Finance 💰 Floods 🌊 Future 📈

Another Week, Another Pulse!

Unrelenting monsoon rains have continued to wreak havoc across the country. From mounting safety concerns to the economic challenges emerging in the aftermath of the floods, the nation has faced a difficult week.Nearly half a million people have been displaced by flooding in eastern Pakistan. In response, the Asian Development Bank has announced a $3 million grant for emergency relief and is also set to fund a climate-resilient agriculture project in Punjab to help small farmers access modern equipment and reduce the sector’s environmental impact. Heavy rains and flooding across Punjab have disrupted food supplies to Lahore, causing shortages in wholesale markets and sharp price hikes in poultry, vegetables, and fruits.

On the policy front, a small cut in petrol prices is expected as the government preps its fortnightly review. Big moves are happening in the digital space too: Pakistan’s Virtual Assets Regulatory Authority held its first-ever board meeting, mapping out a national framework for digital assets, sandbox trials, taxation, and even considering a rollback of the SBP’s 2018 crypto ban. The State Bank also launched a Regulatory Sandbox under its Vision 2028 strategy to drive innovation, boost inward remittances, and strengthen digital finance.

Meanwhile, the government is cracking down on used car imports, banning accidental and low-quality vehicles and slapping a 40% tariff on commercial imports starting next month. And in a major reform push, a new Bankruptcy Law has been proposed under the Industrial Policy to give businesses a clearer path through financial distress.

Here’s a quick roundup of everything you need to know from this week.

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The Pakistan Stock Exchange (PSX) wrapped up the week on a bullish note, with the benchmark KSE-100 index surging 1,274 points to close at 148,618 — up 0.86% day-on-day. After a turbulent week, the market bounced back on investor optimism surrounding flood rehabilitation spending and a potential recovery in cyclical sectors.

Pace Pakistan Approves Rs.1.08 Billion Debt-to-Equity Swap

Pace (Pakistan) Limited (PACE) is tackling its debt by turning over Rs. 1.08 billion worth of loans into company shares instead of paying back in cash. This move reduces the company’s debt burden and gives lenders ownership stakes in the business. To make this possible, Pace is also tripling its authorized capital so it can issue more shares. The plan still needs regulatory approvals, but if cleared, it could help stabilize the company’s finances and give it room to grow.

Govt Confirms ADB Financing for Long-Delayed ML-1 Railway Project

After years of delays, the Asian Development Bank (ADB) has officially agreed to finance Pakistan’s long-awaited ML-1 railway project, which will modernize the country’s main rail line from Karachi to Peshawar. This marks a big step forward for a project once stuck due to financing disputes. The ADB has promised phased funding, with the Karachi–Rohri section set to start first. If approvals move quickly, this upgrade could transform passenger travel, boost trade, and improve regional connectivity.

Govt increases EOBI pensions by 15pc

Starting September 1, 2025, around 500,000 EOBI pensioners will receive a 15% pension increase along with arrears, as the government raises the minimum pension from Rs10,000 to Rs11,500 per month. Those with longer service records could now get over Rs30,000 monthly. The government also plans to expand EOBI coverage to informal, domestic, and agricultural workers, aiming to provide broader social protection for Pakistan’s workforce.

President assents to Land Port Authority Bill

President Asif Ali Zardari has approved new laws to improve trade, security, and governance. A new Land Port Authority will now manage border crossings to make trade and travel faster and smoother. Balochistan has got a new representative on the National Finance Commission to help decide how money is shared between provinces. The government has also introduced stricter laws to stop fuel smuggling and illegal petrol pumps with better tracking and heavier fines. Another law strengthens the criminal justice system to improve law and order.

World Bank Approves $47.9 Million Grant to Boost Primary Education in Punjab

The World Bank has approved a $47.9 million grant to improve primary education in Punjab, aiming to bring more children especially those out of school into classrooms and enhance learning outcomes. The project will expand early childhood education, support teachers, strengthen remedial learning, and make the education system more resilient to challenges like climate change. It is expected to benefit over 4 million children, including differently abled students, and provide training and support to more than 100,000 teachers and school leaders, aligning with Punjab’s broader education reform agenda for a more inclusive and effective education system.

SBP Launches Performance Evaluation System for Equity Investment Abroad

The State Bank of Pakistan (SBP) has launched the Performance Evaluation System for Investment Abroad (PESIA), a new online platform to streamline and monitor equity investments made by Pakistani companies overseas. Through PESIA, banks will report all related approvals, remittances, and performance data via SBP’s Data Acquisition Portal, with strict monthly and annual reporting deadlines. The system aims to boost transparency, ensure accurate compliance, and hold banks accountable for timely submissions, with penalties for errors or delays under foreign exchange laws.

In July 2025, mutual fund investors favored safer and growth-focused options, with Shariah Compliant Fixed Rate/Return funds jumping 19% as people sought stable, ethical returns amid market uncertainty. Index Tracker and Equity Funds also gained over 11% each, driven by a stock market rally and optimism about economic growth. On the flip side, Aggressive Fixed Income funds plunged 56%, while Shariah Compliant Aggressive Fixed Income and Shariah Compliant Asset Allocation funds fell nearly 10% and 5%, respectively, as risk-averse investors moved away from volatile debt and mixed portfolios toward more predictable, Shariah-compliant, and equity-focused options. Seeing these industry trends? Plan your portfolio wisely and download the Behtari app today to start investing with ease.

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