Anjum Nisar wants reforms to restore investors’ confidence, prevent capital outflows
ISLAMABAD, MAR 1: /DNA/ – The Federation of Pakistan Chambers of Commerce & Industry’s Businessmen Panel (BMP) has emphasized the need for curbing capital flight and brain drain, calling for measures to retain Pakistan’s financial and human resources within the country.
BMP Chairman and FPCCI former president Mian Anjum Nisar underscored the need for urgent reforms to restore investor confidence, address economic hurdles, and prevent further capital outflows.
Expressing concern over the growing number of Pakistani businesses relocating abroad, he pointed out that thousands of individuals have transferred their businesses overseas to secure citizenship through investment programs.
He expressed optimism that Pakistan could become a trillion-dollar economy within the next six to seven years if the right economic policies were implemented. He also highlighted the progress in the agriculture sector, noting that rice exports had reached $3.8 billion and total agricultural exports had climbed to $9 billion, shifting Pakistan from an import-driven to an export-driven economy.
BMP Chairman urged the government to focus on enhancing economic competitiveness rather than relying on trade concessions such as the European Union’s GSP+ scheme. He pointed to artificial intelligence, cloud computing, and software as key sectors for economic advancement.
He acknowledged improvements in economic indicators, stock market performance, and rising IT exports but noted that a significant trust deficit still hindered business confidence. He urged the government to address corruption and bureaucratic harassment, which he said were forcing people to leave the country.
He emphasized the untapped potential of Pakistan’s IT sector, which he estimated could reach $30 billion in exports. However, he warned that excessive regulatory pressure was stifling growth, particularly through changes in tax policies such as the replacement of the Final Tax Regime (FTR) with a standard taxation system.
He highlighted a deteriorating business climate, with many multinational companies exiting Pakistan.
Referring to the report, he said that the International Monetary Fund has revised Pakistan’s economic outlook, downgrading its projected Gross Domestic Product (GDP) growth for 2025 to 3%, down from 3.2% forecasted just three months ago.
The adjustment comes amid a broader global economic assessment presented in the IMF’s “World Economic Outlook Update: Global Growth – Divergent and Uncertain.”
The IMF’s revised projections also indicate that Pakistan’s GDP growth will remain at 4% in 2026. However, the latest downgrade reflects ongoing economic challenges in the country, although the IMF did not provide specific reasons for the revision.
This latest revision mirrors the forecast made by the Asian Development Bank (ADB) last month, which also adjusted Pakistan’s growth forecast to 3% for the fiscal year 2024-25, up from a previously projected 2.8%.
Both institutions have cited challenges faced by Pakistan’s economy but have maintained a cautiously optimistic outlook for the medium-term.
Globally, the IMF forecasts a global growth rate of 3.3% for both 2025 and 2026, slightly below the historical average of 3.7%.
He highlighted that the global economy continues to face diverging growth patterns, with stronger-than-expected performance in the United States partially offsetting weaker results in other major economies.
Inflationary trends are expected to ease in the coming years, with the projecting global inflation to decline to 4.2% in 2025 and 3.5% in 2026. However, he cautioned that inflation remains stubbornly high in some regions, despite a global trend of disinflation.
He also noted a significant decrease in energy commodity prices, with a forecasted 2.6% decline in 2025, while non-fuel commodity prices are expected to rise by 2.5%, largely due to adverse weather conditions affecting key producers.
The global outlook includes more optimistic projections for some major economies. In the United States, GDP growth is expected to reach 2.7% in 2025, revised upward by 0.5 percentage points due to stronger domestic demand. However, U.S. growth is forecast to slow to 2.1% in 2026. In contrast, the euro area is facing a weaker economic trajectory, with growth projected at 1% for 2025, down from an earlier estimate of 1.2%.
According to reports, this downward revision reflects slower-than-expected momentum, particularly in manufacturing, and ongoing political and policy uncertainties. The IMF anticipates a recovery in 2026, with growth expected to rise to 1.4%. The United Kingdom is projected to see modest growth, with an estimated 1.6% increase in 2025 and 1.5% in 2026. Meanwhile, China’s GDP is expected to grow at 4.6% in 2025 and 4.5% in 2026, with the IMF urging China to boost domestic demand to support its economic expansion. India, on the other hand, continues to show robust growth, with the IMF projecting a solid 6.5% GDP increase in both 2025 and 2026, in line with its potential. As the IMF’s outlook suggests, the global economy remains in a period of uncertainty, with divergent growth paths across regions.
){kind=link}