Latest pakistan economy News | Top pakistan economy News Headlines Today | Today India news | Breaking pakistan economy News Today | English pakistan economy News Headlines - TheDailyGuardian

Pakistan’s Public Debt Soars to Historic ₹76 Trillion, Sparking Global Alarm

June 9, 2025, 6:48 pm

Pakistan’s economic situation reached a new low as its overall public debt rose to an all-time high of 76,007 billion Pakistani rupees (₹76 trillion), the Economic Survey 2025 published on Monday revealed. The astronomical figure indicates a sharp decline in the country’s fiscal management and has raised new concerns regarding the long-term economic stability of the country.

The figures analyzed by CNN-NEWS18 indicate that the debt stands at ₹23.1 trillion in rupee terms and about USD 269.34 billion, a record high for Pakistan. For comparison, the country’s debt was at ₹39.86 trillion in 2020-21 and ₹17.38 trillion in 2013-14, which means the debt has almost doubled in four years and quintupled over the last decade.

Domestic and External Liabilities Soar

Out of the total ₹76 trillion, ₹51.5 trillion comprises domestic debt, while ₹24.48 trillion is external debt owed to foreign entities. The report cautions that poorly managed debt can “pose serious vulnerabilities, such as rising interest burdens and can undermine long-term fiscal sustainability and economic security if left unaddressed.”

The Economic Survey also reported a 6.7% rise in public debt in the first nine months of FY25, even though Pakistan received USD 1.03 billion under the IMF’s Extended Fund Facility.

Begging Bowl Diplomacy and Poverty Woes

The debt trap has invited sharp criticism even within the country’s leadership. Prime Minister Shehbaz Sharif previously acknowledged the shameful fact of Pakistan’s reliance on foreign aid:

“Now, whenever we visit any friendly nation or place a call, they assume that we have come to beg for money.”

Sharif also conceded the country’s economic stagnation:

“Even small economies have overtaken Pakistan, and we’ve been roaming the last 75 years with a begging bowl.”

At the same time, the World Bank’s recent figures present a dismal picture of the lives of common Pakistanis. The international organization puts the poverty-stricken population of Pakistan at 45%, with 16.5% in extreme poverty, after revising the world poverty line recently. A recent World Bank report in April had reported that 1.9 million more Pakistanis fell into poverty in FY25.

India Raises Concerns Over Aid Misuse

India. has publicly expressed its worries over Pakistan’s abuse of foreign assistance. As more and more evidence of rising poverty and economic mismanagement mounts, India has pressed the IMF and World Bank to probe how the money is being spent.

New Delhi contends that poverty-alleviating aid is being diverted toward financing terrorist infrastructure, particularly against India. The new World Bank statistics, together with Pakistan’s deteriorating economic indicators, might strengthen India’s case in international forums.

A Crisis That Can’t Be Ignored

With financial pressures building and global watchfulness growing, Pakistan is at an economic juncture today. The soaring debt, pervasive poverty, and heavy reliance on bailouts are manifestations of systemic flaws calling for immediate change.

If Islamabad does not significantly overhauls its economic plans, the weight of ₹76 trillion may not only debilitate its economy but also threaten the welfare of millions of its people.

IMF Approves New $1.3 Billion Loan Program for Pakistan

March 26, 2025, 4:39 am

The International Monetary Fund (IMF) has approved a new $1.3 billion loan program for Pakistan while reviewing an existing bailout that could release an additional $1 billion. The new 28-month program aims to support Pakistan’s efforts to mitigate climate change and improve economic stability.

Loan Approval Pending Executive Board Consent

Although the agreement has been reached, both the new program and the loan review require approval from the IMF’s executive board, which is generally a formality. The approval will allow Pakistan to access fresh funds and continue with economic reforms.

Pakistan’s Economic Crisis and IMF Bailouts

In 2023, Pakistan faced a severe economic crisis, teetering on the brink of default due to a combination of political instability and economic downturn. The nation was saved by a $7 billion bailout from the IMF, which came with strict conditions, including improving income tax revenue and cutting power subsidies.

