Karachi,(November 24, 2025) : Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan & Policy Advisory Board of FPCCI and Former Provincial Minister Information Technology, stated today that the IMF’s recent “Governance and Corruption Diagnostic Assessment” (GCDA) is a mirror to our reality that policymakers can no longer ignore.
Speaking to the business community, Mian Zahid Hussain observed that the IMF report serves as a “wake up call” against the systemic rot in our governance structure. He noted that the revelation that corruption consumes between 5% to 6.5% of Pakistan’s GDP annually is devastating. “For an economy struggling to achieve even a 3% growth rate, losing over 6% to corruption and elite capture is a death sentence for prosperity,” he added.
The veteran business leader highlighted that the business community has long cried out against the opaque tax system and regulatory burdens that favor the powerful while strangling honest enterprises. He pointed out that the IMF’s findings validate our grievances. The report’s identification of “elite capture,” where political and economic elites shape public policy for their own benefit, explains why the tax net remains narrow despite repeated promises of reform.
“The IMF has rightly pointed out that our tax system is complex, opaque, and driven by frequent rule changes that erode trust,” Mian Zahid Hussain said. “When the FBR and customs administration are seen as porous and discretionary, the tax-to-GDP ratio will naturally plummet. We cannot expect foreign direct investment (FDI) when our own regulatory framework is riddled with bribery and inefficiency.”
Mian Zahid Hussain also addressed the report’s concerns regarding the Special Investment Facilitation Council (SIFC) and State-Owned Enterprises (SOEs). He praised the SIFC’s role in cutting red tape, and agreed with the IMF that transparency in public procurement and SOE management is the only way to dismantle the ‘parallel economy of patronage’ identified by the Fund.”
He urged the government to immediately adopt the IMF’s recommended 15-point reform plan without seeking waivers or delays. This includes the mandatory digitalization of government procurement, simplification of the tax code, and true empowerment of anti-corruption institutions.
Mian Zahid Hussain warned that the recovery of PKR 5.3 trillion in corruption cases, while a large number on paper, is described by the IMF as merely a fraction of the true cost. “If we do not stop this leakage, no amount of external loans will stabilize the economy. The government must choose between protecting a corrupt elite or saving the 240 million people of Pakistan from economic collapse.”
He concluded by stating that the business community stands ready to support the Government in its genuine efforts to digitize the economy and eradicate the “bribe culture” that has held Pakistan hostage for decades.
