Latest news with #Schehzad
Business Recorder
02-08-2025
- Business
- Business Recorder
Pakistan secured relatively better deal: Finance Advisor
KARACHI: Pakistan has achieved a significant trade and investment breakthrough with the United States, securing economic opportunities unmatched in the region. According to Khurram Schehzad, Advisor to the Finance Minister: 'No other country in South or Southeast Asia has received a deal offering such low tariffs and the kind of investment prospects that Pakistan has been offered by the US' Schehzad was referring to US President Donald Trump's executive order, which introduced tariffs on exports from dozens of trading partners, including a revised 19 percent tariff on Pakistani goods, down from the previous 29 percent. The announcement came a day after the two countries finalized a trade agreement. Analysts see major economic gains in Pakistan's trade deal with US According to the executive order outlining the new tariff structure, Pakistan will face a 19 percent tariff rate as Trump's tariff deadline takes effect on August 1. Speaking at the launch of the Institute of Cost and Management Accountants of Pakistan (ICMAP)'s Budget 2025-26 Compendium titled 'Insights, Analysis and Impact', Schehzad said the US has committed to investing in Pakistan's oil and gas sector—a critical area, as energy currently constitutes nearly 90% of the country's import bill. He noted that this investment could significantly reduce Pakistan's energy burden over the next 20 to 25 years. 'This is a major victory in trade negotiations,' he said. 'We have secured a relative advantage in U.S. tariff adjustments, and it is now the private sector's responsibility to seize these opportunities and forge meaningful deals.' Commenting on the broader economic outlook, Schehzad said, 'The country's economic situation has improved in recent months, and this is the point from where we can begin to realize sustainable economic success.' However, he acknowledged that the salaried class has not yet received adequate relief and assured that efforts are underway to address their concerns in future policies. He highlighted the government's recent tariff reforms, aimed at reducing import duties to support local manufacturers and boost exports. 'Pakistan had effectively become a closed economy,' he noted, 'but we are now transitioning toward a more open and competitive economic model.' Schehzad added that the direction of economic policy is now on the right track and expected to benefit the middle- and lower-income classes. He said inflation is easing compared to peer economies and reiterated that the government's role is to facilitate—not control—economic activity. 'We are not in the business of doing business,' he said. 'Our responsibility is to empower people, create jobs, and increase incomes.' He also emphasized the need to promote local enterprise and disclosed that agreements have been signed with banks to provide loans to small businesses. On the taxation front, he noted notable improvements in compliance and enforcement over the past year, with further gains expected in the upcoming fiscal period. Calling for enhanced research capacity and innovation, Schehzad urged ICMAP to establish an incubation center and encourage young professionals to introduce new ideas. He stressed that the knowledge economy must be shaped by merit, critical thinking, and objective analysis. The event, attended by economists, financial experts, and policymakers, marked a significant moment for ICMAP as it continues its role in providing policy insight and economic analysis. Schehzad congratulated the institute on the launch of the compendium and highlighted the importance of understanding economic systems to achieve long-term growth. The Budget 2025-26 Compendium unveiled at the event includes expert commentary on the new fiscal framework, industry perspectives, and findings from the ICMA-Gallup Post-Budget Survey. It captures public sentiment on government measures, outlines key changes from the Finance Bill to the final Finance Act, and provides a comprehensive comparison of Budget 2025-26 with that of 2024-25. The report also evaluates the short- and long-term impacts of budgetary measures on Pakistan's economy. ICMAP Executive Director Aamir Ijaz Khan and other senior officials also spoke during the ceremony. Copyright Business Recorder, 2025
Business Recorder
08-07-2025
- Business
- Business Recorder
Pakistan achieves early retirement of Rs1.5trn public debt in FY25
