Economy

Pakistan’s economy has stabilised, but now the hard part begins

The State Bank of Pakistan’s Half Year Report shows stronger growth, lower inflation, rising reserves and a rare fiscal surplus, but warns that weak exports, low investment, climate shocks and Middle East instability could still test the recovery.

The SBP Half Year Report shows Pakistan’s growth picking up, inflation easing and reserves improving, but weak exports, climate risk, low investment and Middle East instability still threaten the recovery. — MICHAEL MCCALL FOR THE THURSDAY TIMES
Pakistan received $3.5 billion in workers’ remittances in April 2026 as Saudi Arabia, the UAE, the UK, EU countries and the United States led overseas inflows and strengthened the country’s external account. — FILE/THE THURSDAY TIMES

Pakistan’s inflation hits 4.1%, lowest since 2018

Pakistan's inflation rate fell to 4.1% in December 2024, the lowest since April 2018, due to improved food supplies and stabilising energy costs. This decline may prompt the State Bank of Pakistan to further reduce interest rates to stimulate economic growth.

Pakistan's inflation hits 4.1%, lowest since 2018. — FILE/THE THURSDAY TIMES
Pakistan Stock Exchange hits 100,000 points, reflecting KSE growth and economic optimism in Pakistan’s financial market. — MONTAGE/THE THURSDAY TIMES
Trump’s win ignites Wall Street optimism, boosting banks and digital assets in hopes of deregulation and growth. — AP

What would a new ‘Air Punjab’ look like?

Punjab plans to acquire PIA and rebrand as 'Air Punjab', aiming for better connectivity and economic boost with a focus on global direct flights to New York, Tokyo, Hong Kong, and London from all major Pakistani airports.

Punjab seeks to revitalise aviation with the creation of a brand-new 'Air Punjab', connecting Pakistan to the world. — ORIGINAL/THE THURSDAY TIMES

How PIA went from global glory to financial ruin

Once a symbol of luxury with direct flights to global hubs and designer uniforms by Pierre Cardin, PIA showcased Pakistan’s prestige. Today, it struggles as a debt-ridden liability—how did it fall so far?

An impression is shown of a PIA jetliner mid-flight. — ORIGINAL/THE THURSDAY TIMES
Pakistani prime minister Shehbaz Sharif is pictured along with delegation heads at the 23rd SCO Summit meeting in Islamabad on October 16, 2024. — FILE/THE THURSDAY TIMES
A montage is shown of prime minister Shehbaz Sharif and the IMF logo. — MONTAGE/THE THURSDAY TIMES
Published by Thursday Media International thursday.media