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No borrowing in Q1FY26 despite interest rate cuts

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KARACHI: The first quarter of FY26 ended without any new borrowing by the private sector, highlighting weak economic activity across the country.

According to State Bank data released on Monday, the private sector instead retired Rs297 billion in debt during July-September compared to Rs18.5bn retired in the same period FY25.

However, the private sector borrowing in FY25 sharply increased and ended with over Rs1tr, much higher than previous two years.

The FY25 was much better as far as private sector borrowing was concerned but the economic output remained subdued with a growth of 2.68 per cent. The National Accounts Committee (NAC) later revised FY25 GDP growth to 3.04pc, citing a 5.66pc growth in the fourth quarter — a figure met with scepticism by independent economists.

Researchers said that despite lower interest rate of 11pc, the private sector is not ready to borrow which means other factors have entered the scenario that increased the uncertainty.

In the presence of political uncertainty, increasing terrorism in Khyber Pakhtunkhwa and Balochistan has aggravated the uncertainty.

“We will see more uncertainty as we have entered a war with the neighbour country, Afghanistan, and massive border clashes between the two countries were reported. If it continues, the private sector may not turn to banks this year,” said an industrialist.

He disclosed that Pakistani textile millers are leaving this country and investing in Bangladesh and far-flung countries like Mexico.

Despite this poor situation, banks have been earning profits with record growth. The government has been borrowing from banks and will borrow during the current fiscal year as the Federal Board of Revenue (FBR) is facing shortage of revenue.

The FBR missed its revenue collection target for the first quarter of FY26, resulting in a shortfall of approximately Rs199bn. Reasons included lower domestic sales tax and reduced revenue from utility bills, which are down because of factors like business slowdowns after flooding, power outages, and the shift to solar energy.

Published in Dawn, October 14th, 2025



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PM Shehbaz announces reopening of new gas connections to domestic consumers

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Prime Minister Shehbaz Sharif announced on Sunday the reopening of new gas connections after a ban of nearly four years, state broadcaster Radio Pakistan reported.

His announcement comes less than two months after the federal cabinet decided in September to lift the ban on domestic gas connections and supply regasified liquefied natural gas (RLNG).

Speaking about the cabinet’s decision in a post-meeting press conference, Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry, flanked by Petroleum Minister Ali Pervaiz Malik, had said PM Shehbaz decided to lift the ban on new gas connections imposed in 2021, addressing a longstanding public demand.

Addressing a ceremony related to the resumption of RLNG connections in Islamabad today, the premier reiterated that the government’s decision was in response to the “long-standing public demand”.

“In 2022, there was immense public pressure for [new] gas connections but the government was facing challenges,” Radio Pakistan quoted him as saying.
But, “with this landmark decision, the public will now be able to access affordable and quality fuel,” he added.

“Now, RLNG will be supplied throughout the country to a large number of applicants,” a report by state-run APP quoted him as saying.

According to the reports, a video message by Malik was also played during today’s ceremony, in which the petroleum minister said the government was committed to providing maximum facilities to the public.

He added that the Sui Northern Gas Company had brought down its line losses to 4.93 per cent while earning a profit of Rs29 billion in the previous fiscal year.



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Pakistan Engineering Development Board gets new chief

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ISLAMABAD: After a gap of nine months, the government has appointed Hamad Ali Mansoor as the new chief executive officer (CEO) of the Engineering Development Board (EDB).

Mr Mansoor’s appointment, in the MP-I scale, is for a three-year term. The position had been vacant since January, and the recruitment process was initiated through an advertisement issued on Nov 17, 2024.

According to the Ministry of Industries and Production, a total of 248 applications were received. Thirty-three eligible candidates were shortlisted and interviewed by the selection committee in February. The committee recommended a panel of three candidates in order of merit: Hamad Ali Mansoor, Akhtar Ahmad Bughio and Shakeel Zahid.

Established in 1995, the EDB functions under the Ministry of Industries and Production to promote, facilitate and regulate the engineering sector in Pakistan.

Mr Mansoor holds an undergraduate degree in mechanical engineering and an MBA from the Schulich School of Business, York University, Toronto. He has over three decades of experience in industrial policy, manufacturing and infrastructure development, with a focus on renewable energy and sustainable growth.

Published in Dawn, October 26th, 2025



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PPP reaffirms commitment to farmers

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ISLAMABAD: The PPP has reiterated its commitment to supporting the farming community and vowed to continue its struggle to end all injustices faced by the farmers.

“PPP remains committed to respecting, empowering, and reviving the ag­­ricultural sector for a pr­­o­s­­perous Pakistan,” said the party’s Central Informa­tion Secretary Shazia Ma­­rri. She quoted PPP Chair­man Bilawal Bhutto-Zar­d­ari as saying that no economy can be strong if its farmers are weak.

“Chairman Bilawal Bhutto-Zardari believes that strengthening the farmer means strengthening Pakistan itself,” Ms Marri said in a statement issued on Saturday.

Ms Marri said that Bilawal Bhutto-Zardari’s vision was clear — the true measure of progress lies in the prosperity of farmers. She recalled that during the PPP government, Pakistan had moved from wheat shortage to becoming a wheat-exporting country, owing to farmer-friendly policies.

She said that the PPP chairman had always stood by the farmers, advocating for timely procurement and fair prices.

Highlighting the impact of climate change, the PPP leader said that it posed a serious threat to every Pakistani farmer. She added that Bilawal Bhutto-Zardari emphasised the need for investment in sustainable and climate-resilient agriculture, envisioning a modern agricultural economy where small farmers could progress through technology and access to fair markets.

She said the PPP believed that insurance, credit access, and transparent governance were essential to protect farmers from the adverse effects of climate change.

Ms Marri appreciated the government’s decision to allow wheat procurement, terming it a longstanding demand of the PPP. She added that approving the support price for wheat was also a PPP demand; however, she noted that fixing the price at Rs4,000 instead of Rs3,500 per 40kg would have been more beneficial for farmers. She further said that reducing the income tax from 45 per cent to 15pc was an important relief measure for the farming community.

Published in Dawn, October 26th, 2025



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