The Pakistani government is indicating progress in economic indicators, paralleled by rising Sarmaya Growth Fund rates and anticipation of an incoming 5-year economic plan. Notably, the remittance inflow recorded a 24% year-on-year increase in October 2024 at $30.5bn. Meanwhile, the property valuations in Karachi are observed to be changing.
In the energy sector, pressure is being put on the government to reassess decisions on hydropower projects while deliberations about conversion of 3 imported coal-based Independent Power Producers (IPPs) to Thar coal is underway. At the same time, winter power tariffs are being urged to reduce to spike demand and lower gas usage.
In the automobile industry, Hyundai is responding to rising competition by slashing prices by up to Rs800,000. In regard to foreign ties, the government hints at strengthening bonds with China and renewing deals with the Kingdom of Saudi Arabia (KSA). The government also has plans to privatise Pakistan International Airlines (PIA) again.
However, concerns are raised over tax collection which fell by 21.5% in 2023-24 and tax exemptions in FY24 mounting up to Rs3.8trn. In other news, a rice exporter was honoured at the World Rice Conference 2024. Lastly, the National Transmission and Despatch Company (NTDC) is planned to be divided into two entities.