Pakistan's economy showing signs of recovery: Gul Ahmed Director

KARACHI: Pakistan's economic indicators have shown significant improvement in recent months, with inflation dropping and interest rates declining, according to Gul Ahmed Director Ziad Bashir.

Speaking on the current economic landscape, he highlighted that inflation, which was previously around 30%, has now fallen close to single digits, while the interest rate has come down to 12% from approximately 22%.

Bashir expressed optimism about the economy’s trajectory but acknowledged that further reforms are necessary.

He emphasised the importance of aligning Pakistan’s holding company laws with international best practices to create a level playing field for businesses.

The businessman likened the challenges faced by Pakistani businesses to running on an inclined treadmill, citing high energy costs, excessive taxation, and security concerns as key obstacles.

Drawing comparisons with global conglomerates, Bashir pointed out that companies like Tata Group and Berkshire Hathaway expanded beyond their original sectors by leveraging holding company structures.

He explained that such frameworks allow businesses to manage losses, retain intercompany dividends without double taxation, and benefit from strategic investments.

“If we can align our holding company laws with global standards, Pakistan can foster its own conglomerates like Birla, Tata, and Ambani groups,” Bashir remarked.