BREAKING NEWS
Indian actor Pradeep Rawat dies at 74 after cancer battle • Mrunal Thakur warns of legal action over AI-generated deepfake content • Fazlur Rehman warns against politicizing debate over new provinces • Pakistan posts 387, secures first-innings lead over West Indies • Pakistan exempt from new US visa bond program • Trump voices concern over oil company profits amid Iran conflict • West Indies all out for 344 against Pakistan in first innings • Cristiano Ronaldo reportedly set to marry Georgina Rodriguez on Aug 8 • Trump says Gulf States backed diplomatic path with Iran • Fuel theft surges across UK as rising prices drive daily losses • Why ‘Inception’ remains one of Hollywood’s most rewatchable films • ‘Spider-Man: Brand New Day’ opens with $355m worldwide • Secret wedding allegation involving Varma and Urmila resurfaces • Bilawal Bhutto alleges rigging in AJK elections • PM orders comprehensive performance review of federal ministries
Advertise with us >

Business & Finance

Gold prices in Pakistan fall by over Rs9,700 per tola

by
Gold prices

KARACHI: Gold prices across Pakistan declined sharply on Thursday, with a drop of more than 9,700 rupees per tola, according to the All Pakistan Gems and Jewelers Association.

The price of one tola of gold fell by 9,720 rupees, bringing it down to 432,716 rupees. Similarly, the price of 10 grams of gold decreased by 8,748 rupees to 369,422 rupees.

In the international market, gold prices also weakened, falling by $97 per ounce to $4,102, market data showed.

Analysts attributed the decline to fluctuations in global bullion markets and changing investor sentiment.

Pakistan to present Rs17.5 Trillion federal budget for 2026-27

by
Pakistan

ISLAMABAD: Federal government is set to present a federal budget exceeding 17.5 trillion rupees for the fiscal year 2026-27 on Friday, with proposals under consideration for salary and pension increases for government employees and tax relief measures worth up to 50 billion rupees.

According to official reports, Prime Minister Shehbaz Sharif will chair a special federal cabinet meeting to approve the budget draft and related fiscal proposals before it is presented in parliament by Finance Minister Muhammad Aurangzeb.

The budget aims to set tax revenue targets at around 15.267 trillion rupees, while also offering potential relief for salaried individuals through revisions in income tax slabs.

Officials said no major changes are expected in taxes on solar panels, stationery items, or the stock market. A previously proposed increase in sales tax on solar panels from 10% to 18% has been withdrawn.

However, the government is considering raising sales tax on imported electric vehicles up to 25%, while maintaining existing tax rates on hybrid vehicles. Incentives for locally manufactured electric vehicles are also under review, including reduced duties on motors, batteries, and other components.

A petroleum levy target of 1.727 trillion rupees has been proposed for the upcoming fiscal year. Debt servicing is expected to require 7.824 trillion rupees, while defence spending is projected at around 3 trillion rupees.

Economic projections suggest exports of $32.8 billion against imports of $70 billion, leaving a projected trade deficit of more than $37 billion.

Growth targets include 3.8% for agriculture, 4% for industry, 4.5% for large-scale manufacturing, and 4.2% for the services sector. The government also aims to create 2 million new jobs across agriculture, industry, and services.

Officials said the National Economic Council has already approved a national development plan worth 3.669 trillion rupees, including a federal Public Sector Development Programme of 1 trillion rupees.

The budget also includes proposals for new taxation measures, including bringing cryptocurrency transactions into the tax net and imposing capital gains tax on crypto trading profits. Officials are also considering removing tax exemptions for former tribal areas and expanding sales tax coverage on several food and consumer goods.

Authorities said up to 220 billion rupees in new taxes may be introduced, with overall revenue enhancement measures expected to generate up to 1 trillion rupees in additional income.

Finance Minister highlights 3.7% growth despite external pressures

by
Finance Minister

ISLAMABAD: Pakistan’s economy demonstrated resilience during the outgoing fiscal year despite domestic and international challenges, Finance Minister Muhammad Aurangzeb said Thursday while presenting the National Economic Survey.

Speaking in Islamabad, Aurangzeb said the survey reflects the country’s economic performance over the entire fiscal year, which began amid uncertainty caused by monsoon-related disruptions and global economic volatility, including tariff measures imposed by the United States on several countries.

He said the government successfully navigated multiple crises and that the economy performed better than expected despite internal and external pressures. Pakistan recorded economic growth of 3.7%, slightly below the government’s target of more than 4%.

Aurangzeb said the growth rate would likely have exceeded 4% had it not been for the crisis in the Middle East. He added that Pakistan’s economy expanded to more than $452 billion, while per capita annual income increased from $1,751 to $1,901.

