ISLAMABAD: Lucky Investments Limited said on Wednesday it had successfully raised Rs50 billion ($170 million) during the Initial Public Offering (IPO) of its debut fund, the Lucky Islamic Money Market Fund, the largest ever mutual fund launch in Pakistan.
The Fund had declared the launch of its IPO for April 9, inviting all interested investors to become part of a historic interest-free, Shariah-compliant Pakistan initiative, as per a notice issued by the company.
“This landmark achievement marks an extraordinary milestone in Pakistan’s financial sector, where investors nationwide demonstrated overwhelming confidence in the company’s first Shariah-compliant offering,” Lucky Investments said in a statement.
“The record-breaking subscription underscores robust demand for Islamic financial products and firmly positions Lucky Investments’ place as a promising new player in Pakistan’s Asset Management Industry.”
Lucky Investments, a subsidiary of Pakistan’s Lucky Group, focuses on investment and portfolio management across sectors like energy, real estate and manufacturing. Originally known as Interloop Asset Management Limited, the company was acquired by Yunus Brothers Group in December 2024 and rebranded as Lucky Investments Limited.
The company listed Lucky Islamic Money Market Fund as the first in a planned series of Shariah-compliant mutual funds set to be introduced by the company.
“We are profoundly grateful for the extraordinary trust placed in us by investors across Pakistan,” Lucky Investments Chief Executive Officer Mohammad Shoaib was quoted as saying in the statement.
“Breaking the national record with a Rs50 billion subscription in a single day is not just a milestone for Lucky Investments, but a testament to the growing strength of Islamic finance in our market.”
Shariah-compliant investments are gaining traction in Pakistan as investors seek ethical, faith-based financial solutions. Supported by a growing Islamic finance sector and regulatory backing from the Securities and Exchange Commission of Pakistan and the State Bank, the market continues to expand through mutual funds, sukuk, and Islamic banking products.
In 2024, Islamic banking in Pakistan held a significant market share, with assets and deposits accounting for approximately 19 percent and 24 percent of the overall banking industry, respectively, by the end of September.
The State Bank has set the target to increase the share of the Islamic banking system to 35 percent by 2025.
$170 million raised in Pakistan’s largest-ever IPO for Lucky Islamic Money Market Fund
https://arab.news/mrukt
$170 million raised in Pakistan’s largest-ever IPO for Lucky Islamic Money Market Fund
- Lucky Investments says investors demonstrated “overwhelming confidence” in its first Shariah-compliant offering
- State Bank of Pakistan has set the target to increase the share of Islamic banking system to 35 percent by 2025
Pakistan says won’t be baited into ‘war theatrics,’ warns India against Indus Treaty violation
- Pakistani delegation says India threatening missile strikes “not display of strength but dangerous sign of regional instability”
- Weeks after worst military confrontation in decades, India and Pakistan have dispatched delegations to press their cases in US, UK
KARACHI: The head of an official delegation visiting world capitals to present Islamabad’s position following a recent military standoff with New Delhi on Wednesday accused Indian external affairs minister S. Jaishankar of behaving like a “warmonger, not a diplomat” but said Pakistan would not be baited into “war theatrics.”
Speaking at a press conference in London, former Pakistani foreign minister Bilawal Bhutto Zardari, who is heading the high-level delegation lobbying Western governments, rejected what he called “recycled allegations” from New Delhi about Islamabad’s role in cross-border terrorism and warned that India’s threats to stop Pakistan’s flow of river water could escalate into an open conflict.
Speaking in Brussels on Tuesday, the Indian foreign minister had warned the West that Pakistan-sponsored terrorism would “eventually come back to haunt you.”
“Mr. Jaishankar speaks like a warmonger and not a diplomat. If he believes that threatening nuclear war is diplomacy, then India’s problem isn’t Pakistan, it’s extremism inside its own cabinet,” Bhutto Zardari said. “Threatening missile strikes and boasting about escalation is not a display of strength. It’s a dangerous sign of regional instability.”
