Page 87 - CMA Journal (May-June 2025)

O THER F EATURES

Economy News

Pakistan Unveils EV Policy 2025–30 to amendments in the Petroleum Levy Ordinance 1961
under the Finance Act 2025–26. The Carbon Levy will also
Promote Clean Transport
apply to petrol and diesel, initially set at Rs. 2.5/litre for
Pakistan has launched its National Electric Vehicle (NEV) FY2025–26 and increasing to Rs. 5/litre in FY2026–27.
Policy 2025–30, targeting 30% of new vehicle sales to be These measures, agreed with the IMF under the
electric by 2030. The policy aims to cut carbon emissions, Resilience and Sustainability Facility (RSF), aim to expand
save $1 billion in fuel costs annually, and support local the levy base and support fiscal sustainability.
manufacturing. A Rs. 9 billion subsidy has been allocated
for FY2025–26 to support over 116,000 e-bikes and 3,000 Exports Rise 17.4% in May; Trade
e-rickshaws, with 25% reserved for women. Key features Deficit Narrows on Monthly Basis
include 40 motorway charging stations, battery
Pakistan’s exports rose by 17.4% to $2.55 billion in May
swapping, V2G integration, and mandatory EV chargers in
2025, while imports declined by 7.6% to $5.17 billion
new buildings. The policy is expected to yield Rs. 800
compared to April, reducing the trade deficit by 23.5% to
billion in long-term savings and generate Rs. 15 billion
$2.62 billion, according to PBS. However, year-on-year,
from carbon credits.
exports fell by 10.1% and imports rose by 5.2%, widening
Govt Unveils Draft Tariff Policy to the annual trade gap. During July–May FY2024–25,
exports grew by 4.7% to $29.45 billion, while imports
Boost Industry, Exports
increased by 7.3% to $53.45 billion.
The government launched the draft National Tariff Policy
2025–30 at the National Regulatory Reforms Conference, Pakistan Pays $6.1 Billion in External
aiming to simplify the tariff regime and promote Debt Servicing in Jul–Dec FY2025
export-led growth. The policy proposes duty-free access
Pakistan paid $6.1 billion in external public debt servicing
to raw materials, phased elimination of Additional and
during the first half of FY2024–25, including $4.23 billion
Regulatory Duties, and a four-slab tariff structure (0%, 5%,
in principal and $1.88 billion in interest, according to the
10%, 15%). It is expected to benefit sectors like textiles,
Ministry of Economic Affairs. Major repayments included
engineering, pharma, and IT, and yield Rs. 200 billion in
$1.17 billion to the IMF, $792 million to Saudi Arabia, and
trade and industry savings.
$774 million to ADB. As of December 2024, total external
Current Account Posts $1.8 Billion public debt stood at $86.6 billion, with 63% from
concessional multilateral and bilateral sources. New loan
Surplus in July–May FY2025
commitments totaled $2.5 billion, while disbursements
Pakistan recorded a current account surplus of $1.81 reached $3.76 billion, primarily from the World Bank, ADB,
billion during July–May FY2024–25, compared to a deficit and China. Net transfers showed a negative $1.73 billion,
of $1.57 billion in the same period last year, according to reflecting a reduction in debt stock.
the State Bank of Pakistan. However, a monthly deficit of
$103 million was posted in May 2025. The overall trade Services Exports Rise 8.6% in
deficit in goods and services widened to $27.06 billion, up 11 Months
from $22.61 billion last year. Workers’ remittances rose
Pakistan’s services exports rose by 8.6% to $7.65 billion
sharply to $34.89 billion, while secondary income
during July–May FY2024–25, compared to $7.04 billion in
reached $36.77 billion, helping offset the higher trade
the same period last year, as per Pakistan Bureau of
and primary income deficits.
Statistics. Services imports increased by 6.6% to $10.32
Government to Impose Rs. 77/litre Petroleum billion, resulting in a slightly wider trade deficit of $2.67
billion. In May 2025, exports grew 1.6% year-on-year,
Levy on Furnace Oil from July 2025
while imports declined by 5.1%. Month-on-month, both
To meet IMF commitments, Pakistan will impose a exports and imports saw marginal declines.
Petroleum Levy of Rs. 77 per litre and a Carbon Levy of Rs.
2.5 per litre on furnace oil starting July 1, 2025, as per
ICMA’s Chartered Management Accountant, May-June 2025 85