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Key Economic Indicators

FPCCI Warns of Growing Economic Risks

FPCCI President Atif Ikram Sheikh has warned that Pakistan’s widening trade deficit threatens macroeconomic stability and foreign exchange reserves. The deficit increased by 18.1% to $7.1 billion during the first two months of FY27, compared with $6.025 billion a year earlier. While acknowledging a modest recovery in economic activity, Sheikh said import growth had significantly outpaced the increase in exports, intensifying pressure on the country’s external financial position.

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Key Economic Indicators

SECP Proposes Flexible REIT Rules

The Securities and Exchange Commission of Pakistan has proposed amendments to the REIT Regulations, 2022, aimed at attracting investment and expanding investor participation. The reforms would reduce the real estate income and asset thresholds from 75% to 65%, offering greater flexibility in structuring Real Estate Investment Trust portfolios. They would also broaden the range of eligible projects. Investment-based REIT schemes would be permitted to invest in vacant land and plots, subject to applicable regulatory requirements.

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Key Economic Indicators

Remittances Rise to $3.656 Billion in August

Pakistan received $3.656 billion in workers’ remittances in August 2026, up 16.5% year-on-year and 0.7% month-on-month, according to the State Bank of Pakistan. Cumulative inflows rose 14.7% to $7.3 billion during July-August FY27, compared with $6.4 billion last year, while FY27 remittances are expected to reach $43.7 billion. Saudi Arabia led with $873.5 million, up 19% annually but down 4% monthly. UAE inflows reached $749.8 million, rising 17% annually and 2% monthly. The UK contributed $563.7 million, up 22% year-on-year, while US inflows increased 16% annually to $308.9 million but fell 2% monthly. EU remittances rose 7% month-on-month to $496 million.

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Government Simplifies Federal Pension Payments

The Finance Ministry has introduced new measures to simplify federal pension payments. Commercial banks will no longer handle biometric verification or validate proof-of-life certificates. Pension-disbursing accounts will also be exempt from dormancy requirements, ensuring uninterrupted payments. The government has abolished the physical “Disburser’s Half” documentation process, while all federal pensions will now be paid exclusively through the Direct Credit System. The revised standard operating procedures supersede all previous SOPs.

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