Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
  • Thursday, June 12, 2025

Pakistan Federal Budget 2025–26 – Full Summary in Plain Text


Budget Size and Main Focus

  • The total budget for 2025–26 is 17.57 trillion Pakistani Rupees.

  • It is 7% less than last year’s budget of 18.9 trillion.

  • The government is focusing on controlling the fiscal deficit, boosting tax collection, and encouraging exports.

  • GDP growth target is set at 4.2% for the coming year.

  • Fiscal deficit target is 3.9% of GDP, reduced from last year’s 5.9%.


Defence and Security Spending

  • Defence budget has been increased by 20%, reaching 2.55 trillion rupees.

  • This is about 19 to 20% of the total budget and roughly 2.5% of the national GDP.

  • The rise is influenced by recent security concerns and military tensions.


Taxation and Revenue Generation

  • Tax revenue target is set at 14.1 trillion rupees, showing an increase of nearly 19%.

  • Income tax relief has been introduced for salaried individuals. Those earning between 600,000 and 1.2 million rupees per year will now pay only 2.5% tax, reduced from 5%.

  • The tax net is being widened to include sectors like agriculture, real estate, and retail.

  • Inflation is expected to stay around 7.5% during this fiscal year.


Public Development and Services

  • Development and public service spending has been reduced.

  • Public Sector Development Program (PSDP) has been trimmed compared to previous years.

  • Health, education, and social sectors will continue to receive funding but at a controlled rate due to fiscal tightening.

  • Transfers to provinces will continue under the NFC Award.


Economic Goals and Reforms

  • The budget is part of a broader reform plan supported by the International Monetary Fund (IMF).

  • Focus is on reducing reliance on loans, improving economic management, and increasing exports.

  • Import duties on raw materials are being reduced to support local industries.

  • There is a push for structural reforms, but critics say deeper reforms are still needed.


Summary Table

  • Total Budget: 17.57 trillion PKR

  • GDP Growth Target: 4.2%

  • Fiscal Deficit Target: 3.9% of GDP

  • Defence Budget: 2.55 trillion PKR (20% increase)

  • Tax Revenue Target: 14.1 trillion PKR

  • Inflation Estimate: 7.5%

  • Tax Relief: 2.5% tax for 600k–1.2m annual income group


Pakistan Budget 2025–26: Key Highlights


  • Thursday, June 12, 2025



Trade Wars and Market Disruption

In 2025, global trade tensions have sharply intensified, with major economies like the U.S., China, the EU, and others imposing and retaliating with tariffs on key sectors such as steel, electronics, autos, and agricultural products. These tariffs function like invisible taxes, raising costs for companies and ultimately for consumers.

As a result, companies face increased production costs, disrupted supply chains, and delays in deliveries. Many firms are now relocating their manufacturing bases from China to Southeast Asia, Latin America, or Eastern Europe to avoid heavy duties. However, these transitions are slow and costly.

The impact on global markets is significant. Stock exchanges across the U.S., Europe, and Asia have become highly volatile. Investor confidence is shaken by every new tariff announcement or trade policy shift. Currencies are also fluctuating as traders move funds into safer investments, fearing prolonged economic uncertainty.

Consumer prices are rising cars, electronics, furniture, and even groceries have become more expensive in many countries. With rising inflation and stagnant wages, household spending power is being eroded. Consumers are delaying non-essential purchases, directly affecting retail sales and overall economic growth.


The Advertising Industry’s Struggles

Trade wars are indirectly but strongly affecting global advertising as well. When the economy slows down, companies slash their marketing budgets and that’s what’s happening now. Leading ad agencies have downgraded growth forecasts for 2025, expecting a much smaller rise in ad spending than originally predicted.

Traditional advertising mediums like television are suffering. Brands are pulling back from upfront ad commitments due to uncertainty, and broadcasters are facing reduced income. At the same time, digital advertising is shifting too brands prefer performance-based ads with clear returns, like paid search or social media ads, but even these are being cautiously managed.

Companies now prefer shorter contracts and more flexible campaigns. There is a visible shift from expensive productions to quick, efficient content often made using AI or user-generated videos. This allows businesses to stay visible without spending as much, especially while markets remain unstable.

Retail media ads placed on e-commerce platforms is still growing but at a slower rate than in previous years, due to weaker consumer demand. Many brands are also shifting focus to domestic or regional markets to hedge against trade uncertainty.


Broader Impact and Future Outlook

This ongoing trade uncertainty is not just a short-term glitch it is reshaping how global business operates. More companies are now prioritizing supply chain resilience over cost-efficiency. Advertising is evolving, becoming more digital, more reactive, and less reliant on long-term branding strategies.

If these trade tensions continue, we can expect more conservative marketing, slower global economic growth, and ongoing pressure on both consumers and corporations. For the advertising world, this means a greater focus on results, flexibility, and survival strategies in a climate of rising costs and unpredictable policies.

In short, trade wars are no longer just about tariffs they are changing the way economy's function, how companies advertise, and how people spend.

Trade Wars Disrupt Markets and Ads


  • Wednesday, June 04, 2025

As of June 2025, the global economy is facing a significant slowdown. The Organization for Economic Co-operation and Development (OECD) has revised its growth forecast, projecting a drop in worldwide economic growth from 3.3% in 2024 to 2.9% in both 2025 and 2026. This slowdown is largely due to rising trade tensions and protectionist policies, especially from major economies like the United States.

One of the key factors behind this decline is the return of aggressive trade policies. The U.S. has reintroduced high tariffs on imports, which has disrupted global trade. In response, other countries have also taken similar actions, creating a cycle of retaliation that affects international markets. This environment of uncertainty is making businesses across the globe hesitant to invest, expand, or take risks.

Another issue is inflation. Prices of goods and services are increasing due to higher import costs caused by tariffs. In many developed countries, inflation is expected to reach over 4% this year. This affects not only the purchasing power of consumers but also puts pressure on central banks to raise interest rates, which can further slow down economic activity.

The slowdown is being felt differently across regions. In the United States, growth is expected to decline from 2.8% in 2024 to around 1.6% in 2025. The country is also facing a growing budget deficit, predicted to hit 8% of its GDP by 2026. China, while still growing, is expected to see its growth ease from 5% to 4.3% over the next two years, despite attempts to stimulate its economy. In Europe, the eurozone is showing slightly better resilience, but still with modest growth projections between 1% to 1.2%.

Overall, the global economic outlook remains uncertain. Trade tensions, inflation, and cautious business behavior are combining to create a slower and more fragile recovery. Countries may need to cooperate more closely to stabilize the global economy and restore investor and consumer confidence.

Global economy slows in 2025 due to trade tensions, rising inflation, and reduced investments worldwide.



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