Middle East & Central Asia News
LAST UPDATE: June 3, 2025
Pakistan Forecasts Economy to Grow 4.2% Next Fiscal Year
Pakistan projects a 4.2% GDP growth for the fiscal year starting July 2025, up from an estimated 2.7% in the current year, according to Planning Minister Ahsan Iqbal.
Insight
This optimistic forecast reflects the government’s confidence in economic recovery, driven by anticipated improvements in agriculture, industry, and services sectors. The projection also aligns with efforts to secure favorable terms with the IMF and other international lenders. However, achieving this target will require addressing structural challenges, including fiscal deficits, inflation, and external debt pressures. The government’s ability to implement effective reforms and maintain political stability will be crucial in realizing this growth trajectory.
Egypt’s non-oil private sector contraction slows in May, PMI shows
Egypt’s non-oil private sector showed signs of stabilization in May, with the PMI rising to 49.5 from 48.5 in April, indicating a slower rate of contraction.
Insight
The easing contraction suggests that economic conditions are gradually improving, possibly due to policy measures aimed at stabilizing the currency and controlling inflation. However, the sector still faces challenges such as high input costs and subdued demand. Continued efforts to enhance the business environment, attract investment, and support small and medium enterprises will be vital for sustained recovery. Monitoring inflationary trends and maintaining fiscal discipline will also play a key role in fostering economic stability.
Saudi Arabia’s non-oil private sector growth accelerates in May, PMI shows
Saudi Arabia’s non-oil private sector experienced accelerated growth in May, with the PMI rising to 55.8 from 55.6 in April, driven by a rebound in new orders.
Insight
The uptick in non-oil sector activity underscores the effectiveness of Saudi Arabia’s diversification efforts under Vision 2030. The construction sector’s robust performance and increased hiring indicate a positive business sentiment. However, rising input costs and competitive pressures leading to price reductions highlight the need for businesses to balance growth with profitability. Continued investment in infrastructure and reforms to enhance the business climate will be essential to sustain this momentum.
Trump says Iran deal would not allow ‘any’ uranium enrichment
Former President Donald Trump stated that any new nuclear agreement with Iran would prohibit all uranium enrichment, emphasizing a zero-tolerance stance.
Insight
Trump’s position marks a significant departure from previous agreements that allowed limited enrichment under strict monitoring. This hardline approach could complicate diplomatic efforts, as Iran views enrichment as a sovereign right. The insistence on zero enrichment may hinder negotiations and increase tensions, potentially impacting regional stability. Balancing non-proliferation goals with diplomatic engagement will be critical in addressing the complexities of Iran’s nuclear program.
Lebanon on bumpy road to public transport revival
Lebanon is attempting to revitalize its public transportation system, introducing new bus fleets to alleviate traffic congestion and reduce reliance on private vehicles.
Insight
The initiative reflects efforts to modernize infrastructure and improve urban mobility amid economic challenges. However, the success of such projects depends on consistent funding, effective governance, and public acceptance. Revamping public transport can contribute to economic recovery by creating jobs and enhancing productivity. Addressing issues like maintenance, scheduling, and integration with other transport modes will be essential to ensure the system’s sustainability and effectiveness.
