KARACHI: Mian Zahid Hussain, a prominent business leader, addressed the pressing economic issues facing Pakistan, emphasizing the need for urgent policy intervention. While acknowledging the recent correction in the Pakistan Stock Exchange as a positive development, he raised alarms over a widening trade deficit and falling exports.

Speaking to the business community, Hussain noted that the KSE-100 index's recent dip marks a necessary consolidation after a strong bull run. He highlighted that investor profit-taking, especially in banking and energy sectors, is typical in a robust capital market. However, he stressed that the real concern lies in the economic indicators showing a 35 percent increase in the trade deficit, reaching $19.2 billion in the fiscal year's first half.

Hussain pointed to a significant drop in December exports, falling over 20 percent year-on-year to $2.32 billion, as a critical issue. He emphasized the need for policymakers to address challenges facing the manufacturing sector, particularly the textile industry, which is struggling due to a poor cotton crop. With the industry forced to import raw cotton, rising costs and high energy tariffs are squeezing margins.

He urged the government to focus on improving the real economy by revisiting liquidity mechanisms for exporters and offering targeted energy tariff relief for the textile sector. Hussain also highlighted the potential deregulation of the sugar sector, advising caution to avoid inflationary impacts.

Hussain concluded with a call for policy measures that expand the export base alongside capital market growth, aiming for sustainable economic stability.