Business

KARACHI — The State Bank of Pakistan (SBP) has decided to maintain the policy rate at 11.5%. This decision by the Monetary Policy Committee (MPC) is aimed at managing inflationary pressures effectively in the current economic climate. Inflation and Economic Indicators The MPC has observed a rise in headline inflation amid economic uncertainties influenced by ongoing Middle East conflicts. Although global oil prices have slightly eased due to positive geopolitical developments, they remain above pre-conflict levels. Significant increases in inflation were noted, particularly in April and May, with core inflation also climbing. The committee observed signs of moderation in economic activities. Monetary Policy Assessment The MPC believes that keeping the current policy rate will steer inflation toward its medium-term target range of 5% to 7%. Although external account pressures remain stable and the macroeconomic outlook is unchanged, global developments and central banks’ rising policy rates underline the committee’s cautious approach. Future Economic Projections The committee emphasized the need for proactive macroeconomic management and structural reforms to bolster economic resilience and growth. It projects a real GDP growth of 3.7% for the fiscal year 2026, with an expected primary balance surplus of 2.5% of GDP. Additionally, the committee noted improvements in consumer and business confidence, along with an increase in SBP’s foreign exchange reserves to $17.2 billion.

RAWALPINDI — The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged the State Bank of Pakistan (SBP) to adopt a single-digit policy rate. This move aims to boost economic growth and ease business pressures. Monetary Policy Concerns On Monday, RCCI President Usman Shaukat addressed the Monetary Policy Committee’s decision to retain the policy rate at 11.5 percent. He pointed out an opportunity for rate easing. A major worry is the rising inflation rate, which increased from 7.3 percent in March to 11.7 percent in May, primarily due to imported energy costs rather than domestic demand. Influences from Global Economy Shaukat identified global economic factors that might help stabilize inflation shortly. These include a potential truce between the US and Iran and a notable 20 percent drop in oil prices from their 2026 peak. Effect on Business Sector The RCCI president stressed that high financing costs adversely affect small and medium enterprises, manufacturers, and exporters. He called on the central bank to reverse recent tightening measures. Setting a clear pathway to single-digit interest rates is essential to stimulate investment, employment, and exports.

The Pakistan Stock Exchange (PSX) in Islamabad celebrated a significant milestone with a Gong Ceremony on Monday. This event marked the successful listing of Service Long March Tyres Limited (SLM) and highlighted notable achievements of the China-Pakistan Economic Corridor (CPEC). Investor Interest and Market Confidence During the ceremony, strong investor interest was emphasized, observed during SLM’s book-building and public subscription phases. This robust attention showcases the confidence investors have in SLM’s future prospects and the overall vitality of the market. Economic Impact of SLM Listing SLM’s listing has not only drawn significant attention but also strengthened economic ties. PSX officials highlighted the importance of such listings in reinforcing economic relationships, particularly through initiatives like CPEC. Role of CPEC in Economic Growth The event underscored CPEC’s crucial role in promoting economic growth and development in Pakistan. The stock exchange remains a vital platform for companies that drive this progress, facilitating market expansion and economic advancement.

FAISALABAD — An elderly farmer in Faisalabad maintains his daily farm tasks with unwavering dedication, highlighting the role of farmers in the economy. The Significance of Farmers in the Economy Farmers’ tireless work is crucial, especially in regions like Faisalabad. Their efforts contribute significantly to Pakistan’s agriculture-based economy, which is a key aspect of the nation’s financial framework. Farmers’ Resilience and Its Economic Impact The resilience of these farmers is evident in their daily, strenuous activities. Their continuous work ensures a stable food supply, which is integral to supporting the local economy in Faisalabad.

FAISALABAD — Factory workers in Faisalabad are actively involved in garment production, highlighting the textile industry’s vital role in the local economy. The Textile Hub of Pakistan Faisalabad, recognized as Pakistan’s textile hub, accommodates numerous garment factories. These factories contribute significantly to the national economy by employing thousands of workers across the region. Operations in Factories Factories here are bustling with activity as employees proficiently operate industrial sewing machines to produce diverse clothing items. The continual demand for labor is driven by both local needs and the international export market. Skills and Production Demands Domestic and Export Needs The expertise of factory workers in managing industrial sewing machines is crucial. Their skills ensure that production levels meet the requirements of both domestic consumption and the high-demand export markets.

