Pakistan Pakistan Economy Updates

[Fatman17]

Non-textile exports fall in FY26

They plunge 13.77pc to $12.21bn, down from $14.16bn in the preceding year; shipments of agricultural produce and value-added products have suffered steep declines.

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Non-textile exports also slump

Regional trade deficit widens to $16bn

Higher imports from China and suspension of exports to Kabul drive imbalance in FY26.

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[Fatman17]

https://twitter.com/i/web/status/2079476277036347405

https://twitter.com/i/web/status/2079842559627776039

 

[Fatman17]

*EDITORIAL:* The ongoing delay in making new, approved lifesaving medicines available to patients is a serious lapse in Pakistan’s drug regulatory system. It is difficult to justify why medicines that have already met with the standards set by the Drug Regulatory Authority of Pakistan should remain out of public reach simply because the government has yet to approve their prices.

For patients, this is not merely inconvenient; it is a question of health and, in many cases, survival. Nearly 40 registered medicines are reportedly awaiting price notifications months after the relevant process was completed and recommendations forwarded to the federal government.

*Read more:* www.dawn.com/news/2017457

I've worked in the pharmaceutical industry and the delays are linked to the following:
1. Companies demand exorbitant prices.
2. Corruption within DRAP

 

[Fatman17]

https://share.google/vcUM8jmdOWNqDk1Gh

United Bank profits jump 36%.

 

[Fatman17]

Mobile phone imports top Rs520bn in FY26

Duties and taxes collected on mobile phone imports rise 36pc to Rs121bn.

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Huge Mobile phone imports in FY26

 

[Fatman17]

Iranian tomatoes fail to ease prices

Traders charge Rs450-500 per kg for Iranian and Quetta tomatoes.

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Tomatoes are dearer

 

[Fatman17]

One global shock. Four domestic outcomes

Over the past week:
Pakistan: diesel up 16%
Afghanistan: up 1.4%
India: unchanged
Bangladesh: unchanged

 

[Fatman17]

The UK government is facing mounting criticism after approving a £153 million, three-year foreign aid package for Pakistan while Islamabad continues to refuse the deportation of Shabir Ahmed, the Rochdale grooming gang ringleader.

Ahmed, who was born in Pakistan, was released from prison after serving 14 years of a 22-year sentence for 30 child rape offenses. His gang groomed and sexually abused vulnerable girls in Rochdale.

Pakistan has refused to accept Ahmed's deportation, claiming he renounced his Pakistani citizenship and arguing that he "grew up, was raised, groomed and, unfortunately, spoiled" in Britain. UK officials dispute this, saying Ahmed never completed the legal process required to give up his Pakistani nationality.

Reform UK and the Conservatives are demanding tougher action. Richard Tice declared: "Pakistan. No foreign aid. No visas. Until you take back rapist Ahmed." Chris Philp called for all foreign aid to Pakistan to be suspended and new visas halted until Pakistan accepts Ahmed and other convicted grooming gang offenders.

The UK has been negotiating Ahmed's deportation with Pakistan for around a year, alongside efforts to deport two other Rochdale grooming gang ringleaders who also attempted to avoid removal by claiming to have renounced Pakistani citizenship.

 

[Fatman17]

Air Link to Start Manufacturing Electric Bikes in Pakistan

Air Link Communication Limited (PSX: AIRLINK) has approved plans to enter Pakistan's electric vehicle market by launching an electric bike manufacturing

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EV bikes 🏍 in high demand

 

[Fatman17]

Pakistan's collapsing cotton production is draining $2 billion to $3 billion annually from the national economy due to inflated import bills and lost export revenue. A comprehensive report titled Seeds of Growth, published by the Overseas Investors Chamber of Commerce and Industry (OICCI), reveals that national cotton output has plummeted by over 50% from its historical peak. While the country once hit a high of roughly 14 million bales, production for the 2025–26 season slumped to just 6.85 million bales, missing the federal government's target by 34%.
Business Recorder

Reasons.
Uncertified and poor quality of seeds.
Poor farming practices.
Adulterated pesticides.
Corrupt agri-extension services.

 

[Fatman17]

Pakistan's collapsing cotton production is draining $2 billion to $3 billion annually from the national economy due to inflated import bills and lost export revenue. A comprehensive report titled Seeds of Growth, published by the Overseas Investors Chamber of Commerce and Industry (OICCI), reveals that national cotton output has plummeted by over 50% from its historical peak. While the country once hit a high of roughly 14 million bales, production for the 2025–26 season slumped to just 6.85 million bales, missing the federal government's target by 34%.
Business Recorder

Reasons.
Uncertified and poor quality of seeds.
Poor farming practices.
Adulterated pesticides.
Corrupt agri-extension services.

Why the Cotton Sector is Collapsing
The OICCI highlights that the primary drag on farming output is not a lack of technology or investment, but rather regulatory delays and inconsistent government policies. The core factors driving this multi-billion dollar decline include: [1]

• Policy Inconsistency: Implementing bans on vital pesticide ingredients without science-based transition plans.
• Substandard Seeds: Severe shortages of certified, high-yield, heat-tolerant, and pest-resistant seed varieties.
• Climate Shocks: Intense, record-breaking heatwaves and erratic monsoon floods wilting standing crops.
• Crop Shifting: Dissatisfied farmers abandoning cotton for more lucrative and state-supported crops like sugarcane.
• Institutional Failure: Outdated approaches within agricultural research bodies failing to yield seed breakthroughs. Dawn

 

[Fatman17]

Why the Cotton Sector is Collapsing
The OICCI highlights that the primary drag on farming output is not a lack of technology or investment, but rather regulatory delays and inconsistent government policies. The core factors driving this multi-billion dollar decline include: [1]

• Policy Inconsistency: Implementing bans on vital pesticide ingredients without science-based transition plans.
• Substandard Seeds: Severe shortages of certified, high-yield, heat-tolerant, and pest-resistant seed varieties.
• Climate Shocks: Intense, record-breaking heatwaves and erratic monsoon floods wilting standing crops.
• Crop Shifting: Dissatisfied farmers abandoning cotton for more lucrative and state-supported crops like sugarcane.
• Institutional Failure: Outdated approaches within agricultural research bodies failing to yield seed breakthroughs. Dawn

The Severe Economic Backlash
The cotton crisis directly threatens the sustainability of Pakistan's broader economic stability: [1]

• Textile Export Squeeze: The textile sector generates roughly 60% of Pakistan's total export earnings. Shortages of domestic "white gold" have stifled manufacturing growth and triggered factory closures. [1, 2, 3, 4]
• Foreign Exchange Drain: To keep its factories operational, the industry must heavily import raw cotton, burning billions in precious foreign currency reserves. [1, 2]
• Rural Unemployment: Dropping output has closed over 60% of cotton ginning factories, destroying livelihoods for small-scale farmers and female cotton pickers. [1, 2]

 

[Fatman17]

The Severe Economic Backlash
The cotton crisis directly threatens the sustainability of Pakistan's broader economic stability: [1]

• Textile Export Squeeze: The textile sector generates roughly 60% of Pakistan's total export earnings. Shortages of domestic "white gold" have stifled manufacturing growth and triggered factory closures. [1, 2, 3, 4]
• Foreign Exchange Drain: To keep its factories operational, the industry must heavily import raw cotton, burning billions in precious foreign currency reserves. [1, 2]
• Rural Unemployment: Dropping output has closed over 60% of cotton ginning factories, destroying livelihoods for small-scale farmers and female cotton pickers. [1, 2]

Raw cotton loss is 2-3B$
Value added textile loss is 4-6B$
no other sector can recover this nearly 10B$ loss