Pakistan’s central bank policy rate stands at 11%, making it the highest among neighboring South Asian economies. Despite significant reductions from last year’s 22%, it remains above Bangladesh’s 10% and Sri Lanka’s 7.75%. Analysts expect cautious future cuts as inflation cools and economic reforms stabilize the financial sector.
Pakistan’s interest rate is currently the highest in South Asia at 11%, exceeding Bangladesh and Sri Lanka. Despite recent reductions, analysts predict further cuts as inflation declines and economic indicators improve, aiming to balance growth with monetary stability.
Pakistan policy rate, South Asia interest rates, monetary policy adjustments
President Donald Trump has set a new 19% import tariff on Pakistani goods entering the United States, making it the lowest among South Asian nations. The tariff, reduced from an earlier 29%, follows a trade agreement focusing on economic cooperation and energy development between the two countries.
The decision is part of Trump’s broader trade strategy to restructure tariffs and address perceived imbalances. Analysts believe the reduced rate could help Pakistani exports remain competitive in the U.S. market while signaling a strengthening of bilateral economic ties. The new tariff is scheduled to take effect on August 7, 2025.
Trump has imposed a 19% tariff on Pakistani imports, the lowest in South Asia under the revised trade policy. Reduced from 29% after a bilateral deal, the move strengthens U.S.-Pakistan economic cooperation and aims to keep Pakistani exports competitive under the new tariff framework.
U.S.-Pakistan trade relations, import tariff on Pakistan, South Asia trade policy
Islamabad’s landmark Faisal Mosque is set for a comprehensive renovation for the first time since its construction in 1988. After 36 years, the iconic structure will undergo upgrades to its electrical systems, air-conditioning, parking, and restroom facilities while maintaining its unique architectural design.
The Saudi government has agreed to finance the project, with a formal memorandum of understanding expected to be signed with Pakistan’s Ministry of Interior and the Capital Development Authority. The renovation aims to preserve the mosque’s historic and cultural significance while providing modern facilities for visitors and worshippers.
Authorities emphasized that the restoration will balance maintaining the mosque’s original architectural charm with improving safety and comfort for the millions of visitors it attracts annually.
Faisal Mosque in Islamabad is set for its first major renovation in 36 years. The Saudi-funded project will restore and modernize the mosque’s facilities, including electrical systems, parking, and restrooms, ensuring preservation of its historic architecture while improving visitor and worshipper experience.
A leading Canadian university has announced opportunities for Pakistani students to apply for fully funded Master’s and PhD programs for the upcoming academic session. The initiative aims to strengthen educational ties and provide talented Pakistani students with access to world-class research facilities and academic resources.
The programs offer comprehensive funding, including tuition coverage, research grants, and living stipends for eligible candidates. Students with strong academic backgrounds, research potential, and leadership skills are encouraged to apply. The university is particularly focused on promoting cultural diversity and fostering global collaboration through these graduate-level opportunities.
The move reflects Canada’s growing commitment to supporting international students and attracting skilled researchers from around the world. Pakistani students selected under this program will benefit from advanced training, access to innovative labs, and the chance to work under globally recognized faculty members.
A top Canadian university has opened applications for Pakistani students seeking fully funded MS and PhD programs. The initiative offers tuition coverage, research grants, and stipends, promoting global collaboration and advanced research opportunities for talented Pakistani scholars aiming to pursue graduate studies in Canada.
Canadian scholarships for Pakistanis, MS and PhD in Canada, fully funded graduate programs
The Pakistan Telecommunication Authority (PTA) has blocked more than 13,000 URLs linked to online financial scams in a major crackdown against digital fraud. Most of these fraudulent links originated from social media platforms, with Facebook topping the list due to widespread misuse of fake profiles and pages.
The blocked URLs were part of schemes designed to deceive users into sharing personal information, making online payments, or investing in fake businesses. PTA highlighted that such scams have become increasingly sophisticated, often impersonating trusted brands and individuals to lure victims.
Authorities emphasized ongoing efforts to collaborate with social media platforms to trace and remove fraudulent content more quickly. They also urged the public to report suspicious links and exercise caution while engaging in online transactions to protect themselves from cyber fraud.
Pakistan’s telecommunication regulator blocked over 13,000 fraud URLs, with the majority traced back to Facebook. The crackdown targets online scams and financial fraud schemes exploiting social media platforms. Authorities continue to warn users to verify online content and report suspicious activities to help combat the growing threat of digital fraud.
Pakistan’s overall foreign exchange reserves have recorded a significant decline of $311 million in a single week, highlighting ongoing pressure on the country’s external account. During the week ending July 25, 2025, the total reserves dropped from $19.91 billion to $19.60 billion, reflecting a 1.5% decrease.
Reserves held by the State Bank of Pakistan (SBP) decreased by $152.7 million, settling at $14.30 billion. This fall is attributed to external debt repayments and other scheduled payments. Meanwhile, commercial banks’ reserves also saw a reduction of $157.8 million, bringing their total down to $5.30 billion.
