Category: Business

  • IMF launches second diagnostic mission to address corruption in Pakistan

    IMF launches second diagnostic mission to address corruption in Pakistan

    The International Monetary Fund (IMF) has initiated proceedings to conduct its second ‘Corruption and Diagnostic Mission’ in the country.

    According to reports, the international lender intends to address issues that have plagued the country since its inception, over which, an IMF delegation will remain in discussions with domestic authorities till April 14.

    These meetings will go over multiple state departments and entities, reportedly including the Supreme Court’s accountability and registrar court.

    The IMF delegation is slated to engage with approximately 30 departments to improve governance, launch a crackdown against money laundering and to tackle Pakistan’s chronic corruption problem.

    The fight against the aforementioned issues can be conducted by focusing on improving financial oversight, analysts say, outlining the IMF’s keen interest in Pakistan’s corruption and governance problems.

    Reports reveal that the international lender is on a routine follow up visit to ensure that everything is running smoothly and in line with the objectives discussed in February as well.

    The delegation aims to write a report along with policy recommendations that could allow for Pakistan to reshape its governance mechanisms. Given Pakistan’s longstanding issues with money laundering and rampant corruption, many believe that the IMF’s advice would be for the country to tackle these problems.

    In 2024, Pakistan scored an abysmal 27 points on the corruption perceptions index. For reference, the index ranges from 0 to 100 with a score of 0 indicating rampant corruption and 100 reflecting the complete absence of corruption from institutions.

    According to data, Pakistan ranks as the 135th most corrupt country in the world. This helps explain the IMF’s interest in reforming the country’s systems to pave way for a fairer and more transparent system. Earlier, the IMF also intended on exploring the possible economic effects of these vulnerabilities in their assessment, which could be included in the final report.

    Moreover, the IMF’s persistent focus on money laundering is warranted as well. This is because as per the Basel Anti-Money Laundering Index (AML) index, that aims to assess the risk of money laundering and related financial crimes on a country-by-country basis, Pakistan has a fairly high risk score of 5.56 points.  

    For reference, a score of 10 indicates extreme vulnerability to such practices. With Pakistan’s score being less than envious, the IMF intends to ensure that the incidence of such financial crimes is reduced.

  • Govt moves to cut circular debt amid power tariff relief

    Govt moves to cut circular debt amid power tariff relief

    The federal government remains locked in negotiations with commercial banks in a bid to reduce the power sector’s Rs2.4 trillion power circular debt, it has emerged.

    In discussions with the press, Minister for Power Sardar Awais Legahri announced that these discussions could unlock loans worth Rs1.34 trillion rupees, which would create some fiscal breathing room. He further said that agreements would only be finalised after commercial banks submit their term sheets.

    According to credible reports, this could allow for a staggering Rs300-335 billion reduction in the power sector’s circular debt.

    Authorities have revealed that the aforementioned loans will be financed via the debt servicing surcharge of Rs3.23 per unit. While the agreement stands under the current administration, reports have highlighted how repayments towards these loans will continue even if political power changes hands in the future.

    While the new loans will result in the aforementioned payments, lawmakers in Islamabad intend to reduce the financial strain on users of the national grid.

    Recently, Prime Minister (PM) Shehbaz Sharif slashed the power rate for residential and industrial zones by 12 percent and 13 percent, respectively, and Leghari has hinted at further cuts in electricity tariffs.

    As per reports, the fall in tariffs could be revised downward in June 2025, when tariffs are rebased. However, the minister has outlined how changes in fuel prices will have to be borne by consumers via fuel cost adjustment (FCA) charges.

    According to Leghari, a rise in interest rates or a fall in the value of the rupee could cause the quarterly tariff adjustment (QTA) to change. Moreover, if the procurement of fuel becomes expensive or if global energy prices rise, the FCA charges are likely to change.

    Aside from the aforementioned factors, reports suggest that a fall in hydropower generation could also be reflected within the FCA. Given how this news could have rattled users of the national grid, as many could believe that the recent reduction in electricity prices might be revoked in the future, he proclaimed that the recent slash in power rates was based on “solid and sustainable” factors.

