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Pakistan Moves to Revive Roosevelt Hotel with $5 Billion Investment

ISLAMABAD: Pakistan is aiming to secure up to $5 billion in investment to redevelop the Roosevelt Hotel in New York City, as part of efforts to maximize returns from one of its most valuable international properties.

Government officials indicate that a financial adviser will soon be appointed to design the investment structure and engage potential global partners for the redevelopment initiative. The Roosevelt Hotel, located in Manhattan’s Midtown district and owned by Pakistan International Airlines (PIA), has been closed since 2020 due to prolonged financial challenges during the pandemic.

Built in 1924, the landmark property is located in a globally significant commercial area. Authorities are exploring plans to convert the site into a large-scale mixed-use or high-rise development through a joint venture. Under this model, Pakistan would retain ownership of the land while private investors would contribute the required capital.

The move follows a cooperation framework agreed between Pakistan and the United States to support the redevelopment process and help navigate regulatory and zoning procedures in New York. Officials consider the project an important component of broader reforms aimed at restructuring state-owned assets, attracting foreign direct investment, and expanding economic collaboration between the two countries.

The proposed redevelopment aligns with Pakistan’s wider economic reform agenda and ongoing financial stabilization efforts. Analysts believe that, if executed effectively, the project could substantially increase the property’s market value and generate sustainable long-term revenue.

Despite optimism, observers note that the initiative’s outcome will depend on investor participation, clear financial planning, and efficient execution, as several key financing and timeline details remain under discussion.

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CategoriesNews Economy Property Laws Real Estate Taxes

Balochistan Revenue Authority Mandates Registration of Property Dealers

QUETTA: The Balochistan Revenue Authority (BRA) has directed property dealers, real estate agents, and related service providers across the province to register with the tax authority and comply with the newly enforced sales tax regulations, according to an official announcement issued recently.

Under the directive, individuals and businesses engaged in services related to the buying, selling, and renting of immovable property are required to obtain formal registration with the BRA and ensure the timely submission of tax returns for each applicable tax period. The authority has introduced a 5% sales tax on property-related services in accordance with amendments made by the Finance Act 2025 under the Balochistan Sales Tax on Services Act, 2015.

Officials stated that the measure aims to improve transparency and documentation within the real estate sector, which has historically remained under-regulated in terms of tax compliance. By bringing property service providers into the formal tax framework, the government expects to strengthen provincial revenue collection while promoting accountability in property transactions.

The BRA has warned that failure to comply with the registration and tax payment requirements may result in penalties, legal proceedings, or enforcement actions under relevant tax laws. Authorities emphasized that unregistered agents or those who fail to submit returns could face strict action as part of broader efforts to ensure adherence to fiscal regulations.

Tax officials noted that the initiative is part of ongoing reforms aimed at expanding the tax base and reducing revenue leakage in the service sectors. Stakeholders in the real estate industry have been urged to cooperate with the authority and complete registration procedures promptly to avoid disruptions to their business operations.

The development reflects increasing regulatory oversight of Pakistan’s property market as provincial governments seek sustainable revenue sources amid growing fiscal pressures.

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CategoriesNews Economy

IMF Acknowledges Pakistan’s Economic Stabilisation Following Reform Measures

ISLAMABAD: The International Monetary Fund (IMF) has acknowledged a notable improvement in Pakistan’s economic conditions, citing policy reforms implemented under the country’s ongoing IMF-supported programme.

According to IMF Communications Director Julie Kozack, Pakistan’s recent policy efforts have contributed to macroeconomic stabilisation and helped restore confidence in financial markets. The assessment comes as the country continues to implement reforms under the Extended Fund Facility (EFF).

The IMF highlighted Pakistan’s strengthened fiscal performance, noting that the country achieved a primary fiscal surplus of approximately 1.3 percent of GDP in fiscal year 2025, meeting programme targets. Improved revenue collection and tighter fiscal discipline were identified as key factors behind the progress.

Pakistan’s external sector has also shown signs of recovery, with the country recording its first current account surplus in over a decade. The development signals reduced pressure on foreign exchange reserves and improved balance-of-payments stability.

