IEEE Fair 2025: Sindh govt to ensure all necessary facilities: Sharjeel
In a statement, Senior Minister of Sindh and Provincial Minister for Information, Transport, and Mass Transit, Sharjeel Inam Memon, said that the Sindh government fully supports initiatives and platforms that contribute positively to the development and stability of the national economy.
He added that revolutionary steps have been taken in the energy sector within the Sindh province, country's most affordable electricity is now being produced by the Nooriabad Wind Power Project, a major milestone for the national economy.
Copyright Business Recorder, 2025
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Express Tribune
3 hours ago
- Express Tribune
S&P upgrades Pakistan's credit rating to 'B negative'
Listen to article Standard & Poor's credit rating agency upgraded Pakistan by one notch to "B negative" on Thursday, an improvement from its previous standing, though still two positions below investment grade. This move comes due to the implementation of reforms and the abating risks of sovereign default. S&P Global Ratings raised the long-term sovereign credit ratings from "CCC positive" to "B negative" after a gap of two and a half years, according to an announcement by the agency, one of the three largest credit rating firms. The agency also assigned a stable outlook to Pakistan. The upgrade has improved Pakistan's creditworthiness from 'very high credit risk, vulnerable to non-payment' to 'highly speculative.' Due to its junk credit rating, Pakistan was unable to float international bonds to raise more debt last fiscal year. S&P stated, 'The coalition government led by the Pakistan Muslim League-Nawaz (PML-N) has demonstrated its ability to implement necessary reforms under the IMF programme without significant social unrest.' The agency noted that the willingness of policymakers to adhere to expenditure controls and continue enhancing the tax revenue base will be crucial in meeting the remaining targets set out in the Extended Fund Facility (EFF) arrangement. The Ministry of Finance has played a key role in staying on track with the IMF programme, despite facing criticism for making tough decisions necessary to complete the first review of the programme and align the new budget with the Fund's requirements. S&P's ratings upgrade reflects the agency's view that Pakistan is less reliant on favourable macroeconomic and financial developments to meet its obligations. Pakistan has replenished its foreign reserves over the last 12 months, and near-term default risks have abated, according to S&P. However, one vulnerable area that emerged is related to the exchange rate, which has led to intervention by the military establishment to prevent the reemergence of the grey market. S&P highlighted that the Pakistani rupee's depreciation against the US dollar in recent years contributed to stagnation in the country's nominal GDP per capita. The agency noted that the rupee stabilised in the last fiscal year, and with rising real growth, it forecasts that GDP per capita will surpass $2,000 by fiscal year 2027. The rating agency also emphasised that political stability and improvement in security conditions are critical for further upgrades. However, it expects political uncertainty to remain high due to a volatile political environment. 'Pakistani politics has been in flux since the ousting of former Prime Minister Imran Khan through a parliamentary no-confidence motion in April 2022,' S&P noted. 'We believe that a stable political environment in Pakistan is a key precondition for improvements in the government's creditworthiness.' The security situation has improved since the early 2010s, but the potential for deterioration remains. Border tensions with India, highlighted by the recent outbreak of hostilities following the Pahalgam terrorist attack in May 2025, could escalate beyond the intentions of both sides, the agency warned. S&P also pointed out risks related to debt-servicing costs, which remain high. The agency said Pakistan's stable outlook reflects its expectation that external support from key multilateral and bilateral partners, along with improvements in the country's fiscal position, will persist over the next 12 months to meet considerable debt obligations. The outlook also reflects expectations that continued economic recovery and government efforts to enhance revenue will stabilise fiscal and debt metrics. Pakistan's current account posted a surplus in fiscal 2025, the first surplus in 14 years. The modest annual surplus of 0.5% of GDP was driven by record-high remittances, which totalled $39 billion, or 9.5% of GDP. These developments have strengthened Pakistan's external metrics and alleviated near-term external stress. The IMF programme-related reforms have significantly increased the government's tax revenues by 3% of GDP in the last 12 months. Alongside expenditure controls, S&P forecasts that the general government deficit will decrease to 5.1% of GDP in fiscal 2026, although this is higher than the government's budget target. The agency has projected inflation to stay around 6.5% over the next two to three years. As a result, monetary conditions will ease further, and with lower domestic interest rates, government interest payments will decrease to an average of 41% of revenue over the next three years, from a peak of over 60% in fiscal 2024. 'Nevertheless, Pakistan's interest-servicing-to-revenue ratio remains one of the highest globally among rated sovereigns,' S&P stated. 'The main pressure on debt sustainability is the extremely high interest expense relative to fiscal revenue.' This remains a significant constraint on the agency's assessment of Pakistan's debt burden. S&P sees further deterioration in the debt-to-revenue ratio, projecting it to increase from 443% to 454% in this fiscal year. Future warning: 'We may lower our ratings if Pakistan's external or fiscal indicators deteriorate well beyond their current levels,' S&P stated. Downward pressure would emerge if financial support from key bilateral and multilateral partners erodes quickly, or if usable foreign exchange reserves fall substantially, indicating difficulties in servicing external debt obligations. Furthermore, should interest rates surge again and substantially add to the government's already-heavy debt-servicing burden, the agency would view that as an indication of domestic financing stress, it added.