ISLAMABAD — The rupee registered a slight appreciation of one paisa against the US dollar in interbank trading on Monday. It closed at Rs 278.31, slightly up from the previous closing of Rs 278.32. Market Trading Overview According to the Forex Association of Pakistan, the dollar was bought and sold at Rs 279 and Rs 279.50 in the open market. Currency Fluctuations The State Bank of Pakistan reported fluctuations in other currencies. The Euro increased in value, closing at Rs 322.99 from the previous Rs 321.96. The Japanese Yen remained stable at Rs 1.73. The British Pound saw a rise of Rs 0.82, settling at Rs 373.75 compared to Rs 372.93. Gulf Currency Changes The Emirate Dirham’s rate declined by one paisa to Rs 75.77. In contrast, the Saudi Riyal appreciated by two paisas, reaching Rs 74.16.

ISLAMABAD — The Pakistani government has unveiled significant funding in the 2026-27 budget to accelerate the development of the blue economy. This initiative aims to enhance key sectors, including maritime infrastructure, fisheries, aquaculture, offshore energy exploration, and coastal tourism. Investment in Maritime Infrastructure The strategy prioritizes investing in Pakistan’s extensive maritime resources. By focusing on blue economy development, the government seeks to boost economic diversification and generate numerous employment opportunities. Growth in Offshore Energy and Coastal Tourism Offshore energy exploration and coastal tourism are vital components of this initiative. These sectors are expected to drive growth, attract investment, and provide sustainable economic expansion pathways. Emphasizing Sustainable Development The government’s initiative underscores its commitment to sustainable development. Projects aim to stimulate local economies while maintaining the ecological balance of Pakistan’s coastal regions.

ISLAMABAD — The Pakistan Stock Exchange (PSX) saw a strong bullish trend on Monday. The KSE-100 Index surged by 4,639.92 points, marking a 2.69% increase. The index closed at 177,039.83 points, up from 172,399.90 points on the previous trading day. Investor Confidence and Market Growth The KSE-100 Index rise signifies a boost in investor confidence in the market conditions. This significant increase is one of the largest in recent sessions. It highlights a remarkable escalation in trading activity. Driving Factors Behind the Surge Market analysts believe stabilizing political dynamics and positive economic indicators are key drivers of this trend. These elements have heightened interest in equities and led to increased market capitalization. Investor optimism supports this positive market sentiment, further enhancing the robust performance of the stock exchange.

ISLAMABAD — The Islamabad Chamber of Commerce and Industry (ICCI) is collaborating with the African diplomatic community in Islamabad to celebrate Africa Day 2026. The June 30 event aims to strengthen economic, cultural, and people-to-people ties between Pakistan and African nations. It will explore new opportunities for trade and business cooperation. Visit by African Diplomats During a visit to the ICCI, Munsoor Kurrimbaccus, the High Commissioner of Mauritius, and Ahmed Drif, Deputy Head of Mission at the Embassy of Morocco, confirmed the decision to celebrate Africa Day. High Commissioner Kurrimbaccus praised ICCI for its proactive role in promoting international business diplomacy. He highlighted the chamber’s efforts to enhance global economic cooperation. Strengthening Pakistan-Morocco Relations Ahmed Drif emphasized the strong relations between Pakistan and Morocco. He outlined substantial opportunities for enhancing trade, investment, tourism, and cultural exchanges. Drif advocated for increased collaboration between public and private sectors in both regions, aiming to boost economic growth. Pakistan’s Focus on Africa ICCI President Sardar Tahir Mehmood stressed that building ties with Africa is a priority in Pakistan’s foreign economic policy. He noted Africa’s potential in sectors such as: Agriculture Mining Technology Infrastructure Mehmood expressed optimism that Africa Day will serve as a key platform for diplomats, business leaders, and policymakers to explore new avenues for cooperation.

KARACHI — The National Bank of Pakistan (NBP) has released the latest currency exchange rates, providing crucial insights into the buying and selling values of major international currencies for Monday. US Dollar Exchange Rate The NBP reports that the U.S. Dollar is currently sold at 280.09 PKR, with a slightly lower buying rate. This information is essential for traders, investors, and the general public to make informed financial decisions. Exchange Rates for International Currencies The NBP has issued a comprehensive list of exchange rates for various international currencies. This aims to aid financial planning and enhance transaction efficiency within Pakistan’s market economy.