Overview
- Finance leaders declared a shift away from aid toward trade and investment, prioritising deeper partnerships with GCC countries.
- The IMF Executive Board approved Pakistan’s second EFF review this week and all three major rating agencies issued upgrades, bolstering policy credibility.
- Key indicators show inflation down from a 38% peak to single digits, primary surpluses, a contained current account, a steadier exchange rate, and reserves near 2.5 months of import cover.
- Reforms aim to raise the tax-to-GDP ratio to 11% from 10.3% by broadening the base and using AI to improve compliance, alongside energy measures on distribution governance, privatisation, tariff rationalisation, and circular-debt reduction.
- Engagement with Gulf investors targets energy, oil and gas, minerals, AI, digital infrastructure, pharmaceuticals, and agriculture, with officials calling GCC FTA talks advanced and export support strengthened by scrapping a 0.25% turnover levy.