Inflation, which surged during the recent economic crisis, has begun to moderate, reflecting the impact of monetary tightening and stabilisation measures. IMF officials emphasised that these trends indicate a gradual easing of macroeconomic pressures.

An IMF mission is expected to visit Pakistan later this month to conduct programme review discussions, including assessments under both the Extended Fund Facility and the Resilience and Sustainability Facility.

Despite recognising the progress, the IMF stressed the importance of maintaining reform momentum. Continued fiscal discipline, structural reforms, and prudent economic management will be essential to sustaining stability and supporting long-term growth.

The Fund described Pakistan’s recent performance as a shift toward economic stabilisation rather than a full recovery, underscoring the need for consistent policy implementation in the months ahead.

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Umrah Prices Rise Sharply
CategoriesNews Economy Ramadan

Umrah Prices Rise Sharply as Pilgrims Rush to Book Flights for Ramazan

LAHORE: With the commencement of Ramazan, the holiest month for Muslims, demand for Umrah travel has risen sharply, leading to a significant increase in airfare prices. Umrah, a pilgrimage to Mecca, Saudi Arabia, is a highly anticipated spiritual journey, especially during Ramazan, when many Muslims aim to complete their religious obligations.

The surge in demand has led to a noticeable increase in airline ticket prices, with domestic and international airlines raising fares. Reports indicate that business-class tickets, which were previously priced at around Rs 425,000–Rs 450,000, have now risen to an astonishing Rs 500,000. Similarly, economy and economy-plus tickets, which were available at rates of Rs 130,000–Rs 140,000 earlier, are now being sold at Rs 180,000–Rs 200,000. This price hike has left many pilgrims struggling to accommodate the rising costs in their travel budgets.

Travel agents attribute this surge to the seasonal rush, as many pilgrims prefer to undertake the journey to Mecca during the holy month of Ramazan. The influx of bookings, especially for flights departing in the early and later Ashra, or the ten-day periods, has led to limited seat availability. Consequently, airlines have raised fares to capitalize on the growing demand. Many flights are now fully booked, and only a few seats remain, often at premium prices.

For some pilgrims, this unexpected rise in airfares has made it more difficult to plan their pilgrimage. Families who had previously booked tickets months in advance at lower rates are now finding it difficult to cover the additional financial burden caused by the fare surge.

As the holy month progresses, the situation may become more challenging for individuals and families looking to embark on their spiritual journey, further underscoring the trend of rising airline costs during peak travel seasons.

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CategoriesNews Economy

SBP Pushes Banks to Deepen Agri-Finance

KARACHI: The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has called on banks to expand the agricultural borrower base, strengthen inclusion of small farmers, and accelerate digital delivery channels to support sustainable growth in the farming sector.

Speaking at a meeting of the Agricultural Credit Advisory Committee (ACAC) in Karachi on Thursday, the governor emphasised that agriculture remains vital for improving farm productivity, supporting rural livelihoods, and ensuring food security. He stressed the need to enhance agricultural financial intermediation to promote value addition, market linkages, and long-term sectoral growth.

During FY2024-25, agricultural credit disbursement reached a record Rs2,577 billion, reflecting a 16% annual increase. Building on this momentum, disbursements in the first half (July-December) of FY2026 amounted to Rs1,412 billion, while the number of borrowers rose to 2.97 million.

Highlighting macroeconomic improvements, Ahmad noted that Pakistan’s real GDP grew by 3.7% in the first quarter of FY2026, with full-year growth projected between 3.75% and 4.75%. Headline inflation moderated to 5.8% by January 2026, allowing monetary policy to support growth while maintaining price stability.

The governor urged banks to leverage initiatives such as the Risk Coverage Scheme for Small Farmers and Underserved Areas and Zarkheze, the SBP’s flagship digital agricultural lending platform. Zarkheze enables digital onboarding, standardised credit assessment, land record integration, and end-to-end loan traceability.

