Karachi: Mian Zahid Hussain, a prominent business leader in Pakistan, has praised the recent economic achievements reported by the Ministry of Finance but cautioned that the International Monetary Fund's (IMF) latest findings highlight critical governance issues that need urgent attention. The Ministry's report indicated a significant reduction in public debt, but the IMF's diagnostic report underscored systemic problems that could undermine this progress.

In remarks concerning two major economic reports released this week, Mian Zahid Hussain acknowledged the government's success in reducing public debt by Rs. 1,371 billion in the first quarter, marking the first such decline in five years. He noted a rise in tax collections by 11.4% to Rs. 3.8 trillion and a 4.4% growth in Large Scale Manufacturing, suggesting fiscal discipline is taking hold.

However, Mian Zahid Hussain emphasized the importance of addressing the issues identified in the IMF's Governance and Corruption Diagnostic Report. The report, requested by the government, highlighted persistent corruption and an opaque tax system susceptible to manipulation. According to Hussain, without tackling these challenges, the recent economic gains could be jeopardized.

He further noted that while the Finance Ministry celebrates debt reduction, the IMF cautions against systemic issues such as elite capture and regulatory complexities that hinder private sector growth. The IMF's recommendations, including separating tax policy from administration to curb corruption, are seen as essential steps toward sustainable recovery.

Mian Zahid Hussain welcomed the rise in remittances and a stable reserve position but stressed that foreign investment requires a trustworthy rule of law. He advocated for making investment incentives transparent to avoid creating new economic distortions.

As the current account deficit widens due to industrial revival, Hussain warned that without implementing the governance reforms suggested by the IMF, Pakistan's exports would remain uncompetitive. He highlighted the recovery in garments and autos but cautioned against a potential balance of payments crisis.

In conclusion, while the government has stabilized the economy, Mian Zahid Hussain asserts that comprehensive governance reforms are necessary for long-term economic health, as indicated by the IMF's recommendations.