News

Escalating tensions with India to impact Pakistan’s economic growth: Moody’s

Global rating agency Moody’s on Monday said that escalating tensions between India and Pakistan would weigh on Pakistan’s economic growth. An attack on April 22 in occupied Kashmir’s Pahalgam killed 26 people, mostly tourists, in one of the deadliest assaults since 2000. India has implied cross-border links without evidence, while Pakistan has rejected the claim and called for a neutral probe.

SBP cuts interest rate by 100bps to 11pc

The State Bank of Pakistan (SBP) cut the policy rate on Monday to 11 per cent, amid trade and industry sectors advocating for a significant cut. The central bank’s policy rate, after being slashed by 1,000bps from 22pc since June 2024 in six intervals, previously stood at 12pc. April inflation stood at a low of 0.3pc, largely due to a high base a year ago. The reduction is also primarily att

PSX tumbles as border tensions turn investors jittery

KARACHI: Rising tensions between nuclear-armed neighbours kept investors nervous, leading them to reduce their positions amid fears of full-scale war. This fuelled uncertainty about the economy and pushed the Pakistan Stock Exchange (PSX) further into the red zone in the outgoing week. On Wednesday, the PSX witnessed a bloodbath caused by the information minister’s statement regarding an immine

Local businesses wary of conflict

Corporate Pakistan may share in the patriotic surge across the country, but business leaders, mindful of the risks, are calling for swift de-escalation of tensions with India. Some warn the conflict threatens South Asia’s economic potential, especially as global trade pivots toward regional integration. They note the rising pressure on the capital market, currency, and supply chains — particula

Will AI work with our demographic dividend?

For many years, Pakistan’s story — particularly, the case for investing — has largely pinned on some variation of the demographic dividend. Basically, the fact that we have a huge youth population of digital natives not only makes us a potential powerhouse as a consumer market but also an attractive source of raw talent. While the argument has merit, it’s not without caveats, which have an inverse