- Reforms and business optimism set to drive Pakistan’s economic transformation
- Mehran Spice & Food: Redefining quality and innovation in global food industry
Interview with Mr. Gul Muhammad Lot — Chairman, Mehran Spice & Food Industries
PAGE: Tell me something about yourself, please:
Gul Muhammad Lot: I began my professional journey in the 1980s by joining the family business while simultaneously pursuing a Master’s in Political Science from the University of Sindh, Hyderabad. In addition to this the graduation with a degree in Economics, provided me with a strong foundation in business and market dynamics.
My career later took a significant turn into politics, as I was elected as Member of Provisional Assembly in 1990. Following with the Minister of Environment in 1993 and Minister of Anti-Corruption in 2008. Then was elected as Member of Senate in 2009. This shift was driven by a deep commitment to national service and community development, values that continue to shape my work today.
As Chairman of Mehran Spice & Food Industries, I have played a pivotal role in establishing the company as a global leader. In a relatively short time, Mehran has become a key exporter to over 50 countries, solidifying its reputation worldwide. With industries in Pakistan, Dubai, and Saudi Arabia, our expansion into international markets has been a key driver of our success. Mehran offers a wide range of products, including various spices, condiments, mix recipes, pickles, ketchup, sauces, desserts, rice, vermicelli and frozen items. Our focus on innovation, such as the integration of advanced rice processing technology from Germany and the installation of fully automated packaging machinery, has significantly enhanced operational efficiency and product quality.
In 2011, Mehran expanded into the local market, quickly securing a substantial market share and experiencing impressive growth in both local and international sales. The company, certified with ISO 9001 and ISO 22000, is committed to delivering high-quality, consistent, and authentic products across various categories, while leveraging state-of-the-art technology to meet the evolving demands of consumers. Our dedication to excellence has earned us numerous prestigious awards, including the Best Exporter Award from FPCCI for 37 consecutive years, two Presidential Awards, two Prime Minister Awards, and six Businessman of the Year Awards, affirming our leadership and forward-thinking approach in the industry.
PAGE: How could 2025 be for the global economy?
Gul Muhammad Lot: The world in 2025 remains under the strain of ongoing wars and geopolitical tensions, creating a fragile economic environment. The British economy continues to falter despite the appointment of Prime Minister from Labour Party in July 2024 who initially promised for robust growth. Voters had high hopes, but so far unable to meet expectations, leaving the country facing economic uncertainty.
Europe is also grappling with a severe economic crisis, with stock markets showing a growing deficit and many nations struggling to maintain stability. High inflation, rising unemployment, and sluggish growth continue to plague the region, compounded by political instability and energy shortages. These challenges have shaken investor confidence and created a bleak outlook for the near future.
In the United States, the new president faces mounting pressure from the public to deliver on promises of economic reform. People are looking for policies that address inflation, unemployment, and healthcare needs. While the administration is committed to enacting change, political divisions may delay progress, leaving the outcome uncertain.
Despite these challenges, there remains hope that 2025 will bring positive developments. While the global economy is under pressure, strategic leadership and collaboration could foster a turnaround. With optimism for the new year, we remain hopeful for brighter economic prospects in the future.
PAGE: Would Pakistani economy fare well in 2025 in terms of GDP growth, inflation, investment, employment opportunities etc.?
Gul Muhammad Lot: In 2025, Pakistan’s economy is undergoing a difficult yet potentially transformative phase. The government has imposed import restrictions to curb the growing trade deficit, which has caused a contraction in GDP. Efforts to stimulate industrial growth have been hampered by high taxes and have a detrimental effect on country’s trade balance even though exporters are crucial for generating foreign exchange and reducing trade deficit. This has led to exporters facing difficulties, though recovery is still possible with the right policies.
Despite these challenges, there are promising opportunities for economic recovery. By prioritising industrial expansion and reducing the tax burden, the government can create a more business-friendly environment. Focusing on reducing inflation, which has shown signs of improvement compared to past months, addressing structural issues, and incentivizing investment can help stimulate growth and job creation. With these measures, Pakistan has the potential to experience a steady economic recovery, attracting both domestic and foreign investments.
Looking ahead, there are reasons to be optimistic about Pakistan’s economic future. The recent reduction in interest rates is a positive sign, indicating that the government is committed to encouraging investment, particularly in key industries. Along with a decrease in inflation, these measures can revitalise industries, create jobs, and boost overall economic growth. Continued reforms and a favourable business environment will ensure that Pakistan’s economy is on track for a positive transformation in the near future.
PAGE: What could be the major challenges in 2025?
Gul Muhammad Lot: In 2025, one of the most pressing challenges will be the global economic instability resulting from inflation, debt crises, and the aftermath of the Covid-19 pandemic. Many nations will continue to struggle with rising costs of living, income inequality, and slow economic recovery. While countries may seek to boost growth through stimulus packages, the rising debt burden could limit their fiscal capacity. These economic tensions could lead to social unrest and increased protectionism, undermining international cooperation.
War is not the solution to these economic issues. Instead, negotiation at the table offers a more constructive path forward. Diplomacy and collaboration will be essential for resolving trade disputes, addressing global supply chain disruptions, and managing resource scarcity. By engaging in open dialogues, countries can work together to tackle common challenges such as poverty, unemployment, and economic inequality, creating a more stable and prosperous world for all.
PAGE: How do you see the energy situation in 2025?
Gul Muhammad Lot: In 2025, Pakistan’s energy situation will continue to be challenging due to rising electricity prices, which are placing significant financial pressure on both industries and households. The average consumer faces higher electricity bills which can be burdensome for household, industrial and commercial consumers. The higher cost of electricity also impacts competitiveness of Pakistan’s industrial sector. This reduces profitability and growth potential leading to less investment and job creation. Additionally, the shortage of natural gas is worsening the situation, forcing Pakistan to rely on expensive imported fuels like coal and diesel, further driving up electricity generation costs.
Despite these challenges, there is room for improvement in Pakistan’s energy landscape. While there is no overall energy shortfall, the issue lies in the high costs and relying on costly external energy sources. A shift toward renewable energy, improved energy management, and infrastructure upgrades could help bring down costs in the future. Furthermore, the high energy prices are making it difficult for Pakistani exporters to compete in the international market, as increased production costs impact their ability to maintain market share.