KARACHI(18th March 2024) : S. M. Tanveer, Patron-in-Chief of the United Business Group (UBG), extends his sincere congratulations to Asif Ali Zardari and Mian Shehbaz Sharif on their recent election as President and Prime Minister respectively of the Islamic Republic of Pakistan.
In his statement, Tanveer highlighted the pivotal role that both President Zardari and Prime Minister Sharif will play in addressing the urgent challenges facing Pakistan. He stressed the need for immediate revolutionary measures to propel Pakistan into a new era of economic progress and prosperity.
Specifically, Tanveer called for a reduction in the key policy rate, the implementation of special power tariffs for industries, and effective price control measures to alleviate the industrial cost of production. He urged the government and the State Bank of Pakistan to consider a significant 6 percent reduction in interest rates in the forthcoming monetary policy to foster an environment conducive to the flourishing of industries.
Drawing attention to the record-high inflation and economic slowdown, Tanveer emphasized the importance of the State Bank of Pakistan focusing on core inflation rather than general inflation as an immediate priority. He also advocated for the abolishment of the cross-subsidization mechanism and the adoption of regionally competitive power tariffs for industrial consumers, aligning with the actual cost of electricity.
Highlighting the detrimental impact of high utility charges, elevated bank interest rates, and prolonged power and gas shortages on business activities, Tanveer stressed the urgency of addressing these issues to prevent further economic decline. He emphasized the need to provide power to industries at a cost not exceeding 9 cents and gradually reduce bank interest rates to single digits, recognizing that current rates of 22 percent bank interest rate pose a significant barrier to business operations.
He urged the government to expedite the privatization process to eliminate loss-making organizations and stimulate economic growth.
Tanveer reiterated his commitment to collaborative efforts between the government and the business community to drive economic growth and create a favorable business environment in Pakistan.
He also expressed his congratulations to members of newly formed cabinet
, trusting that their respective ministries will play a pivotal role in supporting and facilitating the business community during these challenging times.
