Pakistan's rupee is experiencing downward pressure due to payment obligations, despite a typical increase in remittances from expatriate Pakistanis before Eidul Azha. The country's trade deficit narrowed to $2.6 billion in May, with exports rising 17% and imports decreasing 8%. However, the trade gap increased by 11% year-over-year to $24 billion. In a positive development, the Asian Development Bank approved an $800 million programme to strengthen public financial management and boost fiscal sustainability in Pakistan.
https://www.thenews.com.pk/print/1318516-rupee-falls-for-second-dayPakistan's SAPM expressed satisfaction with the outcomes of the ninth Pakistan-Russia IGC held in Moscow in 2024, hoping for a productive next meeting in Pakistan this year. The SAPM met with Yury Ushakov, Senior Aide to the President on Foreign Policy Issues, and briefed him on the recent escalation in South Asia, particularly regarding India's actions on the Indus Waters Treaty. The SAPM also gave interviews to Russian TV networks, shared his views on improving Pakistan-Russia relations, and participated in a talk at the Valdai Discussion Club, where he discussed developments in South Asia and Pakistan-Russia relations with academics and journalists.
https://www.brecorder.com/news/40366343/pakistan-russia-take-holistic-stock-of-bilateral-tiesPakistan's government has signed a $300 million loan agreement with the Asian Development Bank (ADB) for the "Improved Resource Mobilization and Utilization Reform Programme (Subprogramme-II)". The agreement was signed by Dr Kazim Niaz, secretary of Pakistan's Economic Affairs Division, and Emma Fan, country director of ADB's Pakistan Resident Mission. The programme aims to introduce structural reforms in trade, revenue generation, and capital market development, with a total financing package of $800 million that will support Pakistan's macroeconomic recovery efforts.
https://www.brecorder.com/news/40366394/pakistan-adb-sign-300m-subprogram-ii-loanAsking all four nations - India, China, Saudi Arabia and Turkey - to stand by Pakistan in terms of funding and support regarding its efforts to avoid being placed on the Financial Action Task Force (FATF) grey list is a significant development. The Organisation of Islamic Cooperation (OIC) has been vocal about Pakistan's plight, with many member countries expressing their willingness to help. However, it remains to be seen how effective this support will be in addressing Pakistan's concerns.
https://www.ndtv.com/video/terrorism-survives-on-asaduddin-owaisi-to-ndtv-on-op-sindoor-outreach-948477?hp#pfrom=home-ndtv_videoAir Canada CEO Michael Rousseau discussed the impact of diplomatic tensions between Canada and its trading partners, particularly India and the US. He emphasized the benefits of diversifying trade away from the world's largest economy, suggesting that Canada should focus on strengthening relationships with countries like India to mitigate risks associated with relying heavily on a single market.
https://channelnewsasia.com/watch/air-canada-bookings-us-routes-down-10-year-ago-ceo-5166676Pakistan Prime Minister Shehbaz Sharif's visit to Saudi Arabia aims to strengthen economic and diplomatic ties between the two nations, aligning with Saudi Arabia's Vision 2030 and Pakistan's development goals. The visit seeks to solidify bilateral relations and explore new areas of collaboration.
https://www.brecorder.com/news/40366290/pm-shehbaz-to-embark-on-two-day-official-visit-to-saudi-arabia-on-thursdayPrime Minister Shehbaz Sharif declared that Pakistan-US relations are entering a "new era" as he attended the US Embassy's Independence Day ceremony. He expressed hope for a lasting ceasefire with India, citing cooperation in trade, investment, and energy among other areas. The prime minister highlighted Pakistan's sacrifices after 9/11, including 90,000 casualties and $150 billion in economic losses. He also praised President Trump's role in brokering the recent ceasefire, calling it a "false-flag operation" due to India's aggression.
https://www.brecorder.com/news/40366287/pm-shehbaz-says-pakistan-us-relations-entering-new-eraAmbassador Samuel Žbogar emphasized that the resolution was not intended to provoke a veto, focusing instead on addressing the humanitarian crisis and ensuring unimpeded access for aid delivery. He condemned starving civilians and inflicting immense suffering as inhumane and against international law.
https://africanews.com/2025/06/05/us-vetoes-un-security-council-resolution-demanding-gaza-ceasefire/The US government's latest economic analyses suggest slowing growth and rising consumer prices due to President Donald Trump's trade war with foreign countries. Despite this, the White House remains committed to its trade agenda, including plans to double tariffs on steel and aluminum imports. Analysts like Alex Jacquez warn that soft data may turn into hard data, leading to an economic downturn. New research from Liberty Street Economics found that businesses passed on tariff costs to consumers, while the Federal Reserve's Beige Book reported elevated levels of economic uncertainty due to higher tariff rates. The Congressional Budget Office projects a slight slowing of GDP growth and increased consumer prices by 2026. Trade negotiations with countries like China and the European Union are ongoing, but progress is slow.
https://www.scrippsnews.com/politics/economy/are-trumps-tariffs-hurting-us-consumers-heres-what-the-data-says