Economy

Levi Strauss has opened a new front in its sustainability strategy with a three-year regenerative agriculture programme in Pakistan’s cotton belt, where water stress, degraded soil and climate volatility are reshaping one of the country’s most important farming sectors.

Fly Jinnah is set to begin double daily flights between Lahore and Islamabad from May 1, expanding domestic air connectivity on one of Pakistan’s busiest corridors. The new service, priced at around PKR 10,000 each way, is aimed at business travellers, professionals and commuters looking for a faster alternative to road travel.

Azerbaijan’s state energy company says it is prepared to supply LNG to Pakistan as soon as Islamabad makes a formal request, offering a possible new source of fuel as Pakistan faces declining domestic gas production and renewed pressure on energy imports.

Pakistan is moving to repay the last $1.5 billion of a UAE loan this week after already returning $2 billion, as officials look to an IMF board review expected next month to unlock fresh funding and steady market confidence.

Pakistan wants early approval of its next IMF tranche as the country heads into another programme review next month. The move is aimed at protecting reserves, reassuring investors and sustaining a still-fragile sense of economic stability.

Pakistan is accelerating plans to return to international capital markets, with Finance Minister Muhammad Aurangzeb using meetings in Washington to outline a diversified borrowing strategy that includes Eurobonds, a Panda bond and liability management tools.

Pakistan has raised $500 million in a three-year Eurobond priced at 6.975 per cent, marking a notable return to international debt markets and offering a fresh sign that investor confidence in the country’s near-term economic outlook is beginning to recover.

In a little-noticed update, the World Bank has placed Pakistan in its Middle East and North Africa, or MENA, regional classification from fiscal year 2026, ending its longstanding placement in South Asia.

Pakistan and the US are exploring ways to deepen their economic partnership as Finance Minister Muhammad Aurangzeb uses World Bank and IMF meetings in Washington to pitch Pakistan as a resilient and reform-focused economy.

Pakistan has retained a B- rating from Fitch, with the agency citing reform momentum, improving macroeconomic stability and stronger foreign exchange buffers as reasons for the affirmation, while warning that the economy remains vulnerable to oil shocks.