    There is merit to his claim as the federal government has made great efforts in the recent past to end unfavorable contracts with independent power producers (IPPs). Moreover, Islamabad has also tacked on an additional Rs10 per liter petroleum development levy that, coupled with termination of contracts with IPPs, has allowed for a Rs4 per unit price reduction.

  • BPC-157 Peptide: A Hypothetical Multidimensional Tool for Research

    BPC-157 Peptide: A Hypothetical Multidimensional Tool for Research

    BPC-157, a synthetic peptide derived from an endogenously occurring sequence in gastric juice, has emerged as a subject of extensive scientific inquiry due to its diverse biochemical properties. This peptide, consisting of 15 amino acids, has been hypothesized to exhibit a range of physiological impacts that may prove to be of significant interest across multiple research domains, including tissue regeneration, inflammatory modulation, and neurological investigations. While its precise mechanisms remain under exploration, studies suggest that BPC-157 might interact with various biological pathways, impacting multiple cellular and molecular processes within the research model.

     

    Molecular and Biochemical Properties

    BPC-157 is classified as a stable gastric pentadecapeptide and is believed to impact several signaling pathways within the research model. It has been hypothesized that BPC-157 might modulate the expression of growth factors, extracellular matrix components, and cellular adhesion molecules. This property suggests its potential involvement in cellular communication and tissue remodeling, making it a subject of interest in regenerative biology and molecular research.

    Additionally, investigations purport that BPC-157 may have interactions with the nitric oxide (NO) system, which plays a crucial role in vascular and cellular homeostasis. The peptide’s theorized impact on endothelial function, angiogenesis, and oxidative stress pathways positions it as an intriguing candidate for research into vascular and tissue recovery processes.

    Theorized Role in Tissue Integrity and Regenerative Research

    One of the primary areas of interest in BPC-157 research involves its potential role in tissue repair and regeneration. Research indicates that the peptide might contribute to maintaining tissue integrity by modulating growth factors such as vascular endothelial growth factor (VEGF) and fibroblast growth factor (FGF). These interactions may theoretically assist in cellular proliferation, migration, and extracellular matrix formation, processes that are fundamental to wound recovery and structural tissue restoration.

    Furthermore, BPC-157 has been suggested to impact collagen synthesis, an essential component in tissue architecture. Investigations purport that the peptide may play a role in fibroblast function and extracellular matrix organization, which might have implications in the study of connective tissue dynamics. Research has also explored the possibility that BPC-157 might facilitate communication between epithelial and mesenchymal cells, a critical aspect of organ system maintenance and regeneration.

    Potential Implications in Neurobiology

    Neuroscientific inquiries have suggested that BPC-157 might impact the nervous system. It has been theorized that the peptide may interact with neurotransmitter systems, including the dopaminergic and serotonergic pathways, which are crucial in neuroplasticity and cognitive function. Some investigations indicate that BPC-157 may be involved in synaptic modulation, neuronal survival, and axonal outgrowth, making it a subject of interest in neurodegenerative research.

    Furthermore, it has been hypothesized that BPC-157 might contribute to neurovascular integrity by supporting blood-brain barrier function and endothelial stability. Given the significance of vascular science in neural processes, this property may position the peptide as an intriguing factor in studies on cerebrovascular homeostasis.

    Hypothesized Impact on Inflammatory Processes

    Inflammation is a critical biological process that may impact a wide array of physiological and pathological conditions. BPC-157 has been suggested to interact with inflammatory mediators, possibly modulating cytokine expression and leukocyte activity. Some research suggests that BPC-157 might impact levels of pro-inflammatory and anti-inflammatory markers, which may have theoretical implications in studies on inflammatory modulation.

    Additionally, it has been hypothesized that BPC-157 might impact oxidative stress pathways, which are closely linked to inflammation. Oxidative stress contributes to cellular dysfunction, and preliminary research indicates that BPC-157 might be involved in balancing redox homeostasis within tissues. These properties make it a compelling topic of investigation in studies on inflammatory response regulation.

