Author: Admin

US-China Trade Talks Resume in London Amid Rare Earths Dispute

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US-China

LONDON: Senior US and Chinese officials convened in London on Monday in a bid to ease escalating trade tensions that now threaten to disrupt global supply chains, particularly over the export of rare earth minerals. The high-stakes dialogue, held at Lancaster House, marks a follow-up to last month’s preliminary trade agreement in Geneva, which temporarily cooled tensions between the two powers. However, US officials have since accused Beijing of stalling on its commitments—especially regarding the shipment of rare earths, critical for electric vehicles, semiconductors, and defense equipment. White House economic…

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Budget FY26: Govt Shifts from Broadening Tax Base to Raising Rates Amid Record Revenue Target

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ECONOMIC-SURVEY

ISLAMABAD: With limited room for fresh tax measures, the Shehbaz Sharif-led coalition government is pivoting from “broadening the tax base” to a new rhetoric of “equity,” effectively justifying higher taxes on lower-income groups as it targets a record Rs14 trillion in revenue for FY2025-26 — a 22% increase over the outgoing fiscal year. In line with IMF commitments, the government estimates autonomous revenue at Rs12.845 trillion, based on 4.2% GDP growth and 7.5% inflation. To bridge the gap, new tax measures worth Rs655 billion and enforcement-driven revenue of Rs400 billion…

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ECONOMIC SURVEY 2024-25: Capacity Payments Continue to Burden Power Consumers Despite Surplus Generation

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Power-sector

LAHORE: Pakistan’s installed electricity generation capacity has risen to 46,605 megawatts in FY2024-25, yet costly capacity payments to idle power plants remain a major burden on consumers, ranging between Rs12 to Rs15 per unit. The Economic Survey 2024-25 reveals that while the government has halted new power projects and is terminating power purchase agreements (PPAs) with several independent power producers (IPPs), the capacity payment issue persists — especially during winters when electricity demand plummets to 12,000-13,000MW. The current energy mix includes thermal (55.7%), hydel (24.4%), nuclear (7.8%), and renewables (12.5%).…

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EV Momentum Builds: 57 Manufacturers Licensed Under Clean Green Pakistan Drive

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Electric-Vehicle

KARACHI: Pakistan’s electric vehicle (EV) industry is gaining traction under the Automotive Industry Development and Export Policy 2021-2026, with 57 manufacturers now licensed to produce electric two- and three-wheelers. Backed by fiscal incentives, tax exemptions, and lower charging tariffs, the sector aligns with the government’s ‘Clean Green Pakistan’ and ‘Make in Pakistan’ visions. According to the Economic Survey FY2025, 13 new manufacturing certificates were issued this year alone, with EV production hitting 32,923 units — bringing total output since FY2022 to 76,979 units. While the broader auto industry posted healthy…

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Glass Half-Full or Half-Empty? A Mixed Verdict on Pakistan’s Economic Outlook

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Economic-Outlook

The Economic Survey for FY2025 reflects a tale of two economies — one signaling cautious optimism and the other clouded by persistent structural weaknesses. Finance Minister Muhammad Aurangzeb’s upbeat tone during his recent press conference highlighted gains such as declining headline inflation, a projected current account surplus, a reduced fiscal deficit (from 7.13% to 5.5% of GDP), a lower debt-to-GDP ratio (down to 65%), a stable rupee, rising reserves, and increased remittances — all drawing praise from international lenders, including the IMF. Yet, the undercurrents of economic fragility remain. Growth…

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