KARACHI: Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum and other notable positions, has expressed concern over a 9% drop in exports, urging a reduction in interest rates to boost industrial growth. According to Pakistan Businessmen and Intellectuals Forum, Hussain acknowledged the positive economic indicators presented in the Ministry of Finance's Monthly Economic Update and Outlook for January 2026 but emphasized the need for immediate action to reduce business costs.

Hussain noted the projected inflation rate of 5-6% as proof of the government's fiscal discipline and praised the achievement of a 0.8% consolidated fiscal surplus of GDP in the first five months of FY2026. He highlighted the 6% growth in Large-Scale Manufacturing and the agricultural sector's 2.9% growth in Q1 as promising signs, cautioning that these gains could be compromised without reducing the cost of capital.

Concerned about a 43.3% decline in Foreign Direct Investment, Hussain attributed the drop to high energy tariffs and borrowing costs. With the policy rate at 10.5%, he called for monetary easing, suggesting that current inflation levels allow for a single-digit interest rate. He warned that the export decline could pressure the current account and hinder economic goals, stressing the importance of focusing on export-oriented sectors.

As a former Provincial Minister for Information Technology, Hussain advised shifting focus from stabilization to growth, recommending the use of fiscal surpluses to incentivize industrial value addition and broaden the tax net. He urged government engagement with the business community to develop a strategy that lowers energy and financial costs, benefiting the economy and its stakeholders.

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