Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman of the National Business Group Pakistan, Chairman of the Policy Advisory Board of FPCCI, and Former Provincial Minister of Information Technology, has thoroughly analysed the latest macroeconomic data released by the State Bank of Pakistan for the first eight months of the current fiscal year. He stated that while certain monthly indicators reflect a temporary breathing space for the national economy, underlying structural weaknesses continue to pose severe threats to the country’s long-term financial stability.
The central bank’s data reveal that Pakistan posted a current account surplus of $427 million in February 2026, marking the highest monthly surplus since March 2025 and a significant improvement from the $68 million surplus in January. Mian Zahid Hussain cautioned that economic policymakers must not fall into a false sense of complacency. On a cumulative basis, the country recorded a current account deficit of $700 million during the July to February period of the ongoing fiscal year, in stark contrast to the $479 million surplus recorded during the corresponding period of the previous fiscal year.
Reviewing the nation’s export performance, Mian Zahid Hussain expressed serious apprehension over the continuing downward trajectory. Total merchandise exports during the first eight months of the current fiscal year (July–February FY26) contracted by 7.3 per cent, standing at $20.46 billion against $22.07 billion recorded in the same period last year. Furthermore, the monthly export receipts for February 2026 clocked in at just $2.27 billion, reflecting an 8.7 per cent decline compared to February of the preceding year. He stressed that this persistent shrinking of the export base is a direct consequence of soaring production costs, uncompetitive energy tariffs, and an overall unfriendly business environment that is stifling local manufacturers.
He lauded the overseas Pakistani community for their unwavering support, as workers’ remittances increased by 10.5 per cent over the eight months. The inflows reached a staggering $26.5 billion during July-February 2026, compared with $24.0 billion in the previous year, playing a pivotal role in keeping the external account manageable and financing a substantial portion of the trade deficit. Heemphasisedd that without the patriotic contribution of expatriates, the country’s foreign exchange reserves would have faced insurmountable pressures.
Expressing deep concern over the deteriorating business climate, Mian Zahid Hussain highlighted the alarming plunge in Foreign Direct Investment. The statistics show that FDI fell by an unsettling 33.3 per cent to $1.195 billion from July to February, down from $1.793 billion in the same period last year. He pointed out that this drastic decline is a massive disappointment for the industrial sector and a clear indicator of structural bottlenecks, volatile policies, and bureaucratic hurdles that continue to deter international investors.
Drawing attention to the technology sector, the Former Provincial Minister for Information Technology noted a positive trajectory in IT and IT-enabled services, which surged by 19.7 per cent to $2.97 billion in the first eight months. Nevertheless, he warned that recent monthly declines in IT receipts, stemming from global geopolitical tensions and the conflict in the Middle East, require immediate government intervention to protect this vital sector.
Mian Zahid Hussain concluded that the government must urgently shift its focus from day-to-day crisis management to sustainable economic growth. He demanded immediate steps to reduce the exorbitant cost of doing business, lower energy tariffs for the manufacturing sector, and create a genuinely conducive environment for capital generation and export promotion to secure Pakistan’s economic future, which may further deteriorate due to the ongoing USA-Israel-Iran war in the Middle East.
