Mian Zahid warns of widening trade deficit
\n KARACHI
\nMian 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\u2019s economic performance, stated that Pakistan\u2019s economy has shown signs of gradual recovery and stability during the fiscal year 2025-26 despite the floods.
\nUnder this recovery, the total volume of the national economy has crossed $452 billion for the first time, compared to the previous $405 billion. According to official figures, the Gross Domestic Product (GDP) growth rate for the current fiscal year remained at 3.70 percent, showing a slight improvement compared to the 3.18 percent of last year.
\nHowever, to translate this into a five or six percent growth rate, there is a need to focus further on innovation in policymaking, investment, exports, and the development of productive sectors.
\nMian Zahid Hussain said that the performance of all three major sectors of the economy appears to have played an important role in this stability.
\nThe agriculture sector achieved a growth rate of 2.89 percent, in which a 4.3 percent increase in wheat production, 6.2 percent in sugarcane, and 2.8 percent in rice production was recorded, while the livestock sector showed steady growth of 3.75 percent.
\nHowever, the weak performance of some crops in the agricultural sector and the risks of climate change still demand attention.
\nTherefore, to increase agricultural productivity on a sustainable basis, the adoption of modern technology, better water management, and the provision of practical facilities to farmers will remain essential.
\nHe added that the industrial sector\u2019s performance was also relatively better, witnessing a growth of 3.51 percent. Large-Scale Manufacturing (LSM) grew at a rate of 6.11 percent, while the 61.66 percent surge in the automobile industry and 39.93 percent increase in transport equipment reflect an improvement in industrial activities.
\nThese figures show a positive trend of industrial recovery; however, issues such as high production costs, energy tariffs, financial pressure, and reliance on imported raw materials still remain a challenge 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.
\nThe veteran business leader pointed out that a 5.6 percent decrease in exports and a 12 percent increase in imports during the 11 months is concerning, whereas a 9.2 percent increase in workers\u2019 remittances despite the US-Iran war is a welcome development.
\nThe services sector, which is the largest component of the national economy, is playing an important role in overall economic activities by growing at a rate of 4.09 percent. A growth of 7.52 percent in the Information and Communication sector and 8.54 percent in public service was observed, indicating an increase in digital activities and administrative expenses.
\nPer 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 further strengthen income and employment opportunities, reduce inflation, and enhance social security measures.
\nMian Zahid Hussain emphasized that Pakistan\u2019s 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.
\nThe steps taken by the government and relevant institutions for macroeconomic stability are important; however, there will be a continuous need to make these measures more effective, transparent, and result-oriented in the future.
\nIf the process of economic reforms is continued with the meaningful consultation of the business community and a balance is maintained in the enforcement powers of the FBR, Pakistan can gradually move towards a more stable, productive, and competitive economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mian Zahid warns of widening trade deficit KARACHI 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\u2019s economic performance, stated that […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-550813","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n