KARACHI: In a significant economic achievement, the government of Pakistan has demonstrated its firm commitment to fiscal discipline and long-term stability by retiring Rs 1.5 trillion in public debt ahead of schedule in FY25. This substantial early repayment has contributed to a notable improvement in Pakistan's fiscal indicators, bringing the debt-to-GDP ratio down from 75 percent in FY23 to 69 percent in FY25. 'In another bold and unprecedented step toward fiscal responsibility, the Ministry of Finance, Government of Pakistan, has successfully retired Rs 500 billion in debt owed to the State Bank of Pakistan (SBP- a full four years ahead of its scheduled maturity in 2029,' Khurram Schehzad Advisor to Finance Minister revealed on social platform X. Public debt recorded at Rs76,007bn by end-March This early retirement of central bank debt, executed by the Debt Management Office (DMO), marks a major breakthrough in Pakistan's debt management strategy. 'Early debt retirement while converting shorter-tenure with longer-tenure debt, significantly reduces concentration risk, lowers future liabilities, and strengthens the country's macroeconomic foundations by curbing reliance on borrowing,' he added. More importantly, he said that it reflects the government's strong commitment to proactive, disciplined, and forward-looking financial governance. This latest achievement builds on an earlier milestone- the successful buyback of Rs 1 trillion in market debt completed by December 2024- the first such operation in Pakistan's history. Combined, these two strategic actions amount to the early retirement of R 1.5 trillion in public debt in FY25, sending a strong signal of economic confidence and reform. In a historical move, with improved liquidity position the federal government conducted the first buyback auction of government securities during the first half of last fiscal year to reduce the debt burden. The Rs 3 trillion profit of SBP, transferred to the federal government, has eased the financial burden, and make cushion to retired the public debt, he said. He mentioned that with these early retirements of debt, Pakistan's debt-to-GDP ratio declined by 6 percent in the last two years from 75 percent in FY23 to 69 percent in FY25. In addition, it has extended the average time to maturity (ATM) of public debt from 2.70 to around 3.75 years. These early payments have also lowered refinancing risks and freeing up fiscal space for development priorities. Moreover, by capitalising on the sharp decline in interest rates- combined with disciplined borrowing, timely repayments, and strategic refinancing- the government has achieved an extraordinary Rs 830 billion in interest cost savings in FY25, Schehzad informed. 'This is more than just debt reduction; it is decisive, forward-looking economic management, aimed at building a resilient, credible, and fiscally sustainable Pakistan.' Copyright Business Recorder, 2025
Business Recorder
08-07-2025
- Business
- Business Recorder
Country achieves early retirement of Rs1.5trn public debt in FY25
KARACHI: In a significant economic achievement, the government of Pakistan has demonstrated its firm commitment to fiscal discipline and long-term stability by retiring Rs 1.5 trillion in public debt ahead of schedule in FY25. This substantial early repayment has contributed to a notable improvement in Pakistan's fiscal indicators, bringing the debt-to-GDP ratio down from 75 percent in FY23 to 69 percent in FY25. 'In another bold and unprecedented step toward fiscal responsibility, the Ministry of Finance, Government of Pakistan, has successfully retired Rs 500 billion in debt owed to the State Bank of Pakistan (SBP- a full four years ahead of its scheduled maturity in 2029,' Khurram Schehzad Advisor to Finance Minister revealed on social platform X. Public debt recorded at Rs76,007bn by end-March This early retirement of central bank debt, executed by the Debt Management Office (DMO), marks a major breakthrough in Pakistan's debt management strategy. 