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The Pakistan Stock Exchange (PSX) benchmark KSE-100 index experienced a significant intraday tumble of over 2,800 points, ending a four-day gaining streak. This decline on Friday, which saw the index drop by 1.58 percent to 178,539.46 points by midday, was primarily attributed to renewed uncertainty surrounding US-Iran relations. Optimism had previously fueled market gains following the 'Islamabad MoU' and falling oil prices. However, the postponement of planned US-Iran talks in Geneva and subsequent Israeli strikes on Lebanon after the peace deal signing, as noted by AKD Securities' Awais Ashraf, eroded investor confidence, contradicting analysts' expectations for sustained positive momentum.
The Punjab Revenue Authority (PRA) has sealed multiple branches of the fast-food chain KFC in Lahore, Pakistan, due to alleged violations of tax regulations as part of an ongoing campaign against tax evasion. Five KFC outlets, located in DHA EME, Askari 10, and DHA Z Block, were sealed. This action follows a similar incident earlier this month where the PRA sealed seven branches of the coffee shop Double Shot over discrepancies in tax matters, specifically for bypassing the Electronic Invoice Monitoring System (EIMS) and under-declaring sales. The PRA asserts that these actions deprive the government of legitimate revenue and constitute willful non-compliance.
The United Arab Emirates has introduced its inaugural sovereign retail T-Sukuk Programme, designed specifically for its citizens. This program allows UAE nationals to invest in Sharia-compliant government securities, marking a significant development in the nation's financial landscape. The T-Sukuk aims to provide a secure and accessible investment avenue while also fostering national participation in the country's economic growth. This initiative reflects the UAE's commitment to diversifying investment opportunities for its citizens and further developing its local capital markets in line with Islamic finance principles. It offers a new way for individual investors to support the national economy and potentially earn returns on their investments.
Aslam R Khan, the long-serving Chairman of the Board of Directors of Pakistan International Airlines (PIA), has died in Karachi after a prolonged illness. Khan, who had been associated with the national carrier for over six decades, was admitted to a private hospital when his condition worsened. Colleagues remembered him as a respected, fatherly figure who played a crucial role in PIA's restructuring and efforts to restore profitability, known for his decisive leadership and support for welfare initiatives. PIA's CEO expressed deep grief over the loss of the senior leader, with funeral prayers scheduled for Friday at his Karachi residence.
Oil prices, specifically Brent crude, experienced a reversal of a previous slide and began to rise following two key geopolitical developments. Firstly, fighting erupted in Lebanon, introducing new instability to the Middle East. Secondly, traffic through the Strait of Hormuz, a critical waterway for global energy shipments, remained slow even after oil and LNG tankers successfully crossed it. This combination of regional conflict and persistent logistical issues in a vital shipping lane is impacting global oil markets and contributing to price increases, signaling concerns over supply disruptions and regional stability.
The Securities and Exchange Commission of Pakistan (SECP) is planning significant reforms to accelerate the resolution of business disputes and alleviate pressure on the judiciary. SECP Chairman Dr. Kabir Ahmed Sidhu announced the consideration of mandatory pre-litigation mediation for commercial disputes and the establishment of a specialized dispute resolution center for the financial sector. These reforms, inspired by the UK's successful model and supported by the judiciary, aim to reduce court backlogs, lower litigation costs, accelerate recoveries, and ultimately enhance investor confidence and transparency in Pakistan's business environment. The new center will be established with assistance from the United States Commercial Law Development Program.
The UK's public sector borrowing for May significantly exceeded economists' forecasts, underscoring ongoing fiscal challenges. This surge in borrowing, which is the gap between government spending and tax income, indicates a larger deficit than anticipated. The increased borrowing puts additional pressure on the UK's financial stability and could influence future government spending decisions and tax policies. This development is crucial for understanding the current economic health of the UK and may impact market confidence and the government's fiscal targets, particularly in the lead-up to potential future elections.
The article investigates Julie Meyer, an entrepreneur once prominent in London's tech scene and known for her appearance on Dragons' Den. Despite being hailed as a 'global leader of tomorrow' and a venture capitalist, an investigation reveals a pattern of unpaid bills, missing funds, and unfulfilled promises across various countries like Malta and Switzerland. The piece highlights a discrepancy between her public image, as seen in a 2009 Dragons' Den episode where she offers investment and advice on success, and the negative experiences of those who worked with her over the past decade. This suggests a significant downfall from her earlier success and a history of financial irregularities.
