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BRUSSELS: Debt and taxes are throttling Pakistan’s economy. Pakistan’s never ending fiscal profligacy is the underlying reason why we keep going in the intensive care unit asking the same medical team (read: IMF) who keep giving us the same set of treatments, albeit with more powerful medications only to cure our symptoms and failing to cure our disease. Once the medical team is satisfied that the patient has “stabilised” and out of the intensive care unit and into the recovery room, they will continue to monitor the recovery over a…

The Ministry of Finance on Sunday categorically rejected claims regarding the country’s external debt and associated interest payments, calling the reports misleading and stating that the nation’s external debt profile remains predominantly concessional and long-term. “Pakistan’s total external debt and liabilities currently stand at $138 billion, while public external debt interest outflows increased from $1.99 billion in FY2022 to $3.59 billion in FY2025, representing an increase of 80.4 per cent, not 84 per cent as reported,” the ministry said in an official statement. The ministry stated that the overall average…

ISLAMABAD: The anxiously awaited ruling of the US Supreme Court on Friday striking down the “reciprocal tariffs” represents a significant constitutional and political setback for President Trump. The tariffs, imposed under the Emergency Powers Act, had been central to his trade and foreign policy strategy. They were justified on the grounds that persistent trade deficits constituted a national emergency. The court rejected this expansive interpretation, ruling that emergency powers cannot override the constitution’s assignment of tariff authority to Congress, leaving the president no choice but to withdraw the duties. Yet…

KARACHI: China has waived all duties on imports from 53 African countries, positioning itself as an anchor of stability amid chaos in the international “rules-based” trading system triggered by US President Donald Trump’s sweeping tariffs. Many African economies are grappling with the fallout from Washington’s trade measures. Against this backdrop, China’s blanket tariff relief has strengthened its position as a reliable economic partner for Africa. The zero-tariff announcement – made during a high-level meeting linked to the Forum on China-Africa Cooperation (FOCAC) in Changsha, China – marks one of the…

ISLAMABAD: Pakistan’s policymakers often celebrate every rise in the stock exchange index and every uptick in foreign direct investment (FDI) as a vote of confidence in their economic policies. On the ground, however, no sustainable long-term policy exists beyond firefighting, struggling to secure rollovers of deposits from friendly countries, and obtaining short-term foreign currency loans at higher rates. Exports have failed to reach a comfort zone, and the external sector is being supported largely by overseas Pakistanis’ remittances and Roshan Digital Account inflows. The latest numbers tell a sobering story.…