Category: 3. Business

KARACHI: The share of banks financing the budget deficit fell to 74 per cent in the fiscal year that ended in June 2025 from nearly 100 per cent in FY24, resulting in a more than twofold increase in loans to private businesses, according to the central bank report released on Friday.

Banking sector assets expanded to nearly 52.4 per cent of gross domestic product (GDP) in FY25, up from 49.1 per cent in the previous year, said Governor’s Annual Report for FY25 of the State Bank of Pakistan.

The assets of the banking sector grew at 15.3 per cent in FY25.“The major driver of the growth in assets of the banking sector remained investments, particularly in government securities,” the SBP’s report said.

“However, owing to lower financing needs due to fiscal consolidation, availability of the non-bank as well as external financing, the share of banks in financing the budget deficit reduced to 74 per cent in FY25, compared to almost 100 per cent in FY24,” it added.

“In this backdrop, the private sector credit (PSC) off-take more-than- doubled during FY25, compared to FY24, as the improvement in economic activity and business confidence amid falling interest rates increased credit demand in the country.”

In contrast to banking sector assets, the sector’s deposit growth slowed, whereas the currency-in-circulation expanded amid rising domestic uncertainty due to regional conflict, the report said.

The disinflationary trend that began in FY24 became more pronounced during FY25. Average National CPI inflation dropped sharply to 4.5 per cent from 23.4 per cent in FY24 and 29.2 per cent in FY23, according to the report.

The SBP said it reduced the policy rate by a cumulative 1,100 basis points (bps) between June 2024 and June 2025. However, due to lingering uncertainties — including sticky core inflation during H2-FY25, evolving global trade tariffs, rising geopolitical tensions, and volatility in administered energy prices — the Monetary Policy Committee (MPC) slowed the pace of monetary easing in the second half of FY25.

The report noted that this measured stance facilitated a notable expansion in private sector credit and supported a gradual recovery in economic activity, especially in the latter part of the fiscal year. With the fiscal deficit narrowing to a multi-year low of 5.4 per cent of GDP, and the primary surplus more than doubling to 2.4 per cent, fiscal consolidation supplemented the monetary policy stance to help bring inflation down, the report said.

The significant improvement in the external sector, with the current account balance (CAB) posting a surplus for the first time in over fourteen years. The CAB surplus, combined with increased financial inflows following the IMF’s Extended Fund Facility programme, enabled SBP to conduct significant foreign exchange purchases from the interbank market that strengthened foreign exchange reserves and enhanced FX market stability.

The report highlights several measures taken by the SBP as part of its tertiary objective to support the government’s economic policy objectives. In particular, it highlights various exchange company reforms and administrative measures to boost workers’ remittances — such as enhanced incentives for banks, and targeted outreach to the diaspora — as well as measures to facilitate exporters, particularly in the IT sector, through enhanced retention limits to promote reinvestment and innovation.

The report notes the establishment of Raast Payments Pakistan (Pvt) Ltd to oversee the operations and governance of the Raast system, the launch of the enhanced PRISM+ settlement system with integrated central securities depository features, and the introduction of a regulatory sandbox framework for payment innovation. Additionally, the SBP implemented digital payment acceptance solutions nationwide along with the further digitisation of government payments.

Adjuvant abemaciclib (Verzenio; Eli Lilly) given alongside endocrine therapy (ET) significantly prolonged overall survival (OS), invasive disease-free survival (IDFS), and distant relapse-free survival (DRFS) in patients with hormone receptor (HR)–positive, HER2-negative, node-positive, early breast cancer in the phase 3 monarchE trial (NCT03155997).¹ The results were published in Annals of Oncology and presented in a late-breaking abstract at the 2025 European Society for Medical Oncology Congress.²

Abemaciclib is a cyclin-dependent kinase 4/6 inhibitor targeted for cancer therapy, and the monarchE trial demonstrated a 15.8% reduction in risk of death vs ET (HR, 0.84; 95% CI, 0.72-0.98; P = .027) in the intent-to-treat population at a median follow-up of 76.2 months.¹ The newly published data, which make abemaciclib the first therapy in more than 2 decades to show a significant overall survival (OS) benefit in this high-risk patient population, will also be submitted to global regulatory health authorities, according to a press release.²

“For patients, survival is what matters most—and abemaciclib plus ET represents the first contemporary medicine in over two decades to deliver a clear improvement in overall survival in the adjuvant setting,” said lead monarchE investigator Stephen Johnston, MD, PhD, professor of Breast Cancer Medicine and consultant medical oncologist at The Royal Marsden NHS Foundation Trust in London.²

The global, open-label, randomized phase 3 trial enrolled 5637 patients with high-risk, HR-positive, HER2-negative, early-stage breast cancer from July 2017 to August 2019.¹ Patients were randomly assigned 1:1 to receive standard adjuvant ET alone (n = 2829) or ET combined with abemaciclib (n = 2808). Patients received at least 5 years of ET with or without 2 years of abemaciclib (150 mg twice daily). IDFS was defined as the time from the receipt of treatment until ipsilateral invasive disease, ipsilateral locoregional invasive disease, contralateral invasive breast cancer, distant recurrence, second primary non-breast invasive cancer, or death from any cause.

