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IMF sees no major flood impact on Pakistan’s economy
Islamabad: The International Monetary Fund (IMF) does not foresee any major setback to Pakistan’s economic growth or revenue collection this fiscal year due to the recent floods. Except for Punjab, provinces have also not reported significant economic losses, minimizing the chances of a downward revision in targets.
According to government sources, Pakistani authorities have assessed flood-related losses in three rivers, but the evaluation of destroyed or damaged infrastructure in Punjab is still ongoing.
Government sources said that an IMF delegation shared its views about the economic impacts of the floods during a kick-off meeting with Finance Minister Muhammad Aurangzeb. The governments of Balochistan, Sindh and Khyber-Pakhtunkhwa (K-P) shared their initial assessments of the flood losses with the IMF team during separate meetings.
The sources said that during the kick-off meeting, the IMF team observed that based on initial input there were no significant economic losses. However, the IMF said that it would wait for the damage assessment report, the sources added.
The global lender also saw no impact of the floods on the tax revenues. It underscored that the Federal Board of Revenue (FBR) should share the visible outcome of the transformation plan. Prime Minister Shehbaz Sharif had approved the transformation plan last year to revitalise the tax machinery and also gave over Rs55 billion for various initiatives under the plan.
The IMF’s observations about the impact of the floods came on the heel of the prime minister’s request to the IMF managing director to factor in the impacts of the floods during the review meetings. The IMF was apprised that the government could meet the flood-related spending from the contingency pool and it might not need additional resources, said the sources.
Pakistan-IMF review talks began on September 25, which are scheduled to continue until October 8. The successful culmination of these talks would pave the way for the release of two tranches, totalling over $1.2 billion under two different loan programmes.
Also, the sources said, Pakistan’s internal assessment was that there would not be any major impact of the floods on the economic growth. The government has set a 4.2% growth target and it still expects to achieve from 3.7% to 4%, the sources added.
The total economic losses are estimated by the Planning Commission at around Rs360 billion or 0.3% of the size of the economy. The commission’s assessment was that the GDP growth may still remain around 4%.
One of the reasons for not estimating major losses to the crops was that the sowing of rice and sugarcane took place more than the area initially estimated. This would offset the impact of loss of the crops, they added.
The current account deficit would also not increase beyond the estimated figure, as no additional need for imports is projected because of floods, the sources added. The Pakistani authorities also do not see any major increase in imports. However, the IMF has not yet shared its projection of the economic growth, imports and current account deficit.
The sources said that the IMF delegation raised the issue of the delay in publication of the Governance and Corruption Diagnosis Assessment report. The authorities assured the global lender that the government would release the report within this week.
The report points out numerous shortcomings in Pakistan’s judicial, administrative and corporate structure, which contributed to poor governance in every important sphere of life. The IMF has also given over a dozen recommendations to ensure rule of law and the integrity of the judiciary.
During its meetings with three provinces, the IMF pointed out low spending on health and education in the last fiscal year. The K-P government said that low spending on health was because of the fact that many posts of doctors could not be filled due to the slow hiring process.
The IMF inquired whether the provinces would be able to meet the additional spending on the flood-related rehabilitation. The sources said that the provincial governments did not indicate the need for any additional resources due to limited impact.
However, the position of the Punjab government will be important in this regard, which plans to provide a comprehensive rehabilitation package to the affected people. The province is the worst-affected by the floods and its meeting with the IMF will take place this week.
The governments of K-P and Sindh shared their initial assessments. According to the authorities, Sindh estimated that the economic losses may remain in the range of Rs40 billion to Rs50 billion. The k-p government told the IMF that losses might be in the range of Rs30 billion.
The FBR remains the weakest link in the chain. The tax authorities are struggling to achieve this quarter’s Rs3.083 trillion target. They needed over Rs500 billion on September 30 (today) – the end of the first quarter of the current fiscal year – to achieve the target.
The filing of the income tax return also stands around 3.2 million as against the total 7.7 million returns filed for the tax year 2024. The FBR has also extended the date for import duty and tax-free sugar by two months to November. Earlier, it had notified that the sugar can be imported tax-free till the September 30.
The FBR also granted a further two-month extension to traders in real-time electronic transmission of sales tax receipts to the computers of the FBR. It was the second extension, which is tantamount to accepting the impracticality of the earlier deadlines.
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Digital Pakistan and the Imperative of Implementing the National AI Policy
By Nisar Hussain
Column: Diwan-e-Aam
The world is passing through a new industrial and technological wave that can rightly be described as the digital era. Mobile phones, the internet, cloud infrastructure, robotics, artificial intelligence and advanced IT services have transformed not only communication and commerce but the very foundations of education, healthcare, governance and economic development. Any nation that delays adopting these technologies risks falling behind in the global race for competitiveness.
