Author: capital

MICHIGAN/KARACHI: In August 2009, the State Bank of Pakistan (SBP) officially changed its monetary policy framework from targeting monetary aggregates to an interest rate-based monetary policy framework, known as the inflation-targeting-lite regime, by introducing the interest rate corridor (IRC). Within international systems, the adoption of IRC would be a transitional move for implementing a flexible or full-fledged inflation targeting monetary policy framework, where the policy rate is used as a primary tool for anchoring inflation expectations (Stone, 2003). Indeed, most inflation-targeting central banks place corridor systems not only to stabilise…

KARACHI: Pakistan’s economic policy framework is increasingly being shaped by sector-specific reforms aimed at correcting long-standing structural distortions and reviving growth. Among the most significant developments are the gradual deregulation of the sugar sector, a renewed emphasis on an ambitious agriculture export strategy, and sustained efforts to attract foreign direct investment (FDI). These initiatives are closely interlinked and reflect a broader shift away from heavy state intervention towards market-oriented, export-driven and investment-friendly policies. While challenges remain, official data and historical experience suggest that progress in these areas could strengthen Pakistan’s…

ISLAMABAD: Pakistan has taken bold steps forward in modernising its regulatory landscape, delivering significant enhancements to anti-money laundering safeguards, corporate transparency, and the simplicity of starting a business, initiatives that have positioned the country as a more competitive and compliant player on the global stage. At the heart of these achievements is the Securities and Exchange Commission of Pakistan (SECP), which earned the title of national “Reforms Champion” from the prime minister in December 2025 during the launch of the National Regulatory Reforms initiative. The recognition highlights the regulator’s dedication…

KARACHI: A sharp wave of selling swept through the Pakistan Stock Exchange (PSX) on Monday, triggering a steep corrective move as escalating geopolitical tensions drove investors into risk-off mode. Heightened concerns over the Iran-US standoff, developments in Venezuela, and widening instability across the Middle East and South Asia undermined market confidence, sending the benchmark KSE-100 index tumbling by over 2,000 points in line with volatility across global markets. The trading session started under heavy pressure, with aggressive selling pushing the index lower immediately after the opening bell. Although bargain hunting…