PIA reports first profit since 2004

Pakistan International Airlines (PIA) posted a pre-tax profit in the first half of 2025, which a company source said is its first such for the period in about two decades. This comes ahead of a planned sale of the national carrier later this year.

PIA, part of PIA Holding Company, recorded a pre-tax profit of Rs11.5 billion from six months to June, compared with the same period in 2024 when it remained in a loss before taxes and only managed a rare annual profit through deferred tax adjustments. Net profit for the current half-year stood at Rs6.8bn.

The disclosure comes as the government presses ahead with a fresh attempt to privatise the airline, a key condition under the $7 billion IMF bailout.
A company source said it was the state-run airline’s first profit since 2004. Financial records before 2014 are no longer publicly available on the airline’s and the stock exchange’s websites.

The planned sale of Pakistan International Airlines would mark the country’s first major privatisation in about two decades. Divestment of loss-making state firms was a central plank of last year’s bailout.

Indian army officers involved in terrorism in Pakistan: DG ISPR

Inter-Services Public Relations (ISPR) Director General Lt General Ahmed Sharif Chaudhry said Pakistan possesses “credible evidence” that serving Indian army officers and illegal Afghan nationals are involved in terrorism and serious crimes inside Pakistan.

In a detailed interview with an international media on September 5, 2025, Lt Gen Chaudhry noted that Pakistan had hosted millions of Afghan refugees for four decades and repeatedly extended the deadline for their voluntary return on humanitarian grounds. He said the original reasons for asylum—foreign interference and civil war—“no longer exist”.

DG ISPR accused India of state-sponsored terrorism, stating that violent incidents within India stem from extremist policies and that New Delhi seeks to portray internal issues as external. “Authentic evidence has emerged of serving Indian army officers involved in terrorist acts in Pakistan,” he said, adding that Islamabad has presented this proof to the international community multiple times.

Lt Gen Chaudhry urged the global community to help resolve the Kashmir dispute and warned that Indian state institutions, including the army, are influenced by extremist political ideologies. He stressed that Pakistan rejects all non-state actors without discrimination and that no group or individual other than the state may declare jihad. “There is no place in Pakistan for any militia or armed groups,” he said.

Afghanistan rejects US return to Bagram airbase

Afghanistan has rejected a call from President Donald Trump for the United States military to return to the country and reclaim the Bagram airbase.

A foreign ministry official declared on social media that Kabul was ready to engage, but maintained that the US would not be allowed to re-establish a military presence in the central Asian country.

Trump said that his administration is pressing to “get back” the base at Bagram. The US president, who has long expressed hope of reclaiming the facility, noted that its position is strategically vital due to its proximity to China.

However, Taliban officials have dismissed the idea. “Afghanistan and the United States need to engage with one another … without the United States maintaining any military presence in any part of Afghanistan,” Zakir Jalal, a foreign ministry official, posted on social media. Kabul is ready to pursue political and economic ties with Washington based on “mutual respect and shared interests,” he added.

International confidence in Pakistan’s economy reflected in Mashreq Bank’s entry: PBA

The Pakistan Banks Association (PBA) hosted a reception in Islamabad to commemorate the commercial launch of Mashreq’s full-service digital retail bank in Pakistan, Mashreq Bank Pakistan. This marks the first full-scale international deployment of Mashreq’s award-winning digital banking platform outside the UAE and a pivotal milestone in Pakistan’s digital banking journey.

The reception was hosted in honour of the esteemed state guests Abdul Aziz Al Ghurair, Chairman of Mashreq, Ahmed Abdelaal, Group Chief Executive Officer, and Mashreq’s global leadership team. Zafar Masud, Chairman PBA, and foreign investors, Yousaf Hussain, President of Overseas Investors Chamber of Commerce and Industry (OICCI), welcomed the distinguished dignitaries. The event’s keynote speakers included Jameel Ahmad, State Bank of Pakistan (SBP) Governor, and Bilal Azhar Kayani, Minister of State for Finance and Railways. Eminent leaders from the government, financial sector, and the business community were also present.

The occasion underscored the pivotal role of the banking industry in driving Pakistan’s economy. In 2024, banks paid Rs. 856 billion in income tax and over Rs. 1.5 trillion in total taxes. In the first half of 2025 alone, the sector recorded a fiscal contribution of 30% higher compared to the same period in 2024, reaffirming its position as a cornerstone of national revenue generation. Yet this contribution comes under exceptionally heavy taxation, with an effective tax rate ranging between 55% and 59%, making banking one of the most heavily taxed sectors in Pakistan and across the region. Between 2021 and 2024, taxes on the sector surged by an unprecedented 438%, placing Pakistani banks among the most heavily burdened in the world.