Progress on Macroeconomic Stability

According to Nathan Porter, IMF mission chief, Pakistan has made “significant progress” in restoring macroeconomic stability and rebuilding confidence despite global challenges. The country has witnessed improvements, with inflation easing and foreign exchange reserves increasing.

Commitment to Fiscal Consolidation

Pakistani authorities have committed to gradual fiscal consolidation to reduce public debt sustainably. Measures include tight monetary policies, cost-cutting efforts, and reforms aimed at boosting the economy.

Potential Release of Additional Funds

If the agreement is approved by the IMF’s executive board, Pakistan will gain access to an additional $1 billion, bringing total disbursements under the existing 37-month program to approximately $2 billion.

Focus on Long-term Reforms

The new loan program also emphasizes long-term reforms aimed at addressing climate challenges and improving Pakistan’s overall economic structure.

Can Pakistan Become a $1 Trillion Economy by 2035? Challenges and Hopes

January 27, 2025, 4:42 pm

Martin Raiser, World Bank Vice President for South Asia, recently stated that Pakistan could achieve a $1 trillion economy by 2035 if it implements the right reforms and maintains a 7% annual growth rate. The World Bank has offered a potential $20 billion commitment over the next decade to aid the nation’s recovery, but this promise comes with strict conditions.

Raiser emphasized the importance of focusing on key sectors such as clean energy, agriculture, manufacturing, and digital infrastructure. However, the World Bank’s support depends on Pakistan’s ability to implement meaningful reforms to unlock this funding.

Structural Challenges Hinder Progress

Despite the World Bank’s optimism, Pakistan’s current economic situation presents significant hurdles:

Economic Crisis: Pakistan’s GDP growth fell to just 2.4% in 2023, below the population growth rate of 2.6%, worsening poverty levels.
Tax Collection Issues: With a tax-to-GDP ratio of only 12%, the country struggles to generate adequate revenue.
Debt and Spending: Unsustainable fiscal imbalances and inefficient spending continue to drag the economy down.

World Bank’s Funding Conditions

The World Bank recently canceled a $500 million loan meant for sustainable energy projects after Pakistan failed to meet conditions, such as revising power purchase agreements under the China-Pakistan Economic Corridor (CPEC). This move signals the institution’s reluctance to offer further assistance without substantial reforms.

IMF Bailouts and Overreliance on External Aid

Pakistan has long depended on external aid, securing its 25th IMF bailout worth $7 billion in 2023. While this provides short-term stability, it fails to address deep-rooted problems like slow growth, high unemployment, and the brain drain.

The IMF’s plan focuses on raising taxes and cutting subsidies, but these measures don’t tackle inefficient governance or structural issues. Over 50% of Pakistan’s budget is spent on interest payments, worsening the debt crisis.

Dependence on Chinese Loans

Pakistan’s reliance on Chinese debt is another major challenge. China holds $23.6 billion in bilateral debt, accounting for over 28% of Pakistan’s external debt.

The IMF has urged Pakistan to stop offering tax incentives to Chinese companies under CPEC, further complicating its financial position. Chinese investments in Pakistan have also declined, adding uncertainty to future economic projects.

Can Pakistan Break the Cycle of Bailouts?

To achieve long-term economic growth, Pakistan must move beyond temporary solutions like bailouts and focus on:

Reforming the energy sector.
Diversifying exports.
Reducing debt dependency.
Strengthening governance and fiscal policies.

Hope vs. Reality

While the World Bank’s optimism is encouraging, Pakistan’s path to a $1 trillion economy is riddled with challenges. Without strong political will and comprehensive reforms, the country risks remaining stuck in a cycle of short-term fixes and long-term stagnation.

Imran Khan’s PTI Protests Drain Pakistan’s Economy By PKR 2 Billion

November 24, 2024, 9:45 pm

Protests organized by Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) over the past 18 months have cost the government PKR 2 billion, intensifying the strain on Pakistan’s already struggling economy, according to Geo News.

Escalating Costs and Damages

Total Expenditure: Managing PTI protests and sit-ins across Punjab, Khyber Pakhtunkhwa, and Islamabad has cost PKR 2.7 billion.
Recent Spike: Over the last six months, costs surged to PKR 1.2 billion due to heightened demonstrations.
Property Damage: Public and private property damages reached PKR 1.5 billion, including losses to Safe City cameras worth PKR 280 million and damage to 220 police vehicles.

