Finance

Finance – NEN Agency

Welcome to the Finance section of NEN Agency, your trusted guide to understanding money matters in Pakistan and the global economy. From banking reforms to stock market shifts, we cover the trends, policies, and innovations that shape personal and corporate finance.

Inside This Category

  • Banking & Monetary Policy: Updates on SBP decisions, interest rates, and banking sector performance.

  • Stock Market & Investments: Daily PSX movements, mutual funds, bonds, and investor insights.

  • Forex & Currency Trends: Exchange rate analysis and global currency market updates.

  • Personal Finance & Savings: Practical tips on budgeting, loans, and wealth management.

  • Fintech & Digital Banking: Emerging technologies transforming Pakistan’s financial landscape.

Why Our Finance Coverage Stands Out
We translate complex financial jargon into clear, actionable information. Our reporting blends data, expert analysis, and real-world examples so readers can make confident financial decisions.

Budget, Business, Finance, Pakistan

Pakistan Proposes Income Tax Relief for FY 2026-27

/

ISLAMABAD — The government has introduced income tax relief measures for the fiscal year 2026-27. These initiatives aim to support salaried individuals and boost economic growth. Income Tax Relief for Salaried Taxpayers Salaried taxpayers can anticipate reduced income tax rates with significant adjustments: Restructuring of tax slabs Increasing the 35% tax rate threshold from Rs. 4.1 million to Rs. 7 million These changes aim to provide substantial relief to taxpayers. Incentives for the Real Estate Sector The government has rolled out several incentives to invigorate the real estate sector. Key measures include: Flat advance tax rates on the sale and purchase of immovable property at 2.75% and 1.5% respectively Removing taxation on deemed income from immovable property, thereby abolishing Section 7E on capital asset taxation Super Tax Reductions and Benefits for Export Sector Adjustments to Super Tax For those earning over Rs. 500 million, the super tax rate drops from 10% to 8%. However, this change does not impact the banking, energy, and fertilizer sectors. Benefits for Export Sector Exporters will benefit from: A tax rate reduction from 2% to 1.25% An extension of the 0.25% concessionary tax rate for IT and IT-enabled services until 2029 Encouraging Digital Transactions To foster digital transactions, the advance tax on foreign payments via cards reduces from 5% to 0.5%. Furthermore, businesses that invest in electronic resources compatible with the Federal Board of Revenue’s computerized systems can secure up to a 10% tax credit. The advance tax on foreign television plays and advertisements has also been abolished.

Budget, Business, Finance, Pakistan

Finance Minister Unveils Rs18.771 Trillion Budget for 2026-27

/

ISLAMABAD — The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has announced the federal budget for the fiscal year 2026-27. This budget amounts to Rs18.771 trillion, reflecting a 6.81% increase from the previous year, which was Rs17.573 trillion. Economic Growth Focus The finance minister stressed that this budget is primarily aimed at fostering economic growth. It maintains fiscal responsibility while addressing key financial sectors. These strategies are vital for the government as it tackles ongoing economic challenges. Sustainable Development Commitment Aurangzeb also highlighted the government’s strong commitment to sustainable development. He introduced various initiatives aimed at strengthening economic sectors. The efforts will focus on efficiently managing public resources to fulfill national development goals.

Cryptocurrencies
Business, Finance, Market, Markets

Pakistan State Bank to Allow Cryptocurrencies | Limited Option

/

ISLAMABAD – The State Bank of Pakistan (SBP) has announced a landmark policy, allowing limited cryptocurrency trading under strict regulatory controls. Controlled Market Access In 2018, the SBP banned all cryptocurrency transactions, prohibiting banks from facilitating such activities due to concerns about money laundering and market volatility. Despite the ban, citizens continued to trade cryptocurrencies through peer-to-peer platforms and international exchanges. The SBP now seeks to regulate these informal transactions by implementing strict volume controls and mandatory user verifications. Economic Pressures and Policy Shift Several economic factors have contributed to this policy shift. Rising inflation, currency depreciation, and declining foreign reserves put a strain on traditional financial systems. Cryptocurrency offers faster and cheaper cross-border transfers, which could benefit remittances contributing billions annually to the economy. With a young, tech-savvy population and a growing IT sector, the demand for digital financial services in Pakistan is increasing. The new regulatory framework aims to address this while enforcing necessary safeguards. Regulatory Framework Features Although still under development, preliminary guidelines outline significant restrictions on cryptocurrency trading: Monthly transaction limits between $100 to $500 per person Mandatory Know Your Customer (KYC) verification with CNIC and bank account linkage Trading limited to SBP-approved cryptocurrency exchanges All transactions routed through registered local banks for monitoring Comprehensive transaction reporting requirements for compliance These measures aim to balance market access while maintaining financial security and oversight. Pros and Cons of Regulated Trading Regulated cryptocurrency access could enhance financial inclusion for unbanked populations and reduce dependence on informal hawala systems, bolstering Pakistan’s fintech sector. Formalized crypto transactions aid tax compliance, increase revenue collection, and provide consumer protections not present in unregulated trading. Integrating crypto into the banking system helps monitor capital flows, aligning with SBP’s objectives. Investor Risks and Challenges Cryptocurrency markets carry volatility risks, with price fluctuations that may lead to significant losses for inexperienced investors. Despite regulatory structures, risks of fraud, tax evasion, and cybersecurity threats remain, justifying the State Bank’s cautious approach. The banking sector requires substantial investment in technology infrastructure for secure crypto transactions, necessitating capital and staff training. Future Prospects for Digital Currency This regulatory framework serves as a controlled pilot for the Pakistani market. Successful implementation could lead to increased transaction limits, expanded cryptocurrency options, and wider market participation. The State Bank will monitor developments to ensure a smooth transition in regulations.

Scroll to Top