The committee also reviewed progress on upgrading crop loan insurance under the ADB-supported Pakistan Insurance Transformation Programme and discussed scaling up Electronic Warehouse Receipt Financing to enhance post-harvest liquidity.

Ahmad outlined three priorities for banks: expanding borrower outreach, deepening inclusion of small farmers, and extending agricultural finance to underserved regions.

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CategoriesNews Economy Investment Trade

Pakistan, Canada Review Trade and Investment Cooperation

ISLAMABAD: Pakistan and Canada have reviewed the status of bilateral trade and investment cooperation during a telephonic conversation between Commerce Minister Jam Kamal Khan and Canada’s Minister of International Trade Maninder Sidhu. The discussion focused on strengthening economic engagement and expanding collaboration across multiple sectors.

Both sides acknowledged ongoing trade ties and discussed measures to enhance market access and facilitate smoother commercial exchanges. Canadian authorities appreciated Pakistan’s support in enabling the resumption of canola shipments, describing it as a positive development for agricultural trade between the two countries.

The dialogue also explored opportunities to diversify trade beyond traditional areas. Pakistan highlighted its export capabilities in textiles and apparel, leather goods, agro-based products, surgical instruments, sports goods, paper, plastics, and footwear. The country’s growing capacity in value-added food processing and higher-value manufacturing segments was also outlined.

Investment prospects were discussed, particularly in the minerals and mining sector, which Pakistan identified as a priority area for industrial development. Canadian firms were encouraged to explore potential ventures in this field as part of broader economic cooperation.

Officials from both countries agreed to continue engagement at technical and policy levels to identify priority areas and address trade-related matters. The interaction reflects ongoing efforts by Islamabad and Ottawa to expand bilateral economic relations and explore new avenues for collaboration in trade and investment.

The meeting was also attended by senior officials, including representatives from diplomatic and trade missions, as part of continued dialogue between the two governments on economic cooperation.

Pakistan–Uzbekistan Economic Ties
CategoriesNews Developments Economy Investment Trade

$3.4bn Agreements Boost Pakistan-Uzbekistan Economic Ties, $2bn Trade Target

ISLAMABAD: Pakistan and Uzbekistan signed Business-to-Business (B2B) agreements worth $3.4 billion at the Pakistan–Uzbekistan Business Forum in Islamabad, marking a major step forward in bilateral economic cooperation.

The forum was attended by Prime Minister Shehbaz Sharif and visiting Uzbek President Shavkat Mirziyoyev, who is on a two-day state visit to Pakistan. Addressing business leaders and ministers from both sides, Prime Minister Sharif invited Uzbek firms to explore investment opportunities in Pakistan’s textile, pharmaceutical, mining, agriculture and tourism sectors.

The private-sector agreements span multiple industries, including textiles, pharmaceuticals, leather, engineering goods, and agriculture. Both leaders assured investors of a conducive business environment and pledged zero tolerance for corruption and bureaucratic hurdles. Prime Minister Sharif described himself as the “CEO of Pakistan” for the forum and assured business leaders that any bottlenecks would be removed promptly.

The two countries also signed a protocol to raise bilateral trade to $2 billion within five years. Both sides termed the target “ambitious yet achievable,” emphasizing that structured programs and policy frameworks are already in place to facilitate growth. Uzbekistan offered 10-year tax exemptions and support to Pakistani pharmaceutical companies and invited Pakistani expertise to manage approximately 30 high-tech textile enterprises.

Connectivity remained a central focus during the visit. Both countries reaffirmed their commitment to the Uzbekistan–Afghanistan–Pakistan (UAP) Railway Project and endorsed the Termiz–Kharlachi route, recognizing its importance for regional integration and trade expansion.

In addition, the Anti-Corruption Agency of Uzbekistan and Pakistan’s National Accountability Bureau signed an MoU to strengthen cooperation against corruption. Later, President Asif Ali Zardari conferred the Nishan-e-Pakistan upon President Mirziyoyev in recognition of his efforts to strengthen bilateral ties.

The visit underscored a shared commitment to deepening strategic partnership and expanding economic collaboration between the two countries.

