Pakistan

Pakistan Launches First-Ever Skills Impact Bond Worth Rs1 Billion
Pakistan

Pakistan Launches First-Ever Skills Impact Bond Worth Rs1 Billion

Pakistan marked a historic milestone on December 30, 2025, with the launch of the country’s first-ever private-capital-funded Pakistan Skills Impact Bond (PSIB). Backed by a Rs1 billion guarantee from the Ministry of Finance, the inaugural pilot tranche funds a three-year Technical Skills Development Programme led by the National Vocational and Technical Training Commission (NAVTTC). This outcome-based instrument shifts from traditional input-driven public spending to private-sector investment tied to measurable results, including trainee certification, job placement, and six-month employment retention. Read More:https://theboardroompk.com/pakistan-skills-impact-bond-ushers-in-a-new-era-of-outcome-based-skills-financing/ Harnessing Demographic Dividend Finance Minister Muhammad Aurangzeb hailed the PSIB as a transformative step in Pakistan’s economic reform agenda, emphasizing the need to upskill youth to realize the nation’s demographic dividend. “Pakistan’s demographic dividend can only be realized if the country succeeds in upskilling and reskilling its youth at scale,” he stated. The initiative involves key partners like the Bank of Punjab, British Asian Trust (as Programme Manager), FCDO, and EY. It promotes gender inclusion with at least 40% female trainees and focuses on high-value digital skills, leveraging Pakistan’s status as the world’s third-largest freelancer community. Future tranches aim to link repayments to trainee salaries, reducing reliance on sovereign guarantees and attracting broader institutional investors. Officials, including NAVTTC Chairperson Gulmina Bilal Ahmad and Education Minister Khalid Maqbool Siddiqui, praised the model for fostering accountability, sustainability, and public-private partnerships in human capital development.

Unrealistic or Resilient? Debate Rages on Pakistan's GDP Data
Pakistan

Unrealistic or Resilient? Debate Rages on Pakistan’s GDP Data

Pakistan’s economy recorded a provisional GDP growth of 3.71% in the first quarter of FY2025-26 (July-September 2025), according to data approved by the National Accounts Committee. The growth was largely propelled by a strong industrial sector expansion of 9.38%, despite headwinds from devastating floods earlier in the year. Agriculture contributed with a 2.89% increase, while the services sector grew modestly at 2.35%. Federal Minister for Planning Ahsan Iqbal emphasized that this performance is remarkable given the absorption of fiscal tightening measures, withdrawal of energy subsidies, and persistent food inflation. Read More: https://theboardroompk.com/pakistans-gdp-surges-to-3-71-in-1qfy26-on-industrial-boom/ Resilience Despite Flood Shock Iqbal highlighted the industrial rebound as a sign of structural improvements and policy effectiveness. “This growth is coming despite the 2025 flood shock,” he stated, underscoring the economy’s resilience. The figures reflect recovery efforts post-floods, with increased activity in manufacturing and construction. Government officials argue that these numbers validate ongoing reforms under the stabilization program, including better revenue collection and external account management. Supporters point to rising foreign reserves and controlled inflation as complementary positives, setting a foundation for sustained recovery in subsequent quarters. The data suggests Pakistan is on track to exceed earlier full-year projections, boosting investor confidence amid global uncertainties.

