Mian Zahid Hussain Calls for Unified Strategy Amid Economic Challenges

Karachi: Mian Zahid Hussain, a prominent business leader and former provincial minister, has called for a unified national approach to address Pakistan’s dual economic challenges: the impact of severe monsoon floods and the need for fiscal discipline under an International Monetary Fund (IMF) program.

Hussain, who holds multiple influential positions in the business community, highlighted the devastating effects of the 2025 floods, which have caused an estimated $1.4 billion in direct damage. The agricultural sector, in particular, has been severely affected, with losses exceeding Rs302 billion ($1.0 billion) due to the destruction of key crops like rice, sugarcane, and cotton in Punjab.

The disruption of supply chains has led to a sharp rise in food inflation, with forecasts predicting a 4.3% increase in September. Hussain emphasized that this disaster is not only a humanitarian crisis but also a significant economic setback that could undermine Pakistan’s recent macroeconomic achievements.

Despite recent foreign investment agreements, including an $8.5 billion deal with China and a $500 million memorandum of understanding with a U.S. firm, Hussain cautioned against complacency. He pointed out that the fiscal demands of reconstruction, potentially running into billions, conflict with the austerity measures mandated by the IMF.

Hussain urged the government to utilize the newly approved IMF Resilience and Sustainability Facility and transform strategic foreign investments into long-term projects that enhance productive capacity and climate resilience. He emphasized the need for prioritizing climate-resilient infrastructure and diversified agriculture to mitigate future crises and reduce dependency on external assistance.