The finance minister noted that global uncertainty had affected economies worldwide but said Pakistan maintained positive economic momentum despite regional tensions.

He said the petroleum sector posted 5% growth, while the current account recorded a surplus of $72 million during the July-March period. The agricultural sector grew by 2.89%, with dairy and livestock accounting for about 60% of agricultural output.

Aurangzeb also highlighted gains in exports, saying sports goods exports have surpassed $3 billion and information technology exports are expected to reach $4.5 billion. He noted that footballs manufactured in Pakistan will be used at the FIFA World Cup.

The minister said reducing imports remains a government priority and added that foreign exchange reserves currently stand at $17.1 billion and are projected to reach $18 billion by the end of June.

PSDP cuts agreed as Pakistan moves closer to budget 2026–27 approval

by
PSDP cuts

ISLAMABAD: Pakistan’s coalition partners Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP) have agreed on cuts to the Public Sector Development Programme (PSDP), paving the way for the approval of the federal budget for 2026–27, officials said on Wednesday.

Following a meeting between the leadership of both parties, it was agreed to reduce development spending at the federal and provincial levels, helping streamline the budget process.

President Asif Ali Zardari approved summoning sessions of the National Assembly at 5 p.m. and the Senate at 4 p.m. today, officials said.

According to sources, the federal government has reduced the proposed PSDP by Rs 126 billion, while additional cuts are expected across provincial development programs except in Balochistan.

The adjustments are expected to generate around Rs 500 billion in savings, which will be redirected toward strategically important projects, including major water and energy schemes such as Diamer-Bhasha, Mohmand, and Dasu dams.

Officials said the federal government had initially sought nearly Rs 1.2 trillion in additional fiscal space from provinces, but revised arrangements are now under consideration. Balochistan’s development program will remain unchanged due to its revised allocation of Rs 308 billion.

Sources said the National Economic Council meeting, chaired by Prime Minister Shehbaz Sharif, will finalize key decisions regarding the PSDP size and broader budget framework. The federal budget for 2026–27 is expected to be presented after approval from cabinet and parliamentary forums.

The government is also considering adjustments in provincial shares, defense spending requirements, and potential relief measures for salaried individuals and the corporate sector, depending on fiscal space.

Gold prices drop sharply in Karachi amid global decline

by
Gold prices

KARACHI: Gold prices witnessed a significant decline in the local market on Wednesday, tracking a sharp fall in international rates, dealers said.

The price of 24-karat gold per tola dropped by Rs 12,627 to settle at Rs 442,436.

Similarly, the price of 10 grams of gold fell by Rs 11,364, bringing it down to Rs 378,170, according to local bullion market data.

In the international market, gold prices declined by $126 per ounce, reaching $4,200, traders said.

Silver prices also saw a decrease, with the rate per tola dropping by Rs 385 to settle at Rs 6,929 in the local market.

Federal budget 2026-27 likely to be presented on June 12

by
Federal budget

ISLAMABAD: Federal government is considering a change in the announced date for the 2026–27 budget, with consultations underway to present it on June 12 instead of June 10, according to sources.

Officials said a final decision on the revised budget date is expected within a day or two.

Federal Minister Ahsan Iqbal confirmed in informal talks with journalists in Parliament that several budget matters are still under discussion and have not yet been finalized.

He said discussions were ongoing due to limited time and the upcoming month of Muharram, adding that adjustments in scheduling may be required.

Iqbal said talks between the government and coalition partner Pakistan Peoples Party over the Public Sector Development Programme (PSDP) had been completed, and an understanding had been reached on development funding matters.

He added that under the proposed allocations, the federal government will prioritize development spending in smaller provinces.

According to him, Balochistan would receive the highest share of development funds, followed by Sindh, then Khyber Pakhtunkhwa, while Punjab would receive the lowest allocation.

He said billions of rupees have been allocated for key projects, including motorways and water infrastructure initiatives, with further details to be announced in the upcoming budget.

Punjab ready to offer financial relief to federal government

by
Punjab ready

LAHORE: The Punjab provincial government is prepared to extend financial relief to the federal government, according to sources in the provincial assembly.

Officials said the Punjab government may provide up to 570 billion rupees in financial relief to help Islamabad reduce its fiscal deficit and meet International Monetary Fund targets.

They added that under the National Finance Commission (NFC) award, Punjab is expected to receive more than 3.793 trillion rupees from the divisible pool of revenues.

Meanwhile, the provincial government has finalized the outline of its budget for the 2026–27 fiscal year, with the total volume set at 5.131 trillion rupees, sources said.

No official statement has yet been issued by the Punjab government confirming the reported financial arrangement.