Awais Vohra appointed as Acting CEO of Telenor Pakistan
Pakistan

Awais Vohra appointed as Acting CEO of Telenor Pakistan

Islamabad – 31 December 2025: The newly established Board of Directors of Telenor Pakistan appointed Awais Vohra as the Acting Chief Executive Officer of the company, Telenor Pakistan, which is now an autonomous subsidiary of Pakistan Telecommunication Company Limited (PTCL) following the completion of all regulatory approvals. The Board of Directors acknowledged the strategic leadership of Mr. Fridtjof Rusten during a pivotal phase for Telenor Pakistan. His guidance was instrumental in navigating a complex transaction and regulatory process, while safeguarding operational stability, customer trust, and organizational focus. The development follows the formal acquisition of 100% of the issued share capital of Telenor Pakistan by PTCL. However, in line with regulatory directives, Telenor Pakistan will operate as a separate legal entity alongside Pak Telecom Mobile Limited (PTML), widely known as Ufone 4G, and U Microfinance Bank.    Awais brings over 25 years of leadership experience in telecommunications, with senior roles across Pakistan and Scandinavia. A founding member of Telenor Pakistan’s launch team, he is recognized for fostering a performance-driven culture, leading large-scale digital transformations, and delivering impactful cross-border initiatives. Most recently, as Chief Technology Officer, he has spearheaded network modernization, AI adoption, and strategic technology transformation to enhance customer experience and business performance PTCL had announced the acquisition of 100 percent of the issued share capital of Telenor Pakistan and Orion Towers (Private) Limited in December 2023. After a comprehensive regulatory review, the CCP granted approval for the acquisition on October 01, 2025, followed by the PTA’s approval on December 05, 2025. Telenor Pakistan will continue to provide uninterrupted services to its customers nationwide. The company remains committed to a smooth transition and changeover for its customers, ensuring provision of all services without disruption.

Pakistan's GDP Surges to 3.71% in 1QFY26 on Industrial Boom
Pakistan

Pakistan’s GDP Surges to 3.71% in 1QFY26 on Industrial Boom

Pakistan’s economy showed resilience in the first quarter of fiscal year 2026 (July-September 2025), with real GDP growth clocking in at 3.71%, according to data analyzed by Arif Habib Limited based on Pakistan Bureau of Statistics (PBS) figures. This marks a significant improvement from the 1.56% growth recorded in the corresponding quarter of FY25 (1QFY25), reflecting a stronger recovery amid ongoing challenges such as fiscal adjustments, energy price reforms, and lingering effects from previous floods. Sectoral Performance Drives Momentum The industrial sector emerged as the standout performer, surging by 9.4% in 1QFY26, a sharp contrast to the near-stagnant 0.1% in 1QFY25. This robust expansion was fueled by improved manufacturing output (up 4.8%), large-scale manufacturing gains, and a remarkable rebound in electricity, gas, and water supply (over 120% growth in some sub-sectors), alongside strong construction activity at 21.0%. These gains highlight the benefits of stabilizing energy supplies, policy support for industry, and increased infrastructure spending. Agriculture contributed positively with 2.9% growth, driven by steady livestock performance and forestry, though crops faced mixed results with declines in important crops. The services sector grew moderately at 2.4%, supported by wholesale/retail trade, transportation, accommodation, and financial activities, despite some volatility in communication. This quarterly performance aligns with revised FY25 figures, where GDP growth accelerated progressively from 1.56% in Q1 to 6.17% in Q4, culminating in an annual average around 3%. The latest data signals a potential shift toward more balanced and sustainable expansion in FY26, bolstered by industrial recovery. Analysts view the 3.71% figure as encouraging, especially given external pressures, and expect continued momentum if reforms persist and external conditions remain favorable.

Government Duties and Taxes Collection December 31, 2025: Banks Extend Working Hours Nationwide
Pakistan

Government Duties and Taxes Collection December 31, 2025: Banks Extend Working Hours Nationwide

