Pakistan Business Forum Urges PM Shehbaz to Restore Business Confidence

Pakistan Business Forum (PBF), a leading industry group, has called on Prime Minister Shehbaz Sharif to take urgent action to revive business confidence and restore the country’s economic competitiveness, as persistent high costs and policy uncertainty continue to weigh on the private sector. In a letter sent Monday, PBF President Khawaja Mehboob-ur-Rehman described 2025 as another “extremely challenging year” for Pakistani businesses, citing unaddressed demands for a more business-friendly environment and lower operational costs. “Despite repeated commitments by successive governments, the fundamental demand of the business community for ease of doing business and a reduction in the cost of operations has not been addressed in a meaningful or sustainable manner,” Rehman wrote. The forum highlighted surging input costs, rising energy tariffs, and an uncompetitive tax regime as key factors eroding industrial productivity and export competitiveness, while discouraging both local and foreign investment. “These pressures have significantly reduced Pakistan’s ability to compete with regional economies that actively support their industries through competitive pricing and pro-growth fiscal policies,” Rehman said. The PBF’s appeal comes as the Ministry of Finance touts a booming stock market and rising investor confidence, even as its own data shows a 26% drop in foreign direct investment and an 82.5% decline in total foreign investment in the July-October period compared to a year earlier. The business group also warned that further increases in electricity tariffs, potentially up to 15 cents per unit, could force widespread downsizing or closure of industrial units, deepening unemployment and economic contraction. The PBF expressed concern that economic policymaking remains focused on IMF compliance, with little attention to innovative or growth-oriented solutions, and criticized the artificial control of the rupee despite low reserves. Additionally, the PBF voiced frustration over the exclusion of elected business representatives from key economic committees and working groups, arguing that this limits the government’s understanding of on-the-ground realities. Looking ahead to 2026, the PBF urged the government to deliver a clear and credible economic roadmap, including regionally competitive electricity tariffs and corporate tax rates. The group emphasized that with the right policy support, the business community stands ready to drive growth, create jobs, and expand exports.