Karachi: Mian Zahid Hussain, a prominent figure in Pakistan's business community, has underscored the significance of the Ministry of Finance's recent "Monthly Economic Update and Outlook" for December 2025, viewing it as an indication of fiscal stability.
Hussain highlighted the primary surplus reported by the Ministry as evidence of disciplined fiscal management, urging that this approach be maintained in the coming year.
While acknowledging improvements in macroeconomic indicators, he emphasized that 2026 presents new challenges that necessitate a cohesive national strategy.
Drawing on data from the Pakistan Bureau of Statistics and the State Bank of Pakistan, Hussain noted the decline in inflation in late 2025, advocating for a 2% cut in policy rates to aid the industrial sector.
He praised the reduction in the current account deficit but stressed the need to boost foreign exchange reserves through increased exports instead of relying on external borrowing.
Hussain advised focusing on high-growth sectors like information technology and textiles, and recommended privatizing loss-making state-owned enterprises to reduce fiscal pressure.
Addressing 2026's challenges, he identified circular debt in the energy sector as a key barrier to industrial competitiveness and called for reforms in power distribution to reduce line losses.
He also highlighted the Special Investment Facilitation Council's role in attracting foreign investment and advocated for improved business practices to boost GDP growth.
In conclusion, Hussain stressed the importance of broadening the tax net fairly and maintaining structural reforms to ensure sustainable long-term growth, expressing confidence in Pakistan's economic recovery path.