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World Bank forecasts Pakistan’s GDP to grow 3% in FY26 – SUCH TV
The World Bank has projected Pakistan’s real GDP growth to remain at 3% in FY26, warning that the lingering effects of recent floods will continue to weigh on the country’s economic recovery.
In its latest report, “Pakistan Development Update: Staying the Course for Growth and Jobs,” the global lender noted that growth could rise slightly to 3.4% in FY27, provided macroeconomic stability and reform commitments remain intact.
However, it cautioned that tight fiscal policies, global uncertainty, and Pakistan’s exposure to climate shocks will likely keep growth constrained.
According to the report, Pakistan’s economy expanded by 3% in FY25, up from 2.6% in FY24, driven by stronger industrial activity and an expanding services sector. It credited prudent monetary policy for helping contain inflation and support external and fiscal stability, even amid challenging conditions.
While industry and services saw improvement, the agriculture sector underperformed due to adverse weather and pest attacks.
The World Bank said recent floods have caused significant human and economic losses, damaging urban areas and farmland, and posing fresh risks to growth.
World Bank Country Director Bolormaa Amgaabazar stressed that maintaining reform momentum and accelerating job creation are vital to sustaining growth, alongside strengthening social safety nets and resilient infrastructure to protect vulnerable communities.
Lead author Mukhtar Ul Hasan emphasized the need for urgent fiscal reforms, including broadening the tax base, improving tax administration, and reducing the state’s role in the economy through divestment of loss-making state enterprises.
The report also highlighted the decline in exports from 16% of GDP in the 1990s to just 10% in 2024 warning that dependence on debt and remittance-driven consumption fuels recurring boom-bust cycles.
Calling exports the key to sustainable growth, the World Bank urged Pakistan to pursue broader trade reforms, including a market-based exchange rate, better logistics and energy infrastructure, and expanded trade and digital connectivity to boost export competitiveness, particularly in emerging IT services.
Meanwhile, WB report’s co-author Anna Twum said that government has placed export growth at the centre of its development agenda and has made important strides in tackling policy and structural barriers, most recently through the approval of the National Tariff Policy, which will help lower costs for critical imported inputs.
However, she noted, tariff reforms alone will not suffice and must be complemented by broader measures to ensure a market-determined exchange rate, strengthen trade finance, enhance trade facilitation, and expand access to export markets.
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The move is expected to provide an immediate and substantial boost to Nepal’s economy, particularly its tourism and hospitality sectors, which rely heavily on Indian visitors
The original restrictions on high-value Indian currency were severely tightened in Nepal following the 2016 demonetisation in India, which withdrew old ₹500 and ₹1,000 notes. Representational image
Nepal is preparing to officially permit the circulation of Indian currency notes above the ₹100 denomination, marking the end of a nearly decade-long ban that has significantly complicated cross-border travel, trade, and remittances between the two countries. The move, currently in its final stages with the Nepal Rastra Bank (NRB) preparing to publish the official notice, follows a crucial regulatory shift by India’s central bank.
The original restrictions on high-value Indian currency were severely tightened in Nepal following the 2016 demonetisation in India, which withdrew old ₹500 and ₹1,000 notes. Even after new notes were introduced, Nepal maintained the ban on all denominations above ₹100 due to concerns over the smuggling of counterfeit currency and security risks. This policy forced Indian tourists and Nepali migrant workers to carry large wads of low-denomination notes, leading to financial hardship, confusion, and frequent incidents of travellers being detained or fined for inadvertent violations.
India’s Regulatory Green Light
The pivotal change that has allowed Nepal to reverse course came from the Reserve Bank of India (RBI). In late November 2025, the RBI amended its Foreign Exchange Management Regulations, formally allowing individuals to transport higher-denomination Indian rupee notes across the border.
The new rule specifies that individuals can carry Indian currency notes of any amount in denominations up to ₹100. Crucially, they are now permitted to carry notes above ₹100 up to a total value of ₹25,000 in either direction—both into Nepal and back into India. This amendment effectively removed the main legal constraint that previously limited the practical utility of higher-value notes for travellers.
Boosting Tourism and Easing Remittances
The lifting of the ban is expected to provide an immediate and substantial boost to Nepal’s economy, particularly its tourism and hospitality sectors, which rely heavily on Indian visitors. Businesses in border towns, casinos, and pilgrimage routes that cater to Indian tourists have been vocal in lobbying for this change, as the previous restrictions limited spending power.
Furthermore, the decision is a massive relief for the estimated two million Nepali migrant workers in India, who previously faced major security risks when bringing home their earnings in small denominations. The Nepal Rastra Bank (NRB) spokesperson, Guru Prasad Poudel, confirmed that the process is nearing completion, stating they are preparing to publish the notice in the Nepal Gazette before issuing circulars to banks and financial institutions, ushering in a new era of smoother financial integration between the two neighbours.
