The Pak Banker
Govt keeps treasury bill returns higher over policy rate
The government kept treasury bill rates almost unchanged in an auction held on Wednesday, but the returns on all tenors of T-bills remained higher than the State Bank’s policy rate of 11.5 per cent. This was the last auction of Tbills before...
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Findings of addressing GBV financing study unveiled
The Women’s Parliamentary Caucus (WPC) of the National Assembly of Pakistan, in collaboration with the Safeguarding Resource and Support Hub (RSH) Pakistan, launched the summary findings of the Safeguarding and Addressing Gender-Based Violence (GBV)...
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Pakistan’s growth during FY27 projected at 3.5pc, inflation at 9.9pc: IMF
The International Monetary Fund (IMF) has projected Pakistan’s economic growth at 3.5 per cent during the current fiscal year and inflation to remain close to double digits for another year, notwithstanding global growth rebounding to 3.4pc. In its...
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Foreign income: IRIS drops reduced tax rate option
Taxpayers declaring foreign income are facing serious difficulties in filing their income tax returns for tax year 2026, as the Federal Board of Revenue’s (FBR) IRIS portal no longer offers the option to apply reduced tax rates on such income. M....
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Pakistan to refinance short-term external debt to reduce rollover risks: Aurangzeb
Pakistan plans to refinance some of its short-term external debt into longer maturities over the next two to three years to reduce rollover risks, while keeping its overall external debt, estimated at close to $100 billion, broadly unchanged, Finance...
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Pakistan’s reserves rise to $26.8b, SBP’s cross $21.45b
The total liquid foreign reserves of Pakistan rose to US$ 26,797.4 million as of October 02, while State Bank of Pakistan (SBP) reserves further increased to US$ 21,453.7 million. “During the week ended on 2-Oct2026, SBP’s FX reserves increased by US$...
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FBR sets new benchmark for taxing social media creators
Federal Board of Revenue (FBR) has introduced a new mechanism to tax income earned by social media creators, using a benchmark of Rs195 ($0.71) earnings for every 1,000 YouTube views, officials said. The new mechanism comes as Islamabad seeks to bring...
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Discos’ sell-off faces investor trust deficit
To attract bidders for the successful privatisation of distribution companies (Discos) and allay concerns about contract sanctity, the government is expediting measures to improve regulatory predictability and considering political risk guarantees from...
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Pakistan Investment Bonds attract inflows from Gulf investors
Amid the ongoing US-Iran conflict, investors from Gulf countries are increasingly seeing Pakistan as a safe place to invest in domestic bonds, which offer higher yields and risk-free returns. Data released by the State Bank of Pakistan on Monday...
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Pakistan’s revised SME definition needs more work
In July 2026, the State Bank of Pakistan (SBP) revised the Prudential Regulations for SME financing, raising the turnover ceiling for small enterprises by 2.7 times to Rs400 million and for medium enterprises by 2.5 times to Rs2 billion. This is the...
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Inflation hits Peshawar households hard, says IRS survey
Rising inflation has pushed a large majority of low-income households in Peshawar into debt, with 89pc of families borrowing money to meet their daily expenses, says a survey conducted by the Institute of Regional Studies (IRS). The survey also found...
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Who will finance Pakistan’s climate future?
Pakistan’s climate future faces a very tough financing demand. This is a critical moment to decide what to prioritise. How can a country facing substantial climate risks, constant fiscal stress, and competing development priorities mobilise the...
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HBL MfB, 1LINK, Euronet sign accord to introduce PayPak Credit Card
HBL Microfinance Bank (HBL MfB), 1LINK (Pvt) Limited and Euronet Pakistan have signed a landmark tripartite agreement to introduce Pakistan’s first PayPak Credit Card, with HBL Microfinance Bank becoming PayPak’s inaugural credit card partner. This...
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Govt introduces new procurement rules as IMF review gets underway
The federal government has notified the Public Procurement Rules 2026, replacing the 2004 framework, as Pakistan began talks with an International Monetary Fund (IMF) delegation for the release of $1.2 billion. The new rules were notified on Monday,...
