AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Islamabad: Pakistan’s economic scene is currently marked by a series of significant developments, including an extension of the airspace ban on Indian aircraft, ongoing budget discussions with the International Monetary Fund (IMF), and various industry-specific changes.
The Karachi Stock Exchange experienced a minor downturn, with the KSE-100 index losing 50 points to close at 119,103. A total of 337 million shares were traded, with noteworthy activity in the Food, Technology, and Chemical sectors. Companies such as FCEPL, PKGP, and ATRL saw positive price changes, while POML, HUMNL, and PABC were among the top decliners.
In other financial discussions, Pakistan and the IMF have reached an agreement on a budget framework, with the fiscal year 2026 budget announcement scheduled for June 10. The government is considering measures such as higher levies and expanding the Public Sector Development Program (PSDP). Additionally, there are plans to provide income tax relief for the salaried class in the upcoming budget.
Ahsan Iqbal, a government official, confirmed an increase in the defense budget due to security concerns, while the IMF defended its bailout package for Pakistan, dismissing objections from India. Meanwhile, petroleum dealers have threatened to shut down pumps in response to proposed law amendments, and Pakistan has secured over $16 billion in new loans and rollovers.
The State Bank of Pakistan (SBP) injected a record Rs12.82 trillion into the economy, amid a surge in government borrowing from banks reaching Rs2.7 trillion. Inflation is being driven by rising sugar and meat prices.
In the energy sector, the government has allocated 2,000 megawatts of power for bitcoin mining and AI data centers, and there are discussions about possibly scrapping the sugar Federal Excise Duty (FED) in the FY26 budget. Regulatory developments include a 57/kWh tariff for electric vehicle charging stations and NEPRA’s unveiling of KE’s 7-year distribution and transmission tariffs.
The automotive industry is set for consultation on used car duties, while the textile sector is seeking policy interventions. Additionally, Engro has approved a partnership with Jazz to expand telecom infrastructure.
Amid these economic shifts, the Pakistan Sugar Mills Association’s Rs44 billion case is set for a rehearing, OGRA is curbing diesel imports due to sufficient local supply, and the Islamabad High Court has allowed MARI to recover taxes by selling withheld bonus shares.