‘Economy starts showing signs of revival and stability’
HYDERABAD: A member supreme council of Businessmen Panel (progressive) of FPCCI and former Hyderabad Chamber of Commerce and Industry (HCCI) president Adeel Siddiqui has said that Pakistan’s economy had started showing signs of revival and stability but still there was need to address challenges of structural nature confronting trade and industrial sectors.
He asserted that besides this phase of economic stability the country needed a sustainable growth and this merits certain policy decisions and added that if structural issues of the economy were addressed then this stability would transform into lasting economic prosperity.
In a statement issued here Tuesday the business community leader said that steps should be urgently taken to fix these structural problems. He termed keeping the policy rate of 10.5pc intact a positive indicator and a sign of continuity in monetary policy for industrial progress. He said that the large-scale manufacturing sector had registered 6.0pc growth while the agriculture sector also showed resilience to show 2.9pc growth in the first quarter of the ongoing fiscal year.
He said that this indicated that the economy was progressing in right direction. He, however, remained concerned about inflationary trends as consumer price index (CPI) reached 7pc in Feb 2026 against average inflation of 5.2pc between July-Dec 2025. He said that global fuel crunch and adjustment in energy cost had increased problems that triggered a hike in commodities for which administrative steps were inevitable.
He hailed the increase in foreign exchange reserves which stood at USD21.6bn and State Bank of Pakistan’s foreign exchange reserves of USD16.3bn showed a strong external buffer and this was the highest increase in the last four years only to enable the country to absorb external shocks. He pointed out that these reserves were attributable to unusual foreign remittances.
He said that these remittances had reached USD26.5bn in July25-Feb26 period which was just exceptional when compared with corresponding period. He said that expatriates’ confidence was in fact reflective of our economy’s strong foundation.
He said that the tax net needed to be expanded, the energy crisis should be permanently fixed and better exports were needed to convert economic stability into industrial progress. He said besides this phase of economic stability the country needed consistent and sustainable growth.
He remarked the private sector would have to perform as an economic growth engine for which energy crisis shortage would have to be overcome, departments would have to be privatized and tax system reforms had become inevitable. He urged the government to ensure regular supply of electricity to the exporting industry and said that one window delivery and sales tax refund would pave the way for growth in exports. He termed synchronization of policy with international financial institutions was important.
Copyright Business Recorder, 2026