KARACHI: Pakistan’s manufacturing sector growth slowed to a seven-month low in April, with the HBL Pakistan Manufacturing Purchasing Managers’ Index (PMI)easing to 51.9 from 52.7 in March, as concerns over global trade weighed, HBL said in a press release.
The latest dip in the index hints at the impact of US President Donald Trump’s trade tariffs, said Humaira Qamar, Head of Equities & Research at HBL.
“We believe that the latest PMI dips are early signs of the headwinds to the global economy from the introduction of US tariffs,” said Humaira Qamar — Head Equities & Research at HBL.
New orders slumped while export orders in particular plummeted. Employment fell for a second month as firms cut costs, said Qamar.
Qamar warned that any US stagflation would hurt Pakistan’s exports, particularly to the US which accounts for 18 percent of its total, potentially prolonging the manufacturing downturn, though lower commodity prices could provide some relief, she added.
Despite the slowdown, the PMI remains above 50, indicating expansion amid a favorable inflation outlook.
Qamar said she expects an interest rate cut on Monday due to strong deflationary pressures. But a Reuters poll suggests Pakistan’s State Bank will hold rates steady at 12 percent, following a surprise pause in its last meeting due to geopolitical tensions and inflation concerns.
Pakistan’s annual inflation rate fell to 0.3 percent in April, well below the Ministry of Finance estimate of 1.5 percent to 2 percent. The central bank forecasts average inflation to be in the range of 5.5 percent to 7.5 percent for the fiscal year ending June.
Pakistan’s largest bank, HBL, and global financial information and analytics firm S&P Global launched the index In February to track the country’s manufacturing sector.
Pakistan’s factory PMI dips in early sign of global tariff headwinds
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Pakistan’s factory PMI dips in early sign of global tariff headwinds
- New orders slumped while export orders in particular plummeted
- Employment fell for a second month as manufacturers cut costs
Pakistan PM speaks to UAE president, calls for enhanced cooperation
- Shehbaz Sharif lauds UAE’s economic support in challenging times
- Both leaders discuss a range of issues, agree to stay in close contact
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday praised the United Arab Emirates for what he described as steadfast financial and political support during Islamabad’s recent economic crisis, as both sides signaled plans to deepen bilateral cooperation.
In a statement issued after Sharif spoke with UAE President Sheikh Mohamed bin Zayed Al Nahyan, the Prime Minister’s Office said the two leaders discussed matters of mutual interest and agreed to stay in close contact.
“The Prime Minister lauded the UAE’s consistent and unwavering support to Pakistan, that had helped the country navigate through difficult challenges,” the statement said, adding the two leaders “reaffirmed their shared desire to further enhance mutually beneficial cooperation between Pakistan and the UAE.”
The UAE, along with other friendly nations in the region, provided critical financial assistance to the South Asian country during a balance-of-payments crisis that strained Pakistan’s foreign exchange reserves and pressured its currency. Islamabad subsequently secured an International Monetary Fund program as part of broader stabilization efforts.
Sharif, in a post on X, described the exchange as positive.
“We fondly recalled our recent meetings and reaffirmed our shared resolve to further strengthen the historic, fraternal ties between Pakistan and the United Arab Emirates, and to expand mutually beneficial cooperation,” he wrote.
Millions of Pakistanis live and work in the UAE, forming one of the largest expatriate communities in the Gulf state.
Remittances from the UAE rank among Pakistan’s top sources of foreign currency inflows and play a significant role in supporting the country’s external accounts.
UAE-based companies are also investing in Pakistan, helping Islamabad develop its seaports to facilitate regional trade.
