KARACHI, April 12, 2025 – While acknowledging the government’s recent efforts to stabilize the economy, Atif Ikram Shaikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), President of the ECO Chamber of Commerce and Industry, and Vice President of the Confederation of Asia-Pacific Chambers of Commerce and Industry, has stressed that much more needs to be done to ensure long-term economic stability and sustained growth in Pakistan.
In a detailed statement, Shaikh emphasized that although recent economic policy measures have shown some results—particularly in reducing inflation and shoring up foreign reserves—there is still a pressing need for a comprehensive, long-term economic strategy. He underlined that Pakistan continues to grapple with core structural issues, including a weak tax base, growing external debt, high import dependency, underperforming exports, corruption, and a persistent energy crisis.
Shaikh noted that the tax system remains a critical weak point. With a large portion of the economy operating informally, Pakistan has one of the lowest tax-to-GDP ratios in the region. Bringing the informal sector into the tax net, supported by strict enforcement and transparent governance, could significantly enhance revenue generation and reduce the budget deficit.
In terms of exports, Shaikh called for greater investment in industrial development, particularly in high-potential sectors such as textiles, agriculture, and information technology. He stressed the importance of producing globally competitive products and expanding trade into untapped markets across Africa, Central Asia, and Europe. Trade missions, coupled with an incentive-driven approach, could unlock new export opportunities and generate foreign exchange inflows.
He further pointed to the urgent need to cut down import dependency by strengthening domestic industries. A focus on promoting local manufacturing—especially small and medium-sized enterprises (SMEs)—would not only reduce the trade deficit but also boost employment. Facilitating SMEs through tax exemptions, financing options, and regulatory support can stimulate domestic production and innovation.
Shaikh also proposed sweeping reforms in the energy sector, which continues to hinder industrial growth due to inefficiencies and shortages. He emphasized investment in renewable energy sources such as solar, wind, and hydropower, as well as reducing transmission losses and theft through technology and private-sector collaboration.
To manage external debt effectively, Shaikh advocated for a structured long-term debt repayment plan and a shift toward low-interest financing. Promoting tourism and encouraging remittances through legal channels were also highlighted as critical for boosting foreign exchange reserves.
He supported selective privatization of loss-making public sector enterprises to improve efficiency and reduce fiscal pressure, provided it is done transparently and in the public interest. Additionally, he called for stronger anti-corruption measures and enforcement of the rule of law, stressing that corruption and terrorism remain major barriers to investment and sustainable development.
A key pillar of long-term stability, he said, lies in improving the quality of education and technical training. Skill development programs tailored to industry needs can empower the youth and improve national productivity. In the agricultural sector, Shaikh suggested modernizing farming techniques, expanding irrigation networks, and converting barren land into cultivable farmland to increase exports and rural incomes.
Shaikh also emphasized the role of political stability in maintaining investor confidence. He stated that adherence to democratic norms, public accountability, and consistent policy implementation are essential to creating a secure environment for domestic and foreign investment.
He acknowledged that the government has taken commendable steps, such as signing a new IMF loan agreement, cutting unnecessary expenditures, and improving the supply chain to reduce inflation. Reforms introduced under this agreement—such as tax adjustments and removal of certain subsidies—have helped increase fiscal discipline. Moreover, policies aimed at improving the business environment, such as tax cuts and reduced interest rates, have begun to encourage investment.
Special Economic Zones (SEZs) have been launched to attract foreign capital, and these efforts have helped stabilize the economy to some extent. However, Shaikh warned that while progress is visible, a full economic recovery will take time and requires unwavering commitment to long-term reforms.
He concluded by stating that only through an integrated and forward-looking economic strategy—spanning tax reforms, export development, energy efficiency, debt management, education, and governance—can Pakistan achieve durable economic stability and prosperity.