Pakistan

Islamabad: The government has initiated high-level discussions to formulate a credible strategy for permanently exiting International Monetary Fund (IMF) programmes after the current $7 billion Extended Fund Facility concludes in September 2027. Sources told The Express Tribune that a recent meeting assessed Pakistan’s ability to sustain its economy without IMF support. The Planning Commission warned that without urgent reforms—building foreign exchange reserves and developing complete industrial value chains—the country risks entering another bailout programme. Planning Minister Ahsan Iqbal emphasised that achieving $63 billion in exports by 2029 is essential to make the current programme Pakistan’s last. Failure to reach this target would create persistent external sector gaps. The Commission’s assessment projects temporary widening of the current account deficit to below 2% of GDP (over $10 billion annually) as the economy shifts from stabilisation to growth. Additional financing needs are estimated at $4 billion in 2027-28, $5.5 billion in 2028-29, and $3 billion in 2029-30. Cumulative gross financing requirements could exceed $12 billion from 2028-31. These gaps can be bridged through $4 billion higher exports, $4 billion additional remittances, $3 billion new foreign direct investment, and agriculture import substitution, the assessment states. Converting $14 billion in short-term bilateral loans into long-term financing is also proposed to reduce external pressures. The Commission outlined a three-phase reform plan: fiscal, energy, governance and export-aligned reforms until 2027; accelerated industrialisation and investment attraction from 2029-32; and a shift toward high-quality, technology-driven growth thereafter. Prime Minister Shehbaz Sharif has directed the Commission to develop a results-oriented strategy under the Uraan Pakistan 10-year plan to sustain growth above 6%, control inflation, and build external buffers. However, critics question the practicality of ambitious targets, including a $1 trillion economy by 2035, amid declining investment, rising unemployment, and regional disparities.

Magnum, the Netherlands–based global manufacturer of frozen desserts and ice cream, has begun operations in Pakistan as an independent company. The company has expressed its intention to invest in expanding manufacturing capacity, strengthening cold-chain infrastructure, and enhancing digital capabilities in the near future. Read More: https://theboardroompk.com/worlds-largest-standalone-ice-cream-business-magnum-ice-cream-valued-at-9-1-billion-in-amsterdam-listing/ The establishment of Magnum Ice Cream Company Pakistan Limited (Magnum Pakistan) took place earlier this year following the global separation of the ice cream business from the Unilever Group. Although the ice cream division has been serving Pakistani consumers for the past three decades, the separation from Unilever Pakistan will now allow greater focus and dedicated attention to this sector.Magnum Ice Cream Company Pakistan plans to invest in expanding manufacturing capacity, reinforcing cold-chain infrastructure, and developing digital capabilities. These investments in Pakistan are expected to create more employment opportunities in the coming years and further strengthen the company’s commitment to economic growth and sustainability.Magnum Pakistan’s Country General Manager, Kayhan Zenginoglu, said: “This moment is a milestone for Magnum Pakistan. We are here to lead the frozen desserts and ice cream sector through bold innovation, global standards, and a deep understanding of consumers.” The company currently produces millions of liters of ice cream annually and expects an increase in production in the coming months. Building on this strong foundation, Magnum Pakistan has developed comprehensive plans to accelerate growth by expanding its presence in the premium products market and enhancing consumer experiences.

ISLAMABAD, Dec 17: The Competition Commission of Pakistan (CCP) has received requests from major private school systems seeking additional time to submit their replies to the show-cause notices.The proceedings relate to alleged violations of Section 4 of the Competition Act, 2010 concerning abuse of dominant position, requiring parents to purchase branded uniforms, stationery, and other mandatory supplies exclusively from designated vendors.After considering these requests, and to ensure due process and a fair, transparent opportunity of hearing for all parties, the Commission has granted an extension of time until 30 December 2025 for submission of responses. Some school systems have already submitted their written replies.The school systems issued show-cause notices include Beaconhouse School System, The City School, Headstart, Lahore Grammar School (LGS), Froebel’s, Roots International, Roots Millennium, KIPS, Allied Schools, Super Nova, Dar-e-Arqam, STEP School, Westminster International, United Charter School, and The Smart School, among others.Upon receipt of replies, the CCP will fix hearings at which the concerned schools or their authorized counsel will be given an opportunity to present their case in accordance with the law.CCP Chairman Dr. Kabir Ahmed Sidhu reiterated that the education sector is a vital public interest sector with a direct impact on millions of households. He affirmed that the Commission remains committed to ensuring fair competition, safeguarding consumer welfare, and conducting proceedings in a transparent, impartial, and lawful manner.

