Pakistan presents budget for next fiscal year as economy continues to melt down

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Updated 09 June 2023
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Pakistan presents budget for next fiscal year as economy continues to melt down

  • The South Asian country is facing an acute balance-of-payment crisis, currency devaluation and inflation at record 38%
  • On Thursday, Finmin Ishaq Dar said the outgoing year was ‘a difficult year for economy’ and posed ‘extreme challenges’

KARACHI: Pakistani finance authorities will present on Friday federal budget for the next fiscal year 2023-24, the state media reported, as the South Asian country is likely to post a Gross Domestic Product (GDP) growth of 0.29 percent in the fiscal year ending June 30.

Pakistan missed the GDP target by a huge 4.7 percent this fiscal year, which is well below the target of 5 percent set last year, according to the country’s economic survey that highlights the trend of macro-economic indicators, development policies and strategies as well as sectoral achievements of the economy.

The cash-strapped country is due to present its budget at a time when it is in desperate need of bailout funds from the International Monetary Fund (IMF) to shore up its foreign currency reserves that are barely enough to cover a month’s imports.

“Finance Minister Ishaq Dar will present the budget in the National Assembly scheduled to meet at four in the evening at the parliament house in Islamabad,” the state-run Radio Pakistan broadcaster reported on Friday.

At a pre-budget presser on Thursday, Dar called the outgoing year “a difficult year for the economy,” saying the coalition government faced “extreme challenges” when it came to power in April 2022.

“Pakistan has paid a huge political cost of meeting IMF reforms … the structural reforms, the power reforms, gas reforms, the fiscal reforms … we had to do the pending actions,” Dar told reporters.

“For Pakistan, this political cost was worth it … The revival of this [IMF] program was important because of Pakistan’s credibility.”

Islamabad has been hoping to have $1.1 billion of the funds released since November, but the IMF has insisted on a number of conditions being met before it makes any more disbursements.

On Thursday, an IMF official said Pakistan had to satisfy the lender on three counts, starting with a budget due on Friday, before its board reviews whether to release at least some of the $2.5 billion still pending under the $6.5 billion program expiring on June 30.

“As communicated to the authorities, there can be one remaining Board meeting under the current EFF at end-June,” Perez Ruiz said in an email response to Reuters.

“To pave the way for a final review under the current EFF, it is essential to restore the proper functioning of the FX market, pass a FY24 Budget consistent with program objectives, and secure firm and credible financing commitments to close the $6 billion gap ahead of the Board.”

The IMF had tasked Pakistan with securing external financing commitments for $6 billion from other sources, but so far it has only obtained commitments for $4 billion, mostly from Saudi Arabia and the United Arab Emirates.

Under pressure to shift to a more market-determined exchange rate regime and shut down an unofficial currency market, Pakistan removed daily limits on fluctuations earlier this year.

The country is already reeling from an economic crisis with inflation reaching a record 37.97 percent in May.

The government has imposed taxes, raised energy tariffs and scaled back subsidies in an attempt to persuade the IMF to unlock funding, while its central bank has also raised policy interest rates to a record 21 percent.

The IMF has so far conducted just eight of the 11 reviews that were to take place during the three-year program. The last review took place in August last year.


Relief operations underway as Pakistan rain death toll nears 200

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Relief operations underway as Pakistan rain death toll nears 200

  • The downpours have also damaged nearly 700 homes across the South Asian country
  • Punjab deputy commissioners to remain in field until rainwater drainage is completed

ISLAMABAD: Authorities were conducting relief operations in several areas across Pakistan after this week’s torrential rains appeared to largely subside, with the death toll from rain-related incidents nearing 200 since late June.

Pakistan’s most populous Punjab province has been the hardest hit with 114 deaths, followed by 40 in Khyber Pakhtunkhwa (KP), 21 in Sindh, 16 in Balochistan and one each in Islamabad and Azad Kashmir since June 26, according to the National Disaster Management Authority (NDMA).

Authorities rescued four special persons who were stranded in floodwaters, while 18 others were evacuated to safety in Kacha Rokhri area in Punjab’s Minawali district, the ruling Pakistan Muslim League-Nawaz party said on X, citing authorities.

“Immediate cleaning of landslide-affected roads in different areas of Chakwal has started. Administration, rescue and heavy machinery are present on the spot,” the party said.

“Deputy commissioners have been instructed to remain in the field until rainwater drainage is completed.”

The downpours have also damaged nearly 700 homes across the South Asian country, according to the disaster management authorities. Rations, blankets and tents are being distributed by local administrations in affected areas.

“Scattered thunderstorm/rain with isolated heavy falls is expected over Sindh, East Balochistan and South Punjab,” the NDMA said in its weather outlook for Saturday and Sunday.

Monsoon season brings South Asia 70 to 80 percent of its annual rainfall, arriving in early June in India and late June in Pakistan, and lasting through until September.