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Bill Gates should stay away from Pakistan
Pakistan really needs to stop getting starstruck. I am talking about behemoths like Bill Gates. When Prime Minister Shehbaz Sharif eagerly met Gates on the sidelines of the United Nations General Assembly, they expressed intent to collaborate in...
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Aurangzeb, Deutsche Bank official discuss economic outlook
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with Jamal Al Kishi, Regional CEO, Middle East & Africa, Deutsche Bank, accompanied by Ali Haider Zaidi, Country Manager Pakistan, to discuss Pakistan’s economic...
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Regulating nano lending rationally
Pakistan’s digital lending industry has reached an important regulatory crossroads. The debate is ostensibly about interest rates: should the existing cap on nano loans be reduced to protect vulnerable borrowers from excessive charges? The instinct is...
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Govt directs banks to implement revised SOP for digital pension Proof of Life
The federal government has formally withdrawn commercial banks from biometric verification and Proof of Life Certificate (PoLC) checks for pensioners, transferring the process to a direct digital link between the National Database and Registration...
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Aurangzeb highlights Pakistan’s climate vulnerability at UNGA
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, participated in a series of high-level engagements in New York, USA on the first day of his visit, during the UNGA High-Level Week of the 81st Session of the United Nations General...
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Pakistan moves towards regulated virtual assets, says Aurangzeb
Pakistan is transitioning towards a regulated virtual-assets framework, Finance Minister Muhammad Aurangzeb said on Monday, as the government seeks to harness blockchain and tokenisation for cheaper remittances, SME financing, sovereign debt and...
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FDI picks up, but the real test lies ahead
Pakistan’s foreign direct investment picked up pace in Aug-26, with net inflows reaching USD315.9 million the highest monthly level in two years. That would be around 80 percent higher year-on-year and 77 percent above July, helped by stronger inflows...
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Remittance support to current account
The current account remains comfortably placed in the opening months of FY27. The August deficit was modest, and the cumulative position is still broadly consistent with the annual target. There is little to worry about at this stage. The goods trade...
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SBP urges customers to remain vigilant against online frauds
The State Bank of Pakistan (SBP) has urged customers to remain vigilant against suspicious messages and calls involving payments or transactions and never share their account PINs, passwords, or debit and credit card details with anyone. While...
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Sindh Bank posts 274pc surge in PBT to Rs4.05b in H1’26
Sindh Bank reported its profit before tax of Rs 4.05 billion in H1’26, up from Rs1.08b for H1’25 driven by manifold increase in operating profits attributable to resilient margins and hence significantly higher Net Markup Income. Profit after tax for...
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Remittances rise; dependence deepens
Pakistan’s remittance momentum has carried into FY27. Workers’ remittances reached USD3.66 billion in Aug-26, rising 16.5pc year-on-year and 0.7pc from Jul-26. Cumulative inflows during 2MFY27 stood at USD7.29 billion, up 14.7 percent year-on-year....
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‘Pakistan ‘must reapply’ to retain GSP+ trade benefits’
Pakistan will be required to submit a fresh application and commit to 32 international conventions, up from the current 27, to retain zero and reducedtariff access to the European Union market under a revised Generalized Scheme of Preferences Plus...
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Rare earth minerals: Pakistan’s economy
The global race for critical minerals is reshaping trade, technology, and industrial policy. Can Pakistan convert its mineral potential into a new source of exports, investment, and economic growth? The global economy is entering a new era of resource...
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Banks required to cut WHT from capital gains: FBR
Banks having Foreign Currency Value Accounts (FCVAs), Foreign Currency Business Value Accounts (FCBVAs), Non-Resident Rupee Value Accounts (NRVAs) or NonResident Rupee Business Value Accounts (NRBVAs) are required to deduct withholding tax from capital...
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Road to creating capital
The narrative around Middle Eastern investment in Pakistan appears to be undergoing a subtle but significant transformation. What was once presented largely as a series of headline investment commitments is increasingly being reframed as strategic...