KARACHI: December 17, 2025: Pakistani-origin fintech ABHI announced a partnership to introduce Zignaly’s first Real-World Asset (RWA) private credit offering in the UAE.This milestone enables global stablecoin investors to earn short-duration, asset-backed yield generated directly from ABHI’s SME receivables portfolio with minimum ticket sizes as low as $10, according to the press released issued by ABHI.The product creates a direct bridge between on-chain liquidity and real economic activity. Through this product, ABHI will finance short-term SME receivables using stablecoin capital sourced via Zignaly’s 650k+ users who will gain exposure to yield derived from the financing of real-world invoices and working capital requirements. This collaboration represents the first live execution of ZIGChain’s RWA vision: delivering real yield rooted in genuine business activity, accelerating institutional adoption of blockchain based credit infrastructure. By combining ABHI’s established SME-financing engine with Zignaly’s distribution layer and ZIGChain’s wealth generation infrastructure, the launch introduces a scalable new asset category for the crypto ecosystem and establishes the foundation for a broader portfolio of tokenized private credit solutions.“The future of finance will lie in tokenization, and we are starting now. Partnering with ZIGChain represents the next chapter in ABHI’s mission to democratize financial access across MENAP. With stablecoin-enabled debt financing, we are unlocking an entirely new liquidity pathway for businesses. This collaboration allows us to serve clients with even greater speed while ensuring sustainable, diversified capital sources. As the region embraces digital finance, ABHI is proud to stand at the forefront of innovation, building solutions that strengthen the financial resilience of both employers and their workforce.” – Omair Ansari, Co-Founder & CEO, ABHI Middle East Limited.“This is a milestone for the entire RWA ecosystem and a clear validation of the ZIGChain vision. By connecting proven originators like ABHI with global on-chain liquidity, we demonstrate how real-world assets can move transparently and compliantly. ZIGChain’s infrastructure now enables stable, institution-grade yield to reach investors worldwide, and private credit is only the beginning. This integration marks the start of a scalable pipeline for tokenized credit, private debt, and a full spectrum of real-world yield products.” – Abdul Rafay Gadit, Co-Founder, ZIGChain.

Karachi, December 17, 2025 — Fatima Fertilizer Company Limited and IFC, a member of the World Bank Group, announced a renewable liquidity facility of US$60 million per year to help maintain uninterrupted domestic fertilizer production by enabling Fatima Fertilizer to import essential raw materials, machinery, and technical services.Pakistan has faced shortages of foreign exchange and delays in clearing imports, which can disrupt access to key inputs and risk fertilizer shortages. The new Fatima Fertilizer facility addresses a critical market gap by providing hard currency liquidity when access to USD financing is limited. The new facility also enables the company to import essential materials and run at full capacity. By sustaining about 1.46 million tons of annual output of fertilizer and preserving more than 850 direct jobs at the company’s Sadiqabad complex, the facility will help maintain a steady fertilizer supply, support thousands of small businesses across the distribution network, and protect yields for staple crops like wheat and rice.“This partnership represents an important milestone not only for Fatima Fertilizer but also for Pakistan’s agriculture sector,” said CEO Fatima Fertilizer, Mr. Fawad Ahmed Mukhtar. “Access to dependable liquidity allows us to maintain operational resilience, ensure stable delivery of essential nutrients to farmers, and contribute to a more food-secure future. We value IFC’s confidence in our vision and look forward to expanding our collaboration.”“A partnership like this helps unlock the liquidity needed to keep essential inputs flowing to Pakistan’s farmers,” said Ashruf Megahed, Regional Industry Head, Manufacturing, Agribusiness & Services, Middle East, Central Asia & Turkey at IFC – International Finance Corporation. “By providing USD financing for vital imports, we aim to support food security, preserve jobs, and strengthen the resilience of the agribusiness value chain across Pakistan.”By strengthening the Company’s operational resilience, the financing contributes to stabilizing fertilizer prices for Pakistani farmers and reducing dependency on imports of fertilizers, whilst fostering national food security in alignment with Pakistan’s agricultural priorities. About IFCIFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions, and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.Stay Connected with IFC on social media.About Fatima Fertilizer Company LimitedFatima Fertilizer is one of Pakistan’s leading fertilizer manufacturers, committed to delivering innovative, efficient, and reliable crop nutrition solutions. Through its nationwide network and farmer-centric initiatives, the Company plays a vital role in supporting agricultural productivity, rural livelihoods, and food security across the country. Fatima Fertilizer is the first private sector company in Pakistan to partner with UNDP to adopt the UN Sustainable Development Goals Impact Framework Program.

