- Reforms and investments drive Pakistan’s 2025 economic recovery, boosting exports, employment and global competitivenes
Interview with Mr Zia Ul Mustafa — CMA (Pak), CMA (USA), CMP (USA); President, House of Professionals; Member, Global Board of ICMP, USA
PAGE: Tell me something about yourself, please:
Zia Ul Mustafa: I am a management professional and corporate leader with over 25 years of experience across diverse industries. My expertise spans organizational development, strategy, operations, project management, financial management, risk management, and corporate governance. I hold prestigious qualifications, including Chartered Management Accountant (ICMA Pakistan), Certified Management Accountant (IMA USA), and Chartered Management Professional (ICMP USA). I have held key leadership roles in regulatory bodies and the corporate sector, including multiple terms as President of ICMA Pakistan and as President of the South Asian Federation of Accountants (SAFA).
My corporate experience includes C-level roles at Rustam Group of Industries, Descon Engineering Limited, Pakistan Expo Centres, and House of Professionals Inc. I have also served as Director at prominent institutions such as the Agricultural Development Bank of Pakistan, Pakistan Institute of Corporate Governance, Ignite National Technology Fund, and Pakistan Institute of Public Finance Accountants.
Currently, I am President of House of Professionals, a management consulting and professional training organization. I also hold leadership positions such as Chairman of the Strategic Board of ICMA Pakistan, Director at the Pakistan Institute of Public Finance Accountants, and Chairman of the SAFA Committee on Governmental & PSEs Accounting. Additionally, I am an active member of global initiatives, including the CAPA Public Sector Advisory Group, IMA Leadership Academy USA, and ICMP USA.
My international exposure and strategic insight have established me as an influential leader in both the corporate and public sectors.
PAGE: How could 2025 be for the global economy?
Zia Ul Mustafa: The global economy in 2025 stands at a crossroads, shaped by significant geopolitical events and evolving economic trends. While challenges from conflicts and shifting policies persist, there are also opportunities for growth and innovation that could pave the way for a more resilient global economy.
Key factors affecting global economy in 2025 are:
Change in US leadership:
The new government under President Donald Trump is expected to implement policies focused on “America First,” and it is expected that the new government prioritizes domestic economic growth through tax reforms, deregulation, and an emphasis on energy independence. These policies may stimulate the US economy, potentially boosting global trade if managed diplomatically. A focus on bilateral agreements could create new trade opportunities for nations willing to align with the US agenda.
Impact of the Russia-Ukraine war:
Although the conflict has disrupted supply chains, it has also accelerated innovation in agriculture and energy production. Europe’s diversification of energy sources has spurred investment in renewables, which could lead to long-term benefits for the global energy market. Further, the Global cooperation on food security is nurturing new partnerships and technological advancements to address supply chain vulnerabilities.
Instability in the Gulf region:
Despite tensions, the Gulf nations are investing heavily in economic diversification. Countries like Saudi Arabia and the UAE are advancing mega-projects and green energy initiatives, offering opportunities for international collaboration and investment.
Shifts in global trade and alliances:
The geopolitical divide between the US, China, and Russia has deepened, resulting in the fragmentation of global trade. Regional alliances and localised trade agreements are becoming more prominent, potentially impacting globalisation. Moreover, a renewed focus on self-reliance and innovation is driving growth in industries like technology, logistics, and manufacturing.
Resilience and opportunities:
The global push towards sustainability and de-carbonisation has unlocked massive investments in renewable energy, green technologies, and electric mobility. These industries are becoming engines of growth and job creation. Further, the Digital transformation, accelerated by the post-pandemic recovery, continues to enhance productivity and open new markets for businesses worldwide.
While 2025 will undoubtedly present challenges, the global economy also holds the potential for transformation and progress. Nations investing in innovation, sustainability, and regional cooperation are likely to emerge stronger. The drive toward greener technologies, resilient supply chains, and inclusive growth can help turn today’s challenges into tomorrow’s opportunities, creating a more balanced and interconnected global economy.
PAGE: Would Pakistani economy farewell in 2025 in terms of GDP growth, inflation, investment, employment opportunities etc.?
