Business
ADB lifts Pakistan’s growth outlook
ISLAMABAD: The Asian Development Bank (ADB) on Wednesday upgraded Pakistan’s economic growth forecast for the current fiscal year due to a less severe-than-anticipated impact of flooding, increased public investment, and anticipated stabilising inflation.
In its Asian Development Outlook December 2025, the Manila-based lending agency also revised the growth outlook for the South Asian Region upward for the current year.
“In the case of South Asia, growth forecasts for 2026 have been revised upward for Sri Lanka and Pakistan, respectively, due to increased public investment and a less-severe-than-anticipated impact of flooding,” it said in its latest report without actually saying where it expected Pakistan’s growth to settle for the year. In July, the ADB had set a 2026 growth forecast for Pakistan at 3pc and had kept it unchanged in its September update in the middle of flooding across Punjab’s agricultural heartland.
“The growth outlooks for Pakistan and Sri Lanka have improved for both 2025 and 2026”, it said, adding that the Government of Pakistan updated its estimate of GDP growth for FY25 to 3pc from a previously reported 2.7pc. “Despite disruptions that resulted from floods in June 2025, the economy grew 5.7pc in Q4FY25, and the country’s large-scale manufacturing expanded robustly in recent months in FY26”, it said.
Sees robust growth for South Asia for 2025 and 2026 despite challenges
Pakistan’s inflation for the first four months (July-October) of FY26 was 4.7pc, down from 8.7pc in the same period a year ago, the bank said, adding “after a sharp increase in the months immediately after the floods, prices of key food items have begun to stabilise”.
It forecast the growth in South Asia to remain robust, with the 2025 forecast revised upward to 6.5pc from 5.9pc, and the 2026 forecast maintained at 6pc. This is driven by upgrades to India’s outlook, based on robust domestic consumption growth. Sri Lanka’s forecasts for 2025 and 2026 are revised upward due to robust credit expansion, buoyant consumption, and improved investor confidence following rating upgrades.
In contrast, Bangladesh’s fiscal year ending June 30, 2026 projection was lowered due to weaker exports amid subdued global demand and supply disruptions, while the forecast for FY2025 remains unchanged. Pakistan’s FY2025 growth outlook was upgraded following a stronger-than-expected Q4, it said.
Growth forecasts for the remaining South Asian economies are retained, although Nepal faces lingering uncertainty in the aftermath of September’s civil unrest and the ongoing political transition.
India’s growth forecast for FY2025 (fiscal year ending March 2026) was revised to 7.2pc from 6.5pc in the September ADO, reflecting stronger third-quarter expansion as tax cuts supported consumption. Indian GDP grew faster than expected at 8.2pc in the second quarter of FY25. The 2026 forecast was kept unchanged at 6.5pc. The bank also raised its growth forecasts for economies in developing Asia and the Pacific for this year and next, amid stronger-than-expected exports and reduced trade uncertainty following the conclusion of several trade agreements with the United States.
Risks to the regional outlook include renewed trade tensions and financial market volatility, as well as geopolitical pressures and a worse-than-expected deterioration in the People’s Republic of China’s (PRC) property market. China’s growth forecast for this year has been raised slightly to 4.8pc from 4.7pc, amid resilient exports and continued fiscal stimulus. The outlook for 2026 was kept unchanged at 4.3pc.Southeast Asia’s growth projection for this year was also upgraded by 0.2 percentage points to 4.5pc, reflecting a strong third quarter in Indonesia, Malaysia, Singapore, and Vietnam.
Published in Dawn, December 11th, 2025
Business
Transporters vow to continue strike until demands are accepted
LAHORE: Traders and transporters have criticised the working style of the Punjab chief minister and have advised her to stop ‘anti-business actions’ as the wheel-jam strike called by the transporters entered its sixth day on Friday.
According to reports, only two transporter groups announced calling off the strike after meeting with the Lahore police. However, other major transport associations rejected the announcement.
“We are yet to receive the material lying at the Karachi Port after being imported from various countries. Likewise, the goods we were to send to various international buyers have been lying at factories for the last six days,” Pakistan Textile Exporters Association (PTEA) Secretary General Azizullah Goheer said while talking to Dawn on Friday.
“The strike is not only causing financial loss but also damaging our credibility and commitment internationally. We are missing vessels through which we booked our export goods. It is a loss of billions,” he said, terming the situation serious.
Question CM’s ‘anti-business’ governance style; claim business activities halted across the country; only two groups call off strike
On the other hand, the traders and goods transporters have joined hands and held a joint press conference against the government for halting business activities through various actions, including implementation of the amended motor vehicle ordinance that empower field officers to impose heavy fines on transporters besides getting FIRs lodged against them for various violations.
“There is no business in Lahore and in the rest of Punjab. Business activities have also come to a grinding halt in Sindh and other provinces due to the closure of goods transport. At present, no goods in the wholesale markets are being transported to other cities from Lahore,” All Pakistan Anjuman Tajiran Pakistan General Secretary Naeem Mir told reporters at a press conference held at the press club.
Flanked by transporters’ representatives, he criticised the chief minister for her governance style and requested her to give the business community access to her office.
“We the traders are already worried due to repeated visits of officers of several departments at our businesses on a daily basis. Now, the wheel-jam strike has choked business activities across Punjab. You (the CM) are our leader. Please listen to us,” the APAT’s general secretary said.
