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IMF Pakistan Review 2026: A Defining Moment for Economic Stability
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IMF Pakistan Review 2026: A Defining Moment for Economic Stability

IMF Pakistan Review 2026 has officially begun, marking a crucial phase in Pakistan’s economic journey as an International Monetary Fund (IMF) mission lands in Karachi to assess progress under the country’s multi-billion-dollar financial programmes. Led by Iva Petrova, the IMF delegation has initiated technical-level discussions with the State Bank of Pakistan (SBP). These talks are part of the third review of the $7 billion Extended Fund Facility (EFF) and the second review of the $1.1 billion Resilience and Sustainability Facility (RSF). Why IMF Pakistan Review 2026 Matters The IMF Pakistan Review 2026 is more than a routine checkpoint it’s a high-stakes evaluation that could unlock fresh inflows of over $1.2 billion. Successful completion would strengthen investor confidence and stabilize Pakistan’s fragile macroeconomic environment. The mission will transition from technical discussions in Karachi to policy-level negotiations with federal and provincial authorities, beginning with Finance Minister Muhammad Aurangzeb. Early signals from the government suggest optimism, particularly regarding tax collection performance by the Federal Board of Revenue (FBR). External Financing and UAE Deposit Confidence A key highlight of the IMF Pakistan Review 2026 is Pakistan’s reliance on external financial support. The country continues to depend on friendly nations for deposit rollovers, including China, Saudi Arabia, and the UAE. Deputy Prime Minister Ishaq Dar has reassured markets that the UAE’s $2 billion deposit currently on short-term rollover will be extended. This assurance is critical, as these deposits form a significant portion of Pakistan’s external financing framework under the IMF programme. IMF Pakistan Review 2026 and Fiscal Reforms A central pillar of the IMF Pakistan Review 2026 is fiscal discipline. Discussions will cover: • Revenue performance and tax reforms• Provincial finances, including agriculture income tax• Governance and accountability mechanisms• Structural reforms to reduce economic inefficiencies Although Pakistan has broadly met quantitative targets, it faces challenges in structural benchmarks particularly in governance and institutional performance. Authorities are hopeful that recent legal developments regarding the super tax will help bridge revenue gaps. Power Sector and Structural Challenges Energy sector reforms are expected to dominate the IMF Pakistan Review 2026 agenda. Despite keeping circular debt within target limits, inconsistent policymaking especially in industrial tariffs and residential charges remains a concern. The IMF is likely to push for: • Greater policy consistency• Improved governance in energy institutions• Long-term sustainability of tariff structures These reforms are essential to prevent recurring fiscal pressures and ensure economic resilience. Macroeconomic Indicators Under the Spotlight The review will also assess Pakistan’s macroeconomic health for the period ending December 2025. While most performance indicators are on track, some concerns remain: • Net international reserves are slightly below benchmarks• Revenue shortfalls persist despite corrective measures• Structural reform implementation needs acceleration However, the central bank’s domestic asset targets remain well within limits, indicating some level of monetary discipline. What Happens After IMF Pakistan Review 2026? If the IMF Pakistan Review 2026 concludes successfully, Pakistan will gain access to: • Approximately $1 billion under the EFF• Around $200 million under the RSF These inflows, expected by April, could provide much-needed breathing space for the economy and support foreign exchange reserves. Final Thoughts: A Turning Point or Temporary Relief? The IMF Pakistan Review 2026 represents a pivotal opportunity for Pakistan to reinforce economic stability and rebuild investor trust. While short-term indicators show progress, the real test lies in long-term structural reforms and governance improvements. The coming weeks will determine whether Pakistan can translate policy commitments into sustainable economic transformation or continue navigating a cycle of external support and internal challenges.

