Economy

HomepageEconomy

Category: Economy

Sound investment decisions are built on economic understanding. At Chakor, our Economy section covers the macroeconomic trends, policy shifts, market movements, and financial developments that directly influence real estate, construction, and investment across Pakistan.

Whether you are tracking inflation, interest rates, or GDP growth, we break down what matters and what it means for your decisions.

Pakistan, ADB Set to Transform Railways
CategoriesNews Developments Economy Transport Urban Developments & Planning

Pakistan, ADB Set to Transform Railways with $1.2 Billion ML-1 Deal

ISLAMABAD: Pakistan and the Asian Development Bank (ADB) have agreed to ensure the timely completion of documentation and procedural formalities to accelerate the implementation of the Main Line-1 (ML-1) railway project, with a focus on the Karachi-Rohri section.

A high-level meeting chaired by Minister for Economic Affairs Ahad Cheema reviewed the project’s implementation framework and deliberated on measures to fast-track progress. Secretary Economic Affairs Muhammad Humair Karim and Secretary Railways Mazhar Ali Shah briefed the participants on ongoing preparatory arrangements, while ADB Country Director Emma Fan and senior Bank officials also took part in the discussions.

The ADB is expected to approve a financing facility of approximately USD 1.2 billion to rehabilitate the Karachi-Rohri section of Pakistan Railways’ ML-1 project. The Bank is also planning to engage other development partners as co-financiers for the remaining corridor stretching from Karachi to Peshawar.

Minister Cheema directed the Ministry of Railways to accelerate the documentation process in close coordination with the ADB and the Economic Affairs Division. He underscored that Prime Minister Shehbaz Sharif is keen to hold the groundbreaking ceremony for the ML-1 project this year, and that securing ADB funding in the upcoming fiscal year remains a key government priority.

The Minister further instructed the Ministry of Railways to work in tandem with the Planning Division to ensure readiness of the PC-1 and all other mandatory project requirements, emphasising efficiency and transparency throughout the process.

ADB Country Director Emma Fan reaffirmed the Bank’s commitment to supporting Pakistan in expediting documentation and related formalities. She confirmed that the ADB would ensure the timely hiring of the PRF consultant and would endeavour to minimise the project review timeline.

ML-1 is regarded as a strategically significant initiative that will substantially improve freight movement and strengthen railway services nationwide.

For more news on real estate and special reports, visit Chakor Ventures.

Sources:

CategoriesDeforestation Economy Environment

Miyawaki Forest: Smart Solution for Greener Cities 2026

Cities are getting hotter. Green spaces are shrinking. Biodiversity is disappearing from urban landscapes at an alarming rate. The world urgently needs a smart, scalable, and proven solution. The Miyawaki Forest is exactly that.

This rapid urban reforestation method is transforming roadsides, school grounds, and barren plots into thriving ecosystems. It is gaining momentum across Asia, Europe, the Americas, and the Middle East. 

Quick Facts: Miyawaki Forest at a Glance

Factor Detail
Invented By Professor Akira Miyawaki, Japan (1970s)
Minimum Land Required As small as 9 sq meters
Planting Density 3 saplings per square meter
Growth Speed Up to 10x faster than conventional forests
Self-Sustaining After 2–3 years
Global Trees Planted 40+ million native trees worldwide
Also Known As Pocket Forest, Tiny Forest, Urban Mini-Forest

What Is a Miyawaki Forest?

Miyawaki Forest

A Miyawaki Forest is a dense, multi-layered plantation of native trees and shrubs. It is grown on very small plots of land. The method recreates the structure of a natural, mature forest but in a fraction of the time.                                            It is also known as a Tiny Forest or Pocket Forest. These names all refer to the same core concept: planting diverse native species in close proximity to mimic how nature builds forests.

The minimum land required is 9 square meters. This makes it perfect for cities where open land is scarce.

Who Was Akira Miyawaki?

Akira Miyawaki

The method is named after Professor Akira Miyawaki. He was a Japanese botanist and plant ecology expert. He spent over 40 years studying how native forests naturally regenerate.

His research led him to a powerful conclusion. If you plant the right native species, in the right density, the forest takes care of itself. He educated people on planting across more than 1,700 sites worldwide. Over 1,400 of those were in Japan alone. His work has resulted in the protection of more than 3,000 primary forests and the planting of over 40 million native trees globally. His legacy is now growing faster than ever.

The Core Principle: Potential Natural Vegetation

Potential Natural Vegetation

Every region on Earth has a natural plant community that would thrive there without human interference. Scientists call this the Potential Natural Vegetation (PNV).

The Miyawaki Forest method is built on this concept. Only species that belong naturally to a given area are selected. These indigenous plants have spent thousands of years adapting to the local soil, rainfall, and climate. They do not need fertilisers. They do not need pesticides. They simply grow.

This is what makes the approach fundamentally different from conventional tree planting.

How Does the Miyawaki Method Work?

Miyawaki Method Work

The science behind a Miyawaki Forest is elegant. When native trees are planted very close together, they compete for sunlight. This competition forces them to grow rapidly upward rather than spread sideways.

The result is fast, dense, vertical growth. The canopy closes quickly. It shades out weeds. Leaf litter builds up. Soil fertility improves. Insects, birds, and beneficial fungi arrive naturally. The entire ecosystem assembles itself.

After just two to three years, the forest becomes completely self-sustaining. No watering. No weeding. No maintenance required.