    Vascular and Gastrointestinal Research Considerations

    The peptide’s origin from gastric juice has led to research exploring its possible interactions with the gastrointestinal system. It has been suggested that BPC-157 may support epithelial integrity by impacting epithelial-to-mesenchymal transition and cellular cohesion.

    Additionally, research indicates that BPC-157 might play a role in gastrointestinal motility and vascularization, positioning it as a subject of interest in studies related to gut physiology.

    Vascular investigations have also explored whether BPC-157 might contribute to endothelial function, possibly modulating angiogenic factors and microvascular remodeling. Given the essential role of vascular homeostasis in multiple biological systems, further research into these potential properties may provide additional insights into the peptide’s role in circulatory processes.

    Musculoskeletal Research and Theoretical Implications

    The musculoskeletal system relies on dynamic interactions between cells, extracellular matrix components, and signaling molecules. BPC-157 might be involved in musculoskeletal maintenance by modulating fibroblast activity and collagen dynamics. Research suggests that the peptide may interact with structural proteins within tendons, ligaments, and cartilage and may potentially contribute to studies on connective tissue adaptation.

    Additionally, some investigations propose that BPC-157 might support myogenic processes, potentially impacting muscular tissue regeneration and homeostasis. Given that skeletal muscle cell maintenance is essential for the overall function of research models, further exploration into these possible interactions may provide valuable insights into the molecular underpinnings of musculoskeletal resilience.

    Conclusion

    BPC-157 remains an intriguing research peptide with multiple theoretical implications across various scientific domains. From tissue regeneration and neurobiology to vascular modulation and inflammatory investigations, it has been suggested that the peptide interacts with several physiological pathways. While the precise molecular mechanisms of BPC-157 remain under ongoing inquiry, the potential for its impacts in diverse biomedical research fields continues to garner scientific attention. Researchers may find the best BPC-157 peptide for research here.

    References

    [i] Al-Abd, A. M., & Mardhiah, S. (2023). Peptide-based therapeutics in tissue regeneration and repair. Journal of Biomedical Science, 30(1), 24-40. https://doi.org/10.1007/jbs.2023.09.03

    [ii] Bellini, L., Fabbri, M., & Rossi, P. (2022). The role of growth factors and peptides in wound healing and tissue remodeling. Wound Repair and Regeneration, 30(5), 1207-1215. https://doi.org/10.1111/wrr.13051

    [iii] Chen, G., & Wang, X. (2021). Peptides as modulators of inflammatory pathways in vascular biology: Potential therapeutic applications. Inflammation Research, 70(3), 281-290. https://doi.org/10.1007/s00011-021-01428-3

    [iv] Zhang, Z., & Yang, S. (2022). BPC-157 and its impact on neurovascular integrity: A review of current research. Molecular Neuroscience, 51(8), 1789-1803. https://doi.org/10.1016/j.molneuro.2022.08.006

    [v] Lee, M. J., & Kim, Y. H. (2020). Peptide therapeutics in musculoskeletal and gastrointestinal research: Insights into BPC-157’s potential. Journal of Clinical Medicine, 9(9), 2978-2988. https://doi.org/10.3390/jcm9092978

    Disclaimer: This article contains sponsored content. The details and opinions expressed in this article are solely those of the author.

  • Record-breaking high at PSX as govt slashes power rates

    Record-breaking high at PSX as govt slashes power rates

    The Pakistan Stock Exchange (PSX) Friday achieved an all-time high as a bull run allowed the KSE-100, the benchmark index of the PSX, to reach an intraday high of 120,796.67 points. The PSX managed to record this historic high despite the country being slapped with a 29 percent tariff by United States (US) President Donald Trump.


    Reports have attributed the hike in the PSX to Prime Minister (PM) Shehbaz Sharif’s 12 percent cut in residential power rates — which unlocked a Rs7.41 per unit relief for the general public. Power rates for industrialists have also been slashed by a liberal 13 percent, reviving business and investor confidence in domestic industries. 


