Pakistan

Karachi: easypaisa digital bank has signed a Memorandum of Understanding (MoU) with Binance, the world’s leading blockchain ecosystem and cryptocurrency exchange, to explore the adoption and growth of emerging financial technologies, as well as innovative digital savings and investment solutions in Pakistan. The MoU was signed in Islamabad by Jahanzeb Khan, President & CEO of easypaisa digital bank, and Tarik Erk, Regional Head for MENAT and Senior Executive Officer (SEO) Abu Dhabi at Binance, in the presence of senior representatives from both organizations. The collaboration reflects easypaisa’s commitment to supporting innovation and the responsible growth of Pakistan’s digital financial ecosystem. Under the MoU, easypaisa and Binance will initiate exploratory discussions to assess potential areas of collaboration aimed at supporting the development of Pakistan’s digital savings and investment ecosystem. Any future collaboration will remain subject to applicable regulatory approvals, evolving regulatory frameworks, and the fulfillment of all licensing and compliance requirements. Binance serves more than 300 million registered users globally and offers a comprehensive suite of blockchain and digital financial technology solutions, including trading platforms, financial products, educational initiatives, and Web3-enabled services. Operating with a strong emphasis on security and regulatory compliance, the company is committed to fostering a more inclusive digital economy that enhances financial access and opportunity worldwide. Binance has also obtained AML registration under the Pakistan Virtual Assets Regulatory Authority (PVARA), marking an important step in supporting Pakistan’s regulated digital financial ecosystem. Proposed initiatives under the MoU may include awareness, education, and capacity-building initiatives from an exploratory perspective, which will accordingly enable the bank to develop potential future initiatives in line with applicable regulatory guidelines. The collaboration reflects growing interest in digital savings and technology-enabled financial innovation, particularly among Pakistan’s rapidly expanding digitally connected population. Pakistan continues to present significant potential for growth in emerging financial technologies, with innovation-led investment and technology initiatives offering promising opportunities for the country’s broader digital economy. Commenting on the collaboration, Jahanzeb Khan, President & CEO, easypaisa digital bank, said, “easypaisa digital bank is committed to making digital banking easy and secure for our customers. Leveraging Binance’s expertise in emerging areas of financial technology presents an opportunity for us to learn and explore in line with the guidelines of the PVARA. We look forward to working with Binance to explore safer and more reliable ways to support digital financial access and innovation in Pakistan.” Tarik Erk, Regional Head for MENAT and SEO Abu Dhabi at Binance, added, “Partnering with easypaisa reflects Pakistan’s growing potential as a forward-looking market for emerging financial technologies, supported by scale, trust, and increasing regulatory engagement. With rising awareness and interest across Pakistan, we believe Binance’s global expertise, combined with easypaisa’s local reach and scale, can help support responsible innovation and long-term ecosystem development.” With a customer base representing one in every five Pakistanis, a 31% female user base, and more than 4.5 billion transactions processed in 2025, valued at over PKR 15 trillion — approximately 13% of Pakistan’s GDP easypaisa digital bank continues to set new benchmarks for digital banking and financial empowerment across Pakistan.

LAHORE: Punjab Finance Bill 2026 proposes major adjustments across key sectors to boost collections while avoiding new levies.Commercial loader vehicle taxes are set to nearly triple. Smaller loaders (4,060kg–8,120kg) will jump from Rs2,200 to Rs6,600. Mid-range (8,120kg–12,000kg) rise from Rs4,000 to Rs12,000. Larger ones (12,000kg–16,000kg) move from Rs6,000 to Rs18,000, and heaviest vehicles exceed 16,000kg from Rs8,000 to Rs24,000. This change will significantly affect the transport industry. Businesses relying on heavy vehicles for goods movement may pass costs to consumers. Logistics costs could climb, influencing supply chains across Punjab. Engine capacity taxes see mixed revisions. Vehicles 1,000cc–2,000cc drop to 0.1% of invoice value from 0.2%. Larger engines above 2,000cc increase to 0.4% from 0.3%. This targets luxury vehicles while easing smaller car owners. Water charges shift to a flat-rate system. Kharif season: Rs1,650 per acre. Rabi: Rs850 per acre. Orchards with approved irrigation add Rs2,000 yearly. Lift irrigation users pay Rs2,250 per acre annually. Agriculture income tax simplifies with a flat Rs1,000 per acre for holdings over 12.5 acres. Previously slab-based: Rs300 (12.5–25 acres), Rs400 (25–50), Rs500 (above 50). Irrigated orchards rise from Rs600 to Rs1,000 per acre; non-irrigated from Rs300 to Rs500. These measures aim to modernize revenue from farming while addressing water scarcity challenges in the province. Property tax payments now mandate electronic channels only, ending manual options. Late payment surcharges shift to quarterly calculations with new deadlines: September 30, December 31, March 31, and June 30. Cotton sector receives relief as the seasonal cotton fee is abolished under the Punjab Finance Act 1973. This supports struggling ginning units amid declining production. Sales Tax on Services Overhaul Punjab Sales Tax on Services Act sees tightening. “Active taxpayer” definition excludes suspended, blacklisted, or late filers. Input tax on capital goods now spreads over 12 monthly instalments. Claims from non-active sellers get rejected. A risk-based system allows the Punjab Revenue Authority to flag suspicious claims for delays, partial rejection, audits, or further scrutiny, with appeal rights. Penalties escalate sharply: up to Rs100,000 for individuals, Rs500,000 for companies on violations. Restaurants face dual rates: 8% for digital payments (cards, wallets, QR), 16% otherwise. Reduced rate services (IT, transport, professional) rise from 5% to 8%. New entries include foreign exchange at 3% and event management at 8%, both without input adjustments. Motor vehicle dealers become withholding agents. They must ensure registration, dues payment, and standard plates before handover. Violations attract full penalty equal to dues. This curbs unregistered vehicles and improves compliance.039185Experts view these steps as pragmatic for revenue without new burdens, though businesses may feel the pinch. The budget balances relief with enforcement for fiscal targets.