Pakistan's economy is showing a grim situation as profit repatriation has exceeded foreign direct investment (FDI) by 32 percent, reaching $2.154 billion in the first 11 months of FY26. This highlights the country's struggle to attract fresh capital and control its current account, despite efforts by the Board of Investment and Special Investment Facilitation Council. The largest profit outflows went to the UK ($585.6 million) and China ($456.3 million), with China and Hong Kong accounting for nearly half of the total FDI. The government and State Bank have not imposed restrictions on profit repatriation, which should encourage foreign investors, especially with comfortable foreign exchange reserves that rose to $17.221 billion for SBP.
The Pakistani government has cancelled a proposed 5 percent tariff increase at Karachi Port for fiscal year 2026-27, providing an estimated Rs. 500 million in relief to importers and exporters. Maritime Affairs Minister Junaid Anwar stated this decision aims to support trade and economic activity, aligning with the Prime Minister’s Blue Economy vision to strengthen Pakistan's maritime sector and facilitate businesses. This tariff freeze is expected to reduce operating costs for traders, maintain stable port-related charges, and improve the overall business environment, easing pressure on businesses facing high logistics and financing costs. Karachi Port is crucial as it handles the majority of Pakistan's seaborne trade, making port charges a significant cost factor for various industries.
New analysis utilizing Bank of England company data suggests that Brexit has cost the UK economy approximately 6% of its potential growth. The study aimed to quantify the economic impact by comparing the UK's actual economic performance against a hypothetical scenario where it remained within the European Union. This significant economic figure highlights the substantial financial repercussions of the UK's departure from the EU, affecting various sectors and overall national prosperity. The findings are crucial for understanding the long-term economic consequences of Brexit and will likely fuel ongoing debates about the decision's wisdom and future policy directions. This analysis provides concrete data points for economists and policymakers to assess the true cost of the UK's exit.
Pakistan's freelance workforce, estimated at three million people, generated $1.6 billion in verified export remittances during the first eleven months of fiscal year 2026, marking an 80% year-on-year growth. This surge contributed to a significant ICT trade surplus of $2.91 billion, a rare positive economic indicator for the country. This success, driven by individual initiative rather than government schemes, highlights an untapped economic sector with immense potential. However, the article warns that the sector's growth is hampered by broken payment rails, lack of legal recognition, and the critical absence of PayPal for outbound payments, urging the State Bank and government to address these regulatory and compliance issues to unlock the sector's full potential.
Pakistan is anticipating significant cuts in petrol and diesel prices, potentially up to Rs20 and Rs35 per litre respectively, following a recent dip in global oil markets. This expected reduction is largely due to a breakthrough peace agreement between the United States and Iran, which caused a dramatic collapse in international oil prices by removing a 'war premium'. However, the full benefits may not reach consumers immediately because Pakistan's fuel pricing formula includes import premiums, freight costs, taxes, government levies, dealer commissions, and oil company margins. Pakistan, heavily dependent on imported fuel and relying on Gulf-region refined fuel benchmarks, is hopeful for one of the largest fuel price reductions in recent years, with the ex-refinery price of petrol already dropping.
Pakistan has incurred a loss of 278 billion Pakistani Rupees, while Afghanistan has lost 140 billion Pakistani Rupees due to the closure of trade routes and borders between the two countries over the past eight months, according to the Pak-Afghan Joint Chamber of Commerce and Industry. This border closure has significantly impacted both nations' economies, with Pakistan's annual exports to Afghanistan, previously one of its top ten export destinations, falling from 4.5% to 1.5% in 2025, as per the Pakistan Economic Survey. Pakistan's Finance Minister, Senator Muhammad Aurangzeb, attributed the decline in exports directly to the border issues with Afghanistan, anticipating further challenges for Pakistani exporters, particularly in exporting mangoes to Central Asian countries via Afghanistan this season.
Pakistan's National Assembly Standing Committee on Finance has approved a 5% withholding tax on non-registered shops and businesses with annual sales exceeding 20 million PKR, as well as on income earned from social media. The committee also expressed strong reservations regarding a 15-year tax exemption request for new aircraft and parts after PIA's privatization, postponing approval and calling for the advisor on privatization. Furthermore, the committee approved adding 116 more items across 21 categories to the sales tax law, expected to generate an additional 50 billion PKR annually. Tax exemptions were also approved for machinery imported for refinery upgrades and for the import of commercial ships and tankers. The committee is set to eliminate a 1% advance tax on exporters.
Foreign firms repatriated over $2 billion in profits and dividends from Pakistan during July-April FY26, marking an 8.66% increase compared to the previous year. This rise is attributed to improved foreign exchange availability and stronger corporate earnings, allowing multinational companies to transfer higher returns to their parent firms. Of the total, $1.92 billion was under foreign direct investment (FDI) and $80.7 million under foreign portfolio investment (FPI). The United Kingdom was the largest recipient with $556.4 million, followed by China with a significant surge to $439.5 million, highlighting the growing maturity of Chinese investments in CPEC projects. Other notable recipients include the Netherlands, US, UAE, and Switzerland, reflecting diverse international investment footprints in Pakistan's various sectors.