Express Tribune
5 hours ago
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UBG Chief urges SBP to cut interest rate to 6pc
Listen to article S M Tanveer, Patron-in-Chief of the United Business Group (UBG), has called on the State Bank of Pakistan (SBP) to reduce the policy interest rate to 6 per cent, citing low inflation and the need to spur economic growth. In a statement issued on Thursday, Tanveer said the prevailing interest rate of 11pc is disproportionately high, especially given that the Consumer Price Index (CPI) stands at 0.3pc while average inflation is currently hovering around 4pc. He noted that the International Monetary Fund (IMF) recommends maintaining interest rates slightly above the inflation rate to keep them positive in real terms. "At 11pc, Pakistan's interest rate is far above the inflation rate, stifling industrial growth and increasing the cost of doing business," he said. Read More: Profit-taking pulls PSX down after strong opening With the monetary policy announcement due on July 30, Tanveer urged the central bank to consider a significant rate cut. He argued that such a move would reduce the government's interest payments, stimulate investment, and make Pakistani exports more competitive. He pointed out that the government has allocated Rs8.5 trillion for interest payments in the current budget. A cut in the interest rate to 6pc, he claimed, could save nearly Rs3.5 trillion. Highlighting the challenges faced by the business community, Tanveer also criticised certain fiscal measures in the recent budget. In particular, he expressed concern over Sections 37A and 37B of the Income Tax Ordinance, which grant tax authorities the power to arrest and detain. He urged the government to focus on creating a business-friendly environment, noting that high borrowing costs, coupled with soaring energy prices, are already weighing heavily on industry. Also Read: PM Shehbaz hails World Bank position on IWT Meanwhile, the SBP has maintained its policy rate at 11pc in recent months, citing inflationary pressures and vulnerabilities in the external sector. However, with inflation expected to stabilise around the long-term average of 7pc in the coming quarters, analysts believe there may be room for a cautious easing of monetary policy. The external account outlook has improved, buoyed by strong inflows of workers' remittances, and foreign exchange reserves are projected to rise beyond $13 billion by June 2025 — developments that may provide the SBP with greater policy flexibility.
Express Tribune
7 hours ago
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BYD to begin EV assembly in Pakistan by mid-2026
A view shows a logo of BYD, on the BYD SEAL electric vehicle, displayed at the BYD Pakistan Metropole Experience Center in Karachi, Pakistan July 23, 2025. REUTERS/Akhtar Soomro/File photo Chinese electric vehicle giant BYD plans to roll out its first car assembled in Pakistan by July or August 2026 to capture growing demand for electric and plug-in hybrid vehicles in the region, a company executive said on Wednesday. BYD, the world's top EV maker, has been expanding rapidly outside its home market, where it is in a strong price war. The Pakistan plant addresses rising demand from emerging markets and allows the company to take advantage of incentives offered by the Pakistani government. The plant has been under construction since April near Karachi in a partnership between BYD and Mega Motor Company, a subsidiary of Pakistani utility Hub Power, Danish Khaliq, vice president of sales and strategy at BYD Pakistan, told Reuters. It would initially have the capacity to produce 25,000 units a year on a double shift, he said. He did not elaborate on when the plant would achieve full capacity or say when mass production would begin there. The plant will start by assembling imported parts, with some local production of non-electric components, Khaliq said, adding it would initially produce vehicles for the domestic market, with potential to export to right-hand drive countries in the region depending on freight costs and business economics. "We do not foresee excess capacity in our system as demand in Pakistan will catch up," he said. BYD started delivering imported EVs in Pakistan in March. Khaliq did not give an exact sales number but said the sales of a few hundred cars had exceeded internal targets by 30%. Khaliq said he expected the market size of EVs and plug-in hybrid cars in Pakistan to grow three to four times in 2025 from around 1,000 total units in 2024. BYD is targeting a 30-35% share of the segment, Khaliq said. Based on a HUBCO filing, BYD Pakistan made around 444 million rupees ($1.56 million) in profit in the 2025 March quarter. BYD will launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday. China's MG already sells a PHEV SUV, while rival Haval is set to join the segment soon. Plug-in hybrids offer a more practical option in Pakistan as the country faces a lack of charging stations for all-electric vehicles. The government slashed power tariffs for chargers by 45% in January to encourage EV uptake and private charging stations.
