Page 69 - CMA Journal (May-Jun 2026)

O T H E R F E A T U R E S

Economy News

Pakistan Unveils Rs. 18.77 trillion The reduction follows easing global oil prices and improved
Budget, Targets 4% Growth in FY27 supply conditions after reduced tensions in the Middle East,
with the government continuing to pass on the bene t of
Pakistan’s Federal Budget FY2026–27 amounts to Rs. 18.77 lower international fuel prices to consumers.
trillion, targeting 4% GDP growth and 8.2% in ation under Pakistan Champions ‘Pakistan First’
IMF-backed measures. Revenues are projected at Rs. 20.60
trillion, with Rs. 15.26 trillion from taxes, and a de cit of Rs. Digital Assets Strategy at Zurich Finance
7.02 trillion (3.6% of GDP). A primary surplus of 2% of GDP is Summit
aimed at scal discipline. Defense spending will rise 18% to At the Point Zero Forum 2026 in Zurich, Pakistan advocated
Rs. 3 trillion, while development expenditure remains greater participation of developing economies in shaping
limited at Rs. 1 trillion due to debt servicing. The Economic digital nance. PVARA Chairman Bilal bin Saqib highlighted
Survey 2026 reported 3.7% GDP growth, supported by “Pakistan First” approach and its position as the third-largest
services, industry, and agriculture, alongside a US$72 million country for crypto adoption. He further emphasized
current account surplus driven by remittances. In ation balancing digital innovation with scal stability.
averaged 6.2% in FY26, re ecting energy shocks. Fiscal
indicators improved with the de cit reduced to 0.7% of GDP, Pakistan Reviews $1 Billion Korean
underscoring the need for continued consolidation and Hydropower Proposal
external support.
Pakistan is assessing a proposed $1 billion investment from
Finance Bill 2026–27 Ushers in Broader South Korea’s KOEN in two hydropower projects, the 229MW
Tax Relief Asrit Kedam and 238MW Kalam Asrit plants. The projects
await tari approval and inclusion in the IGCEP 2025–35,
The Finance Act, 2026, e ective from July 1, introduces with the government rea rming its support for foreign
major tax reforms aimed at broadening the tax base, investment and future energy demand growth.
providing targeted relief, and supporting the FBR's Rs. 14.13 Pakistan Weekly SPI In ation Eases to
trillion revenue target under the IMF programme. Key
measures include revised income tax slabs, lower 13.52% YoY
withholding taxes on property transactions, enhanced Pakistan's weekly in ation (SPI) eased to 13.52%
digital tax administration, and stricter enforcement against year-on-year for the week ended July 2, 2026, while
tax evasion. declining 0.98% on a weekly basis, mainly due to lower
petroleum prices. Despite the slowdown, food and energy
IMF Approves US$1.32 Billion for prices continued to keep in ationary pressures elevated.
Pakistan PSX Hits Fresh Record High as KSE-100

The IMF approved approximately US$1.32 billion for Closes Above 185,370 Points
Pakistan, including US$1.1 billion under the Extended Fund The PSX opened strongly, with the KSE-100 Index gaining
Facility and US$220 million under the Resilience and over 800 points to 179,765.33, driven by improved investor
Sustainability Facility. The IMF also rea rmed its focus on sentiment following progress in Iran–U.S. peace talks and
maintaining scal discipline, achieving a 2% primary surplus broad-based buying across key sectors.
in FY2027, and continuing structural reforms under
Pakistan's US$7 billion programme. SBP Expects Record US$44 Billion in
Government Cuts Fuel Prices by Rs. 1.97 Workers' Remittances for FY27
Per Litre as Global Oil Supplies Ease Workers' remittances are projected to reach US$44 billion in
FY2026–27, up from US$41.5 billion in FY2025–26,
Pakistan has reduced petrol and high-speed diesel prices by supported by strong in ows from overseas Pakistanis,
Rs. 1.97 per litre for the week beginning July 4, 2026, improved macroeconomic conditions, and con dence in the
bringing petrol to Rs. 297.53 and diesel to Rs. 309.50 per litre. banking system.

ICMA’s Chartered Management Accountant, May-Jun 2026 67