He also mocked India’s claim that Pakistan was behind a April 22 militant attack in Indian-administered Kashmir that triggered a four-day military confrontation in May. Pakistan has denied the accusations and demanded India present evidence.
“If Jaishankar is so enamored by Google images, I suggest he Google Abhinandan Chaiwala,” he said, referring to a 2019 dogfight after which Indian pilot Abhinandan Varthaman was captured and then released by Pakistan.
“India knows that Pakistan had nothing to do with this attack. This was indigenous terrorism within Indian-occupied Kashmir, a secure intelligence failure of the Indian government,” he added.
On water, Bhutto Zardari issued a stern warning against what Islamabad described as India’s “weaponization” of shared rivers under the 1960 Indus Waters Treaty, brokered by the World Bank.
After the April 22 attack, India had announced it was unilaterally terminating the treaty and would halt Pakistan’s waters. The agreement had long been considered a rare pillar of cooperation between the two sides.
“If India actually carries out this threat, then Pakistan has already said that this declaration will be a war,” Bhutto Zardari said.
“If we want to create an environment for dialogue, where we can talk about the issue of Kashmir or any other issue, then it is very important to follow the old treaties.”
DIPLOMATIC BLITZ
Pakistan and India have launched competing diplomatic offensives across major capitals weeks after their worst military escalation in decades in which the two nuclear-armed nations exchanged missile, drone, and artillery fire until the United States and other allies brokered a ceasefire on May 10.
Bhutto Zardari’s delegation is currently in London after visiting the United States and is scheduled to travel onwards to Brussels. Indian opposition MP and former UN under-secretary Shashi Tharoor is leading a parallel outreach effort for New Delhi, presenting India’s case that Kashmir is a domestic matter and accusing Pakistan of supporting terrorism — a charge Islamabad denies.
Earlier in London, Bhutto Zardari met with senior British diplomats and UK-based Kashmiri leaders, and accused India of violating international agreements, including the Indus Waters Treaty.
“The Jammu & Kashmir dispute remains the unfinished agenda of the United Nations and the unhealed wound of Partition,” he wrote in a post on X. “In all my interactions, Kashmir was central — its people’s inalienable right to self-determination under UNSC resolutions must be upheld.”
He also met with Christian Turner, former British High Commissioner to Pakistan and incoming UK Permanent Representative to the United Nations.
“Welcomed the UK’s emphasis on diplomacy and dialogue, and encouraged its continued, constructive role in supporting de-escalation and encouraging dialogue for resolution of the Jammu & Kashmir dispute, the unfinished agenda of Partition and British legacy,” Bhutto Zardari said after the meeting.
As both governments build their respective cases ahead of a high-level UN session on South Asia later this month, Pakistan has framed its position as one of restraint and diplomacy.
“We want peace, stability, and regional integration,” Bhutto Zardari said at the London press meet.
“Pakistan won’t be baited into war theatrics. We will defend ourselves if attacked, but we do not crave conflict.”
Pakistan unveils five-year tariff reform plan, warns of additional taxes if compliance measures blocked
- Pakistan plans to cut overall tariff regime by more than 4% to shift the country towards an export-led growth model
- Government has removed additional customs duties on 4,000 tariff lines, reduced them on another 2,700, out of total 7,000
KARACHI: Pakistan plans to cut its overall tariff regime by more than 4% over the next five years, part of sweeping reforms aimed at boosting exports and shifting the country towards an export-led growth model, Finance Minister Muhammad Aurangzeb said on Wednesday.
At a post-budget press conference in Islamabad, Aurangzeb outlined details of the proposed tariff rationalization, saying the government had already removed additional customs duties on 4,000 tariff lines and reduced them on another 2,700, out of a total 7,000.
The reforms align with Pakistan’s commitments under a $7 billion IMF program approved last year and signal a shift toward an export‑oriented growth model built on a leaner tariff structure, protection of social welfare, and improved tax collection.
