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LAHORE: S.M. Tanveer, Patron-in-Chief of the United Business Group (UBG), has expressed disappointment over the State Bank of Pakistan’s decision to reduce the policy rate by only 100 basis points, stating that the business community had anticipated a minimum reduction of 200 basis points to support economic recovery.
Highlighting the challenges faced by Pakistan’s economy during the past three years, Tanveer pointed out that economic activities had come to a standstill, with Rs32 trillion being locked in banks instead of being utilized for productive investments.
He stressed the urgent need for the government to foster an environment conducive to economic growth and development. Among his proposed measures for boosting economic activity are:
1. Resolution of IPPs Issues: A swift decision to stabilize the power supply without further delays.
2. Reviving the Construction Sector: Immediate reactivation of this critical sector, which drives 72 allied industries.
3. Policy Rate Reduction: Implementation of a realistic monetary policy to bring the policy rate down to 9% to encourage investment and growth.
4. Fiscal Policy Adjustments: A focus on growth-oriented fiscal strategies to energize the economy.
Tanveer also commended the proactive efforts of the Special Investment Facilitation Council (SIFC) in promoting early cotton cultivation and advancing initiatives for locally produced edible oil, which he noted would significantly reduce the import bill and support economic stability.
He emphasized that a substantial reduction in the policy rate is vital to stimulate economic activities, provide relief to businesses, and reflect the effectiveness of recent policy measures.
Reiterating UBG’s commitment, Tanveer assured that the group will continue to support policies aimed at achieving economic growth, stability, and prosperity for the nation
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