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The Pakistan Stock Exchange surged past the 180,000-point level as investors returned to blue-chip shares. The rally was driven by stable interest rates, falling oil prices and easing concerns over regional tensions.
Pakistan spent only about half of its original FY26 federal development budget in the first 11 months, despite major infrastructure and welfare needs. The slowdown followed spending cuts, fuel subsidy pressures and weak project execution across several sectors.
Sindh Chief Minister Murad Ali Shah has ordered a province-wide crackdown on wheat hoarding after procurement reached less than nine per cent of the official target. The province will seek emergency purchases from Passco and monitor private stocks to prevent artificial shortages and flour price hikes.
The State Bank of Pakistan has kept the policy rate unchanged at 11.5 per cent as inflation returns to double digits and regional conflict raises economic risks. The decision reflects caution over prices, growth, external accounts and fiscal stability.
A Senate finance panel has approved a proposal to apply a five percent withholding tax on social media income, with an exemption for annual earnings up to Rs600,000. The move could reshape Pakistan’s creator economy by bringing digital platform income into the formal tax system.
The State Bank of Pakistan has kept the policy rate unchanged at 11.5pc in its final FY26 review. The decision reflects caution over renewed inflation pressure, oil price uncertainty and the need to protect external stability while the economy shows moderate growth.
The Finance Bill FY2026-27 proposes sharply higher penalties for late filing, audit failures, inaccurate tax details and restoration to the Active Taxpayers List. The measures are designed to strengthen FBR enforcement, but smaller taxpayers may face added pressure if compliance systems are not simplified.
The federal government has abolished the 18 percent sales tax on Pakistan’s shipping sector for FY2026-27. Officials say the move will reduce logistics costs, attract investment and strengthen maritime trade linked to exports, imports and the blue economy.
Finance Minister Muhammad Aurangzeb says provincial grants to the Centre will help fund defence needs and cushion Pakistan from the wider economic effects of the Middle East conflict. The plan comes alongside IMF consultations, exporter relief and salary-related budget measures.
Pakistan’s FY2026-27 budget changes the price outlook for consumers, raising taxes on large vehicles, e-cigarettes, fertilisers, pesticides and social media income while protecting solar panels and easing some travel and property costs. The measures reflect a balancing act between revenue collection, investor signals and household relief.
The government has reduced petrol by Rs4 per litre and high-speed diesel by Rs2 per litre, with the new prices effective from June 13. The cut offers limited relief to consumers and transporters, though future prices remain tied to international oil volatility and currency pressures.
Pakistan’s manufacturing sector expanded by 6.6 percent in FY2025-26, led by a recovery in large-scale manufacturing, small-scale industry and vehicle production. The rebound signals renewed industrial momentum but also highlights the need for stable policy, investment and export support.
