Karachi: Mian Zahid Hussain, a prominent business leader in Pakistan, has expressed significant concern regarding the International Monetary Fund's (IMF) recent adjustment of the country's GDP growth forecast from 3.6% to 3.2%. He emphasized the urgency of implementing structural reforms to bolster the industrial sector amidst a widening current account deficit.

According to Pakistan Businessmen and Intellectuals Forum, Hussain, who also serves as President of the organization, highlighted the IMF's revised projection as a crucial warning. He pointed out the disparity between the record highs of the Pakistan Stock Exchange and the challenges faced by the real economy, asserting that a 3.2% growth rate is insufficient to address unemployment and poverty.

Hussain underscored the concerning shift in Pakistan's external account, with the current account deficit reaching $1.17 billion in the first half of FY 2025-26. He cautioned that without a boost in high-value exports, the country risks falling back into a debt trap.

He further criticized the closure of large spinning units due to uncompetitive energy tariffs and called for the immediate withdrawal of the PKR 130 billion cross subsidy that raises electricity costs for industries. He stressed the need for long-term industrial incentives over short-term solutions that are negated by high taxes.

In light of the government's negotiations with the IMF concerning the $7 billion Extended Fund Facility, Hussain urged a focus on industrial growth rather than solely fiscal tightening. He advocated for a pro-industry budget for 2026-27 and a reduction of the policy rate to single digits to achieve the revised growth target.

Hussain concluded by acknowledging prospective Chinese investment in smart irrigation and U.S. diplomatic efforts, but reiterated that Pakistan's economic sovereignty is crucial for its global standing. "A strong Pakistan is an economically viable Pakistan. We must fix our house first by supporting our manufacturers and exporters," he stated.