India PM Modi in Israel: Focus on Defence, Tech, and FTA Progress
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India PM Modi in Israel: Focus on Defence, Tech, and FTA Progress

Prime Minister Narendra Modi departed for Israel on Wednesday for a two-day state visit. Read More: https://theboardroompk.com/pakistan-non-bank-financial-sector-growth-surges-21-in-h2-2025/ The trip aims to deepen the robust strategic partnership between India and Israel. High-Level Engagements and Agenda Modi will hold talks with Israeli Prime Minister Benjamin Netanyahu to discuss ways to strengthen cooperation. He is also scheduled to meet President Isaac Herzog and address the Knesset, Israel’s parliament. Key focus areas include defence, security, agriculture, water management, science and technology, innovation, cybersecurity, and trade. Both leaders have described each other as personal friends, highlighting the personal warmth in bilateral ties. Modi emphasized that ties have significantly strengthened in recent years under his leadership. The visit follows Modi’s historic 2017 trip to Israel and Netanyahu’s 2018 visit to India. Discussions will cover regional and global issues of mutual interest. Netanyahu has called the alliance “tremendous,” with expectations to expand in high-tech sectors like AI and quantum technologies. Trade, FTA Talks, and Broader Context Merchandise trade between the two nations reached $3.62 billion in 2024-2025. Negotiations for an India-Israel Free Trade Agreement (FTA) opened in New Delhi earlier this week. India values Israel as a key defence partner, with cooperation in military technology, including drones. The Adani Group operates Israel’s Haifa port, showcasing growing economic linkages. Full diplomatic relations began in 1992, evolving into a multifaceted partnership. Modi expressed confidence the visit will set new goals for strategic ties and advance a shared vision for innovation and prosperity. The trip occurs amid India’s balanced Middle East diplomacy, including ties with Gulf nations and Iran.It has drawn some domestic criticism due to the ongoing Gaza conflict. Overall, the visit signals India’s commitment to elevating defence, economic, and technological collaboration with Israel.

Russia Law Protecting Prophet Muhammad and Qur’an aims to safeguard religious harmony
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Russia Law Protecting Prophet Muhammad and Qur’an Aims to Safeguard Religious Harmony .

The Russia Law Protecting Prophet Muhammad and Qur’an has captured international attention, signaling a significant shift in how religious sensitivities are addressed within the country. As part of a broader effort to maintain social cohesion, Russia has enacted legislation that bans public insults against the Prophet Muhammad ﷺ and the Holy Qur’an. This move reflects not only domestic priorities but also a calculated response to Russia’s diverse religious demographics particularly its sizable Muslim population. Why Russia Law Protecting Prophet Muhammad and Qur’an Matters The introduction of the Russia Law Protecting Prophet Muhammad and Qur’an is rooted in the government’s desire to prevent religious tensions from escalating into broader societal conflicts. With millions of Muslims living across regions like Chechnya and Tatarstan, maintaining interfaith harmony is a critical policy priority. Supporters of the law argue that: • It promotes respect among religious communities• It reduces the likelihood of provocative acts that could lead to unrest• It reinforces national unity in a multi-faith society Rather than simply being symbolic, the law introduces enforceable penalties, signaling a firm stance against religious disrespect. The Business and Political Implications While the law is primarily religious and social in nature, its implications extend into business and geopolitics. In an increasingly interconnected world, policy decisions like the Russia Law Protecting Prophet Muhammad and Qur’an influence how global investors, multinational companies, and diplomatic partners perceive the country. From a business perspective: • Companies operating in Russia may need to reassess content policies and marketing strategies• Digital platforms could face stricter moderation requirements• International firms may weigh reputational risks linked to free speech concerns•Politically, the law aligns with Vladimir Putin’s broader narrative of positioning Russia as a defender of traditional values and religious respect. A Broader Trend in Global Policy Russia is not alone in navigating this complex issue. Countries around the world have implemented varying degrees of laws addressing religious defamation. However, the Russia Law Protecting Prophet Muhammad and Qur’an stands out due to its geopolitical significance and timing amid rising global polarization. For policymakers and business leaders alike, this development serves as a case study in how cultural sensitivities can shape national legislation and influence international perception. Final Thoughts: Stability vs свобода (Freedom) The Russia Law Protecting Prophet Muhammad and Qur’an underscores a critical question facing modern societies: Can governments protect religious harmony without compromising fundamental freedoms? As Russia moves forward with this law, its real-world impact on society, business, and global relations will be closely watched. Whether it becomes a model for other nations or a cautionary tale will depend on how it is enforced and perceived in the months ahead.