Security Costs

To maintain order, authorities have deployed extensive resources:

Personnel Deployment: Over 30,000 security personnel mobilized for key protest sites in Rawalpindi, Lahore, Attock, and Islamabad.
Transportation Costs: Moving security forces cost more than PKR 900 million, with catering expenses adding another PKR 1.5 billion.
Container Rentals: Authorities spent PKR 800 million to secure 3,000 containers for blocking key routes.

Human and Financial Toll

Loss of Lives: Four security personnel lost their lives, while over 220 were injured in clashes during these protests.
Military Expenses: Deploying Frontier Corps (FC), Rangers, and army personnel added another PKR 300 million to the bill.

Protests Continue Amid Financial Strain

PTI has organized over 120 protests in the last 18 months, including a recent demonstration on Sunday. Preparations for the event alone involved deploying 34,000 personnel, costing an estimated PKR 300 million.

The protests have not only drained Pakistan’s financial resources but also caused significant disruption to public life, leaving the government to grapple with rising economic and security challenges.

Chinese Steel Giant Warns Pakistan: Resolve Issues Or Face Shutdown

November 23, 2024, 10:06 pm

Century Steel Group, a Chinese steel producer, has issued a final warning to the Pakistani government to resolve longstanding issues at the Rashakai Special Economic Zone (RSEZ) in Khyber Pakhtunkhwa. Failure to address these concerns will result in the company dismantling its plant and exiting Pakistan, the company announced in a letter to Prime Minister Shehbaz Sharif.

Unfulfilled Promises and Financial Losses

The company’s CEO, Li Chunjian, expressed frustration over unresolved challenges despite a $30 million investment in the first phase of their steel project. These issues have led to losses amounting to $7.5 million in staff and maintenance expenses over five years.

The project, part of the China-Pakistan Economic Corridor (CPEC) initiative, was intended to become Pakistan’s largest steel mill, with plans to produce 500,000 tonnes of steel annually in its initial phase.

Ambitious Plans Now at Risk

Century Steel had aimed to invest an additional $200 million to expand operations in two more phases, transferring advanced steel technology from China. The final capacity was projected to reach 1.5 million tonnes, contributing significantly to Pakistan’s GDP, job creation, and regional steel exports.

Government’s Response

In response to the ultimatum, Prime Minister Shehbaz Sharif has formed a committee led by Federal Minister Abdul Aleem Khan to address the company’s complaints. This committee comprises members from both the federal and Khyber Pakhtunkhwa governments.

However, despite assurances, Century Steel stated that prolonged inaction has forced them to consider notifying the Chinese embassy and international press about the situation.

The Bigger Picture

Century Steel’s potential withdrawal signals challenges in attracting and retaining foreign investment in Pakistan. The outcome of this dispute could impact future collaborations under CPEC and Pakistan’s economic growth trajectory.

This ultimatum serves as a wake-up call for policymakers to urgently address concerns and uphold commitments to foreign investors.

Pakistan Economy In Resurgence With 3.07% Growth Sparks Hope For Stability

October 1, 2024, 4:34 pm

Pakistan’s economy has outperformed expectations, recording a 3.07% growth in the second quarter, driven by support from the International Monetary Fund (IMF) and lower interest rates. The Pakistan Bureau of Statistics released this data on Monday, revealing that this growth surpassed the 2.7% forecast from a Bloomberg economist survey and improved from the revised growth rate of 2.36% in the January-March period. The overall growth rate for the fiscal year that ended in June was also adjusted upward to 2.52% from an earlier estimate of 2.38%.

After facing a series of political and economic crises that nearly pushed the nation to default last year, Pakistan has begun to stabilize with financial assistance from multilateral lenders and friendly countries. Foreign exchange reserves have improved from critically low levels, and previously imposed import and currency restrictions have been lifted, positively impacting industrial activity. Inflation has decreased, allowing the monetary authority to reduce borrowing costs by 450 basis points since June.

