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.
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.
The package, including an extended $5 billion deposit and a new $3 billion injection, underscores deepening ties between Riyadh and Islamabad while helping Pakistan navigate mounting economic pressures.
سعودی عرب نے پاکستان کیلئے 8 ارب ڈالر کی مالی معاونت کا اعلان کر دیا، اسٹیٹ بینک میں 5 ارب ڈالر کے ڈپازٹ کی توسیع اور مزید 3 ارب ڈالر کا اضافہ شامل۔ یہ اقدام پاکستان کی معیشت کو سہارا دینے اور استحکام کو مضبوط بنانے کی جانب اہم پیش رفت ہے۔
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.
Per a new purchasing managers’ survey released by HBL and S&P, Pakistan’s manufacturing PMI rose to 50.9 in May, returning to expansion as new orders recovered and export orders posted their strongest rise since February 2025.
Pakistan’s major ports are seeing a sharp rise in container and transshipment activity as Gulf disruption redirects cargo towards Karachi, Port Qasim and Gwadar.
Iranian officials are preparing three days of farewell ceremonies and a 24-hour funeral procession for Ali Khamenei, with events expected in Tehran, Qom and Mashhad.
Trump reportedly warned Netanyahu against further escalation in Lebanon as US-Iran diplomacy faced renewed pressure, with Pakistan and Qatar involved in efforts to preserve a fragile regional framework.