“First, the goal is to change the overall protected regime. When you lower protection and dismantle walls around it, you improve the economy’s resource allocation, better capital allocation, better human resource allocation, so that’s the overall macroeconomic framework," Aurangzeb said, adding that the changes would reduce input costs for exporters and improve competitiveness.
The reforms are part of the National Tariff Policy 2025–30 under which the government plans to abolish additional customs duties, regulatory duties, and the fifth schedule of the Customs Act, 1969. The policy envisions a streamlined customs structure with just four duty slabs ranging from 0 to 15%, which would become the maximum rate.
“According to the World Bank, after the successful implementation of these reforms, Pakistan’s average tariff will decline to the lowest level in the region,” Aurangzeb had said during his full-year budget speech on Tuesday, when he presented the Rs17.6 trillion ($62 billion) federal budget for FY2025–26.
Describing the initiative as Pakistan’s “East Asia moment” during the post-budget speech, the minister said the plan was designed to help the country avoid recurring balance-of-payments crises.
“So that when we go toward growth we don’t get into the dollar situation, we don’t get into a balance of payment problem,” he said. “So that we can continue to grow at a certain pace which is export-led.”
Aurangzeb emphasized that the tariff cuts would be phased in gradually, starting this year.
“This I am talking about year one. We will take it towards a more than 4 percent reduction in the overall tariff regime in Pakistan,” he said.
The government is aiming to lift exports, which grew more than 6% year-on-year to $26.9 billion during July-April, against imports of $48.3 billion, up 8% in the same period.
ENFORCEMENT, ADDITIONAL TAXES
Aurangzeb also warned that the government could be forced to impose Rs400–500 billion ($1.4-1.75 billion) in additional taxes if the Pakistani parliament failed to pass enabling legislation needed to implement enforcement provisions tied to Rs312 billion ($1.1 billion) in proposed new tax measures for the coming fiscal year.
“The parliament should help us in enabling amendments so we don’t opt for additional measures to stop the leakages in the system,” he said.
The minister noted that enforcement actions in the current fiscal year had already yielded Rs400 billion ($1.4 billion) in additional revenue. Without legislative support, the government may be compelled to introduce further taxation to close gaps.
Without naming them directly, Aurangzeb said international financial institutions had signed off on Rs389 billion ($1.36 billion) in additional taxes for FY26 as part of budget negotiations.
“We now have the credibility and trust internally and externally that we can do the enforcement,” he said.
BUDGET NUMBERS “LOCKED” WITH IMF
Flanking the finance minister, Finance Secretary Imdadullah Bosal said the government had “locked” all key budget numbers with the IMF. The $7 billion loan program the lender approved for Pakistan in 2024 comes with a strict reforms agenda on fiscal consolidation, debt rationalization, revenue mobilization, among other issues.
The IMF, in a recent statement, confirmed Pakistan had committed to continued fiscal consolidation while safeguarding social and priority spending in the new budget.
Bosal said the government had managed to reduce current expenditures to under 2% growth in FY25 from 26% in FY24.
“This is our response back to those people who are paying taxes in this country,” Aurangzeb said, adding that the budget had attempted to extend relief to pensioners, salaried individuals, and businesses, despite fiscal constraints.
“The federal government, whatever it is giving, is from the loans that we are taking because we start [the new year] with a deficit.”
Pakistan’s plan to sharply increase growth faces headwinds — analysts
- Pakistan unveils $62.2 billion budget under IMF program
- Defense spending increased 20 percent after India confrontation
ISLAMABAD: Pakistan is aiming to sharply increase economic growth under its annual federal budget unveiled on Tuesday, but analysts are skeptical about the country’s ability to meet its ambitious goals.
The budget targets higher revenues and a steep fiscal deficit cut under International Monetary Fund (IMF) backed reforms. Yet, defense spending was hiked 20 percent, excluding military pensions, after last month’s conflict with India.
Finance Minister Muhammad Aurangzeb said in a post-budget press conference on Wednesday that customs duties have been cut or removed on thousands of raw materials and intermediate goods.
