pakistan's economy

Pakistan is spending heavily on lobbying in the United States. This occurs as the nation faces economic difficulties and water scarcity. The country also deals with rising fuel costs. FARA filings reveal extensive efforts to influence Washington. This includes security, trade, and diplomatic outreach. The lobbying intensified during military tensions with India. Pakistan's army chief made claims about mediation.

The Union government is engaging with the US concerning a Section 301 investigation into forced labor and industrial capacity. The US Trade Representative has identified India among countries with inadequate measures against goods made with forced labor, proposing potential tariffs. This occurs amidst ongoing bilateral trade deal discussions.

Islamabad has mandated early business closures, with markets shutting by 8 pm and eateries by 10 pm, to combat rising energy costs fueled by Middle East conflicts. This austerity measure, effective June 1, 2026, aims to reduce electricity consumption and ease financial strain on Pakistan, a nation heavily reliant on imported fuel. Essential services remain exempt.

The USTR released the outcome of 60 investigations conducted under Section 301, identifying India among 54 economies that, according to its assessment, do not have adequate measures in place to prohibit or effectively prevent the import of goods allegedly produced using forced labour.

In a significant step towards revitalizing its economy, Pakistan has wrapped up vital discussions with the IMF, centering on fiscal strategies and essential reforms. The dialogues emphasized changes in the energy sector, restructuring of state-owned enterprises, and efforts to draw in private investment.

Defence minister Rajnath Singh revealed the Indian Navy's decisive role in Operation Sindoor, keeping Pakistan's navy confined to ports. Speaking at the Lucknow naval museum inauguration, he highlighted the operation's success following the Pahalgam terror attack. Singh also lauded India's growing defence manufacturing and export capabilities.

The Section 301 probe launched by the US in March 2026 is a known variable in India’s trade deal talks with America. Yet, the proposal to impose duties on around 60 countries assumes significance at a time when a delegation from the US is in India to finalise terms of the India-US trade deal.

Mediators are facilitating fresh US-Iran negotiations on a draft memorandum aimed at ending the ongoing conflict. The proposed agreement includes a multi-billion dollar reconstruction package for Iran's economy and a temporary non-aggression arrangement, with nuclear talks deferred to a later phase.

Economists say that if the situation does not improve in the coming days, then more hikes may be in the offing. However, the approach of gradual hikes in petrol and diesel prices is to avoid an immediate inflation shock to the economy.

Gulf allies UAE, Saudi Arabia, and Qatar urged President Trump to pursue diplomacy with Iran, fearing renewed conflict would destabilize regional economies. Leaders argued military action wouldn't achieve US objectives, reflecting a shift for the UAE after recent hostilities. All three nations remain wary of further escalation.

Recent fuel price hikes have ignited debate over oil marketing companies' (OMCs) profits amid the Middle East crisis. Despite a reported Rs 77,821 crore profit for FY26, a closer look reveals thin margins, past losses, and a lag in reflecting current crude price impacts. These profits are crucial for investments and national energy security.

US Secretary of State Marco Rubio and external affairs minister S Jaishankar reaffirmed strong US-India strategic ties, highlighting cooperation in defence, trade, energy and technology. Rubio said US visa reforms were global, not India-specific, while condemning racist remarks against Indian Americans. Both leaders discussed energy security, Quad cooperation, trade negotiations, Iran tensions and India’s multi-alignment foreign policy approach.

Anthropic and OpenAI have fired another salvo, launching their own services companies. While some believe this will force software firms to become more differentiated, others price these stocks at zero earnings growth

Pakistan plans to increase its defense budget by PKR 100 billion for the next fiscal year, reaching an estimated PKR 2.665 trillion. This move aligns with an IMF-backed reform program projecting a significant rise in federal revenues to PKR 17.144 trillion. The government is also committed to digitizing payments and tackling corruption across institutions.

Intense diplomatic efforts are underway to secure an agreement between the US and Iran, aiming to end the Middle East conflict, reopen the Strait of Hormuz, and ease energy market pressures. Despite claims of progress, significant disagreements persist over uranium enrichment, sanctions relief, and regional influence, leaving a final deal uncertain.

Commercial vehicle drivers in Delhi-NCR launched a three-day strike demanding fare hikes due to soaring fuel costs. Unions cite financial struggles, urging immediate government action on taxi and auto fares. However, several transport associations have distanced themselves, vowing to continue services and emphasizing national interest amidst global price challenges.

Until 2010, outfits like Adventure Consultants and Himex (New Zealand), Alpine Ascents International and International Mountain Guides (US), and Jagged Globe (UK) dominated Everest, while Nepalis worked merely as employees for these firms.

According to the government, India has around 60 days of petroleum supplies in various forms including strategic reserves. But if 20% of the world’s crude supply remains disrupted over 2.5 months of the war, where is India getting its oil from?