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CategoriesNews Economy Investment

SBP Completes Redesign of Banknotes with Enhanced Security Features

ISLAMABAD: The State Bank of Pakistan (SBP) has completed the development of new banknote designs incorporating updated security elements and has submitted them to the federal cabinet for formal approval. The progress was shared during a meeting of the Senate Standing Committee on Finance and Revenue.

According to SBP Governor Jameel Ahmad, the proposed designs have already been cleared by the central bank’s board. He informed lawmakers that the printing process will commence once the cabinet grants its approval. The introduction of the new notes into circulation will take place gradually, beginning after sufficient stock has been produced to replace existing notes.

The redesign initiative is intended to strengthen safeguards against counterfeiting and modernise Pakistan’s currency framework. Officials indicated that more than one denomination may be printed at the same time; however, no details were provided regarding which notes will be released first.

At present, currency denominations in circulation include Rs10, Rs20, Rs50, Rs75, Rs100, Rs500, Rs1,000 and Rs5,000. The committee session, chaired by Senator Saleem Mandviwala, also addressed matters related to financial oversight and regulatory administration.

In a separate development, the SBP’s Monetary Policy Committee decided to maintain the benchmark interest rate at 10.5 percent in its first meeting of 2026. The rollout of the redesigned currency will proceed once the necessary approvals are completed and production benchmarks are achieved.

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CategoriesNews Construction Developments Economy Investment Urban Developments & Planning

Balochistan Government Establishing Business Facilitation Centre in Gwadar

GWADAR: The Balochistan government is in the process of setting up a Business Facilitation Centre (BFC) in Gwadar to provide administrative and regulatory services to the business community. The facility is expected to become operational in the near future.

The centre will operate as a one-window platform, bringing together representatives from various government departments to process applications and approvals required for business activities. Services to be offered include the issuance of no-objection certificates (NOCs), licenses, permits, and other regulatory clearances needed to initiate or expand commercial operations.

A digital coordination system is being introduced to connect relevant departments and support the processing of applications. Business Facilitation Officers will be stationed at the centre to assist applicants and manage documentation and procedural requirements.

The initiative is part of ongoing administrative measures aimed at improving service delivery for investors and businesses operating in Gwadar. The centre is intended to centralise procedures that are currently handled by multiple offices.

The decision to establish the facility was discussed during meetings between representatives of the business community and provincial authorities responsible for investment and trade. The Business Facilitation Centre will function as a dedicated point of contact for investors seeking regulatory approvals related to business operations in Gwadar.

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Industrialists Welcome PM’s Relief Package
CategoriesNews Economy Investment

Industrialists Welcome PM’s Relief Package as FBR Demands Raise Concerns

KARACHI: Business leaders across Pakistan have welcomed the relief package announced by Prime Minister Shehbaz Sharif, calling it a timely intervention to ease mounting cost pressures on industry and exporters. However, foreign investors have simultaneously raised concerns over fresh tax demands issued by the Federal Board of Revenue (FBR).

The prime minister’s package includes a reduction of Rs4.04 per unit in electricity tariffs for industry, lower wheeling charges, and a cut in the export refinance scheme rate from 7.5% to 4.5%. Exporters will also receive “blue passports” to facilitate international business travel.

While domestic industry leaders described the measures as bold and supportive, the Overseas Investors Chamber of Commerce and Industry (OICCI) urged authorities to show flexibility on tax compliance deadlines. Its chief executive, M. Abdul Aleem, suggested that outstanding super tax demands be adjusted against pending tax refunds before requiring additional payments, calling for a more business-friendly approach.

Export associations echoed the positive sentiment. Representatives of the Pakistan Hosiery Manufacturers and Exporters Association said the energy and financing relief would help struggling exporters remain competitive amid high global cost pressures and liquidity constraints.

Similarly, the Korangi Association of Trade and Industry noted that lower power tariffs and cheaper financing could stimulate production, revive industrial activity, and support export growth.

Despite fiscal challenges, the relief package has been widely viewed as a step toward stabilizing industry, though tax policy uncertainties continue to weigh on investor confidence.

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