The annual rains are vital for agriculture and food security, and the livelihoods of millions of farmers. But increasingly erratic and extreme weather patterns are turning the rains into a destructive force.

In 2022, record-breaking monsoon rains combined with glacial melt submerged nearly a third of Pakistan, killing more than 1,700 people and displacing over 8 million. In May, at least 32 people were killed in severe storms, including strong hailstorms.


Pakistani tech firms urge 10-year tax stability, one-window compliance to ‘supercharge’ exports

Updated 46 min 2 sec ago
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Pakistani tech firms urge 10-year tax stability, one-window compliance to ‘supercharge’ exports

  • Pakistan recorded monthly IT exports of $338 million in June, up by 14% year on year and by 3% month on month
  • Tech firms say they aren’t seeking subsidies, but predictability, digitalization and administrative simplification

KARACHI: Pakistan can unlock billions in tech investment if it gives investors predictable taxes, friction-free remittances and a single digital compliance experience, the Pakistan Software Houses Association (P@SHA) said on Friday.

P@SHA said it presented a “Continuity & Consistency reform package” to the Ministry of Finance earlier this year, laying out a small number of high-impact changes that would slash compliance costs, bring tens of thousands of remote digital workers into the formal tax net, and catalyze both domestic and foreign investment into Pakistani tech firms.

The requested changes are not subsidies; they are predictability, digitalization, and administrative simplification. Most steps can be budget-neutral or revenue-positive once increased documentation, broadened compliance, and higher recorded export flows are taken into account.

“Every serious investor, local or international, asks the same two questions: What will my tax exposure be, and will the rules change after I invest?” P@SHA Chairman Sajjad Syed said.

“Right now, innovators spend too much time navigating overlapping regimes and too little time building export-earning products. If we hard-code continuity and make compliance near effortless, capital will move to Pakistan.”

Pakistan tech firms have been demonstrating their growing potential in the IT sector by showcasing their products and services at global forums, including the LEAP tech conference in Riyadh and GITEX global exhibition in Dubai.

Pakistan recorded monthly IT exports of $338 million in June, up by 14% year on year and by 3% month on month, according to Karachi-based Toplines Securities brokerage and market research firm. This took Pakistan’s annual IT exports to $3.8 billion, up by 18% YoY, in the outgoing fiscal year that ended in June.

In its statement, P@SHA urged continuation of the 10-Year Final Tax Regime (FTR) on information technology/IT-enabled services (IT/ITeS) export income, removal of discrepancies in tax rates where Pakistani IT companies get penalized for running payrolls from Pakistan, exemption of the Capital Gains Tax to secure investor’s confidence among other measures.

The association proposed joint working sessions with the Federal Board of Revenue, Ministry of IT & Telecom, State Bank of Pakistan, National Tax Council, and provincial revenue authorities to translate its proposed reforms package into draft language, digital filing flows, and phased rollout milestones, recommending immediate start of technical work.

“Pakistan stands at an inflection point: with its young talent base, global client footprint, and expanding startup ecosystem, the country can compete for high-value digital work, if investors trust the rules,” it said. “P@SHA urges policymakers to seize this moment to send that signal.”


Pakistan dominate IBSF World Snooker Championship in Bahrain with twin titles

Updated 19 July 2025
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Pakistan dominate IBSF World Snooker Championship in Bahrain with twin titles

  • Veteran Mohmmad Asif beats India’s Brijesh Damani 4-3 in a nail-biting Masters encounter
  • Hasnain produces clinical display of cue mastery, sweeping past Riley Powell of Wales 4-0

ISLAMABAD: Pakistan on Friday stamped their authority on the global snooker stage as Mohammad Asif and Muhammad Hasnain clinched both the Masters and Under-17 titles after a thrilling finale at the IBSF World Snooker Championship 2025 in Bahrain.

Asif faced a stern test in the World Masters final, going toe-to-toe with India’s Brijesh Damani in a nail-biting encounter. After six fiercely contested frames, the Pakistani star cueist held his nerve in the decider to edge Damani 4-3, clinching yet another major title.

Punjab Chief Minister Maryam Nawaz congratulated Asif on his brilliant win in the Masters category.

“Mohammad Asif has brought pride to Pakistan on the global stage by defeating his Indian opponent through sheer hard work, skill, and determination,” she was quoted as saying by her Pakistan Muslim League Nawaz (PML-N) party.

Muhammad Asif of Pakistan receives the Masters title award at the IBSF World Snooker Championship in Manama, Bahrain, on July 18, 2025. (Handout/IBSF)

Asif advanced to the final with an impressive 4-2 win over India’s Manan Chandra in the semifinal on Thursday at the Crowne Plaza, Bahrain.

Meanwhile, Hasnain produced a clinical display of cue mastery, sweeping past Riley Powell of Wales 4-0 to seize the World Under-17 Snooker crown.

