Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum (PBIF), President of the All Karachi Industrial Alliance (AKIA), Chairman of the National Business Group Pakistan (NBG), Chairman of the FPCCI Policy Advisory Board, and Former Provincial Minister, while reviewing the government’s economic performance, stated that Pakistan’s economy has shown signs of gradual recovery and stability during the fiscal year 2025-26 despite the floods. Under this recovery, the national economy’s total volume has surpassed $452 billion for the first time, up from $405 billion previously. According to official figures, the Gross Domestic Product (GDP) growth rate for the current fiscal year remained at 3.70 percent, a slight improvement over last year’s 3.18 percent. However, to translate this into a five- or six-percent growth rate, there is a need to further focus on innovation in policymaking, investment, exports, and the development of productive sectors.
Mian Zahid Hussain said that the performance of all three major sectors of the economy appears to have played an important role in this stability. The agriculture sector achieved a growth rate of 2.89 percent, with increases of 4.3 percent in wheat, 6.2 percent in sugarcane, and 2.8 percent in rice. In comparison, the livestock sector showed steady growth of 3.75 percent. However, the weak performance of certain crops in the agricultural sector and the risks posed by climate change still warrant attention. Therefore, to increase agricultural productivity sustainably, the adoption of modern technology, improved water management, and the provision of practical facilities for farmers will remain essential. He added that the industrial sector’s performance was also relatively strong, with growth of 3.51 percent. Large-Scale Manufacturing (LSM) grew at a rate of 6.11 percent.
In comparison, the 61.66 percent surge in the automobile industry and the 39.93 percent increase in transport equipment reflect improved industrial activity. These figures show a positive trend in industrial recovery; however, issues such as high production costs, energy tariffs, financial pressures, and reliance on imported raw materials remain challenges for the local industry. Therefore, to boost industrial growth, reducing the cost of doing business, policy consultation, and promoting local value addition will be crucial.
The veteran business leader pointed out that a 5.6 percent decrease in exports and a 12 percent increase in imports over the past 11 months are concerning. In contrast, a 9.2 percent increase in workers’ remittances, despite the US-Iran war, is a welcome development. The services sector, the largest component of the national economy, is playing an important role in overall economic activity, growing at 4.09 percent. Growth of 7.52 percent in the Information and Communication sector and 8.54 percent in public services was observed, indicating increased digital activities and administrative expenses. Per capita income, which was $1812 in 2024-25, stood at $1901 in 2025-26, witnessing a minor increase of $89. However, to make the impact of this improvement more evident at the grassroots level, it is necessary to strengthen income and employment opportunities further, reduce inflation, and enhance social security measures.
Mian Zahid Hussain emphasized that Pakistan’s economy is moving in a cautious yet positive direction. To make the current recovery sustainable, it is indispensable to focus on encouraging the private sector, increasing exports, enhancing regional competitiveness, introducing agricultural reforms, ensuring fiscal discipline, and utilizing modern technology. The steps taken by the government and relevant institutions to achieve macroeconomic stability are important; however, there will be an ongoing need to make these measures more effective, transparent, and results-oriented in the future. If the process of economic reforms is continued with meaningful consultation with the business community and a balance is maintained in the FBR’s enforcement powers, Pakistan can gradually move towards a more stable, productive, and competitive economy.