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IHC told: ‘Khushhali Bank’s employees entitled to EOBI benefits’
The Islamabad High Court (IHC) was informed that employees of Khushhali Microfinance Bank are also entitled to the protection and benefits provided under the Employees’ Old-Age Benefits Institution (EOBI) scheme. A single-judge bench of Justice Arbab...
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JazzCash opens AI Foundry at Islamabad HQs
JazzCash, a subsidiary of VEON Ltd, has opened an AI Foundry and a state-of-the-art usability testing lab at its Islamabad headquarters, establishing a new capability to combine artificial intelligence, advanced customer research and rapid prototyping...
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Moody’s praises Pakistan’s economic stability
Moody’s Assistant Vice President Grace Lim says Pakistan’s economy can better withstand global economic challenges. She said recent stability has strengthened the country’s ability to handle external pressures. Her assessment highlights the progress...
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Aurangzeb says govt will ‘stay the course’ on fiscal reforms
“The government will ‘stay the course’ on fiscal reforms, with full political ownership of the agenda, while legislative changes may be required to harness artificial intelligence, integrated data and digital technologies for transforming tax...
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Punjab’s budgetary borrowing jumps 145pc
Punjab more than doubled its borrowing from banks for budgetary support during the first seven weeks of the current fiscal year, reflecting growing liquidity pressures on the country’s largest province. The latest State Bank data shows that Punjab...
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National economic dementia
Dementia is not a singular disease, but a broad term for a syndrome characterized by a decline in memory, cognition, and reasoning. Over the past forty years, Pakistan’s economic history has mirrored these symptoms: a recurring failure to remember past...
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SDPI, UNICEF organise discussion on future financing
With provincial fiscal space tightening and demand for essential services rising, government representatives and policy experts on Monday called for credible alternate and blended financing mechanisms to protect and expand investment in Pakistan’s...
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IMF review: Pakistan expected to meet all targets, says AHL
Pakistan is likely to meet nearly all seven Quantitative Performance Criteria (QPCs) set under its ongoing International Monetary Fund (IMF) programme, ahead of the Fund’s upcoming review later this month, said Arif Habib Limited. “Based on publicly...
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FD hiring tax expert to advise Aurangzeb
The Finance Division is set hire a senior tax policy expert to advise the Federal Minister for Finance and Revenue on strategic taxation issues, revenue mobilisation and major reforms amid the government’s efforts to strengthen the country’s fiscal...
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Moody's raises Pakistan credit rating to B3
Pakistan received another boost to its economic credentials as international ratings agency Moody’s raised the country’s sovereign credit rating by one notch to B3 from Caa1, reflecting an improvement in its financial and external risk...
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Meeting discusses transition to cashless economy
Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has expressed his satisfaction over FPCCI’s hosting of a well-attended and interactive roundtable session on Tuesday with high-profile stakeholders from...
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Bilal bin Saqib eyes $400m remittance savings through stablecoins
Pakistan could save around $400 million annually by using regulated stablecoins for remittances if the technology reduces transaction costs by one percentage point on the country’s roughly $40b annual remittance inflows, Chairman of the Pakistan...
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Private equity ecosystem: Govt has moved to unlock capital flows, Aurangzeb
The government has moved to unlock greater domestic and foreign long-term capital by developing a National Private Equity Policy Framework to strengthen Pakistan’s private equity ecosystem, ease regulatory and tax hurdles, and create a pipeline of...
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Pakistan posts $328 million current account deficit in July
Pakistan recorded a current account deficit (CAD) of $328 million in the first month of FY27, reflecting year-on-year and monthon-month improvements. The country recorded a CAD of $814m in June, the last month of FY26 and $529m in July 2025. However,...
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Housing finance: State Bank of Pakistan revises prudential regulations
The State Bank of Pakistan (SBP) has comprehensively reviewed and revised the prudential regulations for housing finance in view of the evolving dynamics of the housing finance sector. According to the SBP, the revised regulations will supersede...
