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ECONOMIC SURVEY 2026-27: Record provincial surplus masks deeper fault lines

ISLAMABAD: Provincial fiscal operations provided significant support to the federal government in improving the ove­rall fiscal situation in the outgoing year. “The dedicated efforts at the provincial level for effective resource mobilisation and prudent expenditure management triggered higher growth in provincial revenues relative to expenditures,” the Economic Survey of Pakistan 2025-26 acknowledged. All four provinces collectively achieved the highest-ever surplus of Rs1,636.1 billion in July-March, compared to Rs1 trillion last year. Provincial revenue incr­eased by 12.9pc during the same period. Sajid Amin Javed, Deputy Executive Director at SDPI, said the Centre was “fair” to urge provinces to share fiscal responsibility, but should lead by example by broadening its own tax net. He noted that since the federal government cannot constitutionally compel provinces to relinquish their NFC share, it has resorted to a “moral language of shared responsibility.” ...
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Mexico beat South Africa 2-0 to kick off 2026 FIFA World Cup

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Mexico ignited their World Cup party with a dominant 2-0 victory over nine-man South Africa on Thursday as the biggest ever edition of the global footballing showpiece kicked off at Mexico City’s iconic Estadio Azteca. Julian Quinones scored the opening goal of the tournament, and veteran striker Raul Jimenez added a second as the co-hosts’ bid for qualification from Group A got off to a smooth start. South Africa, meanwhile, never looked like they were spoiling the opening day fiesta, and finished with only nine men after Sphephelo Sithole and Themba Zwane were sent off. The Mexican-colored red, green and white smoke from pre-game fireworks had barely dissipated before Quinones fired the hosts into the lead on nine minutes, drilling a low shot through the legs of South Africa’s goalkeeper and captain Ronwen Williams. Mexico’s Raul Jimenez scores a goal during the 2026 World Cup Group A football match between Mexico and South Africa at the Estadio Azteca stad...
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Pricey football World Cup keeps fans away, hits US hotels, airlines

Hours before the World Cup kickoff, the boost to travel and tourism expected from this year’s biggest sporting event has yet to materialise. For years, the tournament was expected to deliver a windfall for America’s travel industry, now grappling with declining international visitors amid what rights groups describe as a climate of fear. The swarms of fans that hotels had counted on have yet to arrive, forcing many to cut rates. Flight bookings have slumped as ticket prices have skyrocketed. Expensive match tickets have further stymied demand, and industry analysts say excitement has been muted compared with past World Cups. The weak start suggests the traditional World Cup travel playbook — typically dependent on international fans willing to travel long distances and spend heavily to follow their teams — is faltering. Instead, the costs, visa hurdles and the logistics of attending matches across 16 host cities in three countries have proved a deterrent. US travellers, in a countr...
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Pakistan’s trade with Central Asia faces snags

ISLAMABAD: Pakistan’s exports to five Central Asian Countries (CACs) fell year on year by 8.62 per cent in the first 10 months of 2025-26. Exports to the region have turned negative following the closure of the land route into Afghanistan. However, Pakistan has started exporting goods to CACs via Iran, but trade remains limited in volume because of the long distance. In absolute terms, the value of Pakistan’s exports to the five CACs — Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan — dipped by 8.62pc to $147.992 million in July-April 2025-26 from $161.943m during the same period last year. Similarly, imports from the region dipped by 87.96pc to $20.882m in 10MFY26 from $173.383m during the same period last year. The majority of these imports came from Tajikistan, Uzbekistan and Turkmenistan. Pakistan’s trade with CACs is between $400 and $500m annually via Afghanistan. Uzbekistan has already implemented its transit trade agreement with Pakistan. Under the agree...
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Analysis: BUDGET 2026-27: Budget battles: who really shapes country’s finances?

THE budget is a tug-of-war between different interest groups. On one hand, there is explicit lobbying by various business groups and industry bodies that commission reports, hold events and engage policymakers. These organisations, explains Dr Ali Hasanain, associate professor of economics at Lums, also meet political party leaders and bureaucrats in both formal and private settings to communicate their concerns and policy preferences. This is broadly in line with how businesses operate globally. For ex­­ample, US President Donald Tru­­mp’s top backer in the last ele­ction was investor Timothy Mel­l­­on, who gave $150 million to Make America Great Again, Inc., follow­­ed by Elon Musk, who gave $118.6m. But while lobbying and formal influence exist everywhere, the distribution of power is far less orderly in Pakistan. No single player is all-powerful, though wealth is concentrated in relatively few hands. Instead, policy becomes outcome of fragmented pressure from multiple directions...
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Iran war fuels political backlash, inflation debate in the US

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WASHINGTON: Rising inflation and persistent energy price pressures have sharpened political divisions in Washington, with Democrats blaming President Donald Trump’s Iran policy and trade agenda for worsening economic conditions for American households. The latest figures showing inflation at 4.2 per cent in May, compared with wage growth of 3.4pc over the same period, have revived concerns that real incomes are being eroded as the cost of living continues to rise. Senate Democratic leader Chuck Schumer criticised the administration’s handling of the economy and foreign policy in a sharply worded social media post. “Another month of Trump’s illegal Iran war, another month of Trump’s tariffs, another month of Republican control of Congress. The result? A new all-time high for Trumpflation,” he wrote. He also highlighted remarks by economist Heather Long of Navy Federal Credit Union, who warned that inflation was outpacing wages. “Infl...
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A backdoor NFC revision?

• Budget delay exposes Centre-province fiscal deadlock • NFC shares may be frozen under budget pressure • Critics say Centre ignores revenues kept outside divisible pool • Experts blame fiscal crisis on low tax collection, debt, federal spending • Raza Rabbani warns of phased rollback of 18th Amendment, NFC Award WHEN Finance Minister Muhammad Aurangzeb rises to present his third budget, the usual questions will apply. Which sectors face fresh taxation? Will the salaried class get any relief? How much will the cost of living increase? Who will get tax benefits, and who will not? But this year, there is an additional dimension worth watching closely. Will the budget clip provincial finances? Will the Centre freeze provincial shares under the current National Finance Commission (NFC) arrangement and push fresh expenditure obligations onto provinces — over and above their existing requirement to produce a primary surplus? If it does, it would amount to a unilateral revision of the NFC ...
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