Category: bussines

WASHINGTON: A policy divide within the US central bank and a lack of federal government data may put another interest rate cut out of reach this year, Federal Reserve Chair Jerome Powell said on Wednesday, as he acknowledged the threats that officials see to the job market but also the risky nature of making further rate moves without a fuller picture of the economy. The Fed on Wednesday cut interest rates by a quarter of a percentage point, as expected, as a way to temper any further weakening of the…

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WASHINGTON: A policy divide within the US central bank and a lack of federal government data may put another interest rate cut out of reach this year, Federal Reserve Chair Jerome Powell said on Wednesday, as he acknowledged the threats that officials see to the job market but also the risky nature of making further rate moves without a fuller picture of the economy. The Fed on Wednesday cut interest rates by a quarter of a percentage point, as expected, as a way to temper any further weakening of the…

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The Green Climate Fund (GCF) has approved $250 million in financing for Glaciers to Farms, a large-scale adaptation initiative spearheaded by the Asian Development Bank (ADB). According to an ADB statement, the programme is designed to support communities across Pakistan, Central Asia, and the South Caucasus that rely on glacier-fed water systems, helping them adapt to the mounting challenges of climate change. The funding, mostly in grants, will complement $3.25 billion from ADB over the next decade. It will support projects in nine countries, Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic,…

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Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman have agreed to establish a new “Economic Cooperation Framework” aimed at advancing shared economic interests and strengthening bilateral ties between Pakistan and Saudi Arabia. The leaders reaffirmed their mutual desire to strengthen trade and investment relations to serve their common interests, according to a joint statement issued today following their meeting on the sidelines of the Future Investment Initiative (FII9) conference in Riyadh. As part of the framework, several strategic and high-impact projects will be discussed in the economic,…

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The bourse slipped further on Tuesday as profit-takers in control while inflation concerns and current-account stress dulled sentiment. “The market is taking a correction after the massive rally. With the result season ending shortly, the market will look for new impetus for its next move,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “Concerns about the current account and inflation are also playing their part,” he added. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 160,101.02 points, down 2,062.79 points, or 1.27%, from the previous close of 162,163.81.…

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ISLAMABAD: Stressing the adverse impact of recent floods, the World Bank has said that it expects the country’s real GDP growth to remain at 3% in FY26. “Predicated on continued macroeconomic stability and commitment to key economic reforms, growth is projected to pick up to 3.4% in FY27 but will likely remain constrained amid tight fiscal policies aimed at rebuilding buffers amid continuing global policy uncertainty and vulnerability to natural disasters and climate shocks,” said the lender in its “Pakistan Development Update: Staying the Course for Growth and Jobs”. Recalling that…

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ISLAMABAD: The Consumer Price Index (CPI)-based inflation in Pakistan is expected to remain in the range of 5-6% in October, the Finance Division said in its monthly economic report on Monday. The report said that flood-related supply disruptions and temporary border closures put “upward pressure” on prices of a few essential commodities. The projection follows September’s 5.6% inflation, compared with 6.9% in the same month of last year. During the first three months (July-September) of the fiscal year 2025-26, CPI inflation was recorded at 4.2%, against 9.2% during the same…

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The State Bank of Pakistan’s Monetary Policy Committee on Monday kept the policy rate unchanged at 11%, opting to leave borrowing costs steady. The decision marks the fourth consecutive meeting with no change, extending the pause in monetary easing as policymakers weigh potential inflation pressures against signs of a fragile economic recovery. The policy committee had reduced the interest rate by 1 percentage point to 11% in its meeting on May 5 this year. Outlook improves as flood impact eases, risks persist The MPC noted that headline inflation rose to…

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Senior Chinese and US economic officials met on Sunday to finalise the framework of a trade deal, which US President Donald Trump and Chinese President Xi Jinping are expected to review later this week. The agreement would pause higher American tariffs and Chinese export controls on rare earths, US officials said. US Treasury Secretary Scott Bessent said that talks on the sidelines of the ASEAN Summit in Kuala Lumpur had eliminated the threat of Trump’s 100% tariffs on Chinese imports starting November 1. Bessent also said that he expects China…

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