Studies and practitioners report that a Miyawaki Forest can grow up to 10 times faster than a conventional plantation. It can also support up to 30 times more biodiversity. It is worth noting that some ecologists have raised questions about these figures. The faster growth may reflect quicker ecological succession rather than raw tree height. This distinction matters for setting realistic expectations.

The 4-Step Planting Process

Planting a Miyawaki Forest follows a clear, structured process.

The 4-Step Planting Process

Step 1: Survey and Identify Native Species

The first step is to study the site carefully. Botanists identify which species would naturally grow within about 20 kilometres of the location. A recommended diversity range is 50 to 100 native species. Local and indigenous knowledge is invaluable at this stage.

Step 2: Prepare the Soil

Urban soils are often compacted and nutrient-poor. The soil is improved by digging pits and incorporating organic matter. Compost, manure, and dead vegetation are commonly used. A slight mound is sometimes built to mimic the natural forest floor. Cardboard and a thick layer of wood chips or compost are placed on top to suppress weeds and retain moisture.

Step 3: Dense Planting

Saplings up to 80 centimetres tall are planted at approximately 3 per square metre. No two saplings of the same species are placed next to each other. All species are planted at the same time. This random, diverse arrangement mirrors how a natural forest seed bank works.

Step 4: Early Maintenance

The forest needs watering and weeding for the first two to three years. This is the most demanding phase. After that, the forest becomes independent. The investment of time and effort in the early years pays off for decades.

Key Benefits of a Miyawaki Forest in Urban Areas

Key Benefits of a Miyawaki Forest in Urban Areas

A Miyawaki Forest delivers rapid environmental, social, and economic benefits, making it one of the most effective nature-based solutions for modern cities. 

Environmental Impact

A Miyawaki Forest delivers measurable environmental benefits quickly.

It sequesters carbon faster than slow-growing conventional forests. It creates a cooling microclimate that directly reduces the urban heat island effect. Dense canopy cover lowers local temperatures. Root systems improve water infiltration and reduce surface run-off. Soil erosion is significantly reduced on previously bare urban land.

Biodiversity Recovery

Urban areas are biological deserts for most wildlife. A Miyawaki Forest changes rapidly. The dense, layered structure provides habitat for birds, insects, pollinators, and soil organisms. Biodiversity appears within months of planting.

Community and Social Benefits

The benefits extend beyond ecology. UNESCO has actively endorsed the use of Miyawaki Forest planting within urban schools. Children learn directly about native ecosystems. Communities come together during planting events. Access to green space improves mental health and physical well-being.

Barren roadsides, abandoned lots, school yards, and even landfills have been transformed through this approach.

Long-Term Cost Efficiency

The upfront cost is higher than that of conventional tree planting. However, the long-term cost is very low. Once established, the forest needs almost no maintenance. It functions entirely on its own. For municipalities managing tight budgets, this is a significant advantage.

Miyawaki Forests Around the World

Miyawaki Forests Around the World

The global adoption of the Miyawaki Forest method tells a compelling story.

  • Japan remains the origin and heartland of the method. Thousands of sites have been established across the country since the 1970s.
  • India has seen rapid scaling. Shubhendu Sharma founded Afforestt and applied the Miyawaki method to urban plots across Indian cities. The model attracted global attention and inspired organizations worldwide.
  • Pakistan has embraced the method at a governmental level. The Parks and Horticulture Authority of Lahore announced plans to develop what was described as Asia’s largest Miyawaki urban forest. The project planned to plant 112,500 indigenous trees across 100 Kanals in China Park near Saggian Bridge. An additional 15 locations across Lahore were included in the plan. The Nature Conservation Society of Pakistan has also established Miyawaki Forest plots in Sialkot, within Shahab U Din Park.
  • The United States has seen projects in Cambridge, Massachusetts, where a forest was planted over a landfill in Danehy Park, and in Los Angeles, inside Griffith Park.
  • Brussels, Belgium, has planted a 770-square-meter pocket forest of 20 native species within the city.
  • The Yakama Nation in Washington State planted seven pocket forests of 47 native species on a rehabilitation facility, totalling over 23,000 square feet.

These examples span continents, climates, and cultures. The method adapts wherever the right expertise and commitment are applied.

Honest Assessment: Pros and Cons

No solution is without limitations. A balanced view of the Miyawaki Forest method is important for anyone considering it.

Advantages

  • Rapid establishment of a dense, functional forest on small urban land
  • High biodiversity from the earliest stages
  • Self-sustaining after just two to three years
  • Applicable on plots as small as 9 square meters
  • Builds community engagement and environmental awareness
  • Effective across diverse climates, including arid and semi-arid zones

Limitations and Criticisms

  • High upfront cost. Sourcing large numbers of native nursery saplings is expensive. Quality native stock is not always available.
  • Disputed growth claims. The widely cited “10x faster growth” figure has been questioned by forestry researchers. The evidence may reflect faster ecological succession rather than actual growth rates.
  • Not scalable for large areas. The method is intensive and impractical for reforesting vast tracts of land.
  • Water demands in early years. In dry or Mediterranean climates, the initial watering requirement can be costly and resource-intensive.
  • Expertise is essential. Without proper botanical knowledge, poorly chosen species can result in an ecologically weak or disorganized plant community.
  • Wildfire risk. In fire-prone regions, very dense planting can increase fire hazard. Modified, less dense planting is recommended in these areas.
  • CSR exploitation concerns. Some critics have raised concerns that the method has been promoted primarily to attract corporate social responsibility funding, without rigorous outcome monitoring.

