Page 95 - CMA Journal (Nov-Dec 2025)

O THER F EATURES

Economy News

Pakistan’s GDP grows 3.71% in Q1 of FY2026 falling by Rs. 600 to Rs. 466,162 and 10-gram gold
dropping to Rs. 399,658 amid cautious global sentiment.
Pakistan’s GDP grew 3.71% in the first quarter of FY2026,
up 2.15% from the same period last year, Federal Minister Government raises Over Rs. 1 trillion
Ahsan Iqbal said. Industrial growth led the expansion at
9.38%, compared to 0.12% in Q1 of FY2025, despite the through T-Bills and PIBs
2025 flood shock, fiscal tightening, energy subsidy The government borrowed Rs. 1.087 trillion through
withdrawal, and food inflation. The economy’s size in treasury bills and 10-year Pakistan Investment Bonds (PIB)
FY2025 stood at Rs. 113.7 trillion ($407.2 billion), with per with Rs. 979.3 billion from T-bills and Rs. 108 billion from
capita income at Rs. 506,188 ($1,812), higher than the PIBs, SBP reported. Cut-off yields on T-bills fell by up to 34
previous year.
basis points, reflecting expectations of a possible policy
Pakistan receives $3.59 billion in rate cut. Investor demand was strong, with bids of Rs. 2.5
trillion. Domestic debt rose modestly in the first five
Remittances in December 2025 months of FY2025-26, mainly through long-term PIBs, as

Pakistan’s remittances reached $3.59 billion in December the government manages borrowing to meet fiscal targets.
2025, up 16.5% year-on-year and 13% from November, World Bank approves $700 Million for Pakistan
the State Bank of Pakistan (SBP) reported. In the first half
of FY2025-26, inflows stood at $19.7 billion, up 11% from The World Bank approved $700 million for Pakistan under
$17.8 billion in the same period last year. Saudi Arabia led its PRID-MPA initiative to support macroeconomic
with $813 million, followed by the UAE $726 million, the stability and service delivery, part of a potential $1.35
UK $560 million, the US $302 million, and EU countries billion multi-year programme. Of this, $600 million will
$499 million. Analysts said growth is supported by higher fund federal program and $100 million will support
manpower exports, remittance incentives, and stronger Sindh. The programme aims to strengthen revenue
formal channels, with FY26 remittances expected to collection, improve budget execution, and boost
reach $41 billion. investments in education, healthcare, and climate
resilience. Officials said it will ensure resources reach
Trade Deficit widens 34.6% to $19.2 frontline services efficiently and increase transparency
billion in First Half of FY2025-26 across the country.
Inflation rises to 5.6% in December 2025
Pakistan’s trade deficit rose 34.6% to $19.2 billion in the
first half (Jul–Dec) of FY2025-26, up from $14.3 billion in Pakistan’s inflation rose to 5.6% in December 2025, up
the same period last year. Exports fell 8.7% to $15.2 from 4.1% a year earlier, the National Price Monitoring
billion, while imports increased 11.28% to $34.3 billion, Committee reported. Wheat flour prices jumped over
the Pakistan Bureau of Statistics (PBS) reported. On a 19% in the past year, from Rs. 1,800 to Rs. 2,146 per 20 kg
monthly basis, the trade gap widened 23.8% to $3.7 bag. The increase was driven by higher gas rates, rising
billion in Dec-25, with exports down 20.41% to $2.7 gold prices, and costlier wheat, milk, and chicken.
billion and imports up 2% to $6.022 billion. Yearly Meanwhile, prices of onions, potatoes, tea, pulses,
comparisons for Dec-25 showed exports declined 4.26% electricity, and stationery fell.
to $2.3 billion, while imports rose 13.49% to $6.02 billion.
Govt freezes Gas Prices for Six Months
Forex Reserves stood at $21.19 billion
Despite Rs. 3 Trillion Debt
as of Jan 2, 2026
The government will maintain gas prices for the next six
Pakistan’s total liquid foreign exchange reserves stood at months, offering relief to households and businesses,
$21.19 billion as of Jan 2, 2026. The State Bank of Pakistan Petroleum Minister Ali Pervaiz Malik said. The freeze
held $16.06 billion, while commercial banks maintained comes despite the gas sector’s circular debt nearing Rs. 3
$5.14 billion. SBP reserves increased by $141 million trillion. Malik highlighted improvements in reducing
during the week, improving the country’s external losses, with SNGPL cutting unaccounted-for gas from 9%
liquidity. The reserves provide an import cover of about to 5% and SSGC from 17% to 10%, while efforts continue
2.65 months. The rupee closed slightly higher at Rs. to address low gas pressure in Balochistan. He also noted
280.05 against the US dollar in the interbank market. Gold a successful LNG agreement with Qatar, ensuring reliable
prices declined in the local market, with per tola gold energy supply without breaching existing contracts.

ICMA’s Chartered Management Accountant, Nov-Dec 2025 93