This reality compels Pakistan to treat these domains not as slogan-driven initiatives but as true national priorities. The essential question, however, is whether the steps taken by the Government of Pakistan are sufficient to meet the demands of this new age.
One of the most significant developments in recent years is the approval of the National AI Policy 2025, which has opened the path toward building a comprehensive artificial intelligence ecosystem in the country. The policy sets ambitious targets.
These include developing a large skilled workforce, establishing national AI funds, launching thousands of AI-enabled public projects, supporting the creation of over a thousand indigenous AI products, and opening new avenues for research and education. Alongside this, the federal government has also announced the formation of an AI Council and a Master Plan to ensure that the policy moves beyond paperwork and enters the realm of practical implementation.
In the national budget, the government has allocated substantial funds for digitalisation, artificial intelligence and IT parks. Consequently, more than twenty software technology parks have been established or are under development across the country. The major IT parks in Karachi and Islamabad are emerging as significant centres for new tech start-ups as well as companies exporting software and IT-enabled services.
The surge in Pakistan’s IT exports further validates this digital transition. In the previous financial year, exports of IT and IT-enabled services grew by nearly twenty four percent, contributing to a positive foreign exchange surplus. Likewise, capacity-building programmes such as the Cloud Applied Generative AI initiative have equipped thousands of young Pakistanis with cutting-edge skills that can consolidate Pakistan’s presence in the global technology marketplace in the years ahead.
Yet despite this progress, several critical gaps remain, and they cannot be ignored. Announcing a policy is always the easiest step. The real challenge is implementation. Even if research and training centres are established, they will remain confined to files and reports unless they generate genuine opportunities for learning, innovation and industry collaboration.
Another reality is that Pakistan’s digital infrastructure is not uniformly developed. Major cities enjoy robust mobile connectivity and digital services but many smaller towns and rural areas still face limited access. If this disparity persists, the digital divide will widen and could evolve into a new form of socioeconomic inequality.
Another challenge is that training a few thousand or even a few hundred thousand individuals will not be sufficient. Pakistan is a young nation, and millions of its youth are waiting for modern technological education and employment opportunities.
Training only creates meaningful impact when it is accompanied by job creation, investment and tangible connections with industry. Pakistan must also reduce its reliance on foreign AI tools, platforms and cloud services. Excessive dependence will weaken technological sovereignty and delay the development of AI technologies that understand local languages, social realities and cultural contexts.
Concerns related to data privacy and cyber security are even more sensitive. As digital systems expand, the laws and regulatory frameworks that govern them must be strengthened proportionately.
Pakistan’s future can only be secured if the government moves beyond announcements and places performance at the centre of its approach. An autonomous authority should be established to oversee the effective implementation of the National AI Policy. This body must remain independent of political pressure and publish annual progress reports.
The country must prioritise the development of indigenous cloud and data centre infrastructure to ensure data protection and support local industry. Training initiatives must not remain confined to major cities. They must reach rural areas, women and underprivileged communities so that every segment of society can participate in this digital age.
Educational institutions should integrate high-quality courses in artificial intelligence, data science and cloud computing while research must be funded so that Pakistan evolves from being a technology consumer to becoming a technology creator.
If these measures are pursued with consistency, transparency and seriousness, Pakistan can meaningfully alter the trajectory of its development. New employment opportunities will emerge for the youth. Exports will continue to grow.
Governance will become more efficient and transparent. The country will be able to carve out its place in the global digital economy. However, if we continue to rely solely on policy announcements without translating them into concrete action, this historic opportunity may slip away. Pakistan stands at a crossroads.
This moment can either become the beginning of a new direction or the world will continue to advance while we remain stationary. The choice ultimately depends on our collective resolve and our willingness to act.
Articles
Golden Hour: A Dialogue of Light, River and Silence
By Nisar Hussain
Column: Diwan-e-Aam
They say every city has an hour of pure beauty, but Melbourne’s hour of radiance is that fleeting moment the world calls the Golden Hour. It is the time when the descending sun drapes the Yarra River in molten gold, and the towers standing along its edge catch their own reflections, shimmering with a borrowed brilliance.
This sight is not merely something to be observed; it is something to be felt. One senses as though the light itself is leaning in, speaking softly and deliberately.

Step away from the haste of the city, and as dusk settles, the boats gliding silently along the Yarra create the impression that even time has paused to watch.
The lights scattered along the banks, the mirrored silhouettes of buildings, and the delicate blend of pink, orange and gold produce a rare harmony where nature and civilisation seem to embrace. This is the moment that gives Melbourne’s Golden Hour its unmatched splendour.