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All govt-to-person payments to go digital: Bilal Kayani
The government has set an ambitious target of making all governmentto-person (G2P) payments fully digital and eliminating the use of physical cheques as part of its drive towards a cashless economy, Minister of State for Finance Bilal Azhar Kayani...
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Economists see little chance of US granting USD10b ESF request
A challenging proposition with little prospects of success, amid high global oil prices and mounting economic and geopolitical pressures on Washington. This was the consensus of independent economists on Finance Minister Muhammad Aurangzeb’s formal...
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The cost nobody budgets for
Finance Minister Muhammad Aura ngzeb recently congratulated the Federal Board of Revenue (FBR) on achieving its revised revenue collection target for FY2025-26, describing it as an important milestone in Pakistan’s ongoing fiscal reform journey. The...
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SBP warns of price spirals
Evolving geopolitical developments in the Middle East could push up global energy and other commodity prices beyond assumed levels, thereby affecting the macroeconomic outlook, warned the State Bank’s biannual Monetary Policy Report, issued on...
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Bank of Punjab chief seeks ‘Welfare GDP’
Bank of Punjab President and Chief Executive Zafar Masud has argued that the country’s GDP growth figures failed to capture how ordinary citizens are coping with current economic issues. He suggested a roadmap calling for working towards a ‘Welfare...
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WB allocates 1/3rd funding for Connected Punjab digital project
The World Bank has classified nearly one-third of the financing for Pakistan’s Connected Punjab digital transformation project as climate finance, allocating $22.65 million, or 32.35pc, of the project’s $70 million financing to climate-related...
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Meezan Bank H1 profit rises 3pc, declares Rs8 dividend
Meezan Bank Limited recorded a 3 per cent increase in its consolidated net profit for the six months ended June 30, 2026, with profit after taxation climbing to Rs48.64b from Rs47.14b in the corresponding period last year.Showing this steady bottomline...
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Petroleum Division, WB review roadmap for gas market overhaul
The government has reviewed the roadmap prepared for transforming Pakistan's gas sector, aimed at moving the country towards a more competitive, open and efficient gas market, drawing on international best practices and developed by the Petroleum...
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Pakistan seeks JICA financing for ML-1 Railway Project
The government has invited the Japan International Cooperation Agency (JICA) to co-finance the multibillion-dollar Main Line-1 (ML1) Railway Project, as Pakistan seeks to expand development cooperation with Japan. The development follows a meeting...
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Govt executes agreements with pension fund managers
The government has executed agreements with 16 pension fund managers to formally operationalise the Defined Contribution Pension Fund Scheme (DCPFS) launched a year ago for public sector employees as part of major pension reforms aimed at containing...
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Foreign investors emerge as net buyers at PSX in July 2026
Foreign investors turned net buyers at the Pakistan Stock Exchange (PSX) for the first time in 23 months, pumping a net $34.4 million into equities in July 2026 despite the benchmark KSE-100 Index declining 2.3 per cent during the month. “Foreigners...
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Banks likely to stay dependent on govt borrowing for profits
The country’s banking sector is likely to remain dependent on government borrowing for profits in the current fiscal year as limited private-sector lending opportunities continue to make banks one of the most lucrative sectors for the equity market and...
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ABHI Microfinance Bank plans Rs3b IPO on PSX: report
Pakistan’s fintech group Abhi is preparing to launch an initial public offering (IPO) of Abhi Microfinance Bank later this month. As per the report, the bank aims to raise between Rs. 2 billion and Rs. 3 billionby offering about 14 per cent in new...
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Erstwhile FATA/PATA: Banks asked to deduct WHT on transactions
The Federal Board of Revenue (FBR) has directed all commercial banks tostart deducting withholding taxes on financial transactions/ specified payments in the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal...
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WB terms performance of PRIAT project satisfactory
A World Bank-backed flagship agriculture project in Punjab has delivered strong early results, with sharp gains in water productivity, crop diversification and farmers’ incomes, indicating that climatesmart agriculture and efficient irrigation can...
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Rebounding inflation, fiscal pressures threaten recovery
Pakistan’s nascent macroeconomic recovery, which began in 2025, is stalling due to the geopolitical situation, leading to rising inflation and reducing the monetary freedom of individuals and firms in an economy where around 80pc of the labour force...