Being aware of these limitations helps cities and organizations design better, more accountable projects.

Is a Miyawaki Forest Right for Your City?

Before starting a project, ask these practical questions.

Does the site receive adequate rainfall, or can water be supplied for the first three years? Is native nursery stock available locally? Is there a qualified botanist or ecologist available to guide species selection? Is the community willing to participate in early maintenance? Are there fire risk considerations that require adjusted planting density?

If the answers are largely yes, a Miyawaki Forest project is likely viable and worthwhile.

The Road Ahead: Miyawaki Forests in 2026

Miyawaki Forests in 2026

Urban heat, biodiversity collapse, and climate anxiety are defining challenges of this decade. City planners are under pressure to act. Nature-based solutions are moving from optional to essential.

The Miyawaki Forest fits perfectly into this shift. It works on small, affordable plots. It delivers results within years, not decades. It engages communities. It builds resilience.

In 2026, governments, schools, corporations, and neighbourhoods worldwide are increasingly choosing the Miyawaki method as part of their urban greening strategies. Pakistan’s large-scale government projects, UNESCO’s school programs, and grassroots NGO initiatives in dozens of countries all point in the same direction.

The question for cities is no longer whether to plant a Miyawaki Forest. The question is where to start.

Conclusion

The Miyawaki Forest is not a miracle solution. It is a well-researched, nature-based technique with a strong track record across diverse environments. It delivers rapid biodiversity gains, carbon sequestration, cooling effects, and community value to urban spaces that desperately need them.

Used thoughtfully, with proper expertise and honest expectations, it is one of the most powerful tools available to cities in 2026. Small forests can create large change. The time to plant is now.

For more informative blogs on topics like Islands of Pakistan and Gurudwara Janam Asthan Nankana Sahib, visit Chakor Blogs.

Sources

Frequently Asked Questions

Practitioners report growth up to 10 times faster than conventional forests. However, this figure refers to the rate of ecological development, not just tree height, and remains debated among scientists.

As little as 9 to 92 square meters is sufficient for a meaningful forest.

The standard density is approximately 3 saplings per square meter.

Yes, with adequate watering for the first 2 to 3 years. Projects have succeeded in Jordan, the Persian Gulf region, and parts of Pakistan.

Professor Akira Miyawaki, a Japanese botanist, developed and refined the method over four decades of research and field work.

Budget 2026-27
CategoriesNews Budget Economy

Budget 2026-27: Pakistan and IMF Close In on Fiscal Agreement

ISLAMABAD: Pakistan’s federal budget negotiations with the International Monetary Fund have stretched beyond their original deadline, with both sides working to finalise key fiscal parameters ahead of the anticipated budget presentation on June 5, 2026.

The IMF mission, which had been scheduled to conclude discussions on Wednesday, extended its stay in Islamabad to resolve a handful of remaining outstanding issues. Sources familiar with the matter confirmed that most points of contention have been settled, signalling broad alignment between the two parties on the fiscal framework for the upcoming year.

On the revenue front, the Federal Board of Revenue has been assigned an ambitious collection target of Rs15.264 trillion for the next fiscal year, with an interim benchmark of Rs7.022 trillion due by December 2026. The Fund has recommended an 18% increase in petroleum levy collections, pushing the total petroleum development levy target to Rs1.73 trillion, with the per-litre levy potentially rising to Rs100. Additional revenues of Rs 95 billion are expected through tax audits, while Rs 50 billion in sector-specific recoveries are being sought from sugar, cement, tobacco, and fertiliser industries.

Provinces have been directed to contribute meaningfully to fiscal consolidation, with a combined surplus target of nearly Rs2 trillion and an additional revenue generation requirement of Rs430 billion. Provincial development allocations, meanwhile, are proposed to increase from Rs2.1 trillion to Rs2.5 trillion.

On the expenditure side, defence spending is set to rise modestly to Rs2.665 trillion, while debt servicing remains the dominant fiscal pressure, with interest payments projected at Rs7.8 trillion. Pakistan’s total external financing requirements are estimated at $21.2 billion.

In a notable social measure, quarterly disbursements under the Benazir Income Support Programme are set to increase from Rs14,500 to Rs18,000. Public sector development spending has been projected at approximately Rs. 968 billion.

The IMF has also called for Rs430 billion in new tax measures and a phase-out of incentives for special economic zones by 2035. Looking ahead, economic growth is projected at 3.5% with average inflation expected at 8.4%.

For more news on real estate and special reports, visit Chakor Ventures.

Sources:

CategoriesNews Budget Economy Property Property Taxes Real Estate Real Estate Investment

FPCCI seeks property tax relief to revive real estate, construction sectors

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed major property tax reforms for the federal budget FY2026-27 to help revive Pakistan’s real estate and construction sectors.

According to FPCCI’s budget proposals, the current tax structure has made property transactions more expensive and slowed investment in the sector. The chamber has suggested reducing withholding tax under Section 236C on the sale of immovable property to a uniform 1% across all transaction values. At present, the rate can go as high as 5.5% on higher-value transactions and is charged on the gross transaction value, regardless of actual profit or loss.

FPCCI also proposed reducing advance tax under Section 236K on property purchases to a flat 1%, while abolishing advance tax on the first property purchase by a filer. The body said simpler and lower tax rates could encourage proper documentation, reduce under-reporting, and improve transparency in the property market.