Trump Renews Attack on US Supreme Court, Promises Tougher Tariffs and Licenses
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Trump Renews Attack on US Supreme Court, Promises Tougher Tariffs and Licenses

President Donald Trump escalated his criticism of the U.S. Supreme Court on February 23, 2026, renewing attacks on the justices following their recent ruling that struck down his broad global tariff program. Read More: https://theboardroompk.com/hindustan-aeronautics-stock-drops-after-tejas-crash/ In a social media post, Trump condemned the decision as overreach and vowed to pursue alternative tariff mechanisms and licensing fees with greater force. The Supreme Court’s 6-3 ruling last week, authored by Chief Justice John Roberts, found that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing widespread tariffs justified as responses to national emergencies like drug trafficking and trade deficits. Trump quickly countered by announcing a temporary 10% global import tariff on Friday, which he raised to 15%—the legal maximum for 150 days—on Saturday under a different statute. Trump’s Renewed Condemnation and Vows In his latest statement, Trump wrote that the court had “approved all other Tariffs, of which there are many,” allowing them to be used “in a much more powerful and obnoxious way, with legal certainty.” He criticized the ruling’s implications for licensing, arguing, “incomprehensibly, according to the ruling, (I) can’t charge them a License fee – BUT ALL LICENSES CHARGE FEES, why can’t the United States do so?” Trump also expressed frustration with specific justices, including some he appointed, and voiced concerns about potential future rulings, such as on restricting birthright citizenship. Global Reactions and Market Impact The developments have heightened trade uncertainty. China’s Commerce Ministry is assessing the ruling and urged the U.S. to scrap tariff measures. The European Union is reportedly set to freeze approval of its trade deal with the U.S. due to tariff risks, while India has delayed planned trade talks. Financial markets reacted negatively, with Wall Street futures and the dollar declining early on February 23 amid confusion over U.S. policy direction. Oil prices initially fell on growth concerns but later steadied. Analysts note that while the Supreme Court has limited Trump’s emergency-based tariff powers, his pivot to other legal tools could sustain pressure on trading partners, potentially leading to prolonged global trade volatility.

‘A Deal Is a Deal’: EU Warns Against Higher US Tariffs
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‘A Deal Is a Deal’: EU Warns Against Higher US Tariffs

The European Union has firmly stated it will not tolerate any increase in U.S. tariffs beyond agreed levels, following a recent U.S. Supreme Court ruling and subsequent actions by President Donald Trump. Read More: https://theboardroompk.com/hindustan-aeronautics-stock-drops-after-tejas-crash/ In a strongly worded statement on Sunday, February 22, 2026, the European Commission emphasized that “a deal is a deal,” demanding Washington honor the terms of the EU-U.S. trade agreement reached last year. The dispute stems from the Supreme Court’s decision on Friday to strike down Trump’s broad global tariffs imposed under emergency powers, deeming them unauthorized. In response, Trump quickly announced temporary across-the-board tariffs, initially at 10% and then raised to 15%. This development has injected fresh uncertainty into transatlantic trade relations, just as the EU was moving toward formal ratification of the prior deal. EU Demands Clarity and Commitment The European Commission called for “full clarity” from the U.S. on its next steps, insisting EU products must retain the most competitive treatment under the existing agreement. The 2025 deal set a 15% U.S. tariff ceiling on most EU goods (with exceptions like steel), while granting zero tariffs on select items such as aircraft and spare parts. In exchange, the EU removed duties on many U.S. products and suspended retaliation threats. Officials stressed that the current situation undermines fair, balanced, and mutually beneficial trade. EU Trade Commissioner Maros Sefcovic held discussions with U.S. counterparts over the weekend to address the implications. Potential Risks and Broader Implications Analysts note the new 15% global tariff could effectively erase advantages from the bilateral deal, as it applies universally and may override or add to specific exemptions. This risks higher costs for EU exporters, disrupted market confidence, and possible escalation if the U.S. pursues further measures. Some EU voices, including lawmakers, have suggested pausing ratification or preparing proportionate responses to protect interests. The Commission’s assertive tone marks a shift from initial caution, highlighting concerns over unpredictability in U.S. policy.