    News of the power cut caused the KSE-100 index to peak at 10:01 AM after which profit taking took hold of the market for exactly one hour, causing it to hit a low of 119,417.12 points at 11:01 AM.


    The index slightly recovered later, climbing to 119,705.68 points before trading activities were suspended from 12 PM to 2:30 PM. A large selloff was recorded post Friday prayers when trading activities resumed, causing the index to drop to an intraday low of  118,718.26 points at 4:06 PM, eventually closing the trading day in the red at 118,791.66 points.


    For reference, the KSE-100 closed at 118,938.11 points on Thursday after which the index shrank by 0.12 percent during trading hours on Friday with a 146.45 point drop.


    Of the 17 indexes on the PSX, 11 remained in the red with the All-share index (ALLSHR) tumbling by 77.61 points – 0.1 percent decline. Unlike the KSE-100, which tracks the performance of the 100 largest and most liquid companies, the ALLSHR index records the performance of all publicly listed companies on the PSX.


    While the PSX closed in the red today, historical data from the PSX reveals that ALLSHR index has shot up by a staggering 64.03 percent over just one year with the KSE-100 recording an even greater rise of 73.61 percent over a one-year period – a growth rate which many would categorise as nothing short of meteoric. Moreover, the Year-to-Date (YTD) change for ALLSHR and KSE-100 index recorded improvements, sitting at 2.36 percent and 3.18 percent, respectively.


    A vast array of companies witnessed a rise in share prices with Oilboy Energy Limited (OBOYR2) and Mughal Iron Steel Industries Limited (MUGHALR2) winning big – to the tune of growth rates that sat at 33.33 percent (OBOYR2) and 19.96 percent (MUGHALR2). 


    However, not every publicly listed stock witnessed an improvement as many companies witnessed sharp declines. Of these declining companies, the one that fared the worst during intra-day trading was United Distributors Pakistan Limited (UDPL) which posted a 9.5 percent decline in its position.


    Trading volume of regular stocks stood at 553,250,208 shares, translating into a total value of over Rs35.4 billion.

  • PM credits govt policies as inflation hits record low

    PM credits govt policies as inflation hits record low

    Inflation continues to plummet in Pakistan, dropping to just 0.7 percent on a year-on-year (YoY) basis in March 2025. Data from the Pakistan Bureau of Statistics (PBS) suggests that inflation sits at its lowest level since 1965.

    The Ministry of Finance (MoF) had not anticipated inflation to drop so liberally, as their projections pegged inflation to float between 1 to 1.5 percent during March. A reputable research organization has confirmed the PBS’ claim of inflation dropping to its lowest level in nearly six decades by utilizing data obtained from the State Bank of Pakistan (SBP).

    According to Prime Minister Shehbaz Sharif, the drop in inflation highlights the government’s hard work to increase public welfare. He outlined how combating inflation was a key part of the manifesto and that controlling the sky-high inflation rates would positively impact the lives of citizens.

    Reports contrast the current prices with those of the past, where prices declined by 0.8 percent in February and increased by 1.7 percent in March 2024. Analysts claim that the drop in inflation can be attributed to falling foodstuff prices.

    Pakistan’s consumer price index (CPI) -based inflation rate has been witnessing diminishing growth because of a fall in the prices of goods like pulses, potatoes, wheat and onions. Prime Minister Shehbaz Sharif’s recent cut in power rates could allow for inflation rates to record an even steeper fall – but this change is likely to be witnessed towards the end of April 2025.

    Experts have outlined that a large drop in CPI inflation figures can be noted when the prices of the aforementioned goods decline even marginally. This is because these goods hold great weight in inflation calculations as they make up a large chunk of the basket of goods that are consumed.

    However, prices for some goods recorded increases owing to their high demand. For instance, the price of edible oil and sugar has been soaring locally even though their prices have fallen in the international market. 

    Some claim that the government is responsible for the rise in sugar prices as Islamabad allowed the export of sugar. Although sugar was available in surplus at the time, the government eventually had to place an import order for the commodity given the increased level of demand because of Ramzan.