The chamber further called for abolishing the tax on deemed income under Section 7E, saying it taxes assumed income from immovable property instead of actual earnings. It also recommended withdrawing Section 7F, under which builders and developers are taxed on 10% of gross receipts, regardless of their actual income.

FPCCI said balanced taxation could attract investment and support allied industries such as cement, steel, transport, and labour, helping generate wider economic activity.

For more news on real estate and special reports, visit Chakor Ventures.

Sources:

CategoriesNews Budget Economy Investment Tax

IMF Seeks Rs500bn New Taxes, Rs15.264trn FBR Target for FY2026–27

ISLAMABAD: Pakistan is facing mounting pressure from the International Monetary Fund (IMF) to introduce major tax reforms ahead of budget negotiations for fiscal year 2026–27. According to recent reports, the IMF has asked the government to generate nearly Rs500 billion through additional tax measures while setting an ambitious Federal Board of Revenue (FBR) tax collection target of Rs15.264 trillion.

A key part of the IMF’s proposal is the removal of all sales tax exemptions to create a more uniform taxation system. While the standard sales tax rate could be reduced from 22.8 percent to 18 percent, the withdrawal of exemptions is expected to widen the tax net and increase revenue collection. The IMF is also seeking around Rs778 billion through stricter enforcement measures.

The discussions include the expansion of the Third Schedule, which may bring products such as infant formula, dairy items, cooking oil, and other essential goods into a revised tax structure. This move alone is expected to generate around Rs100 billion in revenue.

In another major reform, authorities are considering making digital invoicing mandatory from July 1, 2026. Under the proposal, only digitally issued invoices would be accepted for tax purposes, a step projected to add another Rs100 billion to national revenue while improving transparency in business transactions.

The government is also reviewing a simplified taxation scheme for retailers and shopkeepers with annual turnover between Rs200 million and Rs250 million, potentially linked to electricity bills for easier collection.

Meanwhile, discussions on the controversial super tax suggest that an immediate withdrawal is unlikely, though a phased elimination over the next three years remains under consideration.

For more news on real estate and special reports, visit Chakor Ventures.

Sources:

CategoriesNews Budget Economy Tax

FPCCI proposes cut in salaried tax rate from 35% to 30% in budget 2026-27

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry has proposed major tax relief for the salaried class in the upcoming federal budget 2026-27.

In its budget proposals submitted to the Ministry of Finance, FPCCI recommended reducing the maximum income tax rate for salaried individuals from 35 percent to 30 percent. The business body also proposed abolishing the 9 percent surcharge currently imposed on salaried taxpayers.

FPCCI said the relief is needed because many salaried people are facing rising living costs due to inflation. It added that higher taxes have reduced the take-home income of workers, making it harder for families to manage everyday expenses.

The chamber also presented several other tax-related proposals for the business community. These include abolishing super tax, restoring the final tax regime for goods transport, and continuing the 25 percent export tax rate for the IT sector until 2035.

FPCCI further suggested increasing the SME turnover threshold from Rs250 million to Rs500 million. It also proposed reducing the income tax rate for manufacturers from 29 percent to 20 percent.

The proposals are aimed at reducing the tax burden on individuals and businesses, improving purchasing power, and encouraging economic activity in the country.

For more news on real estate and special reports, visit Chakor Ventures.

CategoriesSpecial Report Economy Eid News

SBP Scales Up Digital Payments Drive for Eid-ul-Adha 2026, Expanding Coverage to 96 Cattle Markets Nationwide

SBP Scales Up Digital Payments Drive for Eid-al-Adha 2026, Expanding Coverage to 96 Cattle Markets Nationwide

Central bank deploys 22 banks, temporary transaction relaxations, and digital infrastructure in bid to reduce cash dependency during Eid trading season

Islamabad, May 16, 2026

ISLAMABAD — The State Bank of Pakistan (SBP) has launched its most expansive digital payments initiative to date ahead of Eid-ul-Adha 2026, extending its annual “Go Cashless” campaign to 96 cattle markets across the country, a near-doubling of the 54 markets covered in the preceding year. The central bank’s move signals a deliberate escalation of its efforts to digitise one of Pakistan’s largest seasonal commercial events, where billions of rupees exchange hands, predominantly in cash, over the course of just a few weeks.

A Seasonal Window for Financial Inclusion

Eid-ul-Adha, one of Islam’s most significant religious observances, is accompanied in Pakistan by an enormous surge in livestock trading. Cattle markets locally known as mandi become bustling commercial hubs in the days preceding the festival, attracting buyers and sellers from across provinces and socioeconomic backgrounds. Historically, these transactions have been conducted almost exclusively in cash, presenting considerable security risks and limiting financial traceability.

The SBP has framed the cattle market campaign as a strategic leverage point in its broader financial inclusion agenda. By targeting an event with high transaction volumes and wide public participation, the central bank is attempting to convert seasonal cash users into habitual adopters of digital payment channels. The 2026 campaign, announced on May 15, represents the most operationally ambitious iteration of this effort since its inception.