Zia Ul Mustafa: The Pakistani economy in 2025 shows signs of recovery and growth, driven by strategic reforms and emerging opportunities. Export-oriented sectors such as textiles, IT, and agriculture are fuelling GDP expansion, while targeted initiatives enhance productivity and global competitiveness. Inflation, a longstanding concern, is now decreasing due to improved fiscal discipline, better supply chain management, and increased agricultural output.
The declining rate of bank interest is stimulating economic activity and encouraging investments. However, the high cost of electricity remains a significant challenge, impacting industrial growth and consumer affordability.
Efforts by the Special Investment Facilitation Council (SIFC) have been commendable in attracting local and foreign investments. The revitalised China-Pakistan Economic Corridor (CPEC) and focus on renewable energy, infrastructure, and technology are drawing global interest, supported by government incentives and ease-of-doing-business reforms.
Employment opportunities are expanding with government programs emphasizing skill development, entrepreneurship, and digital transformation. A dynamic and young workforce is being equipped to contribute effectively to emerging sectors. However, the need to improve internet speed and infrastructure is crucial, as slow connectivity is affecting e-businesses and digital services, limiting their potential growth.
Pakistan’s strategic location and efforts in green energy and sustainable development enhance its position as a hub for regional trade and investment. Addressing challenges like high electricity costs and internet speed is essential to fully leverage its potential. With continued focus on reforms, investment in infrastructure, and efforts to overcome existing hurdles, 2025 has the potential to be a transformative year for Pakistan’s economy, marking significant progress toward sustainable growth and prosperity.
PAGE: What could be the major challenges in 2025?
Zia Ul Mustafa: The year 2025 will present significant challenges globally and in Pakistan, driven by geopolitical, economic, and environmental factors. Globally, geopolitical tensions such as the Ukraine war, instability in the Gulf due to the Israel-Palestine conflict, and strained relations between major powers like the US, China, and Russia could disrupt trade and energy supplies.
Inflationary pressures, while easing in some regions, may still persist in developing economies, exacerbated by high energy costs and supply chain vulnerabilities. Climate change remains a critical issue, with extreme weather events impacting agriculture, infrastructure, and global migration patterns. In Pakistan, managing inflation and high electricity costs will remain significant hurdles. Despite a downward trend in inflation and interest rates, the burden of energy costs continues to strain industries and households. Internet speed and digital infrastructure also pose challenges, limiting the growth of e-business and services crucial for economic transformation.
Political instability and governance concerns may hinder policy continuity and the execution of reforms needed for sustainable development.
Both globally and in Pakistan, fostering economic growth while addressing social inequalities, environmental sustainability, and technological advancement will require coordinated efforts. Proactive policies, regional cooperation, and investment in innovation will be key to overcoming these challenges and ensuring a stable and prosperous 2025.
PAGE: How do you see the energy situation in 2025?
Zia Ul Mustafa: The energy situation in Pakistan in 2025 is expected to be a mix of progress and challenges. On one hand, significant strides are being made in diversifying energy sources, with increased investments in renewable energy projects such as solar, wind, and hydropower. These efforts are aligned with global trends toward sustainability and could reduce dependence on expensive fossil fuels while contributing to long-term energy security.
However, challenges persist, particularly in managing the high cost of electricity, which continues to burden industries and households. Energy pricing remains a critical issue, exacerbated by inefficiencies in transmission and distribution systems, as well as reliance on imported fuels.
Addressing these inefficiencies and ensuring affordable energy access will be vital for industrial growth and economic stability. Additionally, the integration of renewable energy into the national grid requires improved infrastructure and policy support. Efforts to enhance public-private partnerships and leverage international expertise through initiatives like the China-Pakistan Economic Corridor (CPEC) are promising and could pave the way for a more resilient energy sector. While the energy transition is progressing, achieving balance between affordability, accessibility, and sustainability remains the key challenge. With focused reforms, technological innovation, and international cooperation, Pakistan has the potential to significantly improve its energy landscape by 2025, promoting economic growth and environmental sustainability.