The event concluded with the PBA extending its deepest appreciation to the distinguished guests and affirming that Mashreq’s presence in Pakistan symbolises the strengthening of bilateral ties and the promise of a more inclusive, innovative, and progressive financial future for Pakistan.

GO and Samba Bank Sign MOU to Expand ATM Access

Gas & Oil Pakistan Limited (GO) and Samba Bank Limited have formalized a partnership to provide convenient ATM services across Gas & Oil Pakistan’s nationwide network of fuel stations, reinforcing their shared commitment to financial inclusion and customer convenience.

The signing ceremony was held in Samba Bank’s Gulberg Branch, Lahore, and attended by the senior leadership of both organizations. Chief Executive Officer Mr. Khalid Riaz led the Gas & Oil Pakistan delegation, while President Samba Bank Mr. Rashid Jahangir led the Samba Bank team.

The memorandum of understanding (MOU) was signed by Ammar Talaat, Chief Strategy Officer of Gas & Oil Pakistan Limited, and his counterpart from Samba Bank, Ali Raza Syed, Group Head Corporate & Investment Banking. The collaboration aims to roll out state-of-the-art ATM facilities across strategically selected fuel stations, ensuring safe, round-the-clock banking access for travellers and local communities.

Pakistan is fortunate to have China as an all-weather friend

China’s economic and military strength has reached a level far ahead of many Western countries. Pakistan is fortunate to have China as an all-weather friend. Their friendship is ironclad. In light of recent developments in the Pakistan-India conflict and the Iran-Israel war, the world has developed a greater respect and understanding for China, which is laying the foundation for a New World Order based on equity and mutual respect.

These views were expressed by the learned speakers at the launch of a book, China Leads: The World Listens, organised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at Federation House.

This is the book’s second edition; the first was launched in mid-2024. Due to the insistence of its readers, it has now been expanded with updated data and added chapters, including initiatives of President Xi Jinping for global development. The plans include China’s Belt and Road Initiative, which was launched in 2013 with more than 155 participating countries. In this initiative, over $1.35 trillion was invested in projects relating to infrastructure and productive sectors.

The author, Dr Junaid Ahmad, said that China’s 5,500-year-old civilisation is contemporaneous with the Indus Valley Civilisation, Babylon, and Egypt. “China also carries within itself the wisdom of 5,500 years,” he said.

Bop Launches “Bop Sme Digital Finance”

The Bank of Punjab (BOP) announced the official launch of its state-of-the-art SME lending product, “BOP SME Digital Finance,” at a prominent event held in Karachi. The launch marks a significant milestone in Pakistan’s financial sector, reinforcing the bank’s commitment to nurturing inclusive and digitalized financial solutions for small and medium enterprises (SMEs). Saleem Ullah, Deputy Governor of SBP, and Zafar Masud, President & CEO of BOP, graced the event.

Zafar Masud, while calling it a new era of banking for SMEs, emphasized that this digital initiative sets BOP apart as “Pakistan’s first commercial bank to introduce such a comprehensive, tech-enabled SME lending solution.” He further added that BOP has emerged as the market leader in digital lending, particularly for SMEs, through its innovative suite of products, including the Asaan Karobar Card (AKC), Asaan Karobar Finance (AKF), eBusiness Qarza, and Kissan Card.

With these solutions, BOP has redefined access to finance for small businesses, entrepreneurs, and farmers by offering collateral-free, fully digital, and inclusive lending options.

As of June 30, 2025, BOP has achieved:

• 295% increase in SME borrowers
• 91% growth in outstanding SME portfolio
• 44% market share in SME lending, placing BOP in the industry’s top position.

In his welcome note, Asif Riaz, Group Chief of the Consumer Banking Group at BOP, highlighted that “BOP SME Digital Finance” was developed under the SBP’s Challenge Fund for Technology Adoption and digitalization of SME Banking. BOP was the only bank to win this challenge fund after a rigorous evaluation and tough competition.

This comprehensive digital platform addresses critical challenges SMEs face, including the absence of collateral, lengthy application processes, lack of formal documentation, and overall financial inclusion gaps—particularly for underserved small entrepreneurs.

$7.7bn package for Reko Diq approved

The Pakistan government approved definitive agreements and financial commitments for the revised cost of $7.723 billion for the first phase of the Reko Diq Copper-Gold Project, clearing the way for formal signing within two weeks.