Global Sand Trade: Why Gulf Deserts Import Millions of Tons of Sand
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Global Sand Trade: Why Gulf Deserts Import Millions of Tons of Sand

Global Sand Trade is quietly transforming the skylines of the Middle East and challenging one of the biggest assumptions about deserts. Step onto a construction site in Dubai or Riyadh and you’ll see cranes piercing the sky, glass towers rising from the heat, and highways stretching toward the horizon. Sand is everywhere. Or so it seems. Yet beneath this endless beige landscape lies a surprising truth: Saudi Arabia and the United Arab Emirates are among the world’s largest importers of construction-grade sand. In a region surrounded by vast deserts, millions of tons of sand arrive each year on cargo ships from distant shores. Why would sand-rich nations need foreign sand? The answer reveals the hidden mechanics of modern cities and the growing power of the global sand trade. Why the Global Sand Trade Exists in Desert Nations At first glance, the idea sounds absurd. The Arabian Peninsula contains some of the largest deserts on Earth. However, the global sand trade exists because not all sand is created equal. Desert sand, shaped and polished by thousands of years of wind erosion, is too fine and too smooth for concrete. Its rounded grains behave like tiny marbles, slipping past each other instead of locking together. Strong construction requires angular, rough grains more like microscopic Lego bricks that bind firmly with cement and water. This technical limitation forces Gulf developers to source sand from riverbeds, quarries, and seabeds. The sand used to build iconic projects such as Palm Jumeirah in Dubai had to meet strict engineering standards for grain size, density, and durability. Desert dunes simply couldn’t provide the necessary structural stability. As Gulf economies diversify beyond oil investing in tourism, infrastructure, logistics, and real estate demand for construction materials has surged. Megaprojects in Riyadh, Abu Dhabi, Jeddah, and futuristic developments like NEOM rely heavily on imported aggregates. The desert may be vast, but suitable construction sand is surprisingly scarce. The Economics Behind the Global Sand Trade The global sand trade is not a small niche market. It is one of the largest extractive industries by volume worldwide. Sand and gravel are essential ingredients in concrete, asphalt, glass, and land reclamation projects. A single skyscraper can require hundreds of thousands of tons of sand. Airports, artificial islands, highways, ports, and housing developments multiply that demand exponentially. Gulf megacities expanding at record pace have turned sand into a strategic commodity. Behind each shipment lies a complex supply chain: • Geological surveys to test sand composition• Contracts between extraction companies and Gulf developers• Dredging operations at river mouths or coastal seabeds• Bulk cargo transport across international waters• Quality control at ports like Jebel Ali or Jeddah What appears to be a simple granular material is, in reality, the structural backbone of urban ambition. Environmental Costs of the Global Sand Trade The global sand trade carries significant environmental consequences. In countries such as Vietnam, Cambodia, Kenya, and Sri Lanka, excessive sand extraction has contributed to coastal erosion, riverbank collapse, habitat destruction, and declining fisheries. Removing sand disrupts natural sediment flows that protect shorelines from storms and rising seas. In poorly regulated markets, illegal mining operations further intensify ecological damage. Rivers are dredged at night; beaches shrink quietly year after year. The Gulf’s construction boom does not single-handedly cause these problems, but it adds powerful demand to an already strained global market. As sand becomes more valuable, competition increases and oversight often struggles to keep pace. The paradox is striking: deserts importing sand while river communities elsewhere watch their landscapes erode. The Strategic Importance of Global Sand Trade in the 21st Century We often associate resource scarcity with oil, gas, or rare earth metals. Yet sand seemingly ordinary has become one of the most extracted solid materials on Earth. Urbanization across Asia, Africa, and the Middle East continues at rapid speed. Climate adaptation projects, including sea walls and flood defenses, also require massive volumes of aggregates. Reconstruction after conflicts or natural disasters adds further pressure. The global sand trade is increasingly geopolitical. Access to reliable, high-quality sand supplies can influence construction costs, infrastructure timelines, and even diplomatic relationships. In short, sand has evolved from a background material into a strategic economic resource. Are There Sustainable Alternatives? The future of the global sand trade may depend on innovation. Engineers and architects are experimenting with: • Crushed rock as an alternative aggregate• Recycled concrete from demolished buildings• Industrial by-products such as slag• More efficient building designs that reduce raw material use• Circular construction models that reuse materials Some Gulf developers have begun integrating sustainability goals into new megaprojects. However, scaling alternatives to meet millions of tons in annual demand remains a formidable challenge. A Desert Story That Redefines Abundance The image of endless desert suggests limitless supply. But the reality is more complex. The global sand trade reveals how modern cities depend on precise materials sourced from interconnected ecosystems around the world. The sand beneath a Dubai skyscraper may have once been part of a distant river delta. The artificial beach along the Red Sea may contain grains dredged from offshore seabeds. The connection between landscapes is invisible yet powerful. As Gulf skylines continue to rise, the question becomes not whether cities should grow, but how they can grow responsibly. Key Insights at a Glance Desert sand is unsuitable for strong concrete because wind erosion makes grains too smooth and rounded, explaining why Gulf nations import construction-grade sand. The global sand trade supports megaprojects across Saudi Arabia and the UAE, turning sand into a strategic commodity rather than a free natural resource. Environmental impacts in source countries include coastal erosion, habitat destruction, and disrupted river systems when extraction is poorly regulated. Emerging alternatives such as recycled aggregates and crushed rock offer potential solutions, but adoption at scale remains limited. The next time you walk across a beach or glance at a glittering skyline in the Gulf, consider the invisible journey of the grains beneath your feet. The global sand trade connects deserts, rivers, oceans, and cities in a