List of Cattle Markets

City Mandi Location
Bahawalpur Ahmad pur Road Near Suzuki Showroom, Bahawalpur.
Jhangi wala road Near Civil Hospital, Bahawalpur.
Yazman Road near Bahawalpur Airport, Bahawalpur.
D I Khan Main Cattle Market , Qureshi Moor , D.I Khan
Faisalabad Model Cattle Market, Niamoana, Samundari Road, Faisalabad
Cattle Market 85 Jhaal, Silanwali Road, Sargodha
Bhakkar Road, By Pass Jhang
Cattle Market Adjacent to New Sabzi Mandi, Chiniot.
Gujranwala Mafiwala, Sialkot Bypass, Gujranwala
Khiali Bypass, Sheikhupura Road, Gujranwala
Imtiaz Store, Wapda Town, Near Chan da Qila (Lahore Bypass), Gujranwala
Hyderabad Main Hatri Bypass opposite Ayub Restaurant Hyderabad
Bismillah City Unit #10 latifabad Hyderabad
Near Indus Hospital main Hyderabad – Tando Muhammad Khan Road, district Tando Muhammad Khan
Islamabad Near Facto Cement Factory, Sangjani, Islamabad
Sector I-15 Markaz, Islamabad
Bhara Kahu, Islamabad
Near Sultana Foundation Lehtarar Road, Islamabad
Rawalpindi Bhatta Chowk intersection of Twin Cities
Zia Masjid Express High way Islamabad
Rawat Rawalpindi
Karachi Northern Bypass Mandi (Taiser Town, District West)
Liyari Express Way Cattle Market
Northern Bypass Gai Mandi
Malir Cattle Market
Korangi Crossing Cattle Market
Cattle Fiesta, DHA Phase 1
Lahore Shahpur Kanjran Cattle Market, Lahore
Nishter Zone at LDA City (near Sidhar Village at Kahna Kachha, Defence Road Lahore
road Lahore
Cattle Market Burki Road Lahore
Raiwand Cattle Market Lahore
Multan Billi Wala by-pass Multan
Lahore Morr Khanewal
Fatima Town Multan
Bakar Mandi Haji Shareef Chowk Multan
Muzaffarabad Maweshi Mandi located at Talhi Mandi, Muzaffarabad
Langarpura Cattle Market,Chikoti Road Langarpur Muzaffarabad
Bela Noorshah Cattle Market, Bela Noorshah
Peshawar Mal Mandi Ringroad
Kala Mandi
Palosai Mandi
Syphen Cattle Market
Peshawar Cattle Mandi
Quetta Eastern Bypass
Western Bypass
Airport Road
Spiny Road
Sialkot Aimanabad Road, NawaPind, Sialkot
Sambrial-Wazirabad Road, Near UGOKI, Sialkot
Pasrur Bypass Jassar Wala Tehsil Daska
Sukkur City Point , Sukkur
Thehri, Khairpur
Ali Wahan, Rohri
Main Shikarpur Road, Jacobabad

Operational Infrastructure and Participating Institutions

Under the 2026 framework, 22 commercial banks will establish dedicated camps and kiosks within their assigned markets. Bank representatives will be tasked with on-the-spot account opening for cattle sellers, livestock transporters, and allied service providers, while simultaneously deploying QR code-based payment terminals to facilitate instant digital transactions.

To address cash access needs in parallel, the central bank will also deploy mobile banking vans, automated teller machines (ATMs), and Cash Deposit Machines (CDMs) at market sites where infrastructure permits.

Critically, the SBP has introduced temporary relaxations on transactional and account balance limits, effective from May 14 through June 5, 2026, to accommodate the elevated payment volumes typical of the Eid trading season.

Expert Analysis: Ambition, Execution, and Structural Challenges

Financial sector analysts broadly welcome the initiative as a meaningful step toward broadening digital financial access, while noting that the operational challenges of converting informal, trust-based livestock markets to cashless models should not be underestimated.

“The SBP deserves credit for the consistency and scale of this campaign,” said a Karachi-based economist specialising in digital finance. “Doubling the number of covered markets in a single year reflects genuine institutional commitment. But the real metric is not how many markets are covered; it is the percentage of transactions within those markets that actually shift to digital rails. That data, if published transparently, would tell us whether the campaign is achieving systemic change or merely symbolic presence.”

Pakistan’s financial technology ecosystem has undergone considerable transformation in recent years, with the central bank’s own Raast instant payment system, Pakistan’s first fully interoperable instant payment system, launched in January 2021, emerging as a key enabler of zero-cost, real-time digital transfers. The SBP’s encouragement of Raast-enabled services alongside mobile banking applications and QR payments reflects an effort to consolidate these tools for public use in high-traffic informal settings.

However, analysts have flagged structural barriers that regulatory directives alone cannot resolve. Connectivity gaps in peri-urban and rural markets, low digital literacy among older cattle traders, and a deep cultural preference for physical currency in large-value livestock transactions present persistent headwinds.

“A seller moving a high-value animal sometimes worth several hundred thousand rupees often prefers cash because it offers immediacy and privacy,” noted a policy researcher at a Lahore-based development institute. “Building trust in digital systems for high-stakes, one-time transactions requires more than kiosks and QR codes. It requires demonstrable reliability, fraud protection, and peer adoption.”

Regulatory Context and National Digital Strategy

The Go Cashless campaign is situated within Pakistan’s wider national agenda to expand financial inclusion and formalise economic activity. Pakistan remains among the countries with the largest unbanked populations globally. The World Bank’s Global Findex 2025 Report identified it as one of eight countries accounting for over half of the world’s 1.3 billion unbanked adults.

Nevertheless, recent years have seen measurable progress: according to SBP data, bank account coverage has risen from 47 percent of the adult population in 2018 to around 64 percent, driven partly by the proliferation of mobile wallets and branchless banking services.

