Pakistan | News

ISLAMABAD: Projecting Pakistan’s fiscal deficit at around 3.2 per cent of the gross domestic product (GDP) and a slightly declining primary surplus from 2.5pc, the International Monetary Fund (IMF) has advised phasing out fiscally draining fuel subsidies, addressing contingent liabilities and broadening the tax base for credible medium-term sustainability. In its twice-a-year Fiscal Monitor 2026, the IMF projected Pakistan’s revenue to have already peaked with a downward but stable outlook in the medium-term ending 2031. This would thus lower public debt, yet was significantly higher than required under the Fiscal Responsibility and Debt Limitation Act (FRDLA) 2005, the IMF indicated as it anticipated government expenditures to remain stubborn. The Fund projected Pakistan’s fiscal deficit at 3.2pc of GDP during the current fiscal year and next year — down from 5.4pc in FY2025 — and then declining to 3pc and 2.8pc for FY2028 and FY2029, respectively. It forecast the fiscal deficit rising again to 3.6pc in FY20...

Pakistan sent a letter to all banks and financial regulatory firms notifying them that they may provide crypto services,, but remain barred from trading or holding crypto assets.

Pakistan’s central bank has allowed banks to open accounts for licensed virtual asset service providers, ending years of restrictions and marking a shift toward a regulated framework. Pakistan’s central bank has allowed banks to open accounts for licensed virtual asset service providers (VASPs) and their customers, replacing an eight-year-old prohibition on dealing in virtual currencies. In a circular dated April 14, the State Bank of Pakistan (SBP) said regulated entities may open bank accounts for entities licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA), the statutory body responsible for licensing, regulation and oversight of virtual asset activities in the country. The move follows Pakistan’s passage of the Virtual Assets Act 2026 in March and marks a shift toward a more formal regulatory framework for digital assets after years of restrictions following an outright ban in 2018.  Read more

Finance Minister Muhammad Aurangzeb has met with the United States’ commerce secretary to discuss ways to boost bilateral economic partnership and briefed an International Monetary Fund (IMF) official about the Middle East conflict’s economic impact on Pakistan, the finance ministry said on Wednesday. Aurangzeb arrived in Washington on Monday to represent Pakistan at the World Bank Group and IMF Spring Meetings 2026. During his visit, the finance czar was expected to participate in over 50 high-level engagements from April 13 to 18. In a series of posts on Wednesday, the finance ministry said that Aurangzeb has held multiple meetings, given an address and taken part in a panel discussion while there. The finance minister met with US Secretary of Commerce Howard Lutnick in Washington, DC, where “both sides discussed avenues for deepening bilateral economic partnership, with a focus on enhancing trade, promoting investment flows, and facilitating private-sector engagement”. The ministry added that they also dis...

Reaffirming its consistent policy, Pakistan has called for the abolition or severe restriction of the veto power and strongly opposed any expansion of permanent membership in the United Nations Security Council (UNSC). The stance was expressed by Pakistan’s Permanent Representative to the UN, Ambassador Asim Iftikhar Ahmad, at a resumed session of the long-running Intergovernmental Negotiations (IGN) aimed at reforming the 15-member UNSC. “Pakistan’s policy position remains clear and consistent — veto should either be abolished or, at a minimum, its use by the current permanent members severely restricted,” Ambassador Ahmad stated. He expressed Pakistan’s firm opposition to “any expansion of the veto or addition of new individual permanent members”, contending that more vetoes would only aggravate the problem. “This is a position of principle,” he said, noting that Pakistan aligned itself with the statement delivered by the permanent representative of Italy on behalf of the Uniting for Consensus Group. The UN...

US President Donald Trump said on Tuesday that talks between Washington and Tehran could resume over the next two days and that “we’re more inclined to go” to Pakistan, reported The New York Post. “You should stay there, really, because something could be happening over the next two days, and we’re more inclined to go there,” Trump said. “It’s more likely, you know why? Because the Field Marshal is doing a great job. He’s fantastic, and therefore it’s more likely that we go back there,“ he told The NY Post. “Why should we go to some country that has nothing to do with it?” This was after he earlier told the US media outlet that discussions were “happening, but, you know, a little bit slow”, before indicating that a second round of direct negotiations would likely happen somewhere in Europe. According to The NY Post, he contacted them half an hour later and told their reporter to stay in Islamabad “because something could be happening over the next two days, and we’re more inclined to go there”. He also confir...

Interior Minister Mohsin Naqvi on Tuesday called on the business community to bring back “20-30 per cent” of their wealth to Pakistan ahead of the upcoming budget. Speaking at a ceremony at the Federation House in Karachi, he said that the government would facilitate the business community but “at least give this one gesture over the next three months, before the budget and then see what happens”. “It is not tedious. You have to go online and use an app,” he said, adding that Pakistan offered strong returns on investment. He said that if the business community took this one step, it would compel the government to take more measures in their interests. “So, before the budget, bring back $10 billion … This is easily possible,” he said. In his address, he also said that a proposal for a separate passport for businessmen would be shared with Prime Minister Shehbaz Sharif soon. “We have almost prepared a proposal … which will be taken to the prime minister soon,” he said. He said that “genuine businessmen” face vi...

