All Pakistan Business Forum Warns of Prolonged Economic Weakness, Calls for Policy Stability

By Dr Ansab Ali | Lahore, Pakistan
LAHORE: The All Pakistan Business Forum (APBF) has expressed serious concern over recent survey findings suggesting that economic conditions may remain weak over the next six months, stating that the results reflect prevailing uncertainty within both the business community and the general public.
APBF President Syed Maaz Mahmood said declining public confidence in economic recovery and investment prospects is a matter of grave concern. He observed that when a majority of citizens do not anticipate improvement in the near term, it sends a clear signal to policymakers about the urgency of corrective measures.
“Although there has been relative stabilization compared to the crisis phase of early 2024, the economy has yet to reach a point where businesses and consumers feel secure,” he said.
Maaz Mahmood noted that only a limited segment of the population currently perceives the economy as strong, while the majority continues to struggle with inflation, unemployment, and declining purchasing power. He added that the low investment appetite highlighted in the survey demonstrates persistent investor caution due to inconsistent policies, high operational costs, and an unpredictable business climate.
“Sustainable growth is only possible when there is long-term clarity and consistency in economic direction,” he emphasized.
He urged the government to prioritize reducing the cost of doing business by rationalizing energy tariffs, easing the tax burden, and ensuring access to affordable financing. Without these measures, he warned, both domestic and foreign investors would remain hesitant to commit fresh capital.
APBF Chairman Ibrahim Qureshi described the survey’s findings on low consumer confidence as equally alarming. He pointed out that when a majority of people are reluctant to make major purchases, trade volumes decline, industrial production slows, and overall economic momentum weakens.
“Weak consumer demand has become one of the most pressing challenges for traders and manufacturers,” he remarked.
Qureshi highlighted that small and medium enterprises (SMEs) are under immense pressure due to high interest rates, rising utility costs, and heavy taxation. He called for targeted relief measures for SMEs, including concessional loan schemes and incentives for export-oriented industries. Stimulating domestic demand, he said, is critical to reviving industrial activity and generating employment.
Expressing concern over low job security confidence reflected in the survey, he added that employment uncertainty discourages spending and slows economic circulation. He urged the government to focus on policies that promote industrial expansion, encourage entrepreneurship, and support value-added exports to create sustainable jobs.
The APBF leadership acknowledged modest improvements in certain economic indicators compared to last year but stressed that the recovery remains fragile. They called for transparent decision-making, policy continuity, and meaningful engagement with the private sector to rebuild trust.
The forum urged the government to adopt a comprehensive economic strategy aimed at controlling inflation, enhancing productivity, and improving the ease of doing business, maintaining that decisive and coordinated actions are essential to restore public confidence and prevent prolonged economic stagnation.