LAHORE: President of the Lahore Chamber of Commerce and Industry (LCCI), Faheemur Rehman Saigol, has described 2025 as a year marked by gradual economic stability for Pakistan, while cautioning that deep-rooted structural issues continue to constrain sustainable and long-term growth.
In a statement issued on Tuesday, Saigol said that several key economic indicators showed improvement over the past year, reflecting better macroeconomic management and a partial restoration of business confidence. However, he stressed that challenges such as a widening trade deficit, persistently high energy costs, slow investment inflows and a narrow tax base remain serious obstacles to achieving durable economic progress.
Highlighting the importance of ease of doing business, Saigol said that both local and foreign investors require predictable policies, regulatory consistency and lower operational costs to make long-term investment decisions. He expressed concern over elevated electricity tariffs, the frequent misuse of statutory regulatory orders, and delays in the implementation of export-related policy reforms, which he said continue to undermine industrial competitiveness.
The LCCI president also called for bringing exports back under the final tax regime, arguing that this would reduce uncertainty for exporters and improve cash flow, particularly for small and medium-sized enterprises. According to him, a stable and exporter-friendly tax framework is essential to enhance Pakistan’s export base and reduce reliance on imports.
Saigol noted that the trade deficit remains a major concern for the economy and requires urgent and coordinated policy action. While acknowledging some improvement in export performance, he said the pace of growth is insufficient to offset rising imports, especially in an environment of weak domestic production and high input costs.
Commenting on recent developments, he welcomed the privatisation of Pakistan International Airlines, stating that its acquisition by a Pakistani consortium reflects growing capacity and confidence among local investors. He added that the privatisation of other state-owned enterprises should be actively pursued to reduce fiscal pressures and improve efficiency across key sectors of the economy.
Reviewing broader economic trends, Saigol said that consistent policies, structural reforms and strong remittance inflows played an important role in improving the business climate during the year. These factors, he said, helped restore confidence for investment, exports and industrial activity, despite ongoing global and domestic uncertainties.
He highlighted that remittances reached approximately $38.3 billion in FY2024-25, representing a 26 percent increase compared to the previous year, and are expected to approach $42 billion by the end of the current fiscal year. During the July–November period of FY2025-26, remittances exceeded $16 billion, showing more than 9 percent year-on-year growth, according to official data.
Saigol said these strong inflows supported foreign exchange reserves, stabilised the rupee and helped ease import-related pressures. He also pointed to a sharp decline in inflation, with average inflation falling to 4.5 percent from 23.4 percent a year earlier, providing relief to consumers and businesses alike.
He further noted improved market sentiment, reflected in the KSE-100 index surpassing 170,000 points, rising foreign exchange reserves and reduced interest rates, which lowered borrowing costs. However, despite growth in IT exports, he said overall investment remained below expectations, largely due to high energy costs.
Concluding his remarks, Saigol stressed that achieving lasting and inclusive growth will require sustained reforms in the energy sector, export policies and taxation, along with a continued focus on policy consistency and investor confidence.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.