#TariffsPause
In April 2025, Pakistan's economy received a significant boost as the U.S. announced a 90-day pause on new tariffs, leading to a surge in investor confidence. The Pakistan Stock Exchange responded positively, with the KSE-100 Index rising by over 2,000 points, reflecting optimism across various sectors .
Simultaneously, the Pakistani government initiated substantial reforms to reduce electricity tariffs by up to Rs12 per unit by March 2025. This plan involves renegotiating contracts with Independent Power Producers (IPPs), restructuring debts, and reducing taxes, aiming to alleviate the financial burden on consumers and stimulate economic growth .
These combined efforts are expected to enhance economic stability, attract foreign investment, and provide relief to the public. The tariff pause and domestic reforms signify a strategic move towards fostering a more resilient and competitive economic environment in Pakistan.