The Pakistan Business Forum (PBF) on Monday urged Prime Minister Shehbaz Sharif to intervene urgently to revive business confidence and restore Pakistan’s economic competitiveness, warning that 2025 has been another extremely challenging year for industry and trade.
Read More: Business confidence rises but major economic fears persist
In a letter addressed to the prime minister, PBF President Khawaja Mehboob-ur-Rehman said the long-standing demands of the business community — particularly ease of doing business and reduction in operational costs — remained largely unfulfilled despite repeated assurances by successive governments.
He noted that persistently high input costs, rising energy tariffs, and an uncompetitive tax regime were eroding industrial productivity, weakening exports, and discouraging both domestic and foreign investment. These factors, he said, had placed Pakistani businesses at a clear disadvantage compared to regional economies that actively support industry through competitive pricing and growth-oriented fiscal policies.
Businesses demand revival of business confidence https://t.co/Y30pIvbXrB
— Khaleeq Kiani (@KhaleeqKiani) December 23, 2025
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
Read More: https://t.co/O6hKNijrSt pic.twitter.com/F449qdSxRk
— ProPakistani (@ProPakistaniPK) December 23, 2025
The forum’s call came amid contrasting official claims. While the Ministry of Finance recently stated that investor confidence was improving and the stock market had become one of the world’s best performers, its own monthly report for November showed a 26 per cent decline in foreign direct investment during July–October, alongside a $540 million portfolio outflow and an overall 82.5pc drop in total foreign investment.
The PBF stressed that after demonstrating unity and strength on the security front earlier this year, Pakistan must now focus on winning the economic battle. It identified two reforms as critical: regionally competitive electricity tariffs and corporate tax rates. Without these, the forum warned, Pakistani industry would continue to suffer structural disadvantages.
Expressing concern over reports of a possible increase in electricity tariffs to as high as 15 cents per unit to tackle circular debt, the PBF cautioned that such a move could trigger widespread industrial closures and job losses.
Read More: Businesses‘ confidence rises to a four-year high, Gallup Survey
The forum also criticised the exclusion of elected business representatives from newly formed economic committees, urging the government to provide a clear economic roadmap for 2026 to restore confidence and encourage long-term investment.