The primary OS analysis had a data cutoff of July 15, 2025, at which point there were 661 OS events—301 (10.7%) in the abemaciclib arm vs 360 (12.7%) in the ET-alone arm. At 60, 72, and 84 months, OS rates were 91.2%, 89.2%, and 86.8% in the abemaciclib plus ET arm vs 90.2%, 87.9%, and 85.0% in the ET arm. In both arms, most deaths were associated with breast cancer recurrence.

The most frequent adverse events (AEs) leading to death were infections (including COVID-19 infections), second primary neoplasm, and cardiac disorders, and there were no relevant differences in causes of death related to AEs in either treatment group.

Patients in the abemaciclib cohort also had a reduced risk of IDFS (HR, 0.73; 95% CI, 0.66-0.820; nominal P < .0001). The estimated IDFS rate was 83.1% in the abemaciclib plus ET arm at 5 years vs 76.5% in the ET arm; at 7 years, the estimated IDFS rates were 77.4% and 70.9%, respectively.

“These results represent an important advancement in the care of node-positive, high-risk, HR-positive, HER2-negative disease by delivering meaningful reductions in recurrence and improving survival,” Jacob Van Naarden, executive vice president and president of Lilly Oncology, said.²

The results are in line with prior data, with the initial IDFS analysis showing significant improvements with abemaciclib plus ET vs ET alone (HR, 0.75; 95% CI, 0.60-0.93; P = .01),³ and a 5–year analysis showing sustained improvements in both IDFS (HR, 0.68; 95% CI, 0.599-0.772; nominal P < .001) and DRFS (HR, 0.675; 95% CI, 0.588-0.774; nominal P < .001).⁴ At 5 years, there was a trend in OS improvement in the abemaciclib that was not yet statistically significant.

“To now have data showing a treatment helps more people live longer is a major step forward for our community,” said Sue Weldon, CEO of Unite for HER, in the Eli Lilly press release.² “We mark this significant milestone while recognizing there’s more work ahead to ensure every eligible patient has the opportunity to benefit from treatments that can change lives.”

References

1. Johnston S, Martin M, O’Shaughnessy J, et al. Overall survival with abemaciclib in early breast cancer. Ann Oncol. Published online October 17, 2025. doi:10.1016/j.annonc.2025.10.005

2. Eli Lilly Inc.: Lilly’s Verzenio (abemaciclib) prolonged survival in HR+, HER2-, high-risk early breast cancer with two years of treatment. Published October 17, 2025. Accessed October 17, 2025. https://investor.lilly.com/news-releases/news-release-details/lillys-verzenior-abemaciclib-prolonged-survival-hr-her2-high

3. Johnston SRD, Harbeck N, Hegg R, et al. Abemaciclib combined with endocrine therapy for the adjuvant treatment of HR+, HER2-, node-positive, high-risk, early breast cancer (monarchE). J Clin Oncol. 2020;38(34):3987-3998. doi:10.1200/JCO.20.02514

4. Rastogi P, O’Shaughnessy J, Martin M, et al. Adjuvant abemaciclib plus endocrine therapy for hormone receptor-positive, human epidermal growth factor receptor 2-negative, high-risk early breast cancer: results from a preplanned monarchE overall survival interim analysis, including 5-year efficacy outcomes. J Clin Oncol. 2024;42(9):987-993. doi:10.1200/JCO.23.01994

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Long-term data from the phase 3 MANUEVER trial (NCT05804045) demonstrated that treatment with pimicotinib (ABSK021) led to robust and durable responses in patients with tenosynovial giant cell tumor (TGCT).¹

Findings presented at the 2025 ESMO Congress showed that at a median follow-up of 435 days (range, 78-686; 14.3 months) and a data cutoff date of March 12, 2025, patients treated with pimicotinib from baseline (n = 63) achieved an overall response rate (ORR) of 76.2% (95% CI, 63.8%-86.0%) per blinded independent central review (BICR) by RECIST 1.1 criteria; the BICR-assessed ORR per tumor volume score (TVS) was 74.6% (95% CI, 62.1%-84.7%). Best responses per RECIST 1.1 criteria comprised complete response (6.3%), partial response (69.8%), stable disease (19.0%), progressive disease (0%), and not evaluable (4.8%).

MANEUVER Trial Highlights

• The MANEUVER trial evaluated pimicotinib in patients with unresectable TCGT.

• The study previously met its primary end point, with pimicotinib generating an ORR of 54.0% vs 3.2% for placebo.

• Long-term data showed patients treated with pimicotinib from baseline experienced durable and robust responses, with an ORR of 76.2%.

The 6- and 12-month duration of response (DOR) rates per BICR assessment and RECIST 1.1 criteria were 98% (95% CI, 84%-100%) and 92% (95% CI, 70%-98%), respectively.

“Pimicotinib offers an effective, convenient, and tolerable systemic treatment option for patients with TGCT, providing early and durable tumor response with sustained relief from pain and functional impairments,” lead study author Xiaohui Niu, MD, of the Department of Orthopaedic Oncology Surgery at Beijing Ji Shui Tan Hospital at Peking University in China, said during a presentation of the data.