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PACRA upgrades Askari Bank's long-term rating to AAA
The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of Askari Bank Limited to AAA from AA+, while maintaining the short-term rating at A1+ with a stable outlook. PACRA attributed the upgrade to the Bank's sustained...
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Zindigi, nsave partner to facilitate freelancers
Zindigi, powered by JS Bank, has partnered with UK-based ‘nsave’ to make receiving international remittances faster, simpler, and more affordable for freelancers and individuals in Pakistan. The partnership marks another milestone in Zindigi’s mission...
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Global debt issuance: Big financial institutions shortlisted
The government has shortlisted leading international financial institutions including Standard Chartered Bank, Citibank, Deutsche Bank, Mitsubishi UFJ Financial Group (MUFG), Emirates NBD and Dubai Islamic Bank, to underwrite and manage Pakistan’s...
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Pakistan’s debt dilemma
In modern macroeconomics, public borrowing is neither an evil nor a virtue in itself. It is an instrument. Much depends upon the purpose for which debt is incurred, the efficiency with which borrowed capital is deployed, and the economy’s capacity to...
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Hormuz uncertainty clouds recovery
The Strait of Hormuz is technically open, but ship traffic is sparse. Hence, it is effectively closed. The recent incidents of bombing by both sides–the US and Iran–have cast doubt on the continuity of the MOU. The crux is that the future is...
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SBP chief hails launch of co-badge debit card
Governor State Bank of Pakistan (SBP), Jameel Ahmad, has welcomed the launch of the HBL, UnionPay International and PayPak co-badge debit card, describing the partnership as an important milestone in Pakistan’s journey toward a modern, resilient and...
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Finance Minister Aurangzeb arrives in US on 3-day visit
Finance Minister Muhammad Aurangzeb arrived in Washington on Saturday evening for a three-day visit during which he is expected to hold talks with US officials on trade, finance and investment.Pakistan and the United States will resume negotiations on...
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Economic reforms: Aurangzeb praises UK’s continued support
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with the British High Commissioner to Pakistan, Ms. Jane Marriott CMG OBE, who called on him at the Finance Division. The meeting focused on Pakistan’s macroeconomic...
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Conventional banks favour Islamic lending
Conventional banks have significantly altered their lending pattern to the private sector, extending nearly five times more financing through their Islamic banking branches than a year earlier instead of through conventional lending. Most conventional...
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MoF rejects claims over sovereign financing transactions
The Ministry of Finance said it remained committed to the highest standards of transparency, professionalism and prudent debt management, and will continue to pursue sovereign financing decisions, including Eurobond and Panda Bond issuances, solely in...
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World Bank’s ‘magical discovery’
Barely had the dust settled on the IMF’s insipid report on governance than the World Bank launched, with much fanfare, its latest prescription – this time on fiscal federalism. The bank’s report presents itself as a fresh diagnosis of Pakistan’s...
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URAAN Pakistan path to $1 trillion economy: Ahsan Iqbal
Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, addressed students, faculty members, researchers, and members of the Pakistani community at Rice University, said that Pakistan has entered a new phase of opportunity...
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WB approves $375.9m to strengthen power transmission network
The World Bank’s (WB) Board of Executive Directors has approved $375.9 million in financing for Pakistan’s Grid Stability Enhancement Project to strengthen the country’s national power transmission network.According to a press release issued by the WB,...
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Pakistan records highest-ever remittances of $41.6 billion in FY26
Overseas workers’ remittances to Pakistan increased by 9 per cent to $41.6 billion during Jul-June FY26, up from $38.3 billion in the previous fiscal year.During June, remittances stood at $3.475 billion, according to data released from the State Bank...
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Foreign-funded projects: Senate body orders report on delays, cost overruns
A Senate sub-committee on Economic Affairs ordered federal and provincial authorities to submit comprehensive reports within one week after being informed that 24 foreignfunded development projects worth more than USD 4.6 billion in Balochistan and...
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