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 welcomed the approval of the IMF Board report of December 11, 2025. He termed the release of the $1.2 billion tranche under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) as a critical stabilizer for the national economy.
Mian Zahid Hussain, stated that this development validates the government’s strict adherence to fiscal discipline over the past fiscal year. Speaking to the business community, the veteran business leader noted that the injection of $1.2 billion will significantly bolster the State Bank of Pakistan’s (SBP) foreign exchange reserves. This inflow is not merely about liquidity; it is a signal of confidence to international creditors and investors. However, we must remember that borrowing is a temporary fix, not a permanent economic strategy,” Mian Zahid Hussain remarked.
He highlighted that with this tranche, the Rupee is expected to remain stable against the US Dollar, helping to contain the cost of imported raw materials for the industrial sector.
Mian Zahid Hussain noted that, despite improvements in macro indicators and a decrease in inflation according to the PBS, the real economy continues to struggle with high costs. The industrial sector can’t compete globally due to high energy tariffs. The government should use the IMF’s fiscal space to renegotiate IPP agreements and tackle circular debt. Ending reliance on indirect taxes is crucial. Expanding the tax base to include retail and real estate is necessary instead of overburdening the manufacturing sector. Pakistan needs to boost exports to repay loans and accelerate LSM growth with supportive policies.
Mian Zahid Hussain specifically pointed out the importance of the funds received under the Resilience and Sustainability Facility (RSF). He urged the authorities to use these funds solely for climate adaptation and green energy transition projects, which are vital to Pakistan’s long-term agricultural and industrial viability.
Concluding his statement, Mian Zahid Hussain warned that the IMF program should be used as a transition period to fix structural faults. He urged the SIFC and the federal government to speed up the privatization of loss-making State-Owned Enterprises (SOEs) to reduce the fiscal deficit, ensuring that the burden does not fall on the common man or the business community in the next budget.
