KARACHI: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, has welcomed the positive economic indicators highlighted in the Ministry of Finance’s Monthly Economic Update & Outlook for January 2026, while cautioning that sustained growth requires immediate relief in the cost of doing business.
Commenting on the Ministry’s report, Mian Zahid Hussain noted that the projected inflation to 5-6% range for January is a testament to the fiscal discipline and prudent management exercised by the current administration. He appreciated that the government has achieved a consolidated fiscal surplus of 0.8% of GDP in the first five months of FY2026, a significant turnaround from the deficits of the past.
Mian Zahid Hussain stated, “The business community is encouraged by the 6% growth in Large-Scale Manufacturing (LSM) and the resilience shown by the agricultural sector, which posted 2.9% growth in Q1 despite challenges, However, these gains must not be taken for granted. While the SBP has revised the FY26 GDP growth forecast upward to 3.75-4.75%, achieving the upper limit of this target depends entirely on how quickly we can reduce the cost of capital for our industries.”
The veteran business leader expressed concern over the 43.3% decline in Foreign Direct Investment (FDI) recorded in the first half of the fiscal year. He attributed this drop to high energy tariffs and borrowing costs that remain uncompetitive regionally. With the policy rate currently unchanged at 10.5%, Mian Zahid Hussain urged the authorities to accelerate monetary easing, arguing that with inflation now firmly stabilized around 5%, there is ample room for a move toward a single-digit interest rate.
“The private sector is ready to lead the economic revival, but we cannot compete globally while burdened by double-digit interest rates and unviable energy costs,” he warned.
He added that the 9% decline in exports in the first half of FY26 is alarming; it will further create pressure on the current account and hinder realization of Uraan Pakistan’s objectives. He called for a specific focus on the export-oriented sectors, particularly noting that robust IT exports and remittances are currently the only factors cushioning the current account deficit.
Mian Zahid Hussain, who is also a former Provincial Minister for Information Technology, emphasized that the government must now pivot from “stabilization” to “growth.” He advised the Ministry of Finance to utilize the fiscal space created by the primary surplus to incentivize value addition in the industrial sector and to broaden the tax net rather than squeezing existing taxpayers. “The stabilization phase is over; now is the time for expansion. We urge the government to engage with the business community to formulate a strategy that lowers energy tariffs and financial costs, ensuring that the ‘acceleration phase’ of our economy benefits not just the state exchequer, but the common man and the industrialist alike,” he concluded.
Copyright Business Recorder, 2026
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