Karachi, December 17, 2025 – Pakistan’s economy presents a stark dichotomy as the Pakistan Stock Exchange (PSX) continues its bullish run, with the benchmark KSE-100 index surging nearly 40% in 2025 and recently hitting all-time highs around 171,000 points. This liquidity-driven rally, fueled by local investors fleeing low-yield bank deposits and real estate, has been bolstered by macroeconomic stabilization under a $7 billion IMF Extended Fund Facility, fiscal surpluses, a stable currency, and inflation dipping below 5%.In sharp contrast, the real sector—particularly large-scale manufacturing (LSM) and the vital textile industry—is in deep distress. Over 100 major textile mills and nearly 400 cotton ginning factories have shuttered by November 2025, leaving industrial hubs like Faisalabad and Gujranwala eerily silent with idle looms and reduced capacity. High electricity tariffs at 12-14 cents per kWh—double those in competitors like Bangladesh and Vietnam—stem from a Rs2.4 trillion circular debt and IMF-mandated subsidy removals. Aggressive taxation on industry and SMEs, while sparing retailers and elites, has further squeezed operations. Read More: https://theboardroompk.com/pakistan-stock-exchange-hits-historic-high-kse-100-breaks-169800-points-as-investor-confidence-surges/ This disparity has triggered massive brain drain, with over 720,000 skilled workers emigrating in 2024 and nearly 700,000 more by November 2025, boosting remittances but eroding domestic human capital. Experts warn of creeping de-industrialisation, where financial stability benefits asset holders but fails to revive production and jobs.Economist Ahmad Mukhtar highlights the unsustainability: “A recovery that enriches asset holders while shuttering factories is unsustainable.” Without urgent reforms to slash energy costs and incentivize manufacturing, Pakistan risks a fragile economy reliant on informal sectors and exported labor rather than goods.As 2025 ends, policymakers face pressure to pivot toward real-sector revival to ensure inclusive growth.

Islamabad, December 17, 2025 – The Pakistani government is grappling with a classic Catch-22 situation as it prepares for the country’s first 5G spectrum auction targeted for the first quarter of 2026. Amid widespread public complaints about poor mobile services – including frequent call drops, slow internet speeds, and network congestion – officials are torn between setting high reserve prices to maximize short-term revenue and lowering them to encourage telecom operator participation and faster rollout.A recent Spectrum Advisory Committee (SAC) meeting, chaired by Finance Minister Muhammad Aurangzeb, remained inconclusive on key issues like reserve prices and auction timelines. US-based consultant NERA Economic Consulting presented findings warning that excessively high prices could deter bidders, leading to unsold spectrum, reduced competition, lower innovation, and higher costs for consumers. Conversely, NERA argued that moderate pricing, combined with extended payment terms, could yield greater long-term government revenues through increased tax collections and economic growth.Pakistan currently has only 274 MHz of spectrum allocated for mobile services serving nearly 200 million subscribers, with 600 MHz lying idle – far below regional peers like Bangladesh, which has allocated around 700 MHz for fewer users. Past auctions have seen significant unsold spectrum due to high base prices, dollar-pegged valuations (exacerbated by 70% rupee devaluation since 2021), and unfavorable terms.The GSMA estimates that delays in spectrum release could cost Pakistan’s GDP up to $1.8 billion (Rs500 billion) over 2025-2030 for a two-year holdup, rising to $4.3 billion for five years, while foregone benefits from previous unsold spectrum amount to $300 million.Briefings to the Prime Minister and Deputy Prime Minister are imminent, with decisions pending on unlocking idle spectrum and incentives for the 3.5 GHz band to boost 5G fixed wireless access. Telecom operators and experts urge reforms to prioritize service quality and digital economy growth over immediate fiscal gains.

