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ARY NEWS

Shoaib Nizami

  • Pakistani delegation to engage with US on 29% tariff

    Pakistani delegation to engage with US on 29% tariff

    ISLAMABAD: Pakistan’s Finance Minister, Muhammad Aurangzeb, has announced the formation of a high-level delegation to engage in discussions with the United States following the imposition of U.S. tariffs.

    The delegation aims to address the impact of U.S. tariffs on Pakistan by negotiating trade solutions.

    During a press conference, Finance Minister Aurangzeb revealed that a steering committee and working group have been established to prepare a comprehensive response to the U.S. tariffs.

    These groups will soon present their findings to Prime Minister Shehbaz Sharif. The delegation will focus on negotiating with U.S. officials to mitigate the impact of the tariffs while exploring avenues for economic collaboration.

    The finance minister emphasized that while the tariffs pose challenges, they also offer opportunities for Pakistan to strengthen its trade relations with the United States.

    However, he clarified that no special package for local industries is currently under consideration.

    Yesterday, Prime Minister Shehbaz Sharif formed a 12-member steering committee to analyze the effects of the 29% U.S. tariffs on Pakistani goods. The committee will evaluate the competitiveness of Pakistan’s exports, particularly in the textile sector, and develop policy responses.

    Members of the committee include the Finance Minister, Commerce Minister, Petroleum Minister, Special Assistant for Industry, FBR Chairman, Foreign Secretary, Pakistan’s Ambassador to the U.S., and former WTO Ambassador.

    Read more: IMF says US tariffs represent significant risk to global outlook

    Earlier, sweeping tariffs introduced by U.S. President Donald Trump on Wednesday raised concerns about their potential impact on the global economy, especially during a period of sluggish growth.

    In a statement on Thursday, IMF Managing Director Kristalina Georgieva emphasized the importance of avoiding measures that could exacerbate economic challenges.

    Kristalina Georgieva urged the United States and its trading partners to engage constructively to ease tensions and foster cooperation.

    She said the IMF would provide its assessment of the announced tariffs when it releases an update to its World Economic Outlook during the April 21-26 meetings in Washington, D.C.

  • In a first, Pakistan begins exporting cars to Japan

    In a first, Pakistan begins exporting cars to Japan

    Honda Atlas Pakistan has made history by initiating exports of completely built cars to Japan, marking a significant milestone for Pakistan’s automotive industry.

    Special Assistant to the Prime Minister for Industries & Production Division, Haroon Akhtar Khan, on Saturday participated as the chief guest in a ribbon-cutting ceremony marking the official commencement of Honda Atlas Cars (Pakistan) Limited (HACPL)’s export journey.

    The ceremony took place at HACPL’s state-of-the-art manufacturing facility.

    During his visit to the plant, Haroon Akhtar Khan lauded Honda’s advanced production facility, strong regulatory compliance, and unwavering commitment to quality.

    He acknowledged Honda’s legacy and its contributions to Pakistan’s automotive industry, particularly in local manufacturing, exports, and industrial growth.

    He further appreciated Honda’s initiative in export operations, recognizing it as a crucial step in alignment with government policies aimed at boosting economic growth.

    In a significant milestone for the company, HACPL successfully dispatched its inaugural batch of 40 Honda CITY 1.2L units to Japan, reinforcing its position as a key player in the international automotive market.

    Aamir H. Shirazi, Chairman of Honda Atlas Cars (Pakistan) Ltd., commended the government’s efforts in fostering a business-friendly environment and emphasized the vital role of the automotive sector in economic development.

    Meanwhile, Takafumi Koike, President & CEO of HACPL, highlighted Honda’s global legacy, its commitment to innovation, and its industry-leading technological advancements.

    Following the ribbon-cutting, a tree plantation activity was held within the facility premises, symbolizing Honda’s commitment to environmental sustainability.

    Read More: NED University students develop driverless electric vehicle

    The ceremony concluded with a shared vision to enhance Pakistan’s exports and economic prosperity.

    The event was attended by key government officials, esteemed industry stakeholders, media representatives, and prominent members of HACPL, marking a historic step in Pakistan’s automotive sector and reinforcing the country’s standing in the global market.

  • Pakistan seals $1.3bln in climate financing from IMF

    Pakistan seals $1.3bln in climate financing from IMF

    Pakistan has secured $1.3 billion climate financing from the International Monetary Fund (IMF).

    This was stated by IMF Director of Communications Julie Kozack while responding to a query of ARY News during a press conference.