Last week, the government secured IMF approval for a new $7 billion loan program, providing financial certainty for the coming years. However, Pakistan is still faced with approximately $26 billion in loan repayments for the fiscal year that commenced in July.

In terms of sector performance, the agriculture sector saw a significant increase of 6.76% during the quarter, largely due to a bumper wheat crop, while the services sector grew by 3.69%. Prime Minister Shehbaz Sharif’s administration has committed to achieving sustainable economic growth through structural reforms and projects a growth rate of 3.6% for the year ending June 2025.

Massive Oil, Gas Reserves Discovered in Pakistan Territorial Waters: Can This Transform the Nation’s Economic Future?

September 7, 2024, 12:45 pm

A significant deposit of petroleum and natural gas has been discovered in Pakistan’s territorial waters, sparking hope for a transformation of the country’s economic future, according to a recent media report. This potential windfall comes after a three-year survey conducted with the assistance of a friendly nation, as confirmed by a senior security official.

The Discovery and Its Potential Impact

The geographic survey has pinpointed the location of these valuable oil and gas deposits. According to the official, relevant government departments have been informed, and discussions are already underway about starting the process of exploration. Describing the initiative as part of the ‘blue water economy,’ the official emphasized that this discovery holds promise not only for oil and gas but also for other valuable minerals found in the ocean.

While the drilling and extraction of these reserves may take several years, the official expressed optimism, saying that quick action could significantly boost Pakistan’s economic fortunes. Some estimates suggest that the reserves could rank as the fourth-largest in the world, trailing behind nations such as Venezuela, which leads with an estimated 3.4 billion barrels of oil.

A Long Road Ahead

Despite the optimism surrounding the discovery, former Oil and Gas Regulatory Authority (OGRA) member Muhammad Arif offered a cautious perspective. Speaking to DawnNewsTV, Arif explained that while the discovery is promising, “there’s never 100 per cent certainty” about the size and accessibility of the reserves until the drilling process begins.

When asked about the potential to meet Pakistan’s energy needs, Arif noted that it depends heavily on the production and recovery rates of the reserves. He added, “If this is a gas reserve, it can replace LNG imports, and if these are oil reserves, we can substitute imported oil.” However, he emphasized that while the discovery is exciting, it remains “wishful thinking” until detailed analysis is conducted.

The Cost of Exploration

Arif also pointed out the financial challenge that comes with offshore exploration. The cost of exploration alone could reach around USD 5 billion, with the full process—drilling wells and constructing the necessary infrastructure to extract fuel—likely taking four to five years. Further investment will be required if the reserves are successfully confirmed and extraction begins.

While there are many unknowns surrounding the size and feasibility of these reserves, the discovery has ignited hope that Pakistan may soon benefit from a substantial boost in domestic energy production. The exploration process is expected to take time, but the long-term rewards could potentially reshape the country’s energy landscape.

Protests Erupt Across Pakistan Amid Economic Woes And Political Turmoil

July 28, 2024, 3:00 pm

Protests have erupted across Pakistan, including in the capital city, as supporters of the Pakistan Tehreek-e-Insaaf (PTI) and others demonstrate against the continued imprisonment of former Prime Minister Imran Khan and inflated electricity bills. With both issues showing no signs of early resolution, the protests are expected to intensify.

Adding to the Shehbaz Sharif government’s challenges, a Gallup Business Confidence Index report revealed that businesses are accusing the government of economic mismanagement. The report, quoted by Express Tribune, indicates that business owners have grown increasingly pessimistic about their future due to ongoing political turmoil and a new tax-heavy budget.

Declining Business Confidence

The Gallup Business Confidence Index surveyed 454 businesses of varying sizes. The survey results showed a decline in confidence, with scores for the current business situation, future business outlook, and the direction of the country dropping by four to ten percent. The survey highlighted widespread dissatisfaction with the government’s financial plan for FY25, with 85 percent of respondents considering it not business-friendly.

Inflation emerged as the most cited problem, with 37 percent of businesses urging the government to address the issue, which has seen rates soar to 12.6 percent. Another persistent issue is the continuous disruption of power supply and load shedding, affecting six out of ten businesses surveyed. This quarter, 16 percent more businesses reported increased power outages due to the heavy load on the power infrastructure during the summer months.