'Early debt retirement while converting shorter-tenure with longer-tenure debt, significantly reduces concentration risk, lowers future liabilities, and strengthens the country's macroeconomic foundations by curbing reliance on borrowing,' he added. More importantly, he said that it reflects the government's strong commitment to proactive, disciplined, and forward-looking financial governance. This latest achievement builds on an earlier milestone- the successful buyback of Rs 1 trillion in market debt completed by December 2024- the first such operation in Pakistan's history. Combined, these two strategic actions amount to the early retirement of R 1.5 trillion in public debt in FY25, sending a strong signal of economic confidence and reform. In a historical move, with improved liquidity position the federal government conducted the first buyback auction of government securities during the first half of last fiscal year to reduce the debt burden. The Rs 3 trillion profit of SBP, transferred to the federal government, has eased the financial burden, and make cushion to retired the public debt, he said. He mentioned that with these early retirements of debt, Pakistan's debt-to-GDP ratio declined by 6 percent in the last two years from 75 percent in FY23 to 69 percent in FY25. In addition, it has extended the average time to maturity (ATM) of public debt from 2.70 to around 3.75 years. These early payments have also lowered refinancing risks and freeing up fiscal space for development priorities. Moreover, by capitalising on the sharp decline in interest rates- combined with disciplined borrowing, timely repayments, and strategic refinancing- the government has achieved an extraordinary Rs 830 billion in interest cost savings in FY25, Schehzad informed. 'This is more than just debt reduction; it is decisive, forward-looking economic management, aimed at building a resilient, credible, and fiscally sustainable Pakistan.' Copyright Business Recorder, 2025
Express Tribune
29-06-2025
- Business
- Express Tribune
Pakistan tops rankings for risk improvement
Listen to article In a major economic milestone, Pakistan has emerged as the top-performing market in the Global Emerging Market (EM) Rankings for reducing sovereign credit risk, according to a new Bloomberg Intelligence report. Over the past 12 months, Pakistan recorded the largest drop in sovereign default risk worldwide, measured through Credit Default Swaps (CDS), highlighting improved creditworthiness and economic stability. The CDS-implied probability of default has decreased significantly, positioning Pakistan at the forefront of the global EM pack. While Bloomberg's terminal data isn't widely accessible, the report was shared by Finance Minister's adviser Khurram Schehzad on social media platform X, sparking optimism within the financial community. Schehzad wrote, "As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by CDS-implied probability." He added, "This is a resounding signal to global investors: Pakistan is not only back on the mapit is moving forward with stability, credibility, and reform at its core." According to the report, Pakistan's default probability fell from 59% to 47%, marking an 1,100 basis point improvementsharper than reductions seen in Argentina (7%), Tunisia (4%), and Nigeria (5%). In contrast, countries like Turkey, Ecuador, Egypt, and Gabon saw increases in their risk levels.
Business Recorder
28-06-2025
- Business
- Business Recorder
Pakistan leads emerging markets in sovereign risk recovery, says Bloomberg Intelligence
In a positive development on the economic front, Pakistan has emerged as the most improved emerging market in terms of sovereign credit risk, according to the latest analysis by Bloomberg Intelligence. Backed by macroeconomic stabilization, structural reforms, and successful engagement with the International Monetary Fund (IMF), the country has recorded the sharpest decline in default risk globally over the past year—signaling renewed investor confidence and growing financial credibility, said Khurram Schehzad, Advisor to Pakistan's Finance Minister, in a post on social media platform X on Saturday. 'As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by Credit default swaps (CDS)-implied probability. 'Pakistan topped Global EM Rankings in default risk reduction, as the country has recorded the largest drop in sovereign default risk globally over the last 12 months,' said Schehzad. A CDS is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse them if the borrower defaults. Citing Bloomberg Intelligence data, default probability was down from 59% to 47%, an 11 percentage point improvement, said Schehzad. 'This marks the sharpest decline among major emerging markets, ahead of Argentina (-7%), Tunisia (-4%), and Nigeria (-5%). In contrast, countries like Turkey, Ecuador, Egypt, and Gabon have seen their default risks rise.' Schehzad was of the view that the decline in Pakistan's risk signals renewed investor confidence—fueled by 'macroeconomic stabilisation, structural reforms, successful IMF engagement and timely debt repayments, and improved credit outlooks by S&P, Fitch, and others'. 'Pakistan is not only back on the map—it is moving forward with stability, credibility, and reform at its core,' he said.