    Kozack confirmed that discussions on the Extended Fund Facility (EFF) and climate financing were held separately. Pakistan successfully secured $1.3bln after successful negotiations on climate financing, the IMF communications director said and added the funds will be disbursed over 28 months.

    IMF official also stated that Pakistan’s 37-month Extended Fund Facility program, finalized in September, will provide $7 billion in installments.

    Following successful staff-level negotiations on March 25, Pakistan has completed its first EFF review, which will unlock an additional $1 billion.

    Read more: IMF shares update on power tariff relief for Pakistan consumers

    On Wednesday, Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement on the first review under Pakistan’s 37-month $7bn Extended Fund Facility (EFF) and on a new 28-month $1.3bn arrangement under the Resilience and Sustainability Facility (RSF), the federal government and the IMF confirmed.

    “The IMF team has reached a staff-level agreement (SLA) with the Pakistani authorities on the first review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF), and on a new 28-month arrangement under the IMF’s RSF with total access over the 28 months of around $1.3 billion (SDR 1 billion). The staff-level agreement is subject to approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to about US$1.0 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about US$2.0 billion,” the IMF said in a statement.

  • IMF ‘proposes’ Rs 15tr tax target for Pakistan in next budget

    IMF ‘proposes’ Rs 15tr tax target for Pakistan in next budget

    ISLAMABAD: The International Monetary Fund (IMF) has proposed a tax target of over Rs 15 trillion for Pakistan in the next budget, ARY News reported citing sources.

    According to sources, the IMF and Pakistan are holding virtual talks, with 85% of the discussions completed successfully. The talks are focused on finalizing the details of the next budget, which is expected to be presented in the National Assembly soon.

    The new budget is expected to increase the tax-to-GDP ratio to 13% and collect Rs 2,745 billion in non-tax revenue. The government is also expecting the economy to grow by over 4% in the next fiscal year, driven by increased investment and consumption.

    Earlier, the IMF urged Pakistan’s Special Investment Facilitation Council (SIFC) to refrain from granting tax exemptions to international investment projects, including the Chaghi-Gwadar railway track project worth $2 billion.

    Read More: IMF conditionally ‘agrees’ to Pakistan’s circular debt management plan

    According to sources, the IMF delegation maintained that tax exemptions for international investments would hinder the country’s revenue generation.

    The government had requested Gulf countries to invest in the Chaghi-Gwadar railway track project, but the IMF has refused to grant tax exemptions to the SIFC for international investments. The SIFC has been providing a platform for investment and facilitating the transportation of minerals from Reko Diq to Gwadar through a new railway line.

    Briefing the IMF delegation, officials stated that a platform is being provided to facilitate investment, and a new railway line will be constructed to transport minerals from Reko Diq to Gwadar.

  • IMF conditionally ‘agrees’ to Pakistan’s circular debt management plan

    IMF conditionally ‘agrees’ to Pakistan’s circular debt management plan

    ISLAMABAD: The International Monetary Fund (IMF) on Tuesday conditionally agreed to Pakistan’s circular debt management plan, ARY News reported.

    According to sources, the authority expressed conditional readiness to approve Pakistan’s Circular Debt Management Plan, linking its approval to the implementation of a debt servicing surcharge.

    Sources revealed that the IMF has demanded that Pakistan impose a DSS of Rs 2.8 per unit on consumers to reduce the circular debt. The government has proposed a plan to reduce the circular debt by Rs 1,250 billion.

    To eliminate the circular debt, the government plans to borrow Rs 1,250 billion from banks at an interest rate of 10.8%. The loan will be repaid by imposing a surcharge on consumers, sources added.

    Earlier, the IMF urged Pakistan’s Special Investment Facilitation Council (SIFC) to refrain from granting tax exemptions to international investment projects, including the Chaghi-Gwadar railway track project worth $2 billion.

    According to sources, the IMF delegation maintained that tax exemptions for international investments would hinder the country’s revenue generation.

    The government had requested Gulf countries to invest in the Chaghi-Gwadar railway track project, but the IMF has refused to grant tax exemptions to the SIFC for international investments. The SIFC has been providing a platform for investment and facilitating the transportation of minerals from Reko Diq to Gwadar through a new railway line.

    Read More: Pakistan averts mini budget as IMF ‘agrees’ to lower tax target by Rs600bln

    Briefing the IMF delegation, officials stated that a platform is being provided to facilitate investment, and a new railway line will be constructed to transport minerals from Reko Diq to Gwadar.