On the other hand, Punjab Finance Minister Mujtaba Shuja-ur-Rehman said the province will not compromise on its share under the National Finance Commission (NFC) award and will strongly defend its constitutional rights if any reduction is made.

Addressing a pre-budget roundtable conference in Lahore, he said Punjab is currently running more than 100 major development programs and requires adequate financial resources to sustain them.

He warned that if Punjab’s share in the NFC award is reduced, the province would “defend its rights,” adding that Punjab cannot transfer or surrender its financial resources under any circumstances.

The finance minister said the provincial government is working on establishing a unified tax collection system under one roof to improve efficiency and revenue collection. He added that efforts are also underway to promote agriculture and industry, along with the preparation of a major industrial package expected to involve billions of rupees over the next three years.

He said the government aims to reduce taxes rather than introduce new ones.

Maryam Nawaz, he said, is overseeing governance reforms and has resumed work after health improvement.

Mujtaba Shuja-ur-Rehman said Punjab has already presented two budgets and will now present its third budget on June 16.

Oil prices rise as Iran-Israel conflict fears disrupt global markets

by
Oil prices rise

NEW YORK: Crude oil prices rose sharply on Monday amid growing fears that escalating hostilities between Iran and Israel could further disrupt a fragile ceasefire and global energy supplies.

In international trading, Brent crude climbed to around $98 per barrel, while West Texas Intermediate (WTI) traded near $95 per barrel, reflecting heightened market uncertainty.

The increase comes as geopolitical tensions in the Middle East continue to intensify, with both Iran and Israel exchanging strikes and raising concerns over broader regional instability.

Meanwhile, global stock markets came under heavy pressure, with investors reacting to rising geopolitical risks.

Pakistan Stock Exchange’s benchmark KSE-100 index fell by 1,480 points during intraday trading, dropping to 168,998 points.

Asian markets also recorded sharp losses, with South Korea’s KOSPI index declining more than 8 percent and Japan’s Nikkei index falling over 3 percent.

KMC plans new entertainment tax on hotels, marriage halls and hospitality sector

by
KMC plans

KARACHI: The Karachi Metropolitan Corporation (KMC) is preparing to introduce a new “entertainment tax” targeting hotels, guest houses, lodges, marriage halls, marquees, marriage lawns, Airbnbs and banquet facilities, officials said.

Under the proposed plan, a 1% tax will be levied on bills generated by these establishments. The initiative is expected to be included in the KMC’s upcoming budget for the next fiscal year.

According to officials, the proposal is aimed at strengthening the financial position of the city’s tourism and municipal services sector and improving service delivery.

KMC Municipal Commissioner Abrar Jafar has invited public feedback on the proposed tax, with a hearing on objections scheduled for June 10 at the KMC office.

He said the new tax item titled “Entertainment Tax – City Tourism and Hospitality” along with its bylaws is being incorporated under the existing tax framework.

The commissioner noted that under the Sindh Local Government Act 2013, KMC is empowered to impose taxes, fees and tolls.

Meanwhile, sources said opposition members in the City Council  including Jamaat-e-Islami, PTI and others  have begun consultations on the proposal and are expected to present their stance soon.

However, officials suggest that even if the opposition rejects the plan, the Pakistan Peoples Party (PPP), holding a majority in the council, may push the legislation through, paving the way for its implementation in the next fiscal year.

Govt announces fixed tax scheme for small shopkeepers

by
Govt announces

ISLAMABAD: The government has announced a fixed tax scheme for small shopkeepers aimed at simplifying the tax system and improving compliance, officials said on Friday.

Finance Minister Muhammad Aurangzeb, speaking at a press conference, said the initiative has been introduced in consultation with small traders and on their demand, adding that taxpayers seek greater ease in tax procedures.

Minister of State for Finance Bilal Azhar Kayani said the scheme will apply to shopkeepers with annual sales of Rs 20 crore or less.

He said participating traders will submit sales details through a one-page form. A minimum payment of Rs 25,000 in cash will be required, while an additional 1% tax will be applied based on turnover. The scheme includes a fixed 1% tax component, and any previously deducted withholding tax will be adjustable.

Kayani said the initiative has been developed in consultation with trader associations and will be open to all shopkeepers willing to participate by submitting the prescribed form.

He added that businesses enrolled in the scheme will be issued a plate by the Federal Board of Revenue (FBR), displaying the shop’s name, owner details and other information.

The scheme will be available to both filers and non-filers, he said.

According to Kayani, eligibility requires that participants’ tax payment should not be less than the previous year’s level. Shopkeepers joining the scheme will also be exempt from the point-of-sale (POS) system requirement.