KARACHI: The Chairman of National Business Group Pakistan, President of the Pakistan Businessmen and Intellectuals Forum, President of All Karachi Industrial Alliance, Chairman of the FPCCI Advisory Board, Mian Zahid Hussain said that the global political and economic landscape is more likely to deteriorate in 2025.
He said that the idea that the situation would improve after the end of the Cold War proved wrong, and various conflicts have increased instead of decreasing.
Mian Zahid Hussain said that after the end of the Cold War, millions of lives have been lost. At the same time, billions of people have been affected.
He said that the change in the balance of power will become more evident during the New Year. Israel and the United States will turn to Iran after controlling Gaza, Hamas, Syria, and Yemen.
He noted that the West’s economic dominance would further decrease, and the anti Western camp would become stronger.
During this time, instability, uncertainty, and political tension will increase, environmental risks and losses will grow, and the war in Ukraine and the Middle East will continue. The situation in the Middle East may even become tense.
Mian Zahid Hussain said the newly-elected US president had stated his policy on ending both wars. Still, Ukraine will suffer more than Russia. At the same time, Israel will benefit in the Middle East, so perhaps the parties will not accept the Trump formula.
Mian Zahid Hussain said that the newly-elected US president wants European countries to bear the burden of the Ukraine war instead of the United States. In contrast, European countries do not have enough resources to do so, which will likely affect relations between Europe and the United States.
He said that the new US president had started explaining his policies even before assuming power, which has caused a wave of concern worldwide and increased instability.
In the present situation, the US allies and rivals are equally worried. Concerns are being expressed about the political and economic relations between the US and China, which will affect the whole world.
Mian Zahid Hussain said that, on the one hand, militancy is ongoing in different regions of the world, while on the other hand, fears of a global trade war are growing. During the New Year, trade and investment in more friendly countries will become more subject to politics, and protectionism may also give rise to new blocs.
Large number of Chinese companies will move to other countries to avoid US trade measures, which will have a positive impact on these countries’ economies. Pakistan can also play its part in this changing trade situation, but it will have to correct its affairs because Chinese investors view Pakistan’s internal situation with concern.
Mian Zahid Hussain further said that democracy is under threat all over the world, tolerance and moderation are disappearing, political fundamentalism is growing, democratic rights and public freedoms are being denied, authoritarian rule is becoming popular, and lawlessness is increasing. The root of all these problems is the failure of political governments to meet the people’s expectations.
Copyright Business Recorder, 2025
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