Click here to add News18 as your preferred news source on Google. December 14, 2025, 01:21 IST
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8th Pay Commission: Railways to trim costs to accommodate higher wages; maintenance, procurement, energy sectors in focus – The Times of India
Railways is implementing focused cost-cutting initiatives across maintenance, procurement and energy sectors to fortify its financial position before dealing with increased wage expenses anticipated from the Eighth Pay Commission recommendations.Established in January 2024, the Eighth Pay Commission must submit its recommendations within an 18-month timeframe.The previous Seventh Pay Commission led to wage increases of 14-26% for railway staff. Its implementation began in 2016, with tenure concluding in January 2026. The national transporter is currently emphasising expense reduction to enhance operational efficiency over the next two years to prevent financial strain from the forthcoming recommendations.The Seventh Pay Commission increased the wage expenditure by Rs 22,000 crore, including salaries and pensions, whilst the current projection suggests a potential rise of Rs 30,000 crore. “We have planned for the additional fund requirement,” a senior official told Economic Times, stating that internal accruals, combined with projected savings and increased freight revenue, would cover the expenses.Indian Railways recorded an operating ratio (OR) of 98.90% in fiscal 2024-25, resulting in net revenue of Rs 1,341.31 crore. For fiscal 2025-26, the target OR is 98.43% with anticipated net revenue of Rs 3041.31 crore.Officials anticipate annual energy savings of Rs 5,000 crore following network electrification completion.Additionally, yearly payments to Indian Railway Finance Corporation (IRFC) are expected to decrease in fiscal 2027-28, as recent capital expenditure has been funded through gross budgetary support (GBS).Officials confirm no plans for new short-term borrowing. “Annual freight earnings will also rise by Rs 15,000 crore when higher wages need to be paid in 2027-28,” the official stated.The Seventh Pay Commission implemented a 2.57 fitment factor, raising minimum basic pay from Rs 7,000 to Rs 17,990. Central trade unions advocate for a 2.86 fitment factor for the Eighth Pay Commission, potentially increasing the national transporter’s wage bill by over 22%.“Railways will ensure its finances are in a good condition to absorb the hit. Funds would not be an issue,” the official confirmed.The Railways has allocated Rs 1.28 lakh crore for staff costs in 2025-26, increased from Rs 1.17 lakh crore in 2024-25. Additionally, Rs 68,602.69 crore is earmarked for the pension fund in FY26, up from Rs 66,358.69 crore in FY25.
New Delhi: Gold and silver prices witnessed a sharp surge in the domestic market this week, tracking strong gains in global bullion markets. Gold prices rose by around Rs 4,000 per 10 grams, while silver prices jumped by nearly Rs 17,000 per kilogram. According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-karat gold increased by Rs 4,188 to Rs 1,32,710 per 10 grams, compared to Rs 1,28,592 a week ago.
The price of 22-karat gold climbed to Rs 1,21,562 per 10 grams from Rs 1,17,777, while 18-karat gold rose to Rs 99,533 per 10 grams from Rs 96,444. Silver prices outperformed gold, registering a sharper weekly rise. The price of silver surged by Rs 16,970 to Rs 1,95,180 per kilogram, up from Rs 1,78,210 per kilogram a week earlier.
Earlier on Friday, Silver touched the Rs 2 lakh mark to hit an all-time high of Rs 2,013,88 per kilogram on the Multi-Commodity Exchange (MCX) during the intraday trade. The price of the future contract expiring on March 5, 2026, rose over Rs 2,400 during the day before settling at Rs 2,00462, up Rs 1,520 against the previous session’s closing of Rs 1,98,942.
“Gold and silver ETFs have been quiet heroes of the year, delivering standout returns even as equity markets saw bouts of volatility. Silver, especially, stole the spotlight — a rare combination of booming industrial demand from solar, EVs and electronics, alongside tightening global supply, pushed prices sharply higher,” said Nikunj Saraf, CEO, Choice Wealth.
Gold too held its ground and climbed steadily, supported by persistent central-bank buying and investors seeking safety amid geopolitical and inflation worries, he added. The gold future contract expiring on February 5 surged 1.87 per cent to close at Rs 1,34,948 per 10 grams on MCX on Friday. In the retail market, the 24-carat gold price settled at Rs 132,710 per 10 grams, up over Rs 4,600 from the previous day’s closing of Rs 1,28,596 per 10 grams, according to the IBJA.
The rally in domestic bullion prices is largely driven by continued strength in international markets, with both precious metals hovering close to their all-time highs. On the COMEX, gold was trading at $4,328 per ounce, while silver stood at $62 per ounce.
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