Economy

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.

پاکستان سٹاک مارکیٹ میں زبردست تیزی، سٹاک ایکسچینج 100 انڈیکس 9 ہزار 696 پوائنٹس اضافے کے بعد 1 لاکھ 56 ہزار 177 کی سطح عبور کر گیا۔

Moody’s sees a steadier Pakistan banking system in 2026, with strong capital and liquidity underpinning stability as reforms gradually lift growth.

Raqami Bank, backed by the Kuwait Investment Authority, is set to launch in Pakistan with a planned $100 million investment, positioning itself as the country’s first fully Shariah-compliant digital retail bank under the State Bank of Pakistan’s new digital banking framework.