KARACHI: Acting President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Raza, while expressing disappointment over the State Bank of Pakistan’s decision to keep the policy rate unchanged at 11.5 percent, stated that the business community had strongly expected a reversal of the previous increase of 100 basis points in view of improving economic indicators and easing global uncertainties.He said that the cost of doing business in Pakistan was already alarmingly high, making it increasingly difficult for industries and businesses to remain competitive. “Karachi Chamber has consistently maintained that the policy rate should be brought down to single digits to provide meaningful relief to trade and industry, stimulate economic activity and encourage fresh investments”, he added. Muhammad Raza recalled that during the previous Monetary Policy Committee meeting, the policy rate had been increased by 100 basis points due to concerns arising from inflation expectations and uncertainties prevailing at that time. However, the circumstances have now started changing in a positive direction, creating room for a reduction in borrowing costs. Referring to the recent international developments and encouraging signals emerging over the past few days, he noted that prospects of a peace agreement and the gradual easing of geopolitical tensions were contributing towards greater economic stability. Furthermore, international oil prices and the overall global environment were also moving towards a more favorable trajectory, which should have been taken into account while formulating the latest monetary policy. “The expectation of the business community was that the State Bank would, at the very least, withdraw the 100 basis points increase made in the previous policy announcement. Such a move would have sent a positive signal to investors and industrialists and would have supported economic recovery”, he remarked.Muhammad Raza stressed that persistently high interest rates continue to increase the financial burden on businesses, discourage industrial expansion and impede efforts aimed at enhancing exports and generating employment opportunities. He pointed out that in an environment where businesses are already grappling with elevated energy tariffs, taxation pressures and rising operational costs, maintaining a high policy rate only compounds the challenges confronting the productive sectors of the economy. He emphasized that sustainable economic growth could not be achieved without providing affordable access to finance. Therefore, monetary policy should be aligned with the broader objective of promoting industrialization, boosting exports and ensuring higher economic growth. The Acting President KCCI urged the State Bank of Pakistan to review its stance in the upcoming monetary policy and gradually bring the interest rate down to single digits in line with the long-standing demand of the business community. “Lower borrowing costs are essential for restoring business confidence, reviving industrial activity and putting the economy on a stronger and more sustainable growth path”, he added.