  • IMF condition: Pakistan to monitor industrial sector production

    IMF condition: Pakistan to monitor industrial sector production

    ISLAMABAD: Pakistan has decided to monitor production in the industrial sector as per International Monetary Fund (IMF) demand, ARY News reported on Friday.

    As per details, the Federal Board of Revenue (FBR) has fulfilled another condition set by the International Monetary Fund (IMF) as it has decided to monitor production in the industrial sector.

    According to the FBR, electronic video surveillance will be implemented to track the production of goods. A digital eye software will be installed for this purpose, and a central control unit will provide real-time data to the FBR.

    By analyzing production records, legal action can be taken against any violations. No goods will be allowed to leave the factory without proper monitoring.

    Monitoring equipment will be installed at business premises through a licensed vendor, who will be responsible for upgrading the technology over time. The vendor will also be authorized to charge a fee for the installation, the FBR said.

    The FBR has issued a notification amending the Sales Tax Rules of 2006 to implement this system.

    Read more: Pakistan averts mini budget as IMF ‘agrees’ to lower tax target by Rs600bln

    Earlier it emerged that Pakistan and the International Monetary Fund (IMF) have reached a consensus to reduce the tax target by Rs600 billion after the Federal Board of Revenue (FBR) successfully improved the tax-to-GDP ratio.

    Sources confirmed that the risk of a mini-budget has been averted with the tax reduction approval by the International Monetary Fund.

    Both parties agreed on necessary amendments to the current fiscal strategy.

  • IMF demands reduction in Pakistan’s circular debt

    IMF demands reduction in Pakistan’s circular debt

    ISLAMABAD: The International Monetary Fund (IMF) has called on Pakistan to reduce its circular debt as a special session was held on the circular debt management plan during the ongoing talks between the two parties, ARY News reported citing sources.

    Pakistan told the IMF delegation it is working on a plan to reduce the circular debt by Rs 1250 billion, with Rs. 300 billion potentially being settled, the sources said.

    “Pakistan plans to borrow Rs 1,250 billion from banks to reduce circular debt. The plan also proposes waiving late payment surcharges of up to Rs. 600 billion.”

    To pay off the debt, a surcharge of Rs. 2.8 per unit may be imposed on consumers. According to sources, the government is working on a comprehensive plan to manage the circular debt, which will be finalised in upcoming policy negotiations.

    The sources revealed that the previous six months saw a reduction of Rs. 10 billion in stocks, while the next six months are expected to see an increase in electricity demand, which may lead to a rise in circular debt.

    Read More: IMF ‘wants’ Pakistan to meet revenue shortfall in next quarter

    The government had anticipated an increase of Rs. 350 billion in circular debt for the current fiscal year.

    Earlier on Thursday, the federal government has abandoned plans to introduce a mini-budget for FY 2024-25, opting instead for an alternative plan to address the Rs. 605 billion shortfall.

    The government was anticipated to bring the mini-budget but now it opted other option. A key aspect of the plan involves the swift resolution of tax-related cases pending in various courts.

    Prime Minister (PM) Shehbaz Sharif has assured full cooperation in this regard, while Chief Justice of Pakistan Yahya Afridi has also approved the request to expedite the hearing of tax-related cases.

    According to sources, the IMF has also been briefed on the plan. A crucial hearing on the matter is scheduled to take place in the Supreme Court on March 10.

  • Govt officers ‘directed’ to declare assets by September

    Govt officers ‘directed’ to declare assets by September

    ISLAMABAD: The government officers in Pakistan have been directed to declare their assets by September 2025, ARY News reported on Thursday, citing sources.

    As per details shared by credible sources with ARY News, a September deadline has been set for government officials to declare their assets in compliance with the IMF requirements.

    IMF delegation is currently in Pakistan for review talks to unlock $1 billion loan tranche of the ongoing $7 bln programme.

    Sources said the Pakistani authorities will share a draft regarding asset declaration with the global lender, adding that the government has also decided to launch a digital portal in line with a demand made by the IMF.

    Discussions were also held regarding external financing, the operationalization plan for the Tax Policy Unit, inflation comparisons with regional countries, and national accounts, according to the Finance Ministry.

    Additionally, the Labor Force Survey, Family Budget Survey, and Living Standards reports were reviewed in ongoing negotiations.

