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
https://arab.news/cjczu
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’s deputy PM speaks with Iran, Türkiye after UN rights vote on Tehran
- Pakistan voted against UN rights council resolution seeking to expand scrutiny of Iran
- Dar discusses regional issues with Türkiye’s Hakan Fidan after World Economic Forum
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar held separate phone calls on Saturday with the foreign ministers of Iran and Türkiye, highlighting Islamabad’s growing diplomatic engagement on regional crises after backing Tehran at the United Nations Human Rights Council and amid wider discussions on Middle East stability.
Dar, who also serves as Pakistan’s foreign minister, spoke with Iran’s Seyed Abbas Araghchi after Islamabad voted against a resolution at the UN rights council in Geneva that sought to expand international scrutiny of Iran following a crackdown on anti-government protests that began last month and continued for several days.
“Foreign Minister Araghchi thanked DPM / FM for his strong support and Pakistan’s position at the United Nations Human Rights Council in Geneva,” the foreign office said in a statement after the phone call.
While the resolution was adopted, Iran rejected it as “politicized” and described the council’s action as interference in its internal affairs.
Dar later spoke by phone with Türkiye’s Foreign Minister Hakan Fidan, with the two leaders reviewing developments following the World Economic Forum in Davos and agreeing to remain in close contact on key regional and international matters, the foreign office said.
Pakistan and Türkiye have increasingly coordinated diplomatic positions on regional issues, including Middle East tensions, as Islamabad positions itself as an active interlocutor in multilateral forums addressing conflict and humanitarian crises.
Iran’s foreign minister also conveyed appreciation to Pakistan’s prime minister, government and people for what he described as Islamabad’s principled stance, the statement added.