At the heart of the city, the Yarra flows with a dreamlike quiet as evening spreads across its surface. From aboard dinner cruises like the Spirit of Melbourne or the Golden Hour Cruise, the city appears transformed, reflected, softened and almost mythical. During this slow three-hour journey, stretching from dusk into night, food, music, scenery and silence merge into a seamless, contemplative passage of time.
Sitting at the edge of the boat, when a lone streetlight casts its trembling reflection on the water, the city seems awake yet gentled, as if its pulse has found a steady calm. This hour belongs not only to photographers but to all who seek meaning in the language of light.
The angle of the sun, the orange glimmer rippling across the river, and the flickering lights beneath the bridges all converge to turn an ordinary instant into a framed memory.
A professional camera is not essential; the only real requirement is a heart that knows how to feel light. A wide-angle lens can help weave river and skyline into a single visual poem. Even so, the truth remains that sometimes the most exquisite picture is the one captured only by the eyes, unbound by frames and unpossessed by technology.
As the boat continues forward, both shores bathe in light. Buildings, bridges and their reflections intermingle until the boundary between life and dream begins to blur. It is more than leisure; it is a pause, a quiet conversation with oneself. In those moments, you cease to be a tourist and become an observer. You step out of life’s race and enter a space where earth, sky and heart turn the same shade of gold.
Every Australian city has a distinctive evening charm. The magic of sunset over the Sydney Harbour Bridge, the scattered light along the Great Ocean Road, or Brisbane’s gentle twilight on the river all have their own allure. Yet Melbourne stands apart. Here, light walks beside the river, rebounds from glass façades, then dissolves into the air like breath.
Life’s most precious moments are often found not in noise but in silence. Time spent on the Golden Hour Cruise is such a moment, where you, the river, the city and the light breathe in a single rhythm. When the boat returns to the quay and Melbourne’s night lights awaken, you realise you have brought back not just a picture but a feeling. It is grounded, serene and golden.
And this is the moment the city calls you toward. Come not merely as a tourist but as a silent witness to the light that restores Melbourne’s soul each evening. Pause for a while, breathe, and see how, at times, even light carries a quiet voice.
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Government firm on resolving business community challenges: Hanif Abbasi
Islamabad: Federal Minister for Railways Muhammad Hanif Abbasi on Saturday inaugurated the newly renovated Munawar Mughal Hall at the Islamabad Chamber of Commerce & Industry (ICCI), reiterating the government’s resolve to address the concerns of the business community under the visionary leadership of Prime Minister Muhammad Shehbaz Sharif.
He said the government is revisiting all business-related policies to promote a business-friendly environment aimed at boosting exports and strengthening foreign exchange reserves.
The Minister announced that he would soon arrange a meeting of the ICCI leadership with Interior Minister Mohsin Naqvi to help resolve issues related to the Capital Development Authority (CDA).
He also shared that the modernization of Pakistan Railways is progressing rapidly, with all major stations now digitized. Paying rich tribute to the armed forces of Pakistan for their historic victory in the Marqa-e-Haq, he appreciated ICCI’s active role in supporting economic reforms and government initiatives.
Addressing the gathering, ICCI President Sardar Tahir Mehmood thanked the Minister for his support and said the upgraded Munawar Mughal Hall reflects ICCI’s commitment to institutional enhancement and improved stakeholder engagement.
He demanded that the business community and top entrepreneurs be included in economic policymaking, emphasizing that sustainable economic progress requires consultation with the real stakeholders of the economy.
He also stressed the need for reduced interest rates, lower energy tariffs, and rationalized FBR taxes to ease the burden on businesses.
Chairman Founder Group Tariq Sadiq praised the Public-Private Partnership initiatives in Pakistan Railways but cautioned that irrational taxation is jeopardizing business sustainability and must be addressed on priority.
Senior Vice President Tahir Ayub, who moderated the ceremony, highlighted ICCI’s recent milestones and future initiatives.
Chairman Construction Committee Mian Akram Farid briefed participants on the renovation process, noting that the upgraded facility will enhance ICCI’s capacity to host conferences, delegations, and exhibitions at modern standards.
In his vote of thanks, Vice President Mohammad Irfan Chaudhry expressed gratitude to the chief guest, dignitaries, and all contributors, reaffirming ICCI’s commitment to supporting its members and advancing national economic development.
The event was largely attended by ICCI Council members including Zubair Ahmed Malik, Mohammad Ejaz Abbasi, Khalid Javaid, Mian Shaukat Masood, Shaikh Aamir Waheed, Chaudhry Masood, former Presidents Basir Dawood, Mohammad Ahmed, Nasir Khan, President Islamabad Industrial Area Association Shaikh Abdul Razzaq and Executive Members, business leaders of Islamabad and media persons.
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