Government duties and taxes collection December 31, 2025 has been facilitated through extended banking hours and enhanced digital payment availability, ensuring taxpayers across Pakistan can smoothly complete their year-end tax obligations without disruption. In a move aimed at supporting individuals, businesses, and corporate taxpayers, commercial banks have been instructed to remain operational beyond regular working hours, while online banking channels will remain fully functional to enable seamless tax payments. Extended Banking Hours for Government Duties and Taxes Collection December 31, 2025 To accommodate the surge in tax payments at year-end, all branches of commercial banks have been advised to extend their working hours until 10:00 PM on Wednesday, December 31, 2025. This initiative is particularly beneficial for taxpayers making over-the-counter (OTC) payments, including income tax, sales tax, customs duties, and other government levies. The extension ensures that individuals and businesses facing last-minute deadlines are not inconvenienced. In addition, banks have been instructed to keep their designated branches open beyond normal hours, where necessary, to facilitate Special Clearing for Government transactions conducted by NIFT. This step is crucial for timely settlement of government receipts before the close of the financial year. Uninterrupted Digital Channels for Government Duties and Taxes Collection December 31, 2025 Alongside extended branch hours, banks have been directed to ensure round-the-clock availability of digital payment platforms. These include: • Internet banking portals• Mobile banking applications• ATM networks• Other authorized digital payment systems This digital readiness ensures that taxpayers who prefer online transactions can complete their government duties and taxes collection December 31, 2025 payments without facing technical delays or service interruptions. By strengthening both physical and digital payment infrastructure, authorities aim to improve compliance, reduce congestion at branches, and encourage cashless tax payments. January 1, 2026 Bank Holiday Announcement Following the year-end collection drive, the State Bank of Pakistan (SBP) has announced that Thursday, January 1, 2026, will be observed as a Bank Holiday. On this date: • All banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs) will remain closed for public dealing• No customer-facing banking services will be available at branches However, it is important to note that bank employees will attend office as usual to handle internal operations, settlements, and post-year-end reconciliations. This operational continuity ensures that government receipts collected during government duties and taxes collection December 31, 2025 are processed efficiently without backlog. Why Government Duties and Taxes Collection December 31, 2025 Matters for Businesses The year-end tax collection window is critical for: • Businesses closing their financial accounts• Importers and exporters clearing customs obligations• Corporates ensuring compliance before annual audits• Individuals settling pending tax liabilities Extended banking hours and uninterrupted digital services reduce last-day pressure and help taxpayers avoid penalties, late fees, or processing delays. For the government, timely tax collection strengthens fiscal discipline and supports accurate revenue reporting for the upcoming financial period. Key Takeaways for Taxpayers Instead of a table, here’s a clear breakdown: • December 31, 2025: Banks open until 10:00 PM for government tax payments• Special Clearing: Designated branches remain open for NIFT government transactions• Digital Payments: Internet banking, mobile apps, and ATMs remain fully operational• January 1, 2026: Bank Holiday for public dealing; internal operations continue Final Thoughts The facilitation measures announced for government duties and taxes collection December 31, 2025 reflect a coordinated effort to ensure convenience, efficiency, and compliance at the close of the calendar year. Taxpayers are encouraged to take advantage of extended hours and digital platforms to avoid last-minute rush and ensure timely payment. With clear timelines and enhanced access, the banking system remains well-prepared to support Pakistan’s year-end fiscal requirements.