The SBP’s temporary relaxation of account and transaction limits during the Eid window is noteworthy from a regulatory standpoint. Such adjustments recognise that standard Know Your Customer (KYC) thresholds, designed for routine banking, can inadvertently exclude individuals seeking to make legitimate, high-value seasonal payments. By calibrating limits to seasonal economic realities, the central bank is attempting to reduce friction without compromising the integrity of its anti-money laundering framework.

Outlook

With Eid-ul-Adha widely expected to fall on May 27, 2026, the window for on-the-ground deployment is narrow. The success of this year’s campaign will likely be assessed not only by uptake figures but also by the SBP’s ability to retain newly onboarded customers within the formal banking system beyond the festival season. Sustained engagement rather than one-time digital transactions would represent the more durable indicator of progress toward Pakistan’s financial inclusion objectives.

The central bank has encouraged citizens to utilise mobile banking applications, branchless banking wallets, Raast-enabled services, and QR payment platforms for all Eid-related transactions, emphasising the security, convenience, and systemic benefits of reducing cash dependency in high-traffic commercial settings.

For more news on real estate and Special Reports, visit Chakor Ventures.

 References

Business Desk. (2026, May 15). Eid ul Adha: SBP launches ‘Go Cashless’ campaign for cattle markets. Geo News. https://www.geo.tv/latest/664625-eid-ul-adha-sbp-launches-go-cashless-campaign-for-eid-ul-adha-cattle-markets

Profit Desk. (2026, May 15). SBP scales up Eid ul Adha Go Cashless drive; expands coverage to 96 cattle markets. Profit — Pakistan Today. https://profit.pakistantoday.com.pk/2026/05/15/sbp-scales-up-eidul-adha-go-cashless-drive-expands-coverage-to-96-cattle-markets/

Pakistan Today. (2026, May 16). SBP expands Eid ul Azha cashless payments drive to cattle markets. Pakistan Today. https://www.pakistantoday.com.pk/2026/05/16/sbp-expands-eidul-azha-cashless-payments-drive-to-cattle-markets

State Bank of Pakistan. (2026, May 14). Go Cashless — Eid ul Adha 2026 [Press release]. https://www.sbp.org.pk

RDA Inflows Hit Monthly High of $321 Million in April
CategoriesNews Budget Economy

RDA Inflows Hit All-Time Monthly High of $321 Million in April 2026

KARACHI: Roshan Digital Accounts (RDA) recorded their highest-ever monthly inflow of $321 million in April 2026, according to data released by the State Bank of Pakistan (SBP), marking a significant milestone in Pakistan’s efforts to attract diaspora investment through digital banking channels.

The April figure represents a month-on-month increase of $60 million over March’s inflow of $261 million, pushing total cumulative inflows into RDA since the scheme’s inception to $12,747 million.

Despite the record inflows, outflows also remained substantial. A total of $191 million was repatriated or locally utilised during the month, comprising $28 million in outward repatriation and $164 million deployed within Pakistan, causing the Net Repatriable Liability (NRL) to expand by $130 million in April.

On a cumulative basis, total repatriation and local utilisation now stand at $10,203 million, of which $2,056 million has been repatriated abroad while $8,147 million has been utilised domestically. The overall NRL currently stands at $2,544 million, equivalent to 19.96% of total RDA.

Within the NRL, Islamic Naya Pakistan Certificates (NPC) account for the largest share at $1,155 million, followed by account balances at $641 million, Conventional NPC at $555 million, equity investments at $123 million, and other liabilities at $70 million.

The scheme also continues to demonstrate strong year-on-year growth. Total inflows during the current financial year reached $2,184 million, compared to $1,925 million in the corresponding period last year, a rise of approximately 13.5%.

Repatriation and local utilisation during the same period came in at $1,630 million, up from $1,460 million a year earlier. On the participation front, 10,083 new accounts were opened during April alone, bringing the total number of RDA accounts to 927,483.

The record monthly inflow underscores sustained overseas Pakistani confidence in the RDA platform and signals continued momentum in foreign currency mobilisation through digital channels heading into the final stretch of the fiscal year.

For more news on real estate and special reports, visit Chakor Ventures.

CategoriesBudget Economy Investment News Special Report Tax

Pakistan and IMF Chart Course for Budget 2026–27: A Critical Analysis

Pakistan and IMF Chart Course for Budget 2026–27: A Critical Analysis

By News Desk | May 14, 2026

Pakistan’s Finance Minister Senator Muhammad Aurangzeb met with a visiting International Monetary Fund (IMF) mission on May 13, 2026, in Islamabad for high-level discussions on the country’s macroeconomic outlook, the upcoming federal budget for fiscal year 2026–27, and the broader structural reform agenda. The meeting comes at a pivotal moment: the IMF had just approved a fresh disbursement of approximately $1.3 billion five days earlier, and Pakistan is navigating a complex economic environment shaped by external debt pressures, a volatile global commodity landscape, and the ongoing fallout from the Middle East conflict.

The Meeting: What Was Discussed

The talks, held between Minister Aurangzeb and IMF Mission Chief Ms Iva Petrova, covered four broad areas: macroeconomic stabilisation, upcoming budget preparations, structural reform priorities, and Pakistan’s engagement with international development partners.

According to the Ministry of Finance, both sides exchanged views on “maintaining reform momentum, preserving macroeconomic stability, and advancing structural reforms to promote investment, productivity, and export-led growth.” 

