In 2025 Pakistan’s economy needs a boost
Pakistan Time and again, has seen fleeting spurts of high growth, averaging five percent, only to be derailed by macroeconomic crises. The fear of the economy “overheating” has often dictated policy, sidelining ambitions for higher and enduring growth. Instead, stabilising the economy at modest growth rates has become the default approach, leaving the country stuck in a cycle of missed potential. But things look different this time. Pakistan stands at a promising crossroads to target growth 2.0. The year 2025, marking the second quarter of the incumbent International Monetary Fund (IMF) program, begins on a stronger footing: a stabilised economy, a current account surplus, inflation falling below 5 percent in November, plummeting oil prices, and a monetary policy pivot with the interest rate dropping from a historical 22.5 percent to 13 percent by December 2024. Even the exchange rate shows newfound stability, steady at Rs278 to the dollar.
Energy tariff slashed by 75 paisa
The National Electric Power Regulatory Authority (Nepra) has reduced electricity tariff up to 75 paisa per unit for consumers of ex-Wapda power distribution companies (DISCOs) and K-Electric on account of fuel charges adjustment (FCA).
The power-sector regulator cut tariff up to Rs0.7556 per unit for DISCOs due to variations in fuel charges in November 2024.
For K-Electric consumers, it slashed the power price by Rs0.4919 per kilowatt-hour (kWh) for October 2024. The reimbursement on account of tariff reduction will be made in electricity bills for January 2025.
Criticising the five-year plan by industrialists
Criticising the five-year plan, industrialists and exporters have urged the government to do away with red-tape culture and instead promote red-carpet treatment for investors, exporters and industrialists. “Bureaucrats are twisting the arms of businessmen with heavy taxes, high energy tariffs and other burdens,” they lamented.
Successive governments have pretended to dispel economic woes and generate business opportunities, while hiding behind these so-called programmes for the past two decades. The recently launched five-year national economic transformation plan titled ‘Uraan Pakistan’, launched by Prime Minister Shehbaz Sharif, is a dead loss, they claimed.
Questions raised over green bond procedure
Finance Minister Muhammad Aurangzeb has aired concerns over the mechanism for the Water and Power Development Authority’s (Wapda) green bond, which lacks provisions for mitigating liabilities of the government and its consequences.
The finance minister said that the same mechanism, established for Wapda’s green bond, was being used for Pakistan Social Impact Bond (PSIB) that was to be floated to generate financing for the National Vocational and Technical Training Commission (NAVTTC).
Tie-up with China major to boosting chemical industry
Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) Vice President Zafar Iqbal on Tuesday stressed the importance of collaborative measures with China’s chemical industry to enhance Pakistan’s competitiveness.
Speaking during a think-tank session with PCJCCI executive committee members, Iqbal highlighted Pakistan’s lack of advanced technology to establish petrochemical complex facilities and cracking units, which he described as a significant barrier to the development of the country’s chemical sector. “Pakistan can collaborate with China and learn from its experience to promote sustainable development of the chemical industry, contributing to national economic growth,” he said.
UAE rolls over $2bn debt: PM tells
In a significant fiscal relief as Prime Minister Shehbaz Sharif Tuesday said, the United Arab Emirates (UAE) agreed to roll over $2 billion in debt for Pakistan due to be paid this month.
The UAE rolled over its $2 billion deposits with State Bank of Pakistan (SBP) since 2023, thereby, helping it shore up its foreign exchange reserves, strengthen its currency and secure financial bailouts from the International Monetary Fund (IMF).
Ministries, allied departments: rightsizing finally in sight
Federal Minister for Finance and Revenue Muhammad Aurangzeb, while announcing to abolish 150,000 vacant posts, vowed to complete rightsizing of 43 ministries and their 400 attached departments – a structural benchmark set by the International Monetary Fund (IMF), by end of current fiscal year, to reduce volume, expenditures and improve efficiency of the federal government.
Addressing a press conference, flanked by convener of the National Parliamentary Taskforce on Sustainable Development Goals (SDGs) Bilal Azhar Kayani and Ambassador at Large Dr Salman Ahmad, who is heading the Implementation Committee, Aurangzeb said the primary goal behind the rightsizing was to reduce federal government expenditures while ensuring the efficient use of resources.
Qatar airways refuses reports of office closures in Pakistan
Qatar Airways has dismissed reports claiming the closure of its offices in Pakistan, confirming that the airline is operating ‘as usual’.
“Qatar Airways flights to and from Pakistan are operating as usual, and our offices remain open,” the airline said in a statement on social media platform X on Wednesday.
“Recent published reports claiming that Qatar Airways has closed offices in Pakistan are incorrect,” it added.
The clarification follows reports suggesting that the Qatari national carrier has shut down its offices across Pakistan as part of its cost-cutting measures.
Days ago, Qatar Airways announced that it would resume flights to the Syrian capital Damascus after nearly 13 years, starting with three weekly flights.
It hailed a “significant step in reconnecting the region”, about a month after rebels toppled Syria’s longtime ruler Bashar al-Assad, capping more than a decade of civil war.
Last year, Qatar Airways posted a 39 percent jump in annual net profit to a record 6.1 billion Qatari riyals ($1.67 billion).