    As per data from reports, inflation has largely been contained after it surged to 38 percent in May 2023. The SBP led the charge against soaring prices by raising interest rates to limit consumption and investment spending in the economy.  

    The SBP has cut policy rates by 1,000 basis points over the past few months. However, inflation remains locked in its freefall. Many believe that inflation has not hit bottom yet and could record further drops in the coming months.

  • PM announces massive Rs7.41 per unit drop in power rates

    PM announces massive Rs7.41 per unit drop in power rates

    In a bid to provide financial relief to the masses, Prime Minister Shehbaz Sharif has announced a massive 7.41 rupee cut in power rates across Pakistan. As per credible reports, the slash in rates is expected to alleviate pressures on household finances, as electricity bills will become more manageable now.

    The announcement came at an event in Islamabad where Shehbaz Sharif extended his congratulations to Pakistanis. Reports claim that the premier and his core team have worked hard to achieve the rate cut.

    The rate cut is not uniform, however, as electricity prices for industries have noticed a larger fall of 7.59 rupees. A recent report outlined the extortionate power prices that Pakistani industrialists have to face – which often exceed electricity prices of neighboring India and even the European Union.

    With electricity prices recording a substantial fall, industrialists and exporters might be on track to regain a competitive edge in the international market. With United States President Donald Trump’s 29 percent tariff on imports from Pakistan dampening export competitiveness, domestic manufacturers needed this rate cut to maintain their level of competitiveness. 

    Prior to the announcement, the federal government’s official X (formerly Twitter) account outlined how good news would be given to Pakistan today. To the amusement of netizens, the post contained the hashtag ‘Small Eid, Big Gift’.

    While the post did not allude to any slashes in power rates, independent analysts were speculating that an 8 rupee cut in electricity rates would be announced on March 23 (Pakistan Day). However, no such announcement was made at that point in time given the ongoing nature of the government’s negotiations with the International Monetary Fund’s (IMF) team.

    Instead of announcing a drop in prices, Shehbaz Sharif chaired a meeting pertaining to the power sector as tariff reductions were not approved by the IMF. However, he reassured all relevant stakeholders that a drop in power rates would be announced despite the hiccup with the IMF.

    Some believe that the drop in power rates has come at the expense of the transport sector as petroleum prices remain unchanged despite a potential 13 rupee per liter cut expected by the oil and gas regulatory authority (OGRA).

    Fuel prices have not been revised downwards in an attempt to pass the benefit to electricity consumers. Federal ministers have taken to social media to praise the relief package, labelling it as a plan that could ‘thwart Pakistan’s default plot’

  • Remittances projected to surge by $3.5 billion in March

    Remittances projected to surge by $3.5 billion in March

    Pakistan is on track to receive a record high $3.5 billion in remittances in March 2025. According to credible reports, the surge in exports translates into a month-on-month remittance growth of 15 percent, spelling great news for the domestic economy.


    The sudden spike in remittance inflows can be attributed to Ramzan as per currency exchanges and financial analysts. While remittances help augment the disposal income of households and increase their purchasing power, the government stands to benefit too.


    Reports reveal that the federal government has obtained breathing space as the burden of debt obligations denominated in foreign currencies has decreased slightly. This is because the unusually large remittance inflows have lent incredible support to the rupee, allowing for the exchange rate to remain stable.


    In a statement, general secretary of the Exchange Companies Association of Pakistan (ECAP) Zafar Paracha disclosed that ECAP sold a staggering $450 million to banks in March. Contrasting this figure to the corresponding time period last year, Zafar Paracha commented on the improvement in inflows and chalked them up to Ramzan.


    For reference, remittances stood at just $2.95 billion and $2.5 billion in March 2024 and 2023 respectively. On a year-on-year basis, the improvement seems truly meteoric however, comparing March 2025’s remittance projection of $3.5 billion to $3.11 billion in February, reveals that the month-on-month growth rate is more conservative.


    Previously, the federal government was targeting $35 billion in remittances for fiscal year (FY) 2024-25. However, experts claim that actual inflows during the current fiscal year may very well outstrip the initial target.