Economic Mismanagement and Power Tariffs

Retail store operators have called on the government to control rising power tariffs for commercial establishments, which have surged to PKR 77.15 per unit, according to the Express Tribune. Concerns are also mounting in Pakistan’s financial sector amid ongoing negotiations with Chinese authorities over rescheduling energy sector loans. Finance Minister Muhammad Aurangzeb met with the governor of China’s central bank on July 26 to discuss the matter.

Businesses and banks are anxious about the outcome of these talks, fearing a negative impact on future investments if the desired outcome is not achieved. “We believe China will not outright reject Pakistan’s request to reschedule energy sector loans, but the final outcome appears bleak,” a senior banker told Dawn News.

Pessimism About the Future

The Gallup survey revealed that 57 percent of businesses expressed negative expectations about the future. The net future business confidence score has worsened by 36 percent since the last quarter, now standing at negative 14 percent.

As the Sharif government grapples with political and economic challenges, the growing discontent among businesses and the general public poses a significant threat to stability in Pakistan.

Pakistan Secures $7 Billion IMF Aid To Address Economic Issues

July 13, 2024, 1:34 pm

Pakistan and the International Monetary Fund (IMF) have reached a landmark agreement on a $7 billion aid package, aimed at stabilizing the nation’s struggling economy. This 37-month Extended Fund Facility (EFF) arrangement builds on the economic stability achieved under the 2023 Stand-by Arrangement (SBA).

In an overnight statement, the IMF confirmed the staff-level agreement, which is still subject to approval by the IMF’s Executive Board. The Washington-based lender emphasized that the new program seeks to support Pakistan’s efforts to solidify macroeconomic stability and foster conditions for stronger, more inclusive, and resilient growth.

The program includes measures to strengthen fiscal and monetary policies, reform state-owned enterprises (SOEs), and broaden the tax base. Additionally, it aims to enhance competition, ensure a level playing field for investment, improve human capital, and expand social protection through the Benazir Income Support Programme (BISP).

Continued robust financial support from Pakistan’s development and bilateral partners is deemed critical for the success of this program. An IMF team led by Nathan Porter, IMF’s Mission Chief to Pakistan, conducted discussions with Pakistani officials during a staff visit to Islamabad from May 13-23, 2024.

The new EFF arrangement aims to build on the macroeconomic stability achieved in the previous year by further strengthening public finances, reducing inflation, rebuilding external buffers, and eliminating economic distortions to encourage private sector-led growth. Under the agreement, Pakistan has committed to increasing tax revenues by 1.5% of GDP in FY25 and 3% over the program’s duration. This will be achieved through simpler and fairer direct and indirect taxation, including the proper inclusion of net income from the retail, export, and agriculture sectors into the tax system.

Additionally, both federal and provincial governments have agreed to rebalance spending activities, with provinces taking steps to enhance their tax-collection efforts, particularly in sales tax on services and agricultural income tax.

This latest agreement represents Pakistan’s continued reliance on the IMF for economic support. Earlier this year, the IMF approved the release of the final $1.1 billion tranche of a $3 billion bailout to Pakistan. Finance Minister Muhammad Aurangzeb indicated the government’s intention to seek a long-term loan to stabilize the economy post-bailout.

The deal comes just two weeks after Pakistan approved a tax-heavy budget for the 2024-25 fiscal year, aligned with IMF requirements. Analysts note that the new budget, totaling approximately $68 billion, aims to qualify Pakistan for a long-term IMF loan of $6 billion to $8 billion to help stabilize the economy. In 2023, Pakistan was on the brink of defaulting on its foreign debt payments.

This agreement marks a crucial step in Pakistan’s efforts to address its persistent economic challenges and secure a more stable financial future.

IMF Approves Final $1.1 Billion Installment as Pakistan’s Assistance Plan

April 30, 2024, 10:08 am

The executive board of the International Monetary Fund approved $1.1 billion in cash for Pakistan, according to a press statement, but talks for a fresh loan are still ongoing.