JPMorgan Recruits CHIPS and Defense Veterans for $1.5 Trillion Security Push
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JPMorgan Recruits CHIPS and Defense Veterans for $1.5 Trillion Security Push

JPMorgan Chase has named several senior leaders with backgrounds from U.S. government programs to accelerate its ambitious Security & Resiliency Initiative (SRI), according to an internal memo reported by Reuters on February 20, 2026. Read More: https://theboardroompk.com/jazz-ceo-urges-global-investors-to-invest-now-at-austria-business-forum/ The 10-year, $1.5 trillion SRI, launched in October 2025, focuses on financing and investing in sectors vital to national security and economic resilience. Key Appointments Bring Government Expertise Kevin Quinn, formerly with the U.S. Department of Commerce’s CHIPS Program Office, now leads SRI efforts in frontier and strategic technologies, including semiconductors and AI. Trevor Burns heads defense and aerospace for the initiative. Sara O’Rourke oversees SRI Solutions, a cross-functional team tackling supply chain vulnerabilities in manufacturing and high-tech industries; she previously served as an investment director at the CHIPS Investment Office. Additional moves include Shannon Wu and Kelly Wolfe supporting SRI banking and operations, while Caroline Sambuco joins as vice president in SRI Solutions with prior CHIPS experience. These hires reflect JPMorgan’s strategy to leverage specialized knowledge from CHIPS Act-related roles and defense sectors. Broad Focus on Critical Industries The SRI aims to facilitate massive financing across semiconductors, defense, energy, artificial intelligence, critical infrastructure, and related areas amid rising geopolitical concerns. It includes an initial $10 billion in direct equity and venture capital investments in U.S.-based companies to boost growth, innovation, and strategic manufacturing. The bank positions the effort as a response to U.S. dependencies on foreign supply chains for essential materials and technologies. No new funding commitments were announced in the memo, but the appointments signal intensified execution of the long-term plan. This development highlights growing private-sector involvement in bolstering national security priorities, aligning with broader government pushes like the CHIPS Act.

