Karachi, 28-Jan-2026 (PPI): A prominent business leader has expressed grave concern over a 9 per cent drop in the nation”s exports during the first half of the fiscal year, urging the government to immediately cut the policy rate to a single-digit figure to counter the downturn and stimulate industrial expansion.

Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, acknowledged several positive economic indicators highlighted in the Ministry of Finance”s latest monthly report, including a projected fall in inflation to a 5-6% range and a consolidated fiscal surplus of 0.8% of GDP for the first five months of FY2026.

While noting the 6% growth in Large-Scale Manufacturing (LSM) and the State Bank of Pakistan’s revised FY26 GDP growth forecast of 3.75-4.75%, the veteran industrialist cautioned that achieving these targets is contingent on reducing the high cost of capital for businesses.

He voiced alarm over a significant 43.3% decline in Foreign Direct Investment (FDI) in the first half of the year, attributing the steep drop to regionally uncompetitive energy tariffs and borrowing costs. With the policy rate holding at 10.5%, he argued that stabilised inflation provides ample room for monetary easing.

“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.

The 9% contraction in exports was described as “alarming”, with warnings that it will exert further pressure on the current account and hinder the objectives of Uraan Pakistan. According to Hussain, robust IT exports and remittances are currently the only factors providing a cushion against a widening current account deficit.

The former Provincial Minister for Information Technology stressed that the government must now pivot its strategy from economic “stabilisation” to “growth”. He advised the Ministry of Finance to utilise the newly created fiscal space to incentivise value addition in industry and broaden the tax base rather than placing further burdens on existing taxpayers.

“The stabilisation phase is over; now is the time for expansion,” he concluded, urging for a collaborative strategy with the business community to lower financial and energy costs to ensure widespread economic benefits.