“Industry here has to be competitive, competitive enough to export,” he said.
But growth drivers remain unclear. The government is targeting 4.2 percent GDP growth in fiscal 2026, up from 2.7 percent this year, which was revised down from an initial 3.6 percent as agriculture and large-scale manufacturing underperformed.
“Pakistan’s GDP growth projection of 4.2 percent appears ambitious given recent performance, and overly optimistic assumptions may place tax targets out of reach,” said Callee Davis, senior economist at Oxford Economics.
Pakistan’s past growth spurts were consumption-led, triggering balance-of-payments crises and IMF bailouts. The government says it now wants higher-quality, investment-driven growth.
Aurangzeb said structural reforms are underway, pointing to East Asia-style pro-market transitions. “This is an East Asia moment for Pakistan,” he said.
“BUDGET KEEPS IMF HAPPY”
The 17.57 trillion rupee ($62.24 billion) budget comes as Pakistan remains under a $7 billion IMF program. Revenues are projected to rise over 14 percent, driven by new taxes and broadening the tax base. The fiscal deficit is targeted at 3.9 percent of GDP, down from this year’s 5.9 percent.
Key reforms include taxing agriculture, real estate, and retail, and reviving stalled privatizations. But revenue shortfalls this year have raised doubts, with both agriculture income tax and retail collections missing targets. Only 1.3 percent of the population paid income tax in 2024, government data shows.
“Pakistan’s budget keeps the IMF and investors happy, even if it comes at a near-term cost to growth,” said Hasnain Malik, head of equity strategy at Tellimer.
“The political setup, with the military firmly in charge, also lowers the risk of protests.”
While overall spending will fall 7 percent, defense will rise after the worst fighting between the nuclear-armed neighbors in decades. Including pensions, defense spending will total $12 billion, 19 percent of the federal budget or 2.5 percent of GDP, matching India’s share, per World Bank data.
The hike was enabled by a sharp drop in interest payments, as the central bank cut policy rates from 22 percent to 11 percent over the past year, easing domestic debt servicing costs. Aurangzeb said cuts in subsidies also helped create fiscal space.
($1 = 282.3000 Pakistani rupees)
Pakistan seeks UK support on Kashmir, Indus Waters Treaty amid India tensions
- Weeks after worst military confrontation in decades, India and Pakistan have dispatched top officials to press their cases in US, UK
- Head of Pakistani delegation meets with prominent UK-based Kashmiri leaders and senior British diplomats in London
ISLAMABAD: The head of an official delegation visiting world capitals to present Islamabad’s position following a recent military standoff with New Delhi met senior British officials and Kashmiri diaspora leaders in London this week, urging the UK to play a more active role in defusing tensions with India and restoring the suspended Indus Waters Treaty.
Pakistan and India have launched parallel diplomatic offensives in world capitals weeks after their worst military confrontation in decades last month saw the two nuclear-armed nations exchange missile, drone and artillery strikes until the US and other allies brokered a ceasefire on May 10. The Pakistan delegation is currently in London after visiting the United States and will go onwards to Brussels. Officials of both countries are lobbying for international support over the disputed region of Kashmir, which both countries rule in part but claim in full.
In London on Tuesday, Pakistan’s former foreign minister, who is heading the Pakistani delegation, met with prominent UK-based Kashmiri leaders and senior British diplomats, warning of the dangers of rising hostilities and accusing India of violating long-standing international agreements.
“The Jammu & Kashmir dispute remains the unfinished agenda of the United Nations and the unhealed wound of Partition,” Bhutto Zardari said in a post on X, formerly Twitter. “In all my interactions, Kashmir was central— its people’s inalienable right to self-determination under UNSC resolutions must be upheld.
He also accused India of “aggression, violations of sovereignty, and the illegal suspension of the Indus Waters Treaty,” saying the move endangered over 240 million lives in Pakistan and called for its immediate restoration.
Bhutto Zardari separately met with Christian Turner, former UK High Commissioner to Pakistan and now Britain’s incoming Permanent Representative to the United Nations, as part of Islamabad’s push to rally international diplomatic support.
