AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: In a move likely to increase the financial burden on citizens, the government has raised petrol and diesel prices by Rs4 amid ongoing economic challenges exacerbated by recent devastating floods. These natural disasters have inflicted losses amounting to Rs371 billion, forcing authorities to revise the growth target downward to 3.9%.
The International Monetary Fund (IMF) has urged progress on National Finance Commission (NFC) reforms, emphasizing the need for fiscal measures to cope with the economic strain. The floods are expected to further accelerate inflation, posing a significant hurdle for the already beleaguered economy.
Meanwhile, the Islamic Development Bank (IDB) has approved $475 million for the M-6 Sukkur-Hyderabad motorway, highlighting continued international support for infrastructure development. However, other projects, such as the refineries upgrade, face uncertainty as the IMF rejected tax proposals crucial for their progression.
In the financial markets, the KSE-100 Index showed resilience, gaining 1,646 points to close at 165,494 with a trading volume of 1,344 million shares. Technology, banking, and food sectors led the activity, while stocks like YOUW, TPLRF1, and POML posted top performance.
The Ministry of Finance (MoF) claimed a contained surge in public debt, now swelling to Rs80.5 trillion in FY25. In a related development, the Asian Development Bank (ADB) projected Pakistan’s GDP growth at 3% for FY26, reflecting caution amid the prevailing economic conditions.
The Federal Board of Revenue (FBR) extended the deadline for filing income tax returns until October 15, 2025, providing much-needed relief to taxpayers. In the corporate sector, significant developments include the merger of PTCL and Telenor, with the Competition Commission of Pakistan (CCP) set to issue conditional approval.
Mari Energies has secured a majority stake in the Peshawar block from Hycarbex, while Air Link announced plans to establish a production facility in Lahore, signaling expansion despite the economic challenges. However, Gul Ahmed has decided to shut down its export apparel business, showcasing the difficulties faced by exporters.
In summary, while the government navigates the immediate aftermath of natural calamities and economic challenges, strategic decisions in energy pricing and fiscal reforms remain pivotal in stabilizing the nation’s economic trajectory.