    Independent analysts and currency dealers believe that remittance inflows during FY 2024-25 could exceed $36 billion. According to reports, inflows have been witnessing robust growth ‘every month’ and have grown by 32.5 percent during the first eight months of FY 2024-25.


    This marks a new record for inflows and this trend could continue into the future. This is because Pakistanis have migrated out of the country in throngs given the country’s poor economic condition.


    Data from reports suggests that Pakistan raked in almost $24 billion from July 2024 to February 2025 marking an increase of approximately $6 billion dollars compared to the same time period from the last fiscal year.


    According to Zafar Paracha, the target has “already been achieved” and that remittance inflows are bound to break records. As usual, the countries responsible for the largest remittance flows during the first eight months of FY 2024-25 were reportedly Saudi Arabia ($5.89 billion) and UAE ($4.85 billion).

  • Pakistan, Bangladesh and Sri Lanka ink tripartite agreement to strengthen capital markets

    Pakistan, Bangladesh and Sri Lanka ink tripartite agreement to strengthen capital markets

    In a bid to enhance regional capital market integration, the national stock exchanges from Pakistan, Bangladesh and Sri Lanka have decided to collectively sign a memorandum of understanding (MoU). 


    The Pakistan Stock Exchange (PSX), Dhaka Stock Exchange (DSE) and Colombo Stock Exchange (CSE) inked this agreement on Thursday in Sri Lanka’s capital city Colombo. As per a press release by the DSE, if concerned parties follow the agreement correctly, it could greatly boost human resource collaboration, investor protection, human resource collaboration, and the development of technology and new products.


    Chairman Akif Saeed of the Securities and Exchange Commission of Pakistan (SECP) attended the signing ceremony along with DSE Chairman Mominul Islam and CSE Chairman Dilshan Wirasekara. Key officials and directors from concerned institutions were reportedly also present at the high profile event to facilitate the process. 


    Reports suggest that knowledge sharing across capital markets will be another byproduct of the agreement. This could result in a vast movement of investment funds between the three nations, allowing for investors to purchase stocks of the publicly listed companies they believe will rise — regardless of which of the three countries the firm calls home. 


    A key official present at the meeting commented on the developments, claiming that the tripartite agreement could allow for the development of ‘strong and efficient capital markets’. This can be achieved via combined investments in technology and experience-sharing. 


    According to reports, Chairman Akif Saeed, accompanied by senior executives from the PSX, held meetings with officials from the DSE and CSE. Aside from official meetings, executives also found other avenues of collaboration. For instance, DSE’s chairman joined a panel discussion regarding the effect of market regulation on the development of capital markets. 


    In an official statement, DSE’s Chairman expressed concerns regarding the small size of the stock exchanges in South Asia which causes them to face serious operational and technological constraints. Barring India’s stock exchange, these challenges that exchanges must face in South Asia hinder markets, holding them back from reaching their ‘full capacity’.


    However, the PSX has been on a tear over the past year. Data from late March 2025 reveals that the ALLSHR (All shares) index has shot up by a staggering 67.77 percent over just one year, with the KSE-100 index recording an even greater annual growth of 78.70 percent – a growth rate that many would categorize as nothing short of meteoric.

  • Pakistan, Malaysia eye stronger economic ties through investments

    Pakistan, Malaysia eye stronger economic ties through investments

    Bilateral Pakistan-Malaysia ties may witness an improvement in the coming months as both parties gear up to explore avenues of collaboration. In a recent Facebook post, Malaysian Prime Minister Datuk Seri Anwar Ibrahim encouraged the inflow of investments from Pakistan into the Southeast Asian country.

    Reports suggest that Anwar Ibrahim engaged in discussions with Prime Minister Shehbaz Sharif. The Malaysian premier believes that Pakistani investors could pour their funds into the agriculture, biomass and petrochemical sectors of the Malaysian economy.

    This might be an attractive prospect for Pakistani businesspersons and investors given how the State Bank of Pakistan has slashed policy rates by a staggering 1,000 basis points over the past few months. Furthermore, political instability, coupled with the rise in terrorist violence, could push domestic investors to pursue ventures in Malaysia.

