Karachi, December 31, 2025 — Chairman of the Businessmen Group (BMG), Zubair Motiwala, has described 2025 as one of the most turbulent and challenging years for Pakistan’s economy and business community, marked by policy uncertainty, deep structural issues, and mounting pressure on productive sectors.
In a statement reviewing the outgoing year, Motiwala said Pakistan remained trapped in “economic firefighting” throughout 2025, with trade and industry bearing the brunt of shrinking profit margins, rising input costs, and an increasingly hostile business environment. He noted that industrial and commercial sectors — the backbone of economic activity — struggled to survive amid persistent uncertainty.
Referring to the Pakistan-India conflict in May 2025, Motiwala stated that Indian aggression was handled decisively and responsibly under the leadership of Field Marshal Syed Asim Munir. He said the swift response reflected national unity and institutional cohesion, prevented escalation, safeguarded economic stability, and helped maintain business confidence.
Despite severe challenges, the BMG chairman acknowledged some positive macroeconomic developments during the year. He highlighted the sharp reduction in the policy interest rate from 23 percent to around 10.5 percent, providing significant relief to borrowers. Improvements were also seen in dollar-rupee stability, management of current and trade account deficits, growth in foreign exchange reserves, and a strong revival in the stock market, signaling improved investor sentiment.
However, Motiwala stressed that microeconomic conditions remained alarming. High energy costs, excessive taxation, regulatory pressures, and weak demand continued to choke local industries. Exports remained largely stagnant, exposing deep structural inefficiencies and cost disadvantages faced by Pakistani exporters. He emphasized the urgent need for policy liberalization, tax rationalization, and an enabling business environment to translate macro stability into real economic growth.
Commenting on the federal budget 2025, he termed it “deeply disappointing” for businesses, citing increased taxes, withdrawal of concessions, and new levies that further weakened competitiveness instead of supporting exports, investment, and job creation.
Among the few positive developments, Motiwala pointed to the privatization of Pakistan International Airlines (PIA) as a rare reform success, calling it a “light at the end of the tunnel” and a signal that difficult reforms are possible with political will.
Looking ahead to 2026, he urged the government to abandon coercive policies, raids, and fear-based compliance, warning that such approaches drive capital flight and erode investor trust. He called for a shift toward liberalization, facilitation, and partnership with the private sector.
Motiwala also demanded rationalization of regulatory bodies, reduction in energy tariffs to regionally competitive levels, realistic wage policies aligned with productivity, and overhaul of the tax regime, including removal of burdensome levies such as the 1.8 percent import cess.
Concluding, he said 2026 would be a decisive year for Pakistan’s economy, urging policymakers to learn from 2025 and adopt growth-oriented, business-friendly reforms to restore confidence, boost investment, and revive industrial activity.