Pakistani Rupee Exchange Rate Shows Stability Against US Dollar
Pakistan

Pakistani Rupee Exchange Rate Shows Stability Against US Dollar

Pakistani Rupee exchange rate movements remained largely stable on Tuesday as the local currency posted a marginal gain against the US dollar during interbank trading, reflecting cautious optimism in Pakistan’s foreign exchange market amid steady money market conditions. The Pakistani rupee appreciated by 0.87 paisa against the US dollar to close at PKR 280.15 per USD, compared to the previous session’s close of PKR 280.16. While the percentage change was negligible, the flat movement highlights continued stability in the exchange rate at a time when market participants are closely watching external financing flows and monetary policy signals. During the trading session, the intraday high and low both remained at PKR 280.15, underscoring limited volatility in the interbank market. Pakistani Rupee Exchange Rate in the Open Market In the open market, exchange companies quoted the US dollar at PKR 280.50 for buying and PKR 281.25 for selling, indicating a slightly wider spread compared to the interbank rate. This difference reflects routine liquidity and demand dynamics typically observed in retail currency trading. Pakistani Rupee Exchange Rate Against Major Global Currencies The Pakistani rupee exchange rate showed mixed performance against major international currencies during the session: • Against the Euro, the rupee strengthened by 20.64 paisa (0.06%), closing at PKR 329.64, compared to PKR 329.85 previously.• The rupee weakened against the British Pound by 73.07 paisa (0.19%), settling at PKR 378.44 versus PKR 377.71 a day earlier.• Against the Swiss Franc, the local unit gained 10.10 paisa (0.03%), closing at PKR 354.98.• The rupee slipped 0.25 paisa (0.14%) against the Japanese Yen, ending the session at PKR 1.7968.• Against the Chinese Yuan, the rupee depreciated by 10.02 paisa (0.25%), closing at PKR 40.07. Pakistani Rupee Exchange Rate Versus Gulf Currencies The Pakistani rupee recorded marginal movements against regional currencies: • It strengthened slightly against the Saudi Riyal, rising by 0.44 paisa to close at PKR 74.69.• Against the UAE Dirham, the rupee edged lower by 0.18 paisa, settling at PKR 76.28. These movements remain largely in line with fluctuations in the US dollar, to which both Gulf currencies are pegged. Pakistani Rupee Exchange Rate: Fiscal Year and Calendar Year Performance From a broader perspective, the Pakistani rupee exchange rate has shown improvement over the current fiscal year. Since the start of FY26, the rupee has gained PKR 3.61 against the US dollar, representing an appreciation of 1.29%. However, on a calendar-year basis, the rupee remains under pressure, having declined by PKR 1.60, or 0.57%, so far in 2025. This divergence highlights the impact of seasonal inflows, external debt repayments, and evolving macroeconomic conditions. Money Market Update and Interest Rate Environment In the money market, conditions remained stable. The benchmark 6-month Karachi Interbank Offered Rate (KIBOR) stayed unchanged, with the bid rate at 10.40% and the offer rate at 10.65%. The unchanged rates indicate expectations of near-term monetary policy stability following recent decisions by the State Bank of Pakistan. Outlook for the Pakistani Rupee Exchange Rate Going forward, analysts expect the Pakistani rupee exchange rate to remain range-bound in the short term. Factors such as import payments, IMF-related developments, remittance inflows, and global dollar strength will continue to influence currency movements. Sustained macroeconomic discipline and stable interest rates are likely to support the rupee’s gradual stabilization.

FBR Corruption Case Highlights Government’s Zero-Tolerance Policy
Pakistan

FBR Corruption Case Highlights Government’s Zero-Tolerance Policy

FBR corruption case developments have once again brought accountability in Pakistan’s civil service into sharp focus, as Prime Minister Shehbaz Sharif has approved the dismissal of a senior Inland Revenue Service (IRS) officer on proven corruption charges. The decision reinforces the government’s stated commitment to transparency, discipline, and institutional reform within key revenue-generating departments. The dismissed officer, Riaz Ali Shah (BS-20), was serving as Chief (Accounting) in the Organizational Audit Wing of the Federal Board of Revenue (FBR). Although posted in Karachi, he was formally attached to the FBR headquarters in Islamabad at the time disciplinary action was finalized. FBR Corruption Case: Background of Disciplinary Proceedings The FBR corruption case against Riaz Ali Shah was initiated under the Civil Servants (Efficiency & Discipline) Rules, 2020, following serious allegations of inefficiency, misconduct, and corruption. The formal process began on August 18, 2025, when an Order of Inquiry, Charge Sheet, and Statement of Allegations were issued. These documents outlined multiple violations related to misuse of authority, procedural irregularities, and conduct unbecoming of a senior public servant entrusted with financial oversight responsibilities. Inquiry Findings in the FBR Corruption Case To ensure procedural transparency, Zubair Bilal (IRS/BS-21) was appointed as the Inquiry Officer. After conducting a detailed examination of evidence, records, and official conduct, the inquiry report was submitted on November 12, 2025. The findings were significant. Out of twelve charges, eleven were conclusively proven, demonstrating a sustained pattern of misconduct rather than isolated administrative lapses. Based on these findings, the inquiry officer formally recommended removal from service, categorizing the violations as serious enough to warrant the maximum disciplinary penalty. Show Cause Notice and Opportunity of Hearing As required under law, the accused officer was given an opportunity to defend himself. A Show Cause Notice was issued on November 19, 2025, granting ten days to submit a written response. Riaz Ali Shah submitted his reply on December 5, 2025. To further uphold principles of natural justice, Syed Hamid Ali (PCS/BS-21) was appointed as the Hearing Officer. A personal hearing was scheduled for December 24, 2025, providing the officer a final chance to present his case in person. However, he failed to appear, weakening his defense at a critical stage of the proceedings. Prime Minister’s Decision in the FBR Corruption Case After reviewing the complete disciplinary record—including the charge sheet, inquiry report, show cause reply, and hearing notes—Prime Minister Shehbaz Sharif, exercising his authority under the Civil Servants (Efficiency & Discipline) Rules, 2020, approved the major penalty of dismissal from service. The dismissal effectively ends the officer’s government career and serves as a precedent-setting action within the Federal Board of Revenue, one of Pakistan’s most strategically important institutions. Why This FBR Corruption Case Matters This FBR corruption case carries broader implications beyond the removal of a single officer. It sends a strong message across the civil service that rank and seniority will not shield individuals from accountability. The case also reflects growing political will to clean up governance structures, particularly in revenue and audit functions that directly impact Pakistan’s fiscal stability. For businesses, investors, and taxpayers, such actions help restore confidence in state institutions by signaling that financial oversight bodies are being held to higher ethical standards. Accountability at the Core of Governance Reform The dismissal of a BS-20 IRS officer in this FBR corruption case underscores the government’s zero-tolerance stance on corruption and misconduct. As Pakistan continues to face economic and fiscal challenges, enforcing accountability within revenue authorities remains critical to strengthening governance, improving tax compliance, and rebuilding public trust. This case stands as a clear reminder that corruption will not be tolerated at any level of public service a message with lasting implications for Pakistan’s administrative and economic future.