    Read more: IMF ‘wants’ Pakistan to meet revenue shortfall in next quarter

    Key discussions with the IMF delegation also focused on electricity and gas tariffs, circular debt, and other financial matters, sources revealed.

    The draft for government officials’ asset declarations will be finalized in today’s negotiations and subsequently shared with the IMF, the Finance Ministry sources confirmed.

    Earlier, the International Monetary Fund (IMF) ‘asked’ Pakistan to achieve revenue shortfall in the next fiscal quarter, said sources.

    “There is no room for revenue shortfall,” IMF delegation led by Nathan Porter reportedly told Pakistan during the talks to unlock $1 billion loan tranche of $7bln loan programme.

  • No mini-budget: Pakistan briefs IMF on alternative plan to overcome financial shortfall

    No mini-budget: Pakistan briefs IMF on alternative plan to overcome financial shortfall

    ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are currently engaged in high-stakes negotiations in Islamabad.

    The federal government has abandoned plans to introduce a mini-budget for FY 2024-25, opting instead for an alternative plan to address the Rs. 605 billion shortfall, ARY News reported citing sources.

    According to sources, Pakistan is facing a significant financial shortfall, with a staggering Rs. 605 billion needed to meet its financial obligations.

    Earlier, the government was anticipated to bring the mini-budget but now it opted other option. A key aspect of the plan involves the swift resolution of tax-related cases pending in various courts.

    Prime Minister (PM) Shehbaz Sharif has assured full cooperation in this regard, while Chief Justice of Pakistan Yahya Afridi has also approved the request to expedite the hearing of tax-related cases.

    According to sources, the IMF has also been briefed on the plan. A crucial hearing on the matter is scheduled to take place in the Supreme Court on March 10.

    The sources said that if the verdict comes in favour of the government, the Federal Board of Revenue (FBR)  is expected to recover a substantial amount of Rs. 157 billion.

    “The FBR has already secured a tax amount of Rs. 23 billion under Section 99D,” the sources added.

    Earlier, the IMF ‘asked’ Pakistan to achieve revenue shortfall in the next fiscal quarter, ARY News reported on Wednesday, citing sources.

    Read More: Pakistan, IMF hold talks on review of loan program

    “There is no room for revenue shortfall,” IMF delegation led by Nathan Porter reportedly told Pakistan during the talks to unlock $1 billion loan tranche of $7bln loan programme.

    Sources revealed that during the talks Pakistan and the IMF held extensive discussions on key economic and financial matters. During prolonged sessions, officials from the Ministry of Finance and State Bank of Pakistan (SBP) engaged with the IMF delegation on various subjects, including Islamic banking reforms, refinance schemes, and the development finance transition.

    The IMF delegation urged the operationalization of the Bank Resolution Framework to strengthen the banking sector and reduce financial risks.

  • IMF ‘wants’ Pakistan to meet revenue shortfall in next quarter

    IMF ‘wants’ Pakistan to meet revenue shortfall in next quarter

    ISLAMABAD: The International Monetary Fund (IMF) has ‘asked’ Pakistan to achieve revenue shortfall in the next fiscal quarter, ARY News reported on Wednesday, citing sources.

    “There is no room for revenue shortfall,” IMF delegation led by Nathan Porter reportedly told Pakistan during the talks to unlock $1 billion loan tranche of $7bln loan programme.

    Sources revealed that during the talks Pakistan and the International Monetary Fund (IMF) held extensive discussions on key economic and financial matters.

    During prolonged sessions, officials from the Ministry of Finance and State Bank of Pakistan (SBP) engaged with the IMF delegation on various subjects, including Islamic banking reforms, refinance schemes, and the development finance transition.

    The IMF delegation urged the operationalization of the Bank Resolution Framework to strengthen the banking sector and reduce financial risks.

    Discussions also covered the external sector review and foreign exchange market trends, the sources added.

    Read more: IMF demands action against tax evasion in Pakistan’s real estate sector

    The government briefed the IMF on monetary policy measures, while the IMF stressed the need for timely right-sizing measures to curb expenditures.

    The sources further said that the Federal Board of Revenue (FBR) was asked to enhance compliance risk management and implement improvement plans for better tax collection.

    The delegation was also briefed on efforts to expand the tax net, particularly targeting large retailers in major cities. The IMF directed authorities to recover high-risk cases in Islamabad, Karachi, and Lahore, ensuring these recoveries contribute to reducing the revenue shortfall.

    Further negotiations are expected as both sides work towards finalizing Pakistan’s economic roadmap for the coming months.