Author: capital

ISLAMABAD: The government has formally asked for proposals from key economic ministries to identify possible concessions from the International Monetary Fund (IMF) to remove obstacles to economic growth and introduce greater realism into the budget framework. The decision to seek input from the ministries was taken at the highest level after a recent review of the nation’s economic landscape revealed that the existing economic structure is neither capable of attracting meaningful foreign investment nor delivering sustainable growth, said government sources. They said Finance Minister Muhammad Aurangzeb held the first meeting…

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ISLAMABAD: Gas utilities have opposed a proposal to scrap the guaranteed asset-based return formula and have asked the government to continue the current pricing regime. The government had tasked the Oil and Gas Regulatory Authority (OGRA) with restructuring the two public gas utilities by doing away with the fixed asset-based return. According to officials, the regulator hired consultancy firm KPMG to review the formula, and it has submitted its report. As the gas pipeline network continues to expand, prices and profits of the utilities have jumped, placing a burden on…

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KARACHI: Pakistan’s weekly inflation, measured by the Sensitive Price Indicator (SPI), recorded a year-on-year (YoY) increase of 3.75% for the week ended December 18, 2025, according to the latest report released by the Pakistan Bureau of Statistics (PBS). The SPI, which tracks price movements of 51 essential commodities across 50 markets in 17 cities, provides a snapshot of short-term inflationary pressures affecting households nationwide. On a week-on-week (WoW) basis, the SPI rose by a modest 0.24%, reflecting mixed trends in essential goods. Significant upward pressure came from food items, with…

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KARACHI: The State Bank of Pakistan (SBP) on Friday injected more than Rs12.25 trillion into the banking system through conventional and Shariah-compliant open market operations (OMOs) to manage short-term liquidity conditions. According to the central bank, SBP conducted a conventional reverse repo OMO on December 19, 2025, accepting Rs12.35 trillion against total bids of Rs12.62 trillion for seven-day and 14-day tenors. The accepted rate of return for both tenors stood at 10.51% per annum, reflecting easing money market conditions following the recent policy rate cut. Under the seven-day tenor, SBP…

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KARACHI: The Pakistan Stock Exchange (PSX) closed lower on Friday as investors resorted to profit-booking ahead of the rollover week, erasing early gains after the benchmark index touched a fresh all-time high. The KSE-100 index settled slightly above 171,400, down almost 560 points compared with the previous session’s close at 171,961. Market breadth remained negative, with 260 stocks closing in the red and 179 stocks rising, reflecting cautious sentiment. Trading opened on a positive note, when the index extended momentum from the previous session to reach the intra-day high of…

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LONDON: Central banks in big economies are signalling a change of stance as the Bank of Japan raised interest rates to a 30-year high on Friday. The Swiss National Bank left its policy interest rate unchanged at 0% on December 11, the lowest among developed-market central banks. The Bank of Canada held its key rate at 2.25% last week, after 225 basis points of easing this cycle. Governor Tiff Macklem said the economy was proving resilient to US trade measures. The European Central Bank has been firmly on hold at…

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KARACHI: Pakistan’s total liquid foreign exchange reserves increased to $21.09 billion as of December 12, 2025, lifting the country’s import cover to 2.62 months, supported primarily by fresh inflows from the International Monetary Fund (IMF). According to data released by the State Bank of Pakistan (SBP), foreign currency reserves held by the central bank rose by $1.30 billion week-on-week to $15.89 billion, while net foreign reserves with commercial banks stood at $5.20 billion, taking total liquid reserves to $21.09 billion. The SBP said the weekly increase in its reserves was…

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KARACHI: To modernise the local marble and granite (dimension stone) sector, the Pakistan Council of Scientific and Industrial Research (PCSIR) and the All Pakistan Marble Manufacturers Association have constituted a technical working group. The working group will develop a joint framework focusing on environmentally compliant value addition, phased upgradation, technology transfer, workforce training, strengthening the role of research and development, enhancing collaboration between industry and institutions, and promoting exports. The decision was taken at an important consultative meeting chaired by PCSIR Director General Dr Sarwat Ismail. Representing the industry at…

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