The continuous fluctuation in reserves underscores the importance of maintaining financial stability through sustained foreign inflows, export growth, and effective economic reforms. Analysts emphasize that controlling imports and ensuring timely inflows from multilateral institutions and friendly countries are crucial to maintaining reserve levels.
The government is expected to introduce further measures to stabilize reserves, strengthen the currency, and maintain confidence in the financial markets.
Pakistan’s foreign exchange reserves dropped by $311 million in one week, reaching $19.60 billion. State Bank reserves fell to $14.30 billion, while commercial banks’ holdings declined to $5.30 billion. The fall is linked to external debt repayments and highlights the need for consistent inflows to stabilize the economy.
Pakistan foreign reserves, State Bank reserves drop, economic stability
The National Highway Authority (NHA) has confirmed the start date for the long-awaited M-6 Sukkur-Hyderabad Motorway project. This 306-kilometer stretch is a critical part of the Karachi-Peshawar Motorway, aiming to enhance connectivity between Sindh’s major cities. The project is expected to boost trade, reduce travel time, and promote regional development once completed.
The M-6 will feature modern safety measures, service areas, and a high-speed design. Authorities have assured timely completion, emphasizing the project’s importance in supporting economic activity and easing traffic congestion on existing routes. Construction is set to begin soon, marking a significant milestone in Pakistan’s infrastructure expansion plans.
The M-6 Motorway project start date announced to enhance connectivity between Sukkur and Hyderabad. The 306-km stretch will reduce travel time and support economic growth. Equipped with modern facilities and safety measures, the project is part of Pakistan’s key infrastructure plan aimed at boosting regional trade and mobility.
Islamabad is on track to become Pakistan’s first fully cashless city as part of the Capital Development Authority’s Smart Islamabad initiative. The plan aims to integrate digital payment systems into key public services and citywide infrastructure, making transactions more transparent and convenient for citizens.
Initial pilot programs are being launched in major areas such as Blue Area, Food Street, and Parking Plaza, where QR-code based payments will be used for property taxes, utility bills, and parking fees. Businesses are being encouraged to adopt digital payment systems and register for electronic transactions to support the transition.
The project also includes expanding online payment platforms, mobile applications, and collaborations with banks to ensure secure and efficient cashless systems across the city. Over time, the initiative will cover all sectors of Islamabad, setting a model for other cities in Pakistan.
This move aligns with the government’s wider agenda to digitize the economy, promote transparency, and enhance citizen convenience while reducing the reliance on physical cash transactions nationwide.
Islamabad first fully cashless city, Smart Islamabad initiative, digital payment system Pakistan
The Pakistan Cricket Board (PCB) has issued a firm denial of circulating rumors alleging a rift between fast bowler Shaheen Shah Afridi and team captain Salman Ali Agha, as well as claims involving members of the coaching staff. In an official statement, the board stated unequivocally that no incident—training-related or otherwise—has occurred between the individuals in question, dismissing the reports as baseless, fabricated, and defamatory.
PCB described these claims as deliberate misinformation aimed at undermining team unity and tarnishing the reputation of the national squad. It condemned the rumours as a calculated campaign to sow discord and disrupt morale within the dressing room. Asserting its commitment to protecting player dignity and team cohesion, the PCB warned that legal proceedings under defamation and cybercrime laws will be initiated against those responsible for originating or spreading the false narratives.
The board also strongly cautioned the public, media outlets, and digital platforms to avoid engaging with or amplifying unverified and irresponsible content. PCB emphasized that safeguarding the integrity of the national team and the wellbeing of its players remains its top priority.
Pakistan and Australia are advancing towards finalizing a significant investment agreement focused on energy and mineral sector cooperation. Recent high-level discussions between officials from both countries emphasized joint ventures in mining, energy production, and technology transfer, signaling a new chapter in bilateral economic relations.
Australia has expressed strong interest in partnering with Pakistani companies to explore and develop the country’s vast mineral resources, particularly in untapped regions. The plan includes forming joint ventures that would integrate Australian expertise and advanced mining technologies with Pakistan’s resource potential. Additionally, collaborations between Australian universities and local institutions are being considered to provide professional training and modern extraction techniques to strengthen the sector’s workforce.
Pakistan’s recent policy reforms in mining and energy have played a crucial role in attracting foreign investors. With a favorable current account position and simplified profit repatriation procedures, the country is aiming to create a more business-friendly environment. Both sides see the agreement as a way to boost not only mineral exploration but also long-term energy sustainability.
In parallel, initiatives are underway to enhance bilateral trade relations. Business chambers from both countries are working to promote trade delegations and facilitate partnerships across multiple sectors, ensuring that the deal translates into broader economic benefits.
This potential agreement marks a strategic step for Pakistan in diversifying its energy sources and unlocking its mineral wealth while offering Australia a gateway to new markets and opportunities for technology and expertise exchange.
Pakistan Australia investment deal, energy and mineral cooperation, bilateral economic relations