The National Assembly standing committee on finance has deferred the approval of significant tax exemptions for Pakistan International Airlines (PIA), creating a dilemma for the government. Secretary Privatisation Usman Bajwa revealed that the new buyers did not explicitly ask for exclusive preferential exemptions, only 15 years of concessions for policy consistency, contradicting earlier perceptions. This puts the government in a difficult position, as withdrawing the exemptions might violate the sale-purchase agreement with the Arif Habib-led consortium, which acquired PIA for Rs180 billion, while extending them to all airlines would impact the budget within the IMF program. The committee, chaired by Syed Naveed Qamar, is urging the government to either withdraw the exemptions or extend them to all airlines to avoid discrimination, a point strongly raised by MNA Sharmila Faruqi regarding injustice to other private sector airlines.
Pakistan and Iran have agreed to increase their bilateral trade volume to 10 billion dollars. This decision was made to enhance economic cooperation between the two neighboring countries. The article, written in Urdu, highlights the commitment of both nations to foster stronger trade ties. This move is significant for regional economic integration and could lead to increased trade activities and investments, benefiting both economies. The agreement aims to unlock the full potential of their economic partnership, fostering growth and stability in the region.
The Benazir Income Support Programme (BISP) has launched a new interoperable digital wallet payment system, allowing women beneficiaries to withdraw their stipends from any partner bank retailer nationwide. This landmark initiative, signed with 1LINK and various partner banks at BISP Headquarters in Islamabad, aims to enhance financial inclusion and improve service delivery for millions of women across Pakistan. Chaired by Senator Rubina Khalid, the reform addresses historical challenges like long queues and limited access points, providing greater convenience, accessibility, transparency, and choice. The system, in line with President Asif Ali Zardari's vision, empowers beneficiaries with dignified and hassle-free access to financial assistance, signifying a major step towards women's financial autonomy and economic participation.
A new report from Realtor.com indicates a record high number of US adults under 35, specifically 25.2 million people aged 25 to 35, were living with their parents in 2025. This constitutes a third of young adults in that age bracket. The data highlights that this trend is primarily driven by high housing costs, making independent living unaffordable for many. Notably, 70% of these young adults are employed, and many possess college degrees, underscoring that the labor market is not the primary factor.
The Bank of England has maintained its interest rates and reduced its inflation forecast, citing uncertainty stemming from the conflict in the Middle East. This economic backdrop has also impacted major retailers, with Tesco reporting a significant slowdown in its UK sales growth. Tesco's comparable sales increased by 1.8% to £13.4 billion in the quarter ending May, a substantial drop from the 4.2% growth in the prior quarter and below analyst expectations of 2.3%. The ongoing Middle East conflict is noted as a key factor contributing to this economic uncertainty for households and businesses, influencing both central bank policy and retail performance.
BankIslami, a rapidly growing Islamic bank in Pakistan, has launched BIPL Exchange Company Private Limited, a wholly-owned currency exchange subsidiary, to strengthen its Riba-free financial ecosystem. This strategic expansion aims to extend financial services and better serve customer needs while contributing to Pakistan's Islamic financial landscape. BIPL Exchange commenced operations with its first branch inaugurated by Jahangir Siddiqui, Founder of JS Group, and is led by CEO Muhammad Yaqoob Sheikhji. The new venture is designed to facilitate legitimate foreign currency transactions and essential exchange services under a transparent and Shariah-compliant framework, reinforcing BankIslami's commitment to Shariah compliance and service excellence.
The National Assembly Standing Committee on Finance in Pakistan has approved a proposal to make electronic filing of income tax returns mandatory nationwide, specifically through the IRIS system. This move aims to fully phase out manual submissions, which, despite being largely discontinued since 2013, were still occurring in some cities like Gujranwala. Additionally, the committee sanctioned a proposal for companies to submit financial statements in a machine-readable format and introduced an algorithmic settlement mechanism allowing revised tax returns without prior commissioner approval, exempting participants from separate penalties and surcharges. This streamlines tax processes and enhances digital compliance.
The Asian Development Bank (ADB) has approved a loan of $700 million for Pakistan. This significant funding is designated for reforms within the insurance sector and to expand insurance coverage across the country. According to the ADB, the primary objective of this program is to bridge the existing gap in insurance protection and to foster greater participation from the private sector. The initiative is crucial for enhancing financial resilience and stability within Pakistan's economy by strengthening its insurance framework.