Karachi, 15 June 2026: The Pakistan Banks Association (PBA) today welcomed the Federal Budget for FY 2026-27 as the first in years to move beyond crisis management and make deliberate choices for growth, without abandoning the discipline that earned Pakistan its recovery. The industry meets this moment from a position of genuine strength, backed by the most favourable macro backdrop in over a decade: a policy rate well off its peak, a primary surplus restored, and sovereign ratings upgraded by Moody’s, Fitch and S&P. Pakistan’s banks are ready to finance not just the State, but the wider economy. The Budget keeps faith with fiscal discipline, holding the deficit at 3.6% of GDP and a primary surplus of 2%, while extending real relief through lower personal income tax, a reduction in super tax for the wider corporate sector, support for exporters, and an extension of the concessional regime for IT and IT-enabled services to 2029. Growth is targeted at 4%, with independent analysts seeing further upside as confidence returns. The Association sees this balance — caution on the fiscal accounts, ambition on growth — as exactly the right setting, and one in which private credit, rather than public borrowing, can do the heavy lifting. A Track Record of Stepping Up for the Country: The banking industry has not waited to be asked. Over the past two years, it has repeatedly used its own balance sheet, at no cost to the exchequer and without sovereign guarantees, to unlock problems that had stalled the economy: Pakistan’s banks are strong, liquid and well capitalised, with a capital adequacy ratio of 21.4%, ahead of regional peers, and remain the most transparent and digitally advanced sector in the economy. That strength is what makes the commitments below credible. Commenting on the Budget, Zafar Masud, Chairman PBA, said: “This is a Budget the industry can build on. The conditions for priority-sector lending are the best in over a decade. We intend to use them for the benefit of our economy, our businesses, and our people. Our commitment is concrete: to drive SME financing from Rs 882 billion towards Rs 1.5 trillion by 2028, to revive mortgage & housing finance to achieve the 500,000 units target of the government by 2028, agriculture financing to cross Rs. 3.5 trillion disbursements during a year by 2028, promoting social impact projects, particularly in education and skill development, by leveraging the budgetary allocations to meet the international health and education funding commitment standard benchmark of 5%+ each, and to keep export credit flowing at competitive rates. To make the most of this positive environment, we look forward to working with the Government and the State Bank of Pakistan on a consistent and predictable tax regime, documentation that reinforces financial inclusion, and risk-sharing that unlocks lending to priority sectors with both social as well as economic multipliers for sustainable growth.” Measures in the Budget to revive property and housing, digital payments, exports and technology are expected to support a recovery in private credit. The breadth of recent progress underscores the point: workers’ remittances reached a record USD 38.3 billion, the Roshan Digital Account has channelled over USD 12 billion through formal channels, and the banking system now serves some 103 million depositors across nearly 268 million deposit accounts. Muneer Kamal, CEO & Secretary General – PBA, added: “What stands out about this Budget is its shift from stabilisation towards growth, and the banking industry is ready to carry its share of that load. We will keep credit flowing to the productive sectors — housing, exports, technology and, above all, the SMEs that will drive the next phase of job creation. The foundations are strong, the outlook is encouraging, and the industry is fully committed to building on both.” An Unprecedented Response on SME, Agriculture and Housing Nowhere is this clearer than in the priority programmes. Over the last two years the industry has delivered in an unparalleled fashion across SME, agriculture and housing: SME financing has almost doubled in both volume and the number of borrowers; the long decline in agriculture borrowers since 2019 has been arrested and the number has exceeded 3 million borrowers to reach 4 million by 2028; and in low-cost housing the industry approved Rs 100 billion to some 67,000 beneficiaries in just two months — against a cumulative industry total of around 65,000 beneficiaries and Rs 225 billion over the preceding six years. These successes on the priority sector lending front are primarily owed to the various Government schemes and interventions, conceived and launched in collaboration with the industry, and the industry is surely responding in an unprecedented way. The Association reaffirmed that, with these foundations in place, the industry stands fully behind the Government’s growth agenda as the recovery takes hold.

Karachi – 15th June 2026: Pakistan Mercantile Exchange Limited (PMEX) and the International Finance Corporation (IFC) have entered into a Cooperation Agreement to strengthen Pakistan’s agricultural commodities futures market and support the implementation of the Electronic Warehouse Receipt (EWR) regime. The partnership aims to enhance transparency, efficiency, and private sector participation in commodity markets. By strengthening price discovery and risk management tools, it will help farmers, traders, processors, and investors make informed business decisions. The initiative is also expected to support investment in warehousing infrastructure, reduce post-harvest losses, and contribute to food security in Pakistan. Maize, rice, cotton, and wheat have been identified as priority commodities for futures trading on the PMEX platform. Under the agreement, IFC will support a review of the existing regulatory framework governing the storage, transportation, and trading of agricultural commodities and recommend reforms to strengthen the enabling environment. IFC will also facilitate stakeholder engagement, support the development of futures contracts, and lead awareness and capacity-building initiatives to promote futures trading and the wider adoption of electronic warehouse receipts. “This partnership with IFC marks an important step towards modernizing Pakistan’s agricultural markets. Efficient commodity futures markets and electronic warehouse receipts can improve price transparency, strengthen risk management, encourage investment in storage infrastructure, and provide farmers, traders, processors, and investors with better market access. Together, we aim to create a stronger and more resilient agricultural marketing ecosystem for Pakistan”, said Mr. Khurram Zafar, Chief Executive Officer of PMEX. The partnership aligns with the World Bank Group’s Agri Connect Global initiative, which supports governments and other key public and private sector stakeholders to strengthen agricultural value chains, promote climate-smart production, and improve market access for farmers. In Pakistan, the program focuses on promoting modern storage systems, enhancing price transparency, and connecting farmers to competitive markets. “A modern, efficient commodities market is essential for unlocking Pakistan’s agricultural potential. By strengthening price discovery, expanding private sector warehousing, and promoting electronic warehouse receipts, we can help farmers secure better returns, reduce losses, and access finance. This is a critical step towards building a more resilient and market-driven agri-food sector”, said Mr. Simon Andrews, IFC Director for Pakistan. “The government has launched the Agriculture Innovation and Growth Program (AIGP) for the capacity building of farmers. The federal government is also working on reforms to modernize the agriculture sector regulatory framework and is in the process of finalizing the national Wheat Policy, which will be a giant leap for the agriculture sector as a whole,” said Mr. Ahmed Umair, Coordinator to the Prime Minister on Agriculture and Food Security. The signing ceremony was attended by members of the Board of Directors of PMEX, Additional Secretary, Ministry of National Food Security and Research, Director, Commodities Regulation & Development Department of Securities and Exchange Commission of Pakistan, as well as World Bank Group representatives.