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World Bank Urges Pakistan to Reform Fiscal Federalism and Tax System

The World Bank, in its report titled “Strengthening Fiscal Federalism in Pakistan,” said that Pakistan has made “meaningful” progress in fiscal federalism since 2010. However, the World Bank has called for sweeping reforms to Pakistan’s fiscal federalism framework, warning that the current system is weakening revenue collection, widening the federal fiscal deficit, and limiting efficient public spending. In its latest report, the lender said that fragmented taxation following the 18th Constitutional Amendment, delayed NFC Awards, underutilized agricultural and property taxes, and weak local governments have reduced fiscal efficiency. It recommended harmonizing the GST system, reforming the NFC formula, strengthening local governments, improving tax collection, and aligning expenditure responsibilities with available financial resources. The report also stressed reviving fiscal institutions to promote sustainable economic growth, better governance, and improved public service delivery across Pakistan.

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Former Ethiopian Airlines CEO Shortlisted for PIA Top Job

Pakistan International Airlines Corp has reportedly shortlisted Tewolde Gebremariam, former CEO of Ethiopian Airlines Group, for the top role at the newly privatised carrier. The appointment is expected to be officially announced by Sunday, according to media reports. During Tewolde’s leadership, Ethiopian Airlines was transformed into Africa’s largest carrier, with Addis Ababa being developed as a major transit hub connecting cities across the continent.

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Pakistan Railways Revenue Hits Record Rs115bn Despite Losses

Pakistan Railways (PR) recorded its highest annual revenue of Rs115.157bn in 2025-26, up 24.19% YoY, though losses were still reported due to limited capacity to compete with road transport. Passenger revenue was raised to a record Rs50.590bn, while freight earnings were increased to Rs40.781bn from Rs31.91bn, showing 27.78% annual and 45% two-year growth. Sundry revenue was lifted 90.82% to Rs16.401bn. Property and land generated Rs11.99bn, scrap sales added Rs1.96bn, and commercial activities contributed Rs2.12bn. Total earnings rose from Rs88.79bn in 2023-24 to Rs92.72bn in 2024-25 and Rs115.15bn in 2025-26. Cash inflows were increased to Rs120.07bn from Rs96.37bn.

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Pakistan’s Gas Tariff Decision Held Up by OGRA Legal Dispute

The government’s July 1, 2026 deadline for notifying the biannual gas tariff has been missed amid over Rs3.44 trillion circular debt in the gas sector. The delay has been linked to legal questions over the acting appointment of Establishment Secretary Nabeel Ahmad Awan as Ogra chairman. His appointment was challenged in court, while volatile global energy prices further complicated tariff calculations. Public hearings on gas utilities’ revenue requirements were postponed before being held by the Awan-led Ogra.

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