Industry flags risks to 2026 growth

As 2025 nears its end, the country is looking towards 2026 with growing concern within industrial and commercial circles that high costs, weak competitiveness and policy uncertainty could further slow economic momentum unless decisive steps are taken to support productive sectors. Business leaders say that while macroeconomic stability has improved compared to previous years, conditions on the ground remain challenging for industry, exporters and investors. Speaking on the state of the economy, Khawaja Mehboob ur Rehman, president of the Pakistan Business Forum (PBF), said 2025 had again proved to be a difficult year for businesses. "Despite repeated commitments, the core issues of ease of doing business and a sustainable reduction in the cost of operations have not been addressed in a meaningful way," he said in a letter written to the Prime Minister of Pakistan, adding that this had limited the ability of firms to plan and expand.