Karachi: Mian Zahid Hussain, the President of Pakistan Businessmen and Intellectuals Forum and other notable business groups, expressed reserved optimism about Pakistan's recent macroeconomic achievements. He acknowledged the positive developments in the Pakistan Stock Exchange and foreign financing while emphasizing the urgent need for structural reforms to aid the industrial sector and the general populace.
According to Pakistan Businessmen and Intellectuals Forum, Hussain pointed out the dual nature of the current economic situation, marked by the KSE-100 Index reaching a historic high of 188,621 points, signaling investor confidence and expectations of a policy rate cut. Despite this, he highlighted persistent challenges in the "real economy," including a current account deficit of $1.174 billion in the first half of FY26, contrasting sharply with a surplus in the previous year.
Hussain commended the signing of three major financing agreements totaling $603 million with the Islamic Development Bank, particularly the $475 million allocated for the Sukkur-Hyderabad Motorway (M-6), pivotal for the China-Pakistan Economic Corridor. He also noted the potential of $4.5 billion in agricultural investments from China but stressed the need to address production costs.
He remarked on inflation's deceleration to 5.6% from a previous high of 37% in May 2023 but cautioned that high energy tariffs continue to hinder industrial competitiveness. Hussain urged for a reduction in the policy rate to single digits to stimulate private sector credit. Despite a 20% rise in foreign assistance to $4.51 billion in H1 FY26, he noted a decline in goods exports by 7.78%.
Hussain also expressed sorrow over the Gul Plaza fire tragedy, which has resulted in 67 fatalities. He called for a judicial inquiry and safety audits of commercial plazas in Karachi to ensure public safety.
In closing, Hussain advocated for the continuation of the privatization agenda and stressed the importance of digitizing the tax system to improve the tax-to-GDP ratio.
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