Chamber flags commerce deficit, power prices and weak funding regardless of easing inflation
LCCI President Faheemur Rehman Saigol. Photograph (file)
LAHORE:
President of the Lahore Chamber of Commerce and Trade (LCCI), Faheemur Rehman Saigol, has described 2025 as a yr of gradual financial stability for Pakistan however warned that main structural challenges proceed to limit sustainable progress.
In response to an announcement issued on Tuesday, Saigol stated a number of financial indicators improved in the course of the yr. Nevertheless, points together with a widening commerce deficit, excessive power prices, gradual funding and a restricted tax internet stay severe obstacles for the financial system.
Emphasising ease of doing enterprise, he stated traders require predictable insurance policies and decrease prices to speculate confidently in home industries. He expressed concern over excessive electrical energy costs, misuse of statutory regulatory orders and delays in export coverage reforms. He additionally referred to as for bringing exports again underneath the ultimate tax regime to assist exporters.
Saigol stated the commerce deficit continues to pose a significant problem and requires pressing consideration. He welcomed the current privatisation of Pakistan Worldwide Airways, noting that its acquisition by a Pakistani consortium mirrored rising native investor capability. He added that privatisation of different state-owned enterprises needs to be pursued.
Reviewing broader traits, he stated constant insurance policies, financial reforms and powerful remittance inflows helped enhance the enterprise local weather and restore confidence for funding, exports and industrial exercise.
He highlighted that remittances reached about $38.3 billion in FY2024-25, a 26% enhance from the earlier yr, and are anticipated to method $42 billion by year-end. Remittances throughout JulyNovember FY2025-26 exceeded $16 billion, exhibiting over 9% progress year-on-year, based on official knowledge.
Saigol stated robust inflows supported overseas trade reserves, stabilised the rupee and decreased import pressures. He additionally cited a pointy decline in inflation, with common inflation falling to 4.5% from 23.4% a yr earlier, easing strain on customers and companies.
He famous improved market confidence, mirrored within the KSE-100 index surpassing 170,000 factors, increased overseas trade reserves and decreased rates of interest, which lowered borrowing prices. Regardless of progress in IT exports, he stated funding remained under expectations attributable to excessive power prices. He concluded that lasting progress requires continued reforms in power, exports and taxation.