Macron India Visit: Backs India's 114 Rafale Order with Strong Make in India Commitment
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Macron India Visit: Backs India’s 114 Rafale Order with Strong Make in India Commitment

French President Emmanuel Macron announced on February 19, 2026, that France and India are entering a “new era” of defence cooperation, highlighted by plans to jointly produce Rafale fighter jets in India. Speaking at the end of a three-day visit to New Delhi, Macron emphasized expanding the Rafale program through co-production under India’s “Make in India” initiative. Read More: https://theboardroompk.com/glenn-maxwell-psl-11-signing-australian-star-chooses-psl-over-ipl-in-surprise-move/ This follows India’s Defence Acquisition Council granting initial clearance last week for procuring 114 additional Rafale jets for the air force. Macron described the move as a “new step forward” in bilateral ties. Co-Production and Indigenous Focus Macron stated that India had confirmed its intent to order 114 Rafales and co-produce them domestically. He committed to maximizing Indian components and critical manufacturing in India, aligning with demands for higher indigenous content—potentially up to 50% in phases. Details of the deal, including the joint venture partner and exact co-production terms, await technical and commercial negotiations. Reports estimate the package at around 3.25 trillion rupees ($35-40 billion), with most jets to be built locally. Macron defended the Rafale against critics, asserting it strengthens India’s military and creates jobs, dismissing questions about its performance in recent conflicts. Broader Defence and Strategic Ties Beyond Rafales, Macron expressed hope for similar cooperation on submarines, noting France’s offer of additional capacities. India already operates six French Scorpene-class submarines, with potential for more orders. The visit also saw announcements on helicopter assembly: a joint venture between Airbus and Tata Advanced Systems for H125 helicopters, plus co-production of HAMMER missiles by Safran and Bharat Electronics. Macron highlighted the “unique” global strategic partnership between France and India, extending to future needs in combat aviation through 2040-2050, AI, and emerging technologies. The developments underscore deepening Indo-French defence-industrial collaboration amid regional security dynamics.

Foreign Investors Profit Repatriation Pakistan Surges 26% in 7MFY26: A Sharp Rise Signals Economic Momentum
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Foreign Investors Profit Repatriation Pakistan Surges 26% in 7MFY26: A Sharp Rise Signals Economic Momentum

Foreign investors profit repatriation Pakistan has surged significantly in the first seven months of FY26, offering fresh insight into the country’s evolving investment landscape. According to the State Bank of Pakistan, foreign firms repatriated $1.68 billion in profits and dividends during 7MFY26, marking a notable 26.26% year-on-year increase compared to $1.33 billion in the same period last year. At first glance, rising outflows might raise concerns. But beneath the surface, this trend reflects something deeper: improved profitability of foreign-backed businesses operating in Pakistan. What’s Driving Foreign Investors Profit Repatriation Pakistan? The surge in foreign investors profit repatriation Pakistan is largely fueled by stronger earnings from foreign direct investments (FDI). During 7MFY26, companies repatriated $1.62 billion in profits linked to FDI, up nearly 28% from $1.26 billion a year earlier. This indicates that foreign investors are not just maintaining their presence they are generating higher returns. Such growth often signals improved operational efficiency, stable macroeconomic conditions, and stronger demand across key industries. Meanwhile, portfolio investment outflows saw a slight dip, declining 6.56% year-on-year to $59.87 million. This suggests a more cautious stance from short-term investors, even as long-term investors continue to benefit. In January 2026 alone, foreign firms repatriated $118.93 million, reinforcing the ongoing trend of steady outflows tied to profitability. Sector Analysis: Where Are Profits Flowing From? A closer look at sectoral performance reveals where foreign investors are earning and withdrawing the most: The power sector leads the chart, with repatriation reaching $400.19 million during 7MFY26. This dominance reflects the continued reliance on foreign investment in energy infrastructure and independent power producers. The financial business sector follows closely, with $371.33 million in outflows, highlighting robust earnings from banking and financial services. The food sector also recorded a sharp increase, with repatriation rising to $142.39 million an indicator of growing consumer demand and expanding multinational food operations. Communications and transport sectors contributed $132.3 million and $91.11 million respectively, pointing toward steady growth in telecom and logistics. Together, these sectors paint a picture of an economy where essential services and consumer-driven industries are generating strong returns for foreign stakeholders. Country-Wise Trends in Foreign Investors Profit Repatriation Pakistan The country-wise breakdown adds another layer of insight into foreign investors profit repatriation Pakistan trends. The United Kingdom remains the largest source of profit outflows, with investors repatriating $442.76 million during 7MFY26 slightly higher than last year. January alone saw $20.5 million transferred to UK-based entities. China emerged as a major mover, recording a dramatic jump to $413.11 million in repatriated profits, compared to just $104.86 million in the same period last year. This surge reflects expanding Chinese investments, particularly under infrastructure and industrial collaborations. The Netherlands secured third position, with repatriation rising to $151.36 million more than double last year’s figure. The United States followed with $145.93 million, reflecting stable returns from American investors operating in Pakistan. What Does This Mean for Pakistan’s Economy? The rise in foreign investors profit repatriation Pakistan is a double-edged sword. On one hand, it leads to foreign exchange outflows, which can put pressure on reserves. On the other, it signals that foreign businesses are profitable an encouraging sign for potential investors. In essence, higher repatriation often reflects confidence in the market. Investors are more likely to expand operations in environments where they can generate and repatriate profits smoothly. However, policymakers will need to strike a balance between facilitating investor confidence and managing external account stability. The Bigger Picture The latest data suggests that Pakistan’s investment ecosystem is gradually stabilizing. Rising profitability across key sectors, coupled with sustained foreign interest from major economies, points toward a cautiously optimistic outlook. If managed effectively, this trend could pave the way for increased reinvestment, stronger capital inflows, and long-term economic resilience.