Gold prices in Pakistan moved sharply higher on Wednesday, December 17, 2025, extending the ongoing bullish trend in the precious metals market. The price of 24-karat gold jumped by Rs2,700 per tola, reflecting strong global momentum and sustained local demand. According to the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA), 24-karat gold is now being sold at Rs453,562 per tola, compared to Rs450,862 in the previous session. Latest Gold Rates in Pakistan (17 December 2025) The upward movement was also seen in gram-based pricing: • 24-karat gold (10 grams): Rs388,856 (up Rs2,315)• 22-karat gold (10 grams): Rs356,464•This marks one of the strongest single-day gains in recent weeks, pushing gold closer to new historic highs in the domestic market. Silver Prices Hit Record High in Local Market Silver followed gold’s rally, posting notable gains across the board: • 24-karat silver (per tola): Rs6,822 (up Rs290)• 24-karat silver (10 grams): Rs5,848 (up Rs248) Market participants note that silver is currently trading at record-high levels, both locally and internationally, driven by investment demand and global supply constraints. One-Month Performance Highlights Short-Term Upside Over the past one month, gold prices in Pakistan have surged by Rs29,900 per tola, delivering attractive short-term returns for investors seeking protection against inflation and PKR depreciation. Silver also recorded a solid monthly increase of Rs1,577 per tola, benefiting from both industrial demand and safe-haven investment flows. Fiscal Year-to-Date: Gold Remains a Strong Hedge From a financial year-to-date (FYTD) perspective, gold has appreciated by Rs103,362 per tola, underlining its effectiveness as a long-term store of value. Silver has also performed well, gaining Rs3,040 per tola during the ongoing fiscal year. This performance highlights why gold and silver remain preferred assets for portfolio diversification in Pakistan’s volatile macroeconomic environment. Calendar Year-to-Date Returns Reflect a Powerful Bull Market The calendar year-to-date (CYTD) data shows a pronounced bull run. Gold prices have climbed by Rs180,962 per tola since the start of 2025, while silver has advanced Rs3,472 per tola. These gains position precious metals among the top-performing asset classes of 2025, outperforming many traditional investment options. Investment Outlook: Why Precious Metals Remain Attractive With global gold prices trading near record levels and silver touching historic highs, market sentiment remains decidedly bullish. Factors supporting continued strength include: • Persistent global economic uncertainty• Expectations of accommodative monetary policies• Rising geopolitical risks• Local currency depreciation pressures For investors, gold and silver continue to offer capital preservation, inflation protection, and portfolio stability, making them critical components of a balanced investment strategy. Global Gold Market Update In the international market, spot gold was trading near $4,323 per ounce, gaining $15.1 or 0.35% from the previous session. Analysts attribute the global rally to: • Persistent geopolitical tensions• Expectations of easier monetary policy• Continued investor appetite for safe-haven assets The international surge continues to directly influence local bullion prices in Pakistan. Outlook: Will Gold Prices Rise Further? With silver touching historic highs and gold maintaining strong upward momentum, market sentiment remains bullish. Traders expect prices to stay volatile in the short term, closely tracking global trends, currency movements, and upcoming economic data. For investors, gold and silver continue to serve as key hedges against inflation and currency depreciation, keeping demand firm in Pakistan’s bullion market.

Pakistan’s services sector delivered a positive signal for the external account in November, as the country’s trade deficit in services narrowed significantly, supported by strong export growth and easing import pressure. According to the latest data released by the State Bank of Pakistan (SBP), the services trade deficit stood at $140 million in November, marking a 41.18% month-on-month (MoM) decline compared to a deficit of $238 million in October. On a year-on-year basis, the deficit also improved slightly, compared to $150 million recorded in the same period last year, highlighting gradual stabilization in Pakistan’s services trade balance. Services Exports Rise on Strong IT and Business Services Performance The improvement in the trade gap was largely driven by robust growth in services exports. SBP data shows that services exports reached $813 million in November, posting a 21.89% year-on-year (YoY) increase compared to $667 million in November 2024. On a monthly basis, exports edged up 0.25% MoM, reflecting steady demand despite global economic uncertainty. During the first five months of FY26 (5MFY26), cumulative services exports climbed to $3.832 billion, registering a 16.69% YoY increase from $3.284 billion in the same period of FY25. IT, Telecom and Business Services Lead Export Growth A closer look at the data highlights the dominance of IT-related services in Pakistan’s export basket. • Telecommunications, Computer and Information Services emerged as the largest contributor, generating $356 million in November, up 14.47% YoY.• Other Business Services ranked second, bringing in $173 million, while recording a strong 37.3% YoY growth compared to $126 million in the same period last year.• On a monthly basis, exports of other business services also rose 2.37% MoM, underlining consistent momentum. Meanwhile, transport services exports contributed $88 million, while travel services added $80 million during the review month. Services Imports Ease on a Monthly Basis On the import side, Pakistan’s services imports totaled $953 million in November, reflecting a 16.65% YoY increase compared to $817 million in the same period last year. However, on a month-on-month basis, imports declined sharply from $1.049 billion in October, helping reduce the overall services trade deficit. Cumulatively, services imports during 5MFY26 stood at $5.148 billion, up 12.8% YoY compared to the same period of FY25. Transport and Travel Remain Key Import Drivers Among services imports, transport services accounted for the largest share, costing the country $374 million in November, up 11.39% YoY and 6.02% MoM. Travel services imports followed at $264 million, recording a 15.94% YoY increase, although they declined 6.98% MoM, indicating some seasonal or demand-side easing. What This Means for Pakistan’s Economy The sharp reduction in the services trade deficit signals growing strength in Pakistan’s IT, telecom and business services sectors, which continue to play a critical role in supporting foreign exchange inflows. If export momentum is sustained and import growth remains controlled, the services sector could become a key stabilizer for Pakistan’s external account, especially amid pressures from goods trade and global economic headwinds.