Article 2: Energy & Economic Update — Thar Block-II Expansion Inaugurated and IMF Fiscal Reviews Underway Islamabad — Pakistan’s energy and macroeconomic sectors are experiencing major structural developments as policymakers navigate critical milestones under international financial frameworks.

Boosting Domestic Coal Production In a major boost to indigenous energy security, authorities officially inaugurated the Phase-III expansion of the Thar Block-II coal mine. This critical upgrade increases production capacity by 47%, bringing output to an impressive 11.2 million tonnes annually. By scaling up domestic coal extraction, the power sector aims to further reduce reliance on expensive imported fossil fuels, stabilizing electricity generation costs for industrial and domestic consumers alike.

IMF Talks and Social Spending Targets On the macroeconomic front, talks between Pakistan and the International Monetary Fund (IMF) have entered their final stretch concerning the ongoing $7 billion program and associated climate facilities. Reports indicate that global lenders are considering adjusting social spending targets—including health and education allocations—downward by approximately Rs 300 billion, bringing the target to Rs 3.9 trillion. This adjustment comes as provinces, notably Punjab and Sindh, manage fiscal constraints under strict cash surplus commitments and federal grant obligations. Meanwhile, the Federal Board of Revenue (FBR) continues to crack down on tax compliance anomalies, launching targeted inquiries into high-level discrepancies using advanced AI-based declaration monitoring.