Page 85 - CMA Journal (July-August 2025)

O THER F EATURES

Economy News

Pakistan Launches First Digital Inflation Slows to 3% in August,

Economic Census Below Projections
Planning Minister Ahsan Iqbal Pakistan’s inflation was recorded at 3% in August 2025, lower
launched Pakistan’s first Digital than government projections, according to PBS data. On a
Economic Census, conducted by the monthly basis, it fell 0.6% compared to a 2.9% rise in July.
Pakistan Bureau of Statistics (PBS). Urban inflation stood at 3.4% and rural at 2.4%, with the
The census geo-tagged 40 million July–August average at 3.53%. Food prices dropped 1.8%,
buildings, recorded 7.2 million while health and education charges rose by over 10%.
economic entities—including 2.7 Utilities, clothing, and footwear also increased, but
million retailers, 23,000 factories, and restaurant and hotel charges fell. In rural areas, tomatoes,
643,000 small units—and identified eggs, and chicken saw sharp hikes, while fruits and
10 million households running vegetables declined steeply; similar trends were noted in
micro-businesses. It also urban markets. The Finance Ministry had projected 4–5%
documented 242,000 schools, 36,331 inflation but cautioned that flood damages could disrupt
Madaaris, 11,568 colleges, 214 universities, 119,000 health food supplies.
facilities, and 6,000 places of worship. The minister said the
data will help mainstream the undocumented economy and PIA Privatization Set for November 2025
support better governance, while PBS termed the initiative a
landmark in the country’s economic history. The Senate Committee on
Privatization was informed
Pakistan to Float $1 Billion Panda that Pakistan International
Airlines (PIA) is expected to
Bonds in Chinese Market be privatized by November
2025, with four companies
Pakistan will issue $1 billion in in the bidding process,
Panda Bonds in the Chinese though two have been
market in three phases by 2028, disqualified. Concerns were raised over PIA’s Rs. 650 billion
starting with $250 million this debts, while selling its two hotels was suggested to offset
fiscal year, the Finance Ministry liabilities. The Committee also reviewed progress on other
said. The plan, revived from an transactions, including the Nandipur and Guddu power
earlier $250 million proposal, aims plants, where gas supply and land transfer issues remain
to reduce reliance on short-term Treasury Bills and diversify pending. Three power distribution companies (DISCOs) are
borrowing. Progress is expected during Prime Minister also on the privatization list. Officials said the government
Shehbaz Sharif’s upcoming visit to China, as GDP projections has decided to exit commercial business, prioritizing
show growth from Rs. 114 trillion to Rs. 163 trillion by 2028.
profitable entities to attract investors.
Pakistan’s Public Debt reaches Remittances Reach $3.2 Billion in July 2025
Rs. 78.7 trillion in FY2025
Overseas workers’ remittances to Pakistan stood at $3.2
Pakistan’s public debt rose by Rs. 7.45 trillion in FY2024-25, billion in July 2025, up 7.4% from $3 billion in the same
reaching Rs. 78.7 trillion ($277.6 billion), or 68.6% of month last year but down 6% from $3.4 billion in June,
GDP—well above the 60 percent FRDL Act ceiling, according according to SBP data. Saudi Arabia led with $823.7 million,
to the Finance Division’s Medium-Term Debt Management 8% higher YoY, followed by the UAE at $665.2 million (up 9%
Strategy (2026–28). Domestic debt stood at Rs. 53.5 trillion YoY). Remittances from the UK rose 2% YoY to $450.4 million
with an average interest rate of 15.8% while external debt but dropped 16% from June, while inflows from the US
was Rs. 25.2 trillion at 4.4%. Interest payments consumed declined 10% YoY to $269.6 million. The Finance Ministry
nearly 6% of GDP as reliance on costly domestic financing noted that remittances, coupled with stable exchange rates
pushed its share to 68% of total debt. The strategy noted and global commodity prices, are expected to support
reduced refinancing risk, with the average maturity of external sector stability. Pakistan received record-high
domestic debt extended from 2.7 to 3.8 years, raising overall remittances of $38.3 billion in FY2024-25, a 26.6% jump from
maturity to 4.5 years. $30.3 billion in FY2023-24.

ICMA’s Chartered Management Accountant, Jul-Aug 2025 83