Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, today expressed serious concern over the International Monetary Fund’s (IMF) decision to downwardly revise Pakistan’s GDP growth forecast from 3.6% to 3.2%. He warned that this deceleration, coupled with a widening current account deficit, signals an urgent need for the government to move beyond “breathing space” and implement radical structural reforms to protect the country’s industrial foundation.
“The IMF’s revised projection is a wake-up call,” said Mian Zahid Hussain. “While the Pakistan Stock Exchange is hitting record highs above 188,500 points on the back of speculative interest rate cuts, the ‘real economy’ on the ground is struggling. A 3.2% growth rate is insufficient to absorb the youth entering the workforce or to alleviate the poverty currently gripping the middle and lower classes.”
The veteran business leader highlighted the alarming shift in the country’s external account, noting that the $1.17 billion current account deficit recorded in the first half of FY 2025-26 is a sharp and dangerous reversal from last year’s surplus. “This reversal proves that our economic recovery remains fragile and heavily dependent on imports. Without a significant surge in high-value exports, we are simply walking back into a debt trap,” he added.
Mian Zahid Hussain expressed concerns, noting the closure of many large spinning units due to uncompetitive energy tariffs. He stated that the PKR 130 billion cross-subsidy, which makes electricity expensive for industries, should be withdrawn immediately, saying that the industry cannot thrive on short-term incentives that are countered by high taxes.
Mian Zahid Hussain also commented on the government’s efforts to renegotiate terms with the IMF for the $7 billion Extended Fund Facility (EFF). He urged the economic team to prioritise “industrial growth” in these negotiations rather than fiscal tightening alone. “We need a budget for 2026-27 that is pro-industry, not just pro-revenue. If the government fails to bring the policy rate down to a single digit immediately, even the 3.2% growth target may become an impossible dream.”
Mian Zahid Hussain concluded by welcoming the potential for Chinese investment in smart irrigation and the U.S. diplomatic outreach regarding the “Board of Peace,” but emphasised that Pakistan’s global standing is inextricably linked to its economic sovereignty. “A strong Pakistan is an economically viable Pakistan. We must fix our house first by supporting our manufacturers and exporters.”