PIA Privatization Signals New Era of Growth, Jobs, and Revival
Pakistan

PIA Privatization Signals New Era of Growth, Jobs, and Revival

PIA privatization has entered a decisive phase as Arif Habib, chairman of the investment firm leading the winning consortium, says the sale of Pakistan International Airlines Corporation Ltd (PIACL) will increase employment, expand operations, and restore the airline’s past glory. The Arif Habib Group led consortium secured a controlling stake in PIA for Rs135 billion, marking Pakistan’s first major privatization in nearly two decades. The deal is being viewed as a landmark reform move aimed at reviving a national institution long burdened by losses and inefficiencies. PIA Privatization and Employment Growth Prospects Addressing widespread employee concerns following the PIA privatization, Arif Habib stated that job cuts are not part of the plan. Instead, he emphasized that workforce expansion would naturally follow business growth. According to Habib, the current staff strength is reasonable, but the airline’s future expansion strategy will require additional skilled professionals, resulting in net job creation rather than layoffs. He explained that the real challenge lies not in numbers but in quality and performance, noting that most PIA employees are highly capable and professionally trained. PIA Privatization Aims to Restore Lost Global Prestige Highlighting the airline’s historic achievements, Habib reminded stakeholders that PIA was once ranked as the world’s second-best airline, powered by the same workforce that exists today. He further noted that PIA professionals played a pivotal role in establishing global carriers, including: • Emirates Airline• Singapore Airlines• Malta Airlines This legacy, he said, proves that Pakistani aviation professionals possess world-class skills, provided they are given the right environment, confidence, and institutional support. With the right platform and leadership, these same professionals can once again elevate PIA to international standards. Employee Protection Under PIA Privatization Deal Reinforcing employee safeguards, Adviser to the Prime Minister on Privatization Muhammad Ali confirmed that all PIA employees must be retained for at least 12 months after the transaction, with existing contracts remaining unchanged. This assurance has helped ease immediate workforce anxiety and aligns with the government’s broader strategy of ensuring social stability during structural reforms. Fauji Fertiliser Joins PIA Privatization Consortium Another key development in the PIA privatization process is the inclusion of Fauji Fertiliser Company in the Arif Habib–led consortium. Although Fauji Fertiliser initially exited the bidding race, it later joined the consortium as a shareholder, strengthening the ownership structure. Discussions are ongoing to finalize the partnership’s terms. Habib confirmed that Fauji Foundation Company is now part of PIA’s shareholding, adding institutional depth and long-term investment credibility to the deal. Strategic Backing and National Investment Confidence Habib also revealed that he met Chief of Defence Forces and Army Staff Field Marshal Asim Munir twice prior to the PIA privatization once in Karachi and once in Rawalpindi. During these meetings, attended by leading businessmen and industrialists, the Field Marshal emphasized the importance of local investment in strategic national assets, including PIA. This backing reflects growing confidence among policymakers and institutions that private-sector leadership can revive state-owned enterprises. Why PIA Privatization Matters for Pakistan’s Economy The PIA privatization represents more than a single transaction. It signals: • Renewed investor confidence• Commitment to economic reforms• Potential aviation sector revival• Improved fiscal discipline• Long-term employment generation If executed successfully, it could serve as a template for future privatizations in Pakistan. A Turning Point for PIA With fresh capital, experienced leadership, and institutional support, PIA privatization has the potential to transform the airline into a competitive regional player once again. As Arif Habib and his consortium move forward, expectations remain high that Pakistan’s national flag carrier can reclaim its lost stature this time on a commercially sustainable and globally competitive foundation.