The minister highlighted improvements in Pakistan’s external sector, citing month-on-month and year-on-year growth in remittances and exports as evidence of strengthening macroeconomic fundamentals.

Aurangzeb framed the government’s reform agenda as a long-term and technically grounded one designed to break Pakistan’s historical pattern of boom-and-bust economic cycles. He stressed the importance of structural reforms, productivity enhancement, deregulation, and improved export competitiveness. He also briefed the delegation on Pakistan’s economic cooperation with China and efforts to attract long-term foreign investment.

The meeting was attended by key institutional heads, including State Bank of Pakistan (SBP) Governor Jameel Ahmad, Finance Division Secretary Imdad Ullah Bosal, and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial.

The $1.3 Billion Disbursement: Context and Significance

The meeting followed the SBP’s announcement that it had received SDR 914 million, approximately US$1.3 billion under two IMF programmes: the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). This brings total disbursements under both arrangements to SDR 3,348 billion, or roughly $4.8 billion.

The IMF Executive Board had approved the disbursement on May 8, 2026, following the successful completion of the third review under Pakistan’s 37-month EFF arrangement, which was first approved on September 25, 2024. 

An additional SDR 154 million (approximately $220 million) was disbursed under the RSF, the climate-focused facility approved on May 9, 2025, aimed at helping Pakistan build resilience against natural disasters.

The funds were credited to SBP accounts on May 12, 2026, and will be reflected in Pakistan’s official foreign exchange reserve figures for the week ending May 15, 2026.

IMF Deputy Managing Director Nigel Clarke, speaking after the Executive Board meeting, offered a pointed message alongside the approval: “Pakistan needs to maintain strong macroeconomic policies while accelerating reform efforts, which are critical to managing external shocks and fostering higher sustainable medium-term growth.” Clarke specifically flagged that shocks from the Middle East conflict underline the continued urgency of structural reforms.

IMF’s Formal Assessment

In its end-of-mission statement from March 2026, following the third EFF review, the IMF noted that “programme implementation under the EFF remained broadly aligned with the authorities’ commitments through end-February 2026.” The Fund acknowledged progress on fiscal consolidation, monetary policy tightening, and energy sector reforms, while also noting that discussions on deepening structural reforms were still ongoing.

Pakistan has committed under the programme to maintaining a primary budget surplus of 1.6% of GDP for FY2026, moving toward a 2% surplus target by FY2027. The IMF has maintained these targets firmly, declining to ease them despite weak tax collection performance by the FBR earlier in the year.

IMF Mission Chief Iva Petrova acknowledged that Pakistan’s authorities “remain committed to pursuing sound and prudent macroeconomic policies to preserve the recent gains in macro-financial stabilisation, while deepening structural reforms to accelerate growth and strengthening social protection to mitigate the impact of volatile energy prices on the most vulnerable.”

Budget 2026–27: What to Expect

According to sources cited by Business Recorder, the government is unlikely to introduce new taxes in the upcoming budget, instead aiming to meet its revenue targets through enforcement and administrative measures estimated at Rs 778–780 billion. The budget is expected to offer some relief to the salaried class, with Aurangzeb reportedly seeking to lower tax rates and raise the taxable income threshold in recognition of salaried workers’ disproportionate contribution to tax revenue.

The IMF delegation is also expected to consult with the Ministry of Energy and other departments on structural reforms in the power sector and state-owned enterprises (SOEs), aligning expenditure planning and revenue targets ahead of the formal budget presentation.

Expert Opinions: Cautious Optimism Mixed With Structural Concerns

While the IMF approval has been broadly welcomed as a confidence-building signal, independent economists have urged caution.

Analysts cited by Energy Update noted that “the IMF approval will provide short-term stability to financial markets while reinforcing investor confidence in Pakistan’s economic reform agenda and long-term fiscal sustainability.” However, they stopped short of calling the situation structurally resolved.

Economist Sajid Amin, commenting on the FY2025–26 budget earlier in the cycle, which set the framework now being built upon, offered a pointed critique: “Overall, I feel the budget falls short on structural and bold reforms; it is a stabilisation budget formed to meet revenue targets. The objective or principle guiding the budget is the incoming IMF tranche.” His view reflects a broader concern that Pakistan’s fiscal decisions are being shaped primarily by programme compliance rather than domestic economic strategy.

Economist Ali Hasnain echoed this, describing the prior budget as “relatively disciplined but within the status quo,” while warning that tariff reductions favouring import-dependent industries such as auto and mobile manufacturing do little for export competitiveness and remain “a road to nowhere.”

Perhaps most critically, economist and policy analyst Dr. Nadeem ul Haque, writing in a review of Pakistan’s economic press coverage, challenged the broader reform narrative head-on: “Pakistan has been in and out of IMF programs for four decades. Which structural reforms from earlier cycles actually survived?” He argued that the IMF’s diplomatic language, “accelerating reform efforts,” masks a recurring failure to build lasting institutional capacity. 

He described repeated cycles of tax reform, energy reform, privatisation, and governance reform returning under new labels, and characterised the programme’s revenue-heavy, expenditure-light architecture as potentially counterproductive: “Raising rates while undermining the productive base that generates the denominator of the very ratio being targeted is not fiscal reform, it is fiscal cannibalism.”

On the energy sector, one of the most critical areas of the reform agenda, Business Recorder’s editorial commentary noted that the circular debt, now approaching Rs 1.9 trillion, is not merely a cash-flow management challenge but rather “the accumulated financial residue of twenty years of politically driven IPP contracting, below-cost tariffs, and deep governance failure.”