“Welcomed the UK’s emphasis on diplomacy and dialogue, and encouraged its continued, constructive role in supporting de-escalation and encouraging dialogue for resolution of the Jammu & Kashmir dispute, the unfinished agenda of Partition and British legacy,” the Pakistani leader wrote following a luncheon hosted by Pakistan’s High Commission.
The Pakistani outreach coincides with a parallel tour by a senior Indian delegation led by opposition MP and former UN under-secretary Shashi Tharoor, who is lobbying Western allies to support New Delhi’s position that Kashmir is an internal matter and that Pakistan is stoking tensions for political ends. India also accuses Pakistan of backing separatist insurgents and the attacks they carry out, including one in April 22 which triggered the latest conflict. Islamabad denies the charges.
Pakistan has long maintained that Kashmir is a disputed territory under UN resolutions, while India insists the region’s status was settled after its full constitutional integration in August 2019, a move Pakistan continues to reject as illegal.
The standoff has also drawn concern over shared water resources, particularly the Indus Waters Treaty, a 1960 World Bank-brokered agreement seen as a rare example of cooperation between the two neighbors. Recent Indian actions to suspend the treaty and threaten to halt water flow into Pakistan have added to Islamabad’s grievances.
As tensions grow, both nations are leveraging historic ties with Western powers in an effort to shape the diplomatic narrative. In London, Bhutto Zardari reiterated the need for “restraint, immediate restoration of treaty obligations, and comprehensive dialogue to prevent conflict and secure lasting peace.”
The visits come ahead of a high-level UN session on South Asia later this month, where both Indian and Pakistani envoys are expected to present competing narratives.
Saudi Arabia leads surge as Pakistan’s May remittances hit $3.7 billion
- Inflows bring total remittances for July-May FY2024-25 to $34.9 billion, a 28.8 percent increase from $27.1 billion in same period last year
- Saudi Arabia remained largest contributor in May, sending $913.9 million, followed by UAE ($754.2 million), UK ($588.1 million), US ($314.7 million)
KARACHI: Pakistan received $3.7 billion in workers’ remittances in May 2025, a strong 16 percent increase month-on-month and 13.7 percent year-on-year, the State Bank of Pakistan (SBP) said on Wednesday, with Saudi Arabia remaining the largest contributor, sending $913.9 million.
The inflows brought total remittances for July-May FY2024-25 to $34.9 billion, marking a 28.8 percent increase from $27.1 billion in the same period last year. The rise follows a record breaking $4.1 billion in March, the highest-ever single-month inflow, and a robust $3.2 billion in April.
The strong performance has helped offset Pakistan’s trade deficit and support its fragile foreign exchange reserves amid continued macroeconomic pressure.
“This is the highest level of remittances recorded in recent months,” the SBP said in a statement, noting that the increase reflected stronger flows from key corridors and a growing shift toward formal remittances channels.
Analysts attribute the surge to a combination of factors, including improved exchange rate management, government crackdowns on hawala and hundi informal systems for transferring money internationally, and seasonal flows during Ramadan and Eid.
Saudi Arabia remained the largest contributor in May, sending $913.9 million, followed by the United Arab Emirates ($754.2 million), the United Kingdom ($588.1 million), and the United States ($314.7 million).
Remittances remain a critical source of foreign exchange for Pakistan, which is currently under a $7 billion IMF program and facing over $24 billion in external debt repayments over the next fiscal year.
The central bank has raised its full-year remittance forecast to $38 billion, reflecting optimism that flows will continue to support economic stabilization.
The surging remittances, especially from Saudi Arabia, help cushion Pakistan’s chronic current‑account deficit and bolster its foreign exchange reserves, offering relief ahead of major debt repayments. With global commodity prices still volatile and external financing constrained, continued inflows from overseas workers, particularly from the Gulf, are seen as crucial to maintaining macroeconomic stability and supporting Pakistan’s growth outlook under IMF conditions.
