Pakistan's economy improves with lower inflation and interest rates

Pakistan's economy is showing improvement, according to Ziad Bashir, a director at Gul Ahmed. Recent months have seen positive changes, including a drop in inflation and interest rates. Inflation, which was around 30%, is now nearing single digits. The interest rate has also decreased from approximately 22% to 12%. Bashir remains optimistic about the economy's future but stresses the need for further reforms. He believes that aligning Pakistan’s holding company laws with international standards is essential to promote fair competition for businesses. He discussed some challenges that Pakistani businesses face, including high energy costs, heavy taxation, and security issues. Bashir compared these challenges to running on an inclined treadmill. He also mentioned global companies like Tata Group and Berkshire Hathaway, which expanded beyond their original sectors using holding company structures. These structures help manage losses and avoid double taxation on dividends. Bashir suggested that if Pakistan can adopt similar laws, it could create its own large business groups, like Birla or Ambani.