The cabinet’s Economic Coordination Commit¬tee (ECC), chaired by Finance Minister Muha¬mmad Aurangzeb, endorsed agreements between state-owned entities (SOEs), the Balochistan government, and lenders to operationalise the country’s largest mining venture. The estimated cost for Phase-I has risen by 14 per cent from $6.765bn in March to $7.723bn, mainly due to higher financing costs following an increase in project debt and the inclusion of cost contingencies.

Lately, the Asian Development Bank (ADB) has stepped in to fund upgrades to part of Pakistan’s railway system. The ADB is in advanced talks to lead the financing of a $2 billion upgrade of a 500-km stretch of the railway line, which had previously been part of the Chinese project. The proposed rail upgrade would modernise the track and bridges from the com¬mercial capital Karachi to Rohri, near Suk¬kur so that trains can run faster. In Rohri, the line will meet a branch coming from the area of the Reko Diq mine, which will carry the copper concentrate to the port.

Nepal’s First Female PM appoints ministers after deadly Gen Z protests

Nepal’s Prime Minister Sushila Karki has named three new ministers, just days after deadly protests triggered the dissolution of parliament.

Karki, who became the Himalayan nation’s first female leader, made Om Prakash Aryal home minister, Rameshwar Prasad Khanal finance minister, and Kulman Ghising energy minister.

Aryal is a human rights lawyer who has taken on legal cases in the public interest, Khanal is a former finance secretary who recently recommended major economic reforms, and Ghising is a former state power utility chief credited with ridding the country of its load-shedding problems.

Government of Pakistan Extends Subsidy on ELFA Electric Bikes

The Government of Pakistan, under its Pakistan Accelerated Vehicle Electrification (PAVE) Program, has announced a subsidy of up to PKR 80,000 on ELFA Electric Bikes. This initiative is part of the New Energy Vehicle Policy 2025–30, which aims to promote affordable, eco-friendly, and sustainable mobility solutions for the people of Pakistan.

With this subsidy, ELFA Electric—Pakistan’s first locally manufactured electric bike brand—becomes even more accessible, helping households reduce fuel expenses while contributing to a cleaner environment. The program prioritizes women, students, delivery riders, and low-income groups, ensuring that the benefits of modern electric mobility reach those who need them most.

About ELFA by EV Technologies: ELFA, Pakistan’s first locally manufactured electric bike brand by EV Technologies, is designed to provide modern, safe, and cost-effective commuting options. With the government subsidy, ELFA becomes even more accessible, helping households save on rising fuel costs while contributing to a cleaner and greener environment. ELFA by EV Technologies remains committed to delivering reliable, innovative, and sustainable transport solutions—Made in Pakistan, for the People of Pakistan.

All government payments to be digitised by June 2026

A parliamentary committee was informed that Pakistan plans to digitise all federal, provincial, and local government payments and state-owned enterprises by June 2026. This initiative is part of a broader move towards a cashless economy.

State Bank of Pakistan (SBP) Governor Jameel Ahmad briefed the National Assembly Standing Committee on Finance and Revenue, outlining the country’s progress in developing a digital payments ecosystem. He discussed the current infrastructure, achievements, and emerging trends, noting that 88 per cent of retail transactions are now conducted digitally.

He added that Pakistan’s digital infrastructure supports 226 million accounts and 46 million RAAST IDs nationwide. Efforts are ongoing to increase the value of these transactions and improve security, including introducing a bank liability framework and a two-hour transaction cooling-off period to reduce fraud.

Mr Ahmad highlighted the successful launch of Mashreq Bank’s digital operations in Pakistan, which took just 12 months — a rapid timeline compared to the typical five-year rollout elsewhere. He also mentioned that five new digital banks had been granted in-principle approval to operate in the country. SBP chief says that pushing for a cashless economy gains momentum with new initiatives.

Cotton output rises 40pc despite floods

The country’s cotton production surged by 40 per cent year-on-year to 2.004 million bales by Sept 15, according to data released by the Pakistan Cotton Ginners Association (PCGA) on Thursday. Despite prolonged rainfall and flooding in several cotton-growing regions, a sharp increase has come, raising hopes of a reduced import bill for raw cotton and edible oil.

The PCGA report shows that ginning factories in Punjab received 690,000 bales during the period, reflecting a 28pc increase from last year, while Sindh reported a 47pc rise, with 1.314m bales reaching ginneries. The overall output suggests an early recovery in the cotton sector, which has faced multiple challenges recently.