The International Federation of Air Traffic Controllers’ Associations (IFATCA) has expressed its appreciation for the professionalism of Pakistan’s air traffic controllers. The remarks came in a letter by IFATCA Asia-Pacific Region Executive Vice President Cheryl Chen, which was shared by the Pakistan Airports Authority (PAA) on Tuesday. According to IFATCA’s website, the apolitical federation provides guidance, representation, training, and other services to advance the status and professionalism of air traffic control. It has member associations in more than 130 countries from all corners of the globe. “I wish to express our sincere appreciation for the dedication and professionalism demonstrated by the air traffic controllers of Pakistan in recent weeks,” Chen said in the letter, a copy of which is available with Dawn. “Amid evolving geopolitical developments impacting regional airspace, Pakistan’s strategic position as a key corridor between Southeast Asia, the Middle East, and Europe has resulted in a si...

Sherry Rehman has described Pakistan’s role in facilitating a fragile ceasefire and bringing parties to the negotiating table as a major diplomatic achievement.

The Chief of Naval Staff, Admiral Naveed Ashraf on Tuesday said that Pakistan’s armed forces stood ready to “deter any aggression” vowing to deliver a “befitting response” to any such act. He made the assertion while addressing the passing out ceremony of cadets of the Pakistan Air Force (PAF) in Risalpur. The naval chief, in his address congratulated the graduating cadets, expressing hope that they will “uphold PAF’s vision” with “commitment and dedication”. In his speech, he recalled the four-day conflict with India in May 2025 —Marka-i-Haq — and stressed that Pakistan stood “ever ready, vigilant, and capable to deter any aggression and give a befitting response”. The Pakistan Army had named the period of conflict with India, from the Pahalgam attack to the conclusion of Operation Bunyanum Marsoos, as Marka-i-Haq in May, 2025. He further stated that the armed forces, including the navy, stood ready to “enhance our capabilities and keep up with the evolving geopolitical developments”. “Pakistan’s outstanding...

ISLAMABAD - Fitch Ratings has affirmed Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B-’ with a Stable Outlook.

ISLAMABAD - Pakistan’s Prime Minister Shehbaz Sharif on Monday received separate telephone calls from the prime ministers of Japan, Sanae Takaichi, and Canada, Mark Carney, highlighting Islamabad’s peace efforts that culminated in a ceasefire between the US and Iran.

ISLAMABAD - Pakistan and the United Kingdom yesterday held a high-level exchange on the evolving regional situation and the outcomes of the Islamabad talks, as Deputy Prime Minister and Foreign Minister Ishaq Dar spoke with UK Foreign Secretary Yvette Cooper.

Deputy Prime Minister Ishaq Dar has reiterated Pakistan’s commitment to promoting dialogue and diplomacy during a meeting with Jiang Zaidong in Islamabad on Monday.

Prime Minister Shehbaz Sharif has reaffirmed that Pakistan will continue to play a central role in promoting sustainable peace across the region through dialogue and diplomacy.

ISLAMABAD: Fitch Ratings, one of the world’s top three agencies, on Monday affirmed Pakistan’s long-term foreign currency issuer default rating (IDR) at “B-” with a “stable outlook”. “Pakistan’s rating affirmation reflects progress on fiscal consolidation and macro stability measures, broadly in line with its International Monetary Fund (IMF) programme and supporting its funding capacity,” the US-based rating agency said. “Foreign exchange buffers rebuilt over the past year provide a cushion against the economic impact of the war in the Middle East, while Pakistan’s role as a ceasefire broker may provide tangible benefits and partly offset external pressures,” it said. However, it highlighted that the country’s high exposure to the global energy price shock remained a key risk, particularly if it led to a sharp drop in foreign exchange reserves. Talking about key rating drivers, Fitch said the authorities reached a staff-level agreement with the IMF on its loan programmes in March, unlocking a combined $1.2 b...

ISLAMABAD: Pakistan on Monday launched its second nationwide polio vaccination campaign of the year, aiming to vaccinate over 45 million children under the age of five across the country. During the campaign, which will last until April 19, over 400,000 frontline health workers will go door to door across Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit-Baltistan, Azad Jammu and Kashmir, and Islamabad, ensuring that every child is vaccinated, including those in the most remote and high-risk areas. Vitamin A supplements will also be administered during the campaign to help strengthen children’s overall health and immunity. The drive is being carried out in coordination with Afghanistan as part of joint efforts to curb the cross-border spread of the virus. According to the head of the polio programme, Anwarul Haq, Pakistan has made significant progress. In 2026, the poliovirus has been detected in 23 of 87 districts, compared to 82 districts in 2025. The number of positive environmental samples has also d...

Pakistan has launched its second nationwide anti-polio campaign of 2026, according to health officials, as efforts intensify to eradicate the virus.

ISLAMABAD - Pakistan yesterday expressed cautious optimism over the prospects of regional peace, with Deputy Prime Minister Ishaq Dar emphasizing the need for sustained dialogue between the United States and Iran following the conclusion of high-level talks in Islamabad.

Pakistan has decided to expand its petroleum storage capacity as a major foreign investment from Saudi Arabia is expected for the establishment of a large-scale oil refinery in Gwadar, according to sources in the Ministry of Petroleum.