The Bigger Picture: Stability Versus Transformation

The central tension in Pakistan’s current economic trajectory is one that the Aurangzeb-IMF meeting placed on full display: the difference between macroeconomic stabilisation and genuine structural transformation. Pakistan’s foreign exchange reserves have improved, reaching $16 billion by the end of December 2025, up from $14.5 billion in June 2025, and inflation has been brought progressively under control. These are measurable gains.

Yet the structural challenges, such as a narrow tax base, a bloated public sector, energy sector inefficiencies, high external liabilities, and a persistent inability to generate export-led growth, remain largely unresolved. The government’s stated commitment to moving Pakistan away from boom-and-bust cycles is not new; the same language has featured in reform agendas under multiple administrations.

What sets the current moment apart, analysts note, is the combination of continued IMF engagement, a Finance Minister with clear private-sector credentials, and crucially $4.8 billion in cumulative programme disbursements that have restored a degree of fiscal credibility. 

Whether this translates into durable transformation will depend on the content of Budget 2026–27, the pace of SOE privatisation, and the government’s ability to broaden the tax base without further burdening an already stretched formal sector.

Conclusion

The May 13 meeting between Finance Minister Aurangzeb and the IMF mission was substantive and, by official accounts, constructive. Pakistan has made measurable progress on macroeconomic stabilisation, a point the IMF itself has acknowledged. The $1.3 billion disbursement reflects continued programme compliance and offers near-term support to foreign exchange reserves.

However, the harder work of structural transformation in taxation, energy, governance, and SOE reform remains incomplete. As Budget 2026–27 takes shape, the critical question is whether the government will use this window of relative stability to introduce genuinely bold reforms, or whether, as critics have cautioned, the budget will once again be calibrated primarily around programme targets rather than Pakistan’s long-term economic needs.

References

Clarke, N. (2026, May 8). Statement on the IMF Executive Board approval of third EFF review for Pakistan. International Monetary Fund. https://www.energyupdate.com.pk/2026/05/09/imf-approves-1-3bn-for-pakistan-warns-of-rising-risks-from-middle-east-conflict/

Dawn. (2026, May 13). Finance minister discusses budget preparations with visiting IMF mission. https://www.dawn.com/news/1999908

Dawn. (2025, June 10). ‘Short of structural, bold reforms’: Finance experts unpack 2025–26 budget. https://www.dawn.com/news/1916314

International Monetary Fund. (2026, March 11). Pakistan: End-of-mission statement on the third review of the 37-month extended arrangement under the EFF and the second review of 28-month arrangement under the RSF. https://www.imf.org/en/news/articles/2026/03/11/pr-26075-pakistan

International Monetary Fund. (2026, March 27). IMF reaches staff-level agreement on the third review for the 37-month extended arrangement under the EFF and the second review under the RSF Pakistan. https://www.imf.org/en/news/articles/2026/03/27/pr-26095-pakistan

Kundi, I. A. (2026, May 14). Finance minister briefs IMF on upcoming budget. The Nation. https://www.nation.com.pk/14-May-2026/finance-minister-briefs-imf-upcoming-budget

Petrova, I. (2026, March 27). IMF reaches staff-level deal with Pakistan for $1.2bn tranche after third EFF review. The Express Tribune. https://tribune.com.pk/story/2599737

ul Haque, N. (2026, May 8). A review of economic journalism and opinion pages, May 1–8, 2026: More information, limited inquiry. Nadeem ul Haque Substack. https://nadeemulhaque.substack.com/p/a-review-of-economic-journalism-and

Web Desk. (2026, May 13). FinMin Aurangzeb discusses upcoming budget preparations, economic reforms in meeting with IMF mission. The Express Tribune. https://tribune.com.pk/story/2607861

Web Desk. (2026, May 13). Pakistan, IMF discuss upcoming federal budget. Business Recorder. https://www.brecorder.com/news/40420959

CategoriesNews Economy Investment Property Property Laws Real Estate Real Estate Investment

KP passes property Act 2026 to protect overseas Pakistanis’ properties

PESHAWAR: The Khyber Pakhtunkhwa Assembly has passed the Overseas Pakistanis Property Act 2026 to protect properties owned by overseas Pakistanis and ensure faster resolution of related disputes.

The law, introduced by Provincial Law Minister Aftab Alam, is aimed at preventing illegal occupation, unlawful transfer, and other property-related issues faced by expatriates in the province.

Under the Act, special courts will be established across Khyber Pakhtunkhwa in consultation with the Peshawar High Court. These courts will be headed by judges of the rank of Additional District and Sessions Judge, while pending property cases involving overseas Pakistanis will also be transferred to the special courts.

The law requires such cases to be decided within 120 days, while appeals must be filed within 15 days. Overseas Pakistanis will also be able to submit applications online, making the legal process more accessible for those living abroad.

The Act further allows testimony to be recorded through video link, enabling applicants to take part in court proceedings without travelling to Pakistan. Court notices may also be served through mobile phones, email, and mosques to improve communication and reduce delays.

The legislation also includes provisions to stop illegal transfer of properties and assist in rent recovery for overseas Pakistanis. Officials said the measure is intended to strengthen legal protection, improve access to justice, and build confidence among expatriates regarding their properties in Khyber Pakhtunkhwa.

For more news on real estate and special reports, visit Chakor Ventures.