Ihsan-ul-Haq, chairman of the Cotton Ginners Forum, attributed the growth to several factors, including widespread early sowing in Punjab, higher temperatures that accelerated boll development, and a substantial increase in production from Sindh.

Market activity also increased, with textile mills purchasing 1.652m bales — around 300,000 more than last year — while exporters acquired 26,400 bales. The increase in buying activity signals improved confidence in domestic supply.

Sri Lanka eyes 6% growth in 2026

Sri Lanka aims to boost its economic growth to 6% in 2026, partly through record government capital expenditure. However, a minister said delays in passing the budget could hamper the country’s performance this year.

Anil Jayantha Fernando, labour minister and deputy minister of economic development, said Sri Lankans and investors should be “hopeful” as the island nation climbs out of the financial crisis that hit in 2022, its worst since independence.

Sri Lanka recorded economic growth of 5% in 2024. Fernando told Reuters in an interview that this year, it would likely slow to 4% to 4.5%, as delays in passing the budget slowed government spending. “Next year ... we will need 5 to 6% growth. We will aim for that,” he said. In the long run, after five years, we target maintaining an average GDP growth rate that emerging countries maintain. That is around 6 to 7%.” He added that the government planned to increase its capital expenditure by 8% in 2026 to a record 1.4 trillion rupees ($4.64 billion).

The International Monetary Fund, which bailed out Sri Lanka in March 2023, has predicted GDP growth of 3.3% this year and 5.2% in 2026. Official data showed that the economy grew 4.9% yearly in the second quarter of 2025. The minister added that the government projections will likely feature in the upcoming budget and have not been previously reported.

PM Shehbaz orders assessment of flood damages for rehab plan

Prime Minister Shehbaz Sharif directed all provinces and relevant institutions to comprehensively assess the damage caused by the recent rains and floods to prepare an effective rehabilitation plan.

Chairing a meeting in Islamabad, he praised the “timely and effective actions” taken by provincial chief ministers in response to the weather-related challenges, but stressed the need for coordinated efforts.

PM Shehbaz said that assessments must account for human and financial losses and ‘the destruction of crops and losses in livestock.” He advised officials to seek satellite-based data from Suparco and called for immediate measures to protect crops against post-flood diseases.

During monsoon rains and flash floods since June 26, across the country, 998 people have lost their lives. Khyber-Pakhtunkhwa (K-P) recorded the highest casualties with 504 deaths, followed by Punjab with 283, Sindh with 71, G-B with 41, and Balochistan with 26 deaths.

Punjab topped the list of injured with 660 cases, while K-P reported 214, Sindh 87, Gilgit-Baltistan (G-B) 52, Azad Jammu and Kashmir 37, and Balochistan five.

The calamity also caused widespread property damage. In K-P alone, 3,217 houses were damaged — 700 completely and 2,517 partially. Damage has also been reported in other regions: 2,411 houses in AJK, 1,260 in G-B, 1,009 in Balochistan, 281 in Sindh, and 238 in Punjab.

India and Bhutan approve 297 projects worth Rs 406 crore

India and Bhutan reviewed and approved 297 projects for a total amount of Nu. 4.06 billion (Rs 406 crore) as the second batch of High Impact Community Development Projects (HICDPs) for the 13th Five-Year Plan (FYP) period.

The decision was taken during the 2nd India-Bhutan HICDP Committee Meeting, which was held between officials of the two countries in Thimphu.
The Indian delegation at the meeting was led by Aniket G. Mandavgane, Deputy Chief of Mission, Embassy of India in Thimphu, while the Bhutanese side was led by Pema Tshomo, Director, Bilateral Department, Ministry of Foreign Affairs and External Trade.

HICDPs are small projects with a short implementation timeline. They cover rural connectivity, drinking water supply, irrigation, agriculture infrastructure, flood protection, tourism development, township infrastructure development, and waste management. Local governments implement them, particularly in rural and semi-urban areas.

For Bhutan’s 13th Five-Year Plan period, the Government of India has committed assistance of Nu. 100 billion (INR 10,000 crore), of which Nu. 10 billion (INR 1,000 crore) has been earmarked for HICDPs.

According to a statement issued by the Embassy of India in Bhutan, the meeting also reviewed the progress in implementing the first batch of HICDP projects. It approved its revision to 275 projects, totaling Nu. 4.40 billion (INR 440 crore).

These projects are expected to enhance accessibility and economic opportunities for the local communities and improve livelihoods, job opportunities, and food security.