The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Wednesday that the historic increase in remittances from overseas Pakistanis is welcome, which resulted in Pakistan’s current account surplus of $2.1 billion in fiscal year 2025.
He congratulated the Prime Minister and Finance Minister on this achievement, which came 14 years after the previous one; however, he warned that this improvement is temporary and should not be considered an indication of sustainable economic stability.
Speaking to the business community, the veteran business leader noted that according to the State Bank, remittances have pushed foreign exchange reserves to $14.5 billion.
Mian Zahid Hussain emphasized that remittances from overseas Pakistanis are a blessing. However, these cannot substitute for reforms and productive capacity, and relying on them could prove dangerous.
The business leader emphasized the urgency of converting the $29 billion trade deficit into a surplus. With exports stagnating at the $32 billion level, Pakistan is among the weakest countries in global competitiveness. The current account deficit has decreased due to discouraging imports of goods; however, this has adversely affected the local industry, which relies on importing raw materials and components.
The strategy of import discouragement has impacted production, increased unemployment, and affected exporters’ global competitiveness.
The business leader emphasized the need for long-term measures to address economic challenges. He termed the repeated reliance on loan rollovers from China, Saudi Arabia, and UAE, along with import controls, as an unstable strategy.
He stated that dollar scarcity suggests that some fundamental economic problems remain unchanged; therefore, the government should focus on enhancing productive capacity, diversifying exports, and increasing investment. Long-term solutions are crucial for sustainable economic growth.
Although Pakistan is currently under an IMF program and its respect and dignity have increased globally, there is no significant foreign investment visible in the domestic economy. The real solution lies in increasing exports and competitiveness. Without export expansion, the surplus does not represent genuine economic progress. This emphasis on the need for export expansion is crucial for enhancing Pakistan’s global economic standing.
He emphasized that the recent achievement of a current account surplus comes at a crucial time for Pakistan, as the country seeks to demonstrate economic resilience while managing external debt obligations and working toward sustainable fiscal stability.
The real solution to Pakistan’s economic challenges lies in addressing root causes and implementing long-term measures. Relying on temporary measures that may mask underlying economic vulnerabilities is not a sustainable path to long-term prosperity.