PIA Direct Flights to London to Resume From Islamabad in March 2026
Pakistan

PIA Direct Flights to London to Resume From Islamabad in March 2026

PIA direct flights to London are officially set to resume from Islamabad starting March 2026, marking a major milestone for Pakistan International Airlines (PIA) and fulfilling a long-standing demand of Pakistani travelers and expatriates living in the United Kingdom. After a suspension of nearly six years, the national flag carrier’s decision to restart direct connectivity between Pakistan’s capital and one of the world’s busiest aviation hubs is being viewed as a strategic move to reclaim its presence on high-demand international routes. PIA Direct Flights to London Restart After Six-Year Gap According to a PIA spokesperson, the airline will commence its first direct flight from Islamabad to London on March 29, 2026. Initially, PIA direct flights to London will operate four times a week, offering passengers a non-stop travel option that significantly reduces travel time and eliminates the inconvenience of stopovers. This resumption comes at a time when air travel demand between Pakistan and the UK continues to grow, driven by business travelers, students, families, and a large Pakistani diaspora based in London and surrounding cities. Why PIA Direct Flights to London Matter for Travelers The return of PIA direct flights to London is expected to provide multiple benefits for passengers: Travelers will now be able to fly directly between Islamabad and London without enduring long layovers at transit airports. This is especially important for elderly passengers, families, and business travelers seeking convenience and time efficiency. London has historically been one of PIA’s most popular international destinations. Before the suspension, PIA used to operate more than 22 weekly flights to various UK cities, highlighting the route’s strong commercial potential. PIA’s UK Network Expansion Strategy Alongside the resumption of PIA direct flights to London, the airline is already operating three weekly flights from Islamabad to Manchester, maintaining its footprint in the UK aviation market. PIA management has also indicated plans to gradually expand direct services to London from other major cities of Pakistan, depending on demand, fleet availability, and operational approvals. This phased approach reflects the airline’s broader international revival strategy. Operations at Heathrow Airport All PIA direct flights to London will operate via Heathrow Airport, one of the busiest and most prestigious aviation hubs globally. Access to Heathrow enhances PIA’s brand visibility and provides passengers with better onward connectivity within the UK and Europe. For business travelers and overseas Pakistanis, Heathrow remains the preferred gateway due to its transport links and proximity to central London. Revenue Boost Expected From PIA Direct Flights to London Industry analysts believe the resumption of PIA direct flights to London could significantly strengthen the airline’s revenue stream. UK routes are considered among PIA’s prime and high-demand sectors, historically delivering strong passenger loads and premium traffic. With air travel rebounding globally, direct UK operations are expected to play a critical role in improving PIA’s financial performance and international competitiveness. A Positive Signal for Pakistan’s Aviation Sector The return of PIA direct flights to London is also being welcomed as a positive development for Pakistan’s broader aviation industry. It signals improved regulatory confidence, operational readiness, and renewed efforts to restore PIA’s global network. For overseas Pakistanis, this move represents easier access to home, while for the airline, it marks another step toward rebuilding trust and market share on international routes.

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