Karachi : 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 stressed that while the country has achieved macroeconomic stability, the current 3.0% GDP growth projection is perilously inadequate for national development and poverty alleviation.
Mian Zahid Hussain highlighted the World Bank report recognizing Pakistan’s successful fiscal policies that reduced inflation and achieved a primary surplus, allowing GDP growth from 2.6% in FY24 to 3.0% in FY25. Despite this stability, he warned that ordinary citizens bore the costs, with ongoing climate disasters like floods adversely affecting agriculture and the economy.”
“According to Mian Zahid Hussain, the World Bank report praises Pakistan’s fiscal tightening measures that helped reduce inflation and achieve a primary surplus, resulting in GDP growth from 2.6% in FY24 to 3.0% in FY25. However, he pointed out that this progress came at a cost to citizens, as recent climate issues, particularly floods, continue to impact agricultural productivity and economic health.
Mian Zahid Hussain highlighted the World Bank’s concerning forecast: real GDP growth is expected to be 3.0% in FY26 and only slightly increase to 3.4% in FY27. This growth is insufficient to accommodate the 1.6 million young people entering the job market each year, resulting in a widening gap between job seekers and available opportunities, along with a minimal drop in the national poverty rate from 22.2% to 21.5%.
Mr. Hussain pointed out the sharp decline in Pakistan’s export competitiveness, with exports dropping from 16% of GDP in the 1990s to 10% in 2024. This reliance on debt and remittances represents a boom-bust cycle that needs to be addressed, while projected inflation of 7.2% in FY26 risks undermining the modest progress of the most vulnerable.
Mian Zahid Hussain supported the World Bank’s call for fiscal and trade reforms, urging government action to broaden the tax base and improve public sector efficiency. He highlighted the importance of a stable exchange rate and cost-cutting for export growth, along with investing in climate-resilient infrastructure to ensure long-term economic stability.
Mian Zahid Hussain warned that the World Bank update signals a need for urgent reforms. Stability without sufficient growth leads to stagnation; a sustained 6% export-oriented growth is needed to create jobs and reduce poverty.