China Eyes Long-Term Global Trade Dominance Beyond Trump Era
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China Eyes Long-Term Global Trade Dominance Beyond Trump Era

China is strategically positioning itself to maintain and expand dominance in global trade well beyond the current U.S. administration under President Donald Trump. According to a Reuters analysis published on February 19, 2026, Beijing views Trump’s tariffs and protectionist policies as an opportunity to insulate its $19 trillion economy from future U.S. pressure by deepening integration into major economic blocs worldwide. Read More: https://theboardroompk.com/pm-sharif-seeks-clarity-on-gaza-troop-role-during-washington-visit/ The approach involves aggressively pursuing around 20 free-trade agreements (FTAs) with partners across regions, including the European Union, Gulf States, and trans-Pacific frameworks like the CPTPP. This push aims to embed China’s vast manufacturing base so firmly in global supply chains that decoupling becomes difficult or impractical for trading partners. Core Strategies and Initiatives China is accelerating negotiations on long-standing deals, with recent examples including tariff reductions on Chinese EVs in a new agreement with Canada (January 2026), zero tariffs on imports from 53 African countries (announced February 2026), and outreach to countries like Honduras, Panama, Peru, South Korea, and Switzerland. Diplomats are promoting multilateralism, offering AI-powered customs systems, digital trade upgrades, and development cooperation to build alliances. Policy papers from institutions like the Chinese Academy of Social Sciences emphasize “anti-decoupling” as a priority, drawing lessons from U.S. tactics to weaponize institutions. Initiatives such as the Belt and Road and Regional Comprehensive Economic Partnership (RCEP, covering ~30% of global GDP) help set standards in areas like digital trade and intellectual property. Sector Focus and Challenges China leverages strengths in EVs, batteries, semiconductors, and overproduction to flood markets with competitive goods, supported by a record $1.2 trillion trade surplus. However, this surplus, uneven market access, and weak domestic demand raise concerns among partners about market flooding and unfair competition. Beijing is preparing for structural shifts, with the upcoming five-year plan (March 2026) prioritizing higher consumption and imports to rebalance the economy. Expert Views and Implications Experts offer mixed assessments. Alicia Garcia Herrero called it a “golden opportunity” for China, while others like Wendy Cutler urged Beijing to “walk the walk” on fair trade, and Pascal Lamy questioned the failure to rebalance despite surpluses. European diplomats dismissed some overtures as propaganda, with no immediate EU deal in sight. If successful, this could reshape multilateral trade around China-centric rules, countering over a decade of U.S. containment efforts. Yet risks of fragmentation persist if imbalances remain unaddressed.

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