

Also assigns Pakistan a Recovery Rating of RR4, which indicates an average level of recovery for investors in the event of a default.

Fitch reaffirms Pakistan’s B- credit rating, removes review status

Saqib Tanveer

DAVOS: Pakistan&rsquo;s Finance Minister Muhammad Aurangzeb said the country is &ldquo;open for business&rdquo; as he held a series of <a href="https://www.pakistantv.com/article/pakistan-finance-minister-highlights-120000-new-investors-boosts-confidence" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">high-level political and corporate</a> engagements on the sidelines of the World Economic Forum (WEF) annual meeting, positioning Islamabad as a destination for investment driven by macroeconomic stability and technology-led growth.&nbsp;In an exclusive interview with Pakistan TV Digital, Aurangzeb outlined Pakistan&rsquo;s outreach strategy at the five-day WEF meeting in Davos, where nearly 3,000 global leaders from politics, business, finance and civil society are gathering to discuss pressing global challenges.&nbsp;Aurangzeb said his engagements included meetings with fellow finance ministers from Saudi Arabia, the United Arab Emirates (UAE) and Egypt, alongside interactions with existing and prospective investors.&nbsp;&ldquo;It&rsquo;s a great opportunity to meet your counterparts and have conversations about their economies, our economy, and mutual areas of cooperation, investment and trade,&rdquo; he said.&nbsp;The finance minister noted that Davos offers a rare platform where political leadership and global business converge, enabling Pakistan to simultaneously engage governments and multinational corporations.&nbsp;He said discussions were underway with major existing investors in Pakistan, including global companies active in aviation, food and beverages, to understand how they plan to expand their footprint in the country.&nbsp;Highlighting the presence of&nbsp;<a href="https://www.pakistantv.com/article/pm-sharif-to-lead-pakistan-delegation-to-wef-2026-in-davos" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Prime Minister Shehbaz Sharif</a>&nbsp;at the forum, Aurangzeb said Pakistan&rsquo;s leadership was using the platform to present a renewed national narrative anchored in economic stabilization achieved over recent years.&nbsp;&ldquo;This is to tell the Pakistan story. The macroeconomic stabilization we have achieved and, more importantly, how we want to move forward toward sustainable growth,&rdquo; he said.&nbsp;Aurangzeb emphasized that Pakistan is now seeking market-efficiency-driven foreign investment that can generate exportable surpluses and long-term value.&nbsp;&ldquo;This is a very big opportunity for us to showcase Pakistan, the opportunity in Pakistan, and the message that Pakistan is open for business,&rdquo; he added.&nbsp;Turning to the digital economy, the finance minister said Pakistan is positioning itself to capitalize on emerging technologies, including artificial intelligence, blockchain and Web3. Key themes at this year&rsquo;s WEF meeting.&nbsp;He said regulatory progress through the Pakistan Virtual Assets Regulatory Authority and engagement with global technology leaders signal Pakistan&rsquo;s intent to compete in the knowledge economy.&nbsp;Aurangzeb underlined Pakistan&rsquo;s strength as one of the world&rsquo;s top freelance markets, saying targeted investment in blockchain and AI centers of excellence could significantly raise earnings and productivity.&nbsp;He said such initiatives would not only benefit individual professionals but also strengthen the national economy through higher-value exports of digital services.&nbsp;Summing up Pakistan&rsquo;s pitch to the international community, Aurangzeb pointed to opportunities across traditional sectors such as agriculture, minerals and mining, alongside fast-growing areas like information technology and startups.&nbsp;The finance minister said Pakistan aims to leapfrog in the knowledge economy by attracting expertise, financing and technology transfer through global partnerships.&nbsp;The World Economic Forum annual meeting, held every January in the Alpine town of Davos since 1971, brings together heads of state, ministers, corporate leaders and policymakers. This year&rsquo;s meeting, which began on January 19 and concludes on January 23, comes amid global economic uncertainty and heightened focus on technological transformation and international cooperation. <div class="fr-embed youtube-embed"><iframe src="https://www.youtube.com/embed/uSIuj_Y9ayk?si=6ESAjjOQmQ9MS9Nf" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="" style="width: 100%; height: auto; aspect-ratio: 16 / 9; max-width: 100%; display: block;"></iframe>&nbsp;</div>

In conversation with Pakistan TV Digital in Davos, Finance Minister Muhammad Aurangzeb says Pakistan is engaging global counterparts, courting investors, and leveraging digital innovation to drive sustainable, export-oriented economic growth.

Pakistan pitches stability, AI-led growth to investors at Davos forum

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   

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;

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.

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