Mian Zahid Hussain, President of Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, Chairman of National Business Group Pakistan, Chairman of FPCCI’s Policy Advisory Board, and former Provincial Minister of Information Technology, stated that Pakistan’s economy is currently going through a period of extraordinary challenges and contradictions. On one hand, due to Pakistan’s increasing global role and influence, the stock market has reached new heights, exceeding 157,000 points, but on the other hand, recent floods have caused severe damage to agriculture, industry, infrastructure, and the local population.
In the first two months of the current fiscal year, foreign investment of $364 million was recorded, but a net outflow of $229 million occurred as a result of the repatriation of $593 million in profits by foreign investors. This transfer of capital abroad by key investors like China, the UK, and the Netherlands raises serious questions about Pakistan’s economic prospects.
The widespread floods have destroyed a large portion of important crops, with 60% of the rice crop and 35% of the cotton crop destroyed in Punjab. This agricultural devastation poses a threat to food security and could lead to a resurgence of inflation. The damage to the cotton crop has also severely impacted export-oriented industries, especially textiles, creating significant disruptions in industrial centers like Sialkot, Gujranwala, and Gujrat.
Hussain urged the government to implement tax breaks and regulatory reforms to encourage foreign businesses to reinvest their earnings in Pakistan. He also advocated strengthening trade partnerships with ASEAN countries and Bangladesh to create new trade routes for the country.
Hussain emphasized the importance of proactive measures, including long-term economic strategies to mitigate the effects of recurring natural disasters, the development of climate-resilient infrastructure, and investment in modern farming techniques.
He said that Pakistan’s economic prosperity depends on the transition from temporary financial gains to sustainable, long-term growth, which requires concerted efforts by the government, the private sector, and international allies.