Author name: Web Desk

Dun & Bradstreet Pakistan and Gallup Pakistan have released the 19th edition of the Consumer Confidence Index (CCI) for the first quarter of FY2025-26, revealing a notable dip in sentiment. The index fell to 86.4, down from 96.2 in the previous quarter—a 10.2% decline. Despite this drop, confidence remains 18.5% higher year-on-year, signaling improvement compared to the same period last year.The CCI tracks consumer perceptions of the economy and personal finances across four parameters: household financial situation, national economic conditions, unemployment, and savings. Both current sentiment and future outlook weakened this quarter. Current confidence plunged to 74.7 from 88, while future confidence eased to 98.2 from 104.3, reflecting cautious optimism.Inflation remains the top concern, with 84% of respondents reporting price hikes for essential goods. Unemployment also persists as a major challenge, with a net indicator of 56.5, highlighting widespread labour market strain. Perceptions of Pakistan’s economic situation dropped from 100.8 to 92.5, and fewer respondents expect improvement in the next six months. Encouragingly, optimism about household finances endures as 62% expect stability or improvement in the coming months. Commenting on the findings, Bilal I. Gilani, Executive Director at Gallup Pakistan, said: “This quarter’s drop in consumer confidence reflects inflation and weak job sentiment. People are less upbeat about the present, but they still expect the future to be better. This tells us that stability has helped, but it can only take confidence so far. Without real economic growth, consumer sentiment will not rise much further. In short — people are waiting for jobs and income to grow before they fully believe in a recovery” Zubair Qureshi, Chief Business Officer at Dun & Bradstreet Pakistan, added: “The Consumer Confidence Index is a critical barometer for understanding market sentiment. While short-term challenges persist this quarter, the resilience in household financial expectations signals that businesses have an opportunity to align strategies with evolving consumer priorities.”Confidence fell across all demographics, with urban respondents down 24%, rural down 21%. The steepest decline was witnessed among ages 30–49 (-27%). The survey was conducted telephonically among 2,132 respondents between September and October 2025.

Islamabad/Washington: The International Monetary Fund (IMF) Executive Board has formally approved the release of approximately $1.3 billion for Pakistan under its ongoing $7 billion Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programs.This marks the third tranche disbursed to Pakistan since the 37-month EFF was signed in September 2024, bringing total disbursements to $3.3 billion.The approval follows the successful completion of the second review, during which Pakistan met all quantitative performance criteria and structural benchmarks well ahead of schedule.Key milestones highlighted by the IMF and Ministry of Finance: First current account surplus in 14 yearsInflation brought under firm control through disciplined fiscal and monetary policySignificant build-up in foreign exchange reserves, restoring investor confidenceCompletion of the Governance and Anti-Corruption Diagnostic ReportContinued energy sector reforms aimed at reducing circular debt and improving efficiencyIntegration of climate-resilient policies in the aftermath of the 2022 floods Previous tranches under the program: September 2024 → $1.0 billion (first tranche)May 2025 → $1.0 billion (second tranche)December 2025 → ~$1.3 billion (third tranche – approved today) Finance Ministry officials termed the swift approval a “strong endorsement” of the government’s reform agenda and its commitment to transparency and structural changes.With reserves bolstered and macroeconomic stability restored, the government has pledged to stay the course on energy pricing, tax reforms, and climate-related initiatives to ensure long-term sustainable growth.The next IMF review is tentatively scheduled for early 2026.

WOLFSBURG, Germany – Volkswagen Group will invest €160 billion ($186 billion) through 2030, CEO Oliver Blume announced on Monday, confirming a significant cutback as Europe’s largest carmaker grapples with deepening crises in its two biggest markets, China and the United States. The new five-year rolling plan (2026–2030) marks a €5 billion reduction from the previous €165 billion framework (2025–2029) and is €20 billion lower than the €180 billion plan set for 2024–2028, when spending had peaked. Blume described the move as “disciplined capital allocation” amid weak demand for electric vehicles in Europe, intensifying price wars with Chinese rivals, and looming U.S. tariffs under the incoming Trump administration. Approximately two-thirds of the €160 billion will flow into electrification and digitalization, while the remainder will support combustion-engine platforms, particularly in growth regions such as South America and India. The announcement comes just days after Volkswagen shocked Germany by threatening to close domestic plants for the first time in its 87-year history and amid stalled wage talks with labour unions. Analysts view the trimmed capex as evidence that Europe’s auto giant is entering a prolonged cost-cutting era to defend profitability.

The Economic Coordination Committee (ECC) is set to convene an important session tomorrow, with the Circular Debt Management Plan for FY 2025–26 topping a comprehensive 11-point agenda. The high-stakes meeting is expected to produce several major decisions impacting Pakistan’s energy, petroleum, digital governance, and trade sectors. Circular Debt, Iran Power Agreement Among Top Priorities: At the heart of tomorrow’s meeting is the long-awaited Circular Debt Management Plan, a critical policy framework aimed at stabilizing Pakistan’s power sector amid rising financial stress. The ECC will also review a significant summary on the electricity purchase agreement with Iran, an arrangement that is vital for addressing power needs in Pakistan’s border regions. OMC and Dealer Margin Increase Under Consideration: The Petroleum Division is set to present proposals seeking a possible increase in margins for Oil Marketing Companies (OMCs) and petroleum dealers. Any adjustment to margins could have broad implications for fuel pricing and sector sustainability. Rs 1.28 Billion Grant for Pakistan Digital Authority Likely to Be Approved: In a move to strengthen digital governance, the ECC is expected to approve a technical supplementary grant of Rs 1.28 billion for the Pakistan Digital Authority, a step aimed at improving federal-level digital transformation initiatives. Commerce Division Summaries: Court Ruling, Import Ban, and Gift Scheme Revisions: Several key proposals from the Commerce Division are on the agenda, including:• Implementation of the Lahore High Court decision• A proposed ban on the import of chloroform• Amendments to the vehicle import procedure under the Gift Scheme• Additional trade-related summaries for reviewThese discussions could reshape regulations in Pakistan’s import and trade environment. Housing Subsidy, Development Funds & PASCO Dissolution Also on the Table: The committee will also consider:• Approval of a Rs 5 billion technical supplementary grant for housing sector subsidies• Matters related to the release or surrender of development funds under the Cabinet Division• A summary regarding the dissolution of PASCO and the formation of a special-purpose vehicle for the Wheat Stock Management Company These decisions could shape public-sector financing and agricultural supply chain governance. ECC to Review Budgetary Support for PIA Holding Company: Adding to the extensive agenda, the ECC will deliberate on budgetary release matters for the PIA Holding Company, as the government continues efforts to restructure and stabilize national aviation governance. Major Policy Decisions Expected:With a diverse and consequential agenda, from energy sector reforms to trade regulations and digital investments, tomorrow’s ECC meeting is poised to deliver significant economic policy decisions that could influence Pakistan’s fiscal landscape in the months ahead.