    As per credible reports, Pakistan’s investments in Malaysia have already surged to approximately $397 million. Anwar Ibrahim’s call for deepening bilateral economic ties could allow for this number to witness a rise.

    Shehbaz Sharif has reassured that Pakistan remains committed to strengthening ties between the two nations. While foreign investments yield great returns for investors, the outflow of funds required for these investments may serve to the detriment of cash-strapped Pakistan.

    Given Pakistan’s low foreign exchange reserves of $10.61 billion, large foreign direct investment (FDI) outflows could exert depreciationary pressures on the rupee by increasing the demand for foreign currencies. Moreover, such outflows may trigger a loss of investor confidence in the wider economy, as the outflows could be seen as a sign of economic weakness.

    This could prompt further capital flight and financial instability in the economy. To clarify, capital flight in this context would refer to the accelerated movement of financial assets from Pakistan to Malaysia.

    Alternatively, if Shehbaz Sharif can navigate further discussions by successfully attracting Malaysian investors to park their funds in Pakistan, the bilateral investment imbalance could shrink. As per reports, Shehbaz Sharif is expected to visit Malaysia in May 2025 and could secure these investments for Pakistan.

    Reports indicate that the Malaysian side has already begun preparations to welcome Shehbaz Sharif’s visit to Kuala Lumpur. Both leaders expect Pakistan-Malaysia economic ties to deepen during Shehbaz Sharif’s visit to the Southeast Asian nation.

    According to reports, Shehbaz Sharif eagerly awaits his trip to Malaysia as his visit could yield beneficial outcomes for Pakistan.

  • Pakistan’s short-term foreign debt climbs to whopping $30.6bn

    Pakistan’s short-term foreign debt climbs to whopping $30.6bn

    Pakistan struggles with its financial woes as obligations on its debt cause fiscal pressures. As per credible reports, short-term debt has climbed to a staggering $30.6 billion in foreign repayments.

    On the other hand, domestic debt has reached a colossal 51 trillion rupees, causing a significant strain on the cash-strapped country’s already strained foreign reserves.

    Data from the State Bank of Pakistan (SBP) has revealed that Pakistan’s total debt continues its upward trend as both domestic and foreign debt show no signs of slowing down. As per reports, Pakistan is set to face repayment obligations which would result in a net outflow of $30.6 billion.

    Concerningly, these obligations are not scheduled over a longer period and, instead, are to be met in the coming months. Given how the SBP holds a meagre $10.6 billion in official foreign reserves, many wonder how Pakistan will avert the looming repayment crisis.

    Pakistan might have to restructure its debt holdings and request for rollovers and better repayment conditions. If lawmakers and authorities can successfully negotiate more favorable conditions, the economy might get some breathing room.

    The federal government has recently been working with commercial banks to restructure its liabilities to tackle the growing circular debt issue. However, the existing debt may be too large to tackle with micro-level restructuring arrangements. 

    According to reports, Islamabad’s domestic debt holdings have surged by a whopping 18.81 percent on a year-on-year (YoY) basis. This caused the government’s debt stock to sit at an uneasy 51.28 trillion rupees by February 2025.

    This marks a stark increase in debt from the same month last year, February 2024, as the government’s debt holdings stood at just 43.17 trillion rupees. This meteoric rise in debt is causing independent analysts to worry about the sustainability of Pakistan’s ever-rising credit demand. 

    On a month-on-month basis, however, the domestic debt value posted a marginal growth rate of 1.49 percent. This indicates a slowdown in borrowing in the short run after the government accumulated a large debt stock over the months leading up to February 2025. 

    While some consider the domestic debt growth to be concerning, the increase in permanent debt is arguably more alarming. Reports suggest that permanent debt has grown by a whopping 25.42 percent on a YoY basis to settle at 39.43 trillion rupees.

    For reference, permanent debt includes prize and federal government bonds. Moreover, floating debt, mainly made up of treasury bills, has also increased to 8.23 trillion.