A $3 billion standby agreement with the IMF was secured by Islamabad last summer in order to avert a sovereign default. This funding is the second and last part of that agreement.

After meeting with IMF Managing Director Kristalina Georgieva on the fringes of the World Economic Forum in Riyadh, Pakistani Prime Minister Shehbaz Sharif gave his consent.

The existing standby deal between Pakistan and the IMF expires this month, thus Pakistan is pursuing a new, larger, longer-term accord known as the Extended Fund Facility (EFF). Islamabad might come to a staff-level consensus on the new program by the beginning of July, according to Finance Minister Muhammad Aurangzeb’s comments.

The aim of Islamabad’s efforts is to secure a loan spanning at least three years to achieve macroeconomic stability and implement long-overdue and challenging structural reforms.

While Aurangzeb has refrained from disclosing the exact amount being sought, discussions between the Fund and the government are already underway, although a formal request from Islamabad is yet to be made.

If successful, this would mark Pakistan’s 24th IMF bailout.

The $350 billion economy is grappling with a persistent balance of payments crisis, facing nearly $24 billion in debt and interest repayments in the upcoming fiscal year—three times the amount of its central bank’s foreign currency reserves.

Pakistan Faces Increasing Inflation And Growing Wage Gaps

April 30, 2024, 9:08 am

Pakistan is dealing with its highest inflation rate in almost 50 years, according to Dawn. The rate of inflation in South Asia has reached its highest point in recent months, with a spike to 38 percent. In instance, the price of food has soared to 48%, the highest level since 2016.

The government’s decision to eliminate subsidies and weaken the currency by more than 50% in less than a year as part of the most recent installment of the International Monetary Fund bailout package has made the country’s cost of living situation worse.

In a nation where financial obstacles often cast a shadow over the lives of its people, the idea of fair salaries appears to be a ray of hope. Like many developing countries, Pakistan must overcome the difficult task of addressing the socioeconomic inequalities, poverty, and inequality brought on by the previously mentioned inflation.

The question of how much labourers are paid for it is at the heart of these difficulties. Discussions about the significance of living wages and fair wages, and the reasons Pakistan should give priority to this important aspect of economic justice, should be held by private sector organisations.

Beyond simply being a number on a cheque, a fair wage represents the worth and dignity of human labour. It guarantees that people have access to basic essentials for themselves and their family, including food, housing, healthcare, and education. In Pakistan, where a large segment of the population faces financial hardship, equitable pay can make a huge difference.

Giving fair salaries is required by law in addition to being morally right. The Pakistani Constitution protects the right to equitable compensation for equivalent effort. Many people still struggle to obtain this entitlement, nevertheless, particularly those who work in the unorganised sector or as daily wage workers. Ensuring the enforcement and preservation of this fundamental right in all economic sectors is a crucial responsibility for both the government and enterprises.

Unbelievable! Gold Rates in Pakistan Soar by PKR 2,000 per Tola

November 15, 2023, 6:10 pm

Gold prices in Pakistan experienced a significant surge, rising by PKR 2,000 per tola, reaching PKR 214,800 per tola for 24-karat gold, as reported by the All Pakistan Gems and Jewellers Association (APGJA). The 10-gramme price of 24-karat gold settled at PKR 184,156 after a PKR 1,714 increase. Similarly, the 10-gramme price of 22-karat gold reached PKR 168,810. The international market also witnessed a rise in gold prices, reaching USD 1,988 per ounce.

The variation in gold prices corresponds to the volatility in the local market, where the dollar exchange rate and the Pakistan Stock Exchange are both changing. The benchmark KSE 100 index reached a new high of 56,000 points.

In parallel, short-term inflation in Pakistan increased by 29.88% year on year in the week ending November 2, owing to rising costs of household goods. The Sensitive Price Index increased by 0.71% week on week. The interim administration chose to keep fuel and high-speed diesel rates unchanged for the next two weeks, despite the Oil and Gas Regulatory Authority’s (Ogra) recommendation for a large cut. Twelve goods in the SPI basket saw price rises, 14 saw price cuts, and 25 stayed stable. Petrol, cigarettes and chilli powder were among the commodities with the largest price increases compared to the same period last year.