Page 72 - CMA Journal (May-June 2025)

Focus Section

The data sketches a clear, interconnected challenge but shocks and supply disruptions, enabling consistent output
also sets the stage for a compelling inquiry: How can even amid energy shortages and rupee volatility. In Q3
Pakistan break the cycle of low growth and fragmented 2025, Nishat Mills posted a market capitalization of PKR
sustainability? Could Pakistan face modest economic 44.27 billion and earned PKR 1.98 per share. Profits from
growth alongside high business vulnerability, thereby textiles are reinvested in cement and energy divisions,
exposing the true fragility of its corporate sector? while banking subsidiaries MCB Bank and MCB Islamic
Bank provide financial resilience, helping the group
Growth Rankings and Market Sentiments withstand circular debt and foreign-exchange constraints.
Pakistan’s economic resilience remains Figure 3: Business Sustainability Ranking
under strain despite inching up to 144th in
the 2024 Business Sustainability Index - 200 188
well behind Bangladesh (115th), India 180 173 178 158 161 168
(120–160th), and the Maldives 160 144 133
(approximately 80th), as shown in Figure 140 115 130 121
3. This middling rank stems from: 120
100 81 74 93
• A 5.9% fiscal deficit in FY 2024–25 80 68 67
60
• Public debt near 80% of GDP 40
20
• A narrow tax base with only 1.3% of 0
population paying income tax Pakistan Afghanistan Bangladesh Bhutan India Maldives Nepal Sri Lanka
• Power-sector circular debt that forces 2024 2023
load-shedding and costly energy Source: The Global Sustainable Competitiveness Index
https://solability.com/the-global-sustainable-competitiveness-index/economic-sustainability-index
consumption, crippling factories
Meanwhile, from January 2024 to April Figure 4: World Sentiment Index of South Asian Countries (Monthly)
2025, Pakistan’s World Sentiment Index
ranged between 0.64 and 1.21, far below
4.50
Bangladesh (1.08–2.67) and India
4.00 3.15
(2.45–4.18) as illustrated in Figure 4. This
3.50
moderate outlook reflects:
3.00 2.45
3.39
• Rupee volatility and tight forex 2.50 2.45 1.51
controls 2.00 1.23
1.50
• Chronic energy outages disrupting 1.00
production 0.50 0.64 1.00
0.90
0.00
• Policy unpredictability during flood
and smog emergencies
In contrast, stronger tax reforms, export Pakistan Bangladesh India
stability, and coherent policy frameworks
Source: World Uncertainty Index -
in neighboring economies support
higher business confidence.
Fauji Group – Commerce with a
Case Studies of Successful Businesses Conscience

in Pakistan
Based in Rawalpindi, Fauji Foundation
is
N
Nishat Group – Vertical Integration blends commercial success with a social
mission. Fauji Fertilizer, a top producer,
and Market Leadership
a
posted a market cap of PKR 558.44 billion and an EPS of
Headquartered in Lahore, Nishat Group PKR 9.33 in Q1 2025. Earnings fund social programs for
has become one of Pakistan’s largest military families, maintaining internal demand during
conglomerates by integrating all stages of downturns. Long-term gas agreements for fertilizer
its textile operations—from spinning and weaving to production and diversification into cement and
finished garments—under Nishat Mills. This vertical healthcare allow Fauji to offset sector-specific shocks and
integration shields the company from raw material price remain a resilient industrial player.

70 ICMA’s Chartered Management Accountant, May-June 2025