How Was the MANEUVER Trial Designed?

MANEUVER was a global, randomized, double-blind, placebo-controlled study evaluating pimicotinib—a highly selective and potent, small molecule CSF-1R inhibitor—in patients at least 18 years of age with histologically confirmed, unresectable TGCT who had measurable disease per RECIST 1.1 criteria with at least 1 lesion measuring at least 2 cm. Patients also needed to have symptomatic disease due to active TGCT.

The trial was double-blinded for the first 24 weeks, where patients were randomly assigned 2:1 to receive pimicotinib orally at 50 mg once per day (n = 63) or matched placebo (n = 31).

Previously reported data showed the study met its primary end point at week 25, with pimicotinib generating an ORR of 54.0% compared with 3.2% for placebo (P <.0001).²

After week 24, the trial entered its open-label extension period, where patients in the experimental arm continued to receive pimicotinib, and those in the placebo arm crossed over to receive the agent.¹

Along with the primary end point of ORR per RECIST 1.1 criteria at week 25, secondary end points included ORR by TVS at week 25; and mean change from baseline to week 25 in range of motion, pain, stiffness, and PROMIS-PF T-score.

What Additional Data Were Reported at the 2025 ESMO Congress?

Findings also showed that patients treated with pimicotinib experienced clinically meaningful improvements in all clinical outcome assessments with longer-term follow-up, with durable improvements lasting beyond 1 year. Additionally, patients in the placebo arm who crossed over to receive pimicotinib had an ORR by BICR of 64.5% per RECIST v1.1 and TVS criteria at a median follow-up of 260 days (range, 85-505).

Regarding safety, the most common clinical adverse effects (AEs) reported in patients who received pimicotinib from baseline included pruritus (all-grade, 60.3%; grade 3/4, 3.2%), facial edema (49.2%; 0%), rash (38.1%; 6.3%), periorbital edema (36.5%; 0%), fatigue (28.6%; 0%), nausea (28.6%; 0%), and headache (25.4%; 0%).

Laboratory AEs were composed of increased blood creatine phosphokinase levels (all-grade, 71.4%; grade 3/4, 15.9%), increased blood lactate dehydrogenase levels (57.1%; 0%), increased aspartate aminotransferase levels (55.6%; 0%), increased amylase levels (38.1%; 0%), increased alpha-HBDH levels (25.4%; 0%), increased lipase levels (27.0%; 3.2%), increased blood creatine kinase MB levels (20.6%; 0%), and increase alanine aminotransferase levels (22.2%; 0%).

Disclosures: Niu did not list any conflicts of interest.

References

1. Niu X, Ravi V, Broto JM, et al. Extended efficacy and safety from the phase 3 MANEUVER trial of pimicotinib in patients with tenosynovial giant cell tumour. Presented at: 2025 ESMO Congress; October 17-21, 2025; Berlin, Germany. Abstract 2690.
2. Pimicotinib significantly improved outcomes for patients with tenosynovial giant cell tumor in a global phase III trial. News release. Merck KGaA. November 12, 2024. Accessed October 17, 2025. https://www.businesswire.com/news/home/20241111864964/en/Pimicotinib-Significantly-Improved-Outcomes-for-Patients-with-Tenosynovial-Giant-Cell-Tumor-in-a-Global-Phase-III-Trial

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The US will offer tariff relief for trucks and parts imported from Mexico and Canada, softening the blow to American companies from the 25 per cent levies that are set to be imposed early next month. 

Washington is preparing to impose new tariffs on medium and heavy-duty trucks imported to the US from November 1, as announced by US President Donald Trump this month on Truth Social. 

But senior administration officials outlined a carve-out for trucks and their parts that comply with the terms of Trump’s 2020 United States-Mexico-Canada Agreement.

Those trucks will only face the duty on their non-US content, while parts will remain tariff-free until the commerce department produces a methodology to tariff the non-US content portion. 

US officials also said they would extend a tariff relief scheme launched for cars made in the country earlier this year, meaning carmakers would have longer to claim relief, and trucks would also be eligible.

Since returning to the White House, Trump has unleashed sweeping tariffs on the automotive, steel, aluminium and copper sectors in a bid to boost domestic production.

Earlier this year, the government launched a rebate scheme allowing carmakers that assemble vehicles in the US to reclaim up to 3.75 per cent of the retail value of the car for the next year. 

On Friday, the Trump administration said it would extend that rebate scheme to 2030, allowing car and truck manufacturers to claim the 3.75 per cent value for the next five years.

An official said the changes were aimed at “making it as cost competitive as possible to produce these vehicles in the US”. 

Officials said they would develop a similar scheme for use by companies that are manufacturing engines in the US, and unveiled new tariffs of 10 per cent on buses.

Trump’s trade war has triggered anxiety across the North American auto supply chain and prompted US carmakers to furiously lobby against the imposition of new tariffs by Washington. 

Big US carmakers — including GM, Ford and Stellantis — have spread their supply chains across the US, Canada and Mexico and ship parts back and forth across the borders multiple times in the manufacturing of a single vehicle.