“The young prodigy remained unshaken throughout, showcasing composure beyond his years to secure the gold,” the IBSF said on its website.

Pakistan’s Muhammad Hasnain receives the Under-17 title award at the IBSF World Snooker Championship in Manama, Bahrain, on July 18, 2025. (Handout/IBSF)

 


Pakistan plans to build $10.5 million aquaculture park to promote seafood exports

Updated 19 July 2025
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Pakistan plans to build $10.5 million aquaculture park to promote seafood exports

  • The development comes amid government efforts for sustainable use of ocean resources for economic growth
  • Pakistan’s fish and fish preparation exports reached $465.4 million in the last fiscal year that ended in June

KARACHI: Pakistan is planning to build Rs3 billion ($10.5 million) aquaculture park in the southern port city of Karachi, Maritime Affairs Minister Junaid Anwar Chaudhry announced on Saturday, amid efforts to strengthen the country’s blue economy.

According to the World Bank, the blue economy is defined as sustainable use of ocean resources for economic growth, improving livelihoods and creating jobs, while preserving the ocean ecosystem health.

Pakistan has been pushing to modernize its port infrastructure and expand its role in regional trade by improving cargo handling, digitalizing port operations and encouraging public-private partnerships.

Speaking at a meeting to review progress on blue economy, Chaudhry said this new aquaculture park will be built on 120 acres and directed the Qur'angi Fish Harbor Authority to submit its report within 10 days.

“Pakistani coastal waters are very suitable for aquaculture,” he said in a statement shared by the maritime affairs ministry. “The project will be built under a public-private partnership and the park will boost seafood exports.

Pakistan’s fish and fish preparation exports reached $465.4 million in the outgoing fiscal year that ended in June, according to official data. The exports were up 13.4 percent from $410.3 million in the previous year.

Authorities are currently trying to enhance the potential of Pakistan’s fisheries, logistics and marine services while reducing environmental harm.

“Investment in aquaculture and port infrastructure is essential for national development,” Chaudhry told representatives of Gwadar Port, Qur'angi Fish Harbor, Marine Fisheries and Balochistan Chambers of Commerce and Industry at the meeting.

“The same aquaculture model will be implemented in Balochistan as well.”

In May, the Pakistani government announced the creation of a new Maritime Chamber of Commerce and Industry (MCCI), saying it would serve as a specialized platform for uniting stakeholders from across the maritime spectrum to pursue greener policies and long-term economic resilience.

“This chamber will not only support investment and innovation in the maritime sector but also prioritize sustainability at ports, promote green technologies and foster carbon reduction strategies,” Chaudhry said at the time.


PM Sharif reassures moral, political support to Kashmiris on Accession to Pakistan Day

Updated 19 July 2025
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PM Sharif reassures moral, political support to Kashmiris on Accession to Pakistan Day

  • Muslim-majority Himalayan region has been a flashpoint between arch-rivals Pakistan and India since independence in 1947
  • Both countries engaged in a four-day military conflict in May over an attack in the region that India blamed on Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday reassured Pakistan’s continued diplomatic, moral and political support to Kashmiris for the achievement of their right to self-determination, Sharif’s office said, as the Kashmiri people marked ‘Accession to Pakistan Day.’

The Muslim-majority Himalayan region of Kashmir has been divided between Pakistan and India since their independence from British rule in 1947. Both countries rule parts of the Himalayan territory but claim it in full and have fought multiple wars over the disputed region.

The Accession to Pakistan Day is annually observed to commemorate unanimous adoption of a resolution on July 19, 1947 by All Jammu and Kashmir Muslim Conference in Srinagar, which called for Kashmir’s accession in view of aspirations of the Kashmiri people and their religious, geographical, cultural and economic proximity to Pakistan.

“On that day, the brave people of Kashmir passed a resolution for the accession of the state of Jammu and Kashmir to Pakistan,” Sharif said a statement issued from his office.

“A peaceful resolution of the Kashmir issue in accordance with the UN Security Council resolutions is the only guarantee of the rights of the Kashmiris and peace in the region. The government and people of Pakistan will continue to extend diplomatic, moral and political support to the Kashmiris.”

Most Kashmiris in the world observe the day to renew their pledge to complete the merger. In Azad Kashmir, wide-scale programs are organized to highlight the Kashmiri struggle and to demand their right to self-determination under UN resolutions.

This year, the Accession to Pakistan Day is being observed at a time of heightened tensions between Pakistan and India over an attack in Indian-administered Kashmir in April.

New Delhi blamed the assault, which killed 26 people, on Pakistan, an allegation denied by Islamabad. The attacked sparked four days of hostilities between the neighbors, with both sides attacking each other with jets, drones, missiles and artillery before agreeing to a United States-brokered ceasefire on May 10.

The conflict, the deadly between the neighbors in more than two decades, killed dozens of people on both sides.