- Government must take formidable measures to instill confidence and jump start the economy
- Overseas remittances have always been the savior of the economy despite difficulties encountered
Interview with Mr. Majyd Aziz, President Employers Federation of Pakistan
PAGE: Tell me something about yourself, please:
Majyd Aziz: I am President Employers’ Federation of Pakistan, Former President of Karachi Chamber of Commerce and Industry, South Asian Forum of Employers, (UN) Global Compact Network Pakistan, and Former Chairman of SITE Association of Industry. I am Former Member of Board of Directors of the government-owned Zarai Taraqiati Bank Ltd and Former Chairman of the government-owned SME Bank Ltd. I am also Founding Chairman of All Pakistan Federation of Industries which is the only registered trade union in Pakistan. I am President of our family-owned business group.
PAGE: What is your perspective about the privatization of PIA?
Majyd Aziz: At the outset, it is important to understand that the very process of privatization in Pakistan had become a farce because successive governments only talked about privatization but either did not want it or maybe did not have the critical mass to undertake the efforts. It should also be noted that the elephant in the room was always PIA privatization. Finally, when push came to shove, the government expressed its sincerity and put PIA up for sale.
The consortium, led by PSX Supremo Arif Habib, made a pragmatic offer of PKR 135 billion. After the process, it was announced that Fauji Foundation decided to join the winning consortium. This is a good augury because besides injecting funds, it will provide a disciplinary system to improve the working of PIA. Furthermore, it was also in the news that Abu Dhabi will invest one billion dollars in Fauji Foundation through swapping the already placed deposit into buying a stake in Fauji Foundation.
The downfall of PIA resulted from the manner the Airlines was systematically destroyed through huge interference by political governments who stuffed PIA with absolutely useless, illiterate, and incompetent employees. Corruption inside the company was endemic, while maintenance personnel were ill-equipped to handle the technical aspects of the carriers.
Private ownership of PIA will liberate this national asset from suffocating bureaucratic stranglehold, radical and freeloader unionists, excessive and undue political interference, and definitely from those employees who are corrupt, inefficient, non-merit, and no-gooders. Very soon, PIA will once again become Great people to fly with.
PAGE: How would you comment on investment in 2026 in Pakistan?
Majyd Aziz: This is a mega worrying factor. Foreign and domestic investment have dipped drastically in the last three years. The external and internal threats by terrorists and proxies of foreign governments have been a debilitating matter of concern for investors. Despite extensive lobbying and advocacy by people in corridors of power, there have been no worthwhile investments from foreign sources. Uzbekistan received over $35 billion, India in excess of $80 billion, and Vietnam was able to get around $40 billion FDI in 2024, while Pakistan could only attract about $2.50 billion.
Domestic investment has been hampered by excessive infrastructure rates, difficult law and order situation, escalating corruption, high interest rates, backbreaking taxation rates, and cost of doing business. This has led to exodus of capital from the country, shift from industrial investment into the booming stock exchange, surge in real estate values, and placement in mutual funds or banks. Safety of money, apparently more prominent in these sectors rather than in industries, has led to factory closures, reducing factory shifts, or retrenchment of workforce.
Therefore, to attain economic progress in 2026, the government must immediately take formidable measures to instill confidence as well as jump start the economy. The recent statements from Prime Minister, Finance Minister, as well as other Ministers reflect the new thinking. There is every likelihood of announcements of more incentives and recalibration of existing fiscal and economic policies that should spur up growth. It is hoped that policies will be immediately implemented instead of getting buried in government files or susceptible to the proverbial red tape.
The litmus test would be whether the decision makers exert their writ on the implementors as well as ensure transparency and accountability. A positive attitude will send a clear message to investors and that should be the objective.
PAGE: What is your standpoint about overseas remittances in 2026?
Majyd Aziz: Overseas remittances have always been the savior of the economy. Pakistanis who still harbor patriotic sentiments and who have their families here are the ones who, despite the difficulties they encounter, continue to remit huge sums back to the motherland. In fact, in fiscal 2025-26, the hope is that $45 billion threshold would be crossed. Something to note is that Pakistani exports just inch forward instead of a big leap. It is projected that exports during fiscal year 2025-26 may hit $35 billion, although it is a long shot considering the figures up till now.
It is therefore incumbent upon the government to formulate more attractive incentives and benefits for overseas Pakistanis so that the remittances increase substantially in the future. The high import outlay can be mitigated to a large extent by these remittances. This would also reduce dependence on foreign loans.
PAGE: What should be the policies of the government for the improvement in business environment in Pakistan?
Majyd Aziz: The simple answer is that since most of the policies have been unable to generate worthwhile increase in GDP, or higher inflow of FDI, or upsurge in industrialization, or even in containing corruption, or for that matter provide easy financing, etc, the business environment is bound to be cloudy. The government uses first aid instead of surgery to rid the cancer of economic malaise. There is no need to reinvent the wheel. All that the government has to do is to learn from countries such as Vietnam, Uzbekistan, or other developing nations that changed the paradigm and are now reaping the benefits.
There is a crucial need to cut down the waste in the government, axe redundant jobs, cease huge procurements of vehicles and other superfluous assets, immediately privatize as many state owned companies as possible, halve the taxes, maintain ruthless accountability in all sectors, and improve the image of Pakistan globally.