He claimed that the transporters were deceived on the pretext of dialogues, but the government’s senior minister rejected the transport minister’s commitments with the transporters.
“Which governance style is this? Who is giving advice to the government? Why are we being treated like the culprits of May 9 incidents,” he questioned.
Meanwhile, the office bearers of the Mazda Goods Transport Association and the Punjab Goods Transport Alliance announced to call off the strike after meeting with the Lahore police.
“As the DIG police has assured us to resolve the issue, we have decided to call off the strike, we will also meet the CM and the senior minister today (Saturday),” said Muhammad Attique, an office-bearer while talking to this reporter. The alliance also issued a statement to the effect.
However, other major transport associations rejected the announcement. They said that the national-level associations would not end the strike until their demands were accepted.
“Only two groups have announced to call off the strike, but we are not with them. Moreover, the strike is being observed across the country and not just Punjab,” All Pakistan Truck Trailer Owners Association chief Lala Yasir Naseer told Dawn when contacted.
“We will only call off the strike after suspension of the disputed clauses of the motor vehicle ordinance and other highhandedness with the transporters on the part of enforcement officers,” he said.
Transporters of Goods Association (TGA) Chairman Tariq Gujjar said that the strike was being observed across the country and, at present, all three ports in Karachi were closed.
“Our several trucks, trailers are impounded in Punjab due to the implementation of the ordinance and other issues. Similarly, the Sindh government has also issued a letter to implement laws related to operating old trucks and was taking similar actions,” he explained.
He said that one of their demands was to provide adequate parking for goods transport at all three ports in Karachi.
“We are with the transporters of Punjab and other provinces and will continue our strike till the acceptance of our demands,” he warned.
Published in Dawn, December 13th, 2025
Business
Pakistan expected to become member of olive council: minister
ISLAMABAD: Minister for National Food Security and Research Rana Tanveer Hussain on Friday said Pakistan was expected to become a member of the International Olive Council (IOC) within a couple of months, which will enhance global recognition of its olive industry.
He was inaugurating a three-day ‘National Olive Festival’, which opened at F-9 Park on Friday.He said olive sector is one of the strongest drivers of economic and social development in rural areas, where it promotes growth, generates stable employment and create opportunities.
The annual olive festival marked a major milestone in Pakistan’s journey towards a sustainable and competitive olive sector with display of olives and olives products and enthusiastic participation from provinces and organisations. The festival aims to promote olive cultivation, local farming, food security, and modern agriculture in Pakistan. Olive lovers and families enthusiastically attended the opening day of the festival.
The minister appreciated the support of the Italian government for the development of Pakistan’s olive sector, noting that Italy is providing technical assistance and has also approved a 20 million euros project for Pakistan.
He noted that olives constitute a major global agricultural industry, citing Spain’s $11 billion and Italy’s significant annual exports. In comparison, Pakistan’s total agricultural exports stand at $9 billion, while the country spends $4 billion annually on importing palm oil.
He emphasised that by increasing domestic olive production, Pakistan will not only meet its own needs but also generate valuable foreign exchange through exports in the coming years.
He stressed that the government is prioritizing the supply of quality saplings, research, modern oil extraction facilities, and overall improvement of the value chain.
Upgrading olive packaging, branding, and marketing to international standards, he said, is essential.
The minister termed the olive festival as a significant milestone for Pakistan, stating that Pakistan has vast potential for olive cultivation and that the crop is no longer an experiment but has now matured into a fully emerging industry.
Rana Tanveer Hussain reiterated that farmers are the backbone of the country and assured that the government will extend all possible support to them.
Published in Dawn, December 13th, 2025
Business
Senate panel okays Railways bill
ISLAMABAD: The Senate Standing Committee on Railways on Friday unanimously passed the draft of the ‘Transfer of Railways Amendment Bill, 2025’, aimed at attracting investment through track access.
Railways Minister Muhammad Hanif Abbasi briefed the committee on the rationale behind the initiative, saying that it would benefit the Reko Diq mining project by improving logistics.
The committee, headed by Senator Jam Saifullah Khan, was told that provincial governments were also interested in investing in Pakistan Railways, and these amendments would enable them to contribute to the railway infrastructure.
Move to attract investment through track access, benefit Reko Diq project
The amended bill provides track access for operating rolling stock on the Pakistan Railways network to improve efficiency, facilitate competition, boost revenue, strengthen safety planning, and support investment in freight and passenger services using operators’ own locomotives and rolling stock.
Proposed railway board
Senator Rubina Khalid pointed out the absence of the minister, as a public representative, from the proposed railway board.
The committee chairman asked the railways minister to address the issue at the earliest. He directed the inclusion of the federal railways minister on the board to ensure stronger oversight and accountability.
The committee also proposed several measures for improvement within Pakistan Railways, and advised the ministry to approach the chambers of commerce to attract investment and expand public-private partnerships.
The chairman directed the ministry to extend the ongoing improvements, such as the installation of LEDs at major stations to smaller ones as well.
He also instructed the ministry to step up public awareness efforts on safety near railway tracks.
The committee reviewed an issue raised by Senator Shahadat Awan, who voiced concern about the possible impact on serving employees. The panel urged the minister to safeguard the interests of the serving staff.
The chairman directed the ministry to present a comprehensive briefing at the next meeting on outsourcing in railways, new hiring, its effects on the serving employees, manpower planning, budget implications, and revenue trends before and after outsourcing.
Published in Dawn, December 13th, 2025
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