Author: Ibraheem Sohail

The Asian Development Bank (ADB) has stepped in to fund upgrades to a key section of Pakistan’s railway network after repeated delays in Chinese financing put a strategic mining-linked project at risk.

According to reports, the ADB has entered advanced talks to arrange $2 billion in financing for the modernisation of a 500km stretch of railway that was previously included in a Chinese-backed plan. The proposed revamp aims to modernise tracks and bridges from Karachi to Rohri near Sukkur.

As per the details, this project will allow trains on tracks to operate at higher speeds. Reports indicate that the upgraded line will connect to a branch coming from the Reko Diq mining area at Rohri and will transport copper concentrate to port facilities.

For reference, copper concentrate is a semi-processed form of copper ore, typically containing 20 to 30 percent copper. Reports indicate that the project has become urgent because the line is essential for carrying copper ore away from the Reko Diq mine.

It merits a mention that earlier this week, the ADB committed a staggering $410 million in financing for the Reko Diq project, under development by Canada’s Barrick Mining Corp. Reports claim that the ADB’s president is expected to arrive in Islamabad next week for further talks.

Reko Diq project director Tim Cribb disclosed to a leading international news outlet that Barrick and the federal government will jointly pursue financing for the upgrade of the western branch linking the mine to Rohri. Data from reports indicates that production at Reko Diq is scheduled for 2028, with annual output projected to sit at around 200,000 metric tons of copper concentrate.

As one of the world’s largest undeveloped copper deposits, the mine represents Pakistan’s biggest foreign investment in recent years. A key government official warned that without railway upgrades, the country will face a crisis as it will face difficulties in transporting output from Reko Diq.

Additionally, while referencing the Karachi-Rohri line, the government official in question also suggested that “the exhausted line will come under even more pressure” without upgrades. 

As per reports, neither China’s foreign ministry nor Pakistan’s railway ministry provided an immediate comment on these developments. It merits a mention that the ADB has not confirmed the $2 billion financing package yet, which was initially reported upon by a leading international news outlet. However, the ADB acknowledged that discussions with Pakistan on railway sector development remain ongoing.

The regional lender stressed that “any potential ADB assistance would be subject to comprehensive due diligence and consideration under ADB’s policies and procedures before any commitment is made,”.

The Auditor General of Pakistan (AGP) has raised alarm over serious irregularities in the financial dealings of the Securities and Exchange Commission of Pakistan (SECP), citing unauthorised salary hikes, illegal allowances, and billions withheld from the national treasury. According to an audit report, the SECP authorised large increases in the salaries of its chairman and commissioners without securing the required approval from the Ministry of Finance (MoF). 

Reports reveal that the SECP was required to obtain approval from the finance division for any pay increase to be considered legal. However, the commission’s management approved the move in a Policy Board meeting on October 17, 2024. The raises were also backdated to July 1, 2023, adding an extra financial burden on the national exchequer.

The audit calculated that the SECP’s Chairman Akif Saeed drew a salary package of a staggering Rs41.53 million during fiscal year (FY) 2023-24, translating into an astronomically high monthly payout of Rs34 lakh per month. Moreover, the report revealed that SECP commissioners received Rs35.8 million during the aforementioned period. 

Apart from the backdated increase in salaries, reports suggest that the SECP unlawfully disbursed entertainment allowances amounting to a whopping Rs110 million to commissioners and staff. 

The AGP noted that although the SECP Policy Board authorised these raises, it did not possess the legal authority to approve such changes. Moreover, it merits a mention that the allowance and pay hikes were made without authorisation from the finance division. 

The audit report has recommended that the MoF either authorise the increases in salary to make them legal or reverse the unlawful changes. According to reports, the audit also found that the SECP failed to transfer approximately Rs14 billion into the Federal Consolidated Fund.

The SECP’s failure to transfer the funds was in violation of the Public Finance Management Act of 2019, under which revenues generated by federal government entities must be deposited into the Treasury Single Account. Data from reports suggests that the withheld funds came from a range of revenue sources, including Rs4.13 billion from licensing and registration, Rs1.91 billion from specialised companies, Rs591.56 million from the insurance sector, and Rs47.77 million from the securities market.

Reports indicate that the SECP retained a surplus balance amount of Rs6.99 billion, failing to deposit it into the Federal Consolidated Fund.

The National Accountability Bureau (NAB) held a ceremony to return funds recovered from the B4U fraud to its victims, to reverse the financial damage caused by one of Pakistan’s largest scams. According to reports, the B4U fraud was an online Ponzi scheme run by Saif-ur-Rehman and his accomplices.

The scheme operated via shell companies and reports indicate that the conspirators managed to siphon off billions of rupees from the public. As per the details, investors were lured in with a promise of an attractive seven percent rate of return every month.

This translates to a 125 percent annual rate of return if investors did not draw upon monthly proceeds from the scheme. This raises alarms, as B4U’s promised returns stand in stark contrast to the 11 percent interest rate offered by banks, which should have served as a warning that it was a highly risky scheme.

Reports reveal that NAB started looking into the matter in early February 2021, after the bureau received complaints from the Securities and Exchange Commission of Pakistan (SECP) and hundreds of victims. During the investigation, authorities froze assets belonging to the conspirators. The assets in question were 56 commercial bank accounts and a multitude of properties.

Officials from NAB gathered online data to verify the claims and damage that had been caused to affectees. Data from reports suggests that the NAB initiated a recovery process to claw back Rs7.3 billion from the masterminds behind the ponzi scheme.

It is worth noting that the compensation will be distributed in phases. In the first phase, Rs3.7 billion will be paid out, with 10,000 victims receiving their full amount, while the remaining 7,500 will receive only 40 percent of their investment.

Reports have revealed that those currently receiving only 40 percent of their investment will receive the remaining amount within six months after the liquidation of the masterminds’ properties. Addressing the attendees at the ceremony, the NAB’s chairman advised the public to remain cautious when considering investing their funds into schemes.

As per reports, he also urged those present to invest their funds after conducting detailed inquiries into the schemes. Victims are not expected to visit NAB’s offices again to recover their remaining amount, as the bureau intends to transfer the remaining amount directly into their bank accounts.

Pakistan has made great strides since May 2025 to establish itself as a digital hub, drawing it ever closer to the pro-crypto Trump Administration. However, its improving ties with the United States, the global economic powerhouse, have sparked unfounded criticism from media figures in neighbouring India.

An Indian media outlet has claimed that Pakistan’s improving ties with the US are linked to its dealings with World Liberty Financial (WLF), a crypto venture associated with President Donald Trump’s family. The anchor falsely labelled WLF as “a completely illegal business” and baselessly alleged that it is “used mostly by drug traffickers.”

Moreover, the anchor in question further claimed that Field Marshal Asim Munir was the Chief Executive Officer (CEO) of WLF. Meanwhile, Indian media outlets have long alleged that the military meddles in the affairs of the Pakistan Crypto Council (PCC). 

It merits a mention that this is not the first time Indian media has undermined Pakistan’s crypto progress by portraying it as an attempt to strengthen ties with the US. Recent reports claimed that Pakistan’s dealings with WLF and Fr8Tech on virtual assets were efforts to “curry favour with political players in Washington”.

Moreover, the Indian media has been pushing a political narrative, baselessly suggesting that Pakistan’s military will soon take control of the country’s digital asset landscape. Some reports went as far as alleging that virtual asset bodies would be dominated by military officials, drawing a misleading parallel with the 36 active-duty officers who “reportedly” oversee the Special Investment Facilitation Council (SIFC).

However, it merits a mention that the PCC, Strategic Bitcoin Reserve, and Pakistan Virtual Assets Regulatory Authority (PVARA) were all created by formal democratic channels, with no evidence of military involvement.

Apart from working with Pakistan on virtual asset initiatives, the US recently lowered tariffs on imports from Pakistan to a reasonable 19 percent – one of the lowest US tariffs on exports in South Asia. Meanwhile, India faces a steep 50 percent tariff.

Pakistani banks and companies invested a staggering Rs1.385 trillion in Treasury bills (T-bills) on Wednesday, seeking to park their funds in risk-free instruments. According to reports, the federal government’s latest auction exceeded its target, raising more than the amount set to mature.

This indicates a strong demand by the corporate sector for short-term debt. The high demand suggests that Islamabad could have slashed yield rates and potentially managed to bring in sufficient funds through the auction of T-bills.

However, reports reveal that the federal government did not reduce the cut-off yields, suggesting that the interest rate may remain fairly anchored in the coming periods. 

As per reports, banks have preferred longer-term 12-month bonds, which reveal their predictions about interest rates not increasing in upcoming monetary policy committee sessions. 

Data from reports reveal that bids worth Rs556.5 billion came for 12-month T-bills, with the federal government raising a whopping Rs275.7 billion through the 12-month maturity period. Islamabad also managed to raise Rs73 billion, Rs41.3 billion, and Rs23 billion from one, three and six-month bills, respectively.

As per the details, the auction managed to receive total bids of Rs1.385 trillion against the Rs450 billion target, exceeding by over 207 percent. The government reportedly accepted Rs527 billion against Rs445 billion maturing this period. 

For reference, the maturing amount refers to the sum the government must repay to previous investors in T-bills during this period. The strong demand underlined banks’ and financial institutions’ reliance on T-bills as secure short-term investments.

According to reports, banks continue to invest larger funds in government securities per annum as Islamabad’s fiscal needs grow. In the budget for fiscal year (FY) 2024-25, interest payments alone constituted half of the expenditure from the Rs18 trillion budget.

Details from reports suggest that the government is likely to rely extensively on bank borrowing during FY 2025-26. Even with the Federal Board of Revenue (FBR) exceeding revenue targets for the first month of FY 2025-26, experts predict that collections could fall short of targets, causing the government to borrow funds to plug the budget deficit.

Revenue collection has reportedly improved in recent years; however, Islamabad still reports that citizens and businesses alike continue to evade taxes.

Heavy rains on Tuesday crippled Karachi’s industrial and commercial activities, with flooding, road closures, and transport shortages causing factory operations to grind to a halt. According to reports, the heavy rainfall has also caused delays in export shipments.

Factories in Karachi’s industrial sector usually run on three shifts per day, but were forced to suspend afternoon and night operations after heavy downpours submerged key roads, leaving workers unable to commute to their respective factories. As per the Korangi Association of Trade and Industry’s (KATI) President, up to 30 percent of workers in over 4,000 industries in Korangi were absent on Tuesday.  

Data from reports suggests that productivity plummeted significantly, as workers were forced to leave early. According to the KATI’s President, the downpours caused productivity to fall by a staggering 50 percent.

Reports reveal that the President of the Site Association of Industry (SAI) outlined that while production remained normal in over 3,500 units, workers faced significant hurdles commuting back to their residences as gutters overflowed and roads flooded. 

The SAI’s President criticised authorities for failing to manage drainage despite Karachi’s importance to the economy, noting that female workers were especially hard hit because of the reported lack of public transport.

Attendance rates at over 1,000 factories in the F.B. Area reportedly dropped by 25 percent. As per reports, the F.B. Area Association of Trade and Industry’s (FBATI) President has warned that industrial output may be “severely impacted” if rains continue with the same intensity for an additional two to three days.

As per the details, the North Karachi Association of Trade and Industry (NKATI) reported the sharpest disruption, with 80 percent of the 4,500 factories present in the region halting production due to the absence of workers. The NKATI’s President cautioned that since 70 percent of the area’s industries are export-oriented, the cancellation of second and third shifts could result in severe disruptions.

The downpour also reportedly battered the city’s retail sector. Trading in the old city markets, home to more than 10,000 shops, was negligible as shopkeepers either stayed home or left early. Reports reveal that wholesale vegetable markets had low customer turnout, while incoming supplies from northern Pakistan faced delays.

With forecasts predicting more rain, reports suggest that Karachi’s industries and markets could face prolonged disruptions, affecting production and exports.

Following the widespread devastation from ongoing floods, the Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved a proposal by the National Disaster Management Authority (NDMA) to provide relief to the affectees. The meeting, chaired by Finance Minister Muhammad Aurangzeb, has reviewed development and economic matters.

Recent monsoon rains, coupled with cloudbursts, have resulted in multiple instances of flash floods, claiming the lives of approximately 670 individuals. In light of the situation, the ECC has approved a relief package totalling Rs5.8 billion in support, with the Finance Division receiving directives to release Rs4 billion from the package immediately.

It merits a mention that the floods have also severely damaged key infrastructure. As per reports, the destruction caused by floodwater triggered a major internet outage from Tuesday night until early Wednesday morning, with connectivity dropping to nearly 20 percent of usual levels.

Moreover, the federal government may have to allocate additional funds to assist victims of the floods, as India has reportedly released additional water into the Sutlej River.