LAHORE: United Business Group (UBG) Patron-in-Chief S M Tanveer has urged the government to facilitate the business community after successfully negotiating with the IMF, as loans can sustain the government but not businesses.
He urged the State Bank of Pakistan to reduce interest rates by 300 basis points to revive closed industrial units and ensure employment. He also called for resolving IPP issues and reducing electricity prices to Rs25 per unit, enabling the export industry to compete regionally.
Tanveer emphasized that Pakistan needs business activity revival, not more loans. He criticized government borrowing, saying the borrower and repayer are often different.
He also criticized governments for taking loans to cover expenses while development work remains limited to papers. He noted that 58% of Pakistan’s tax revenue goes towards paying off debts and interest, highlighting the country's debt trap situation. This debt burden falls heavily on the business community, he said.
Tanveer stressed that the government should focus on strengthening the economy through business facilitation, not accumulating more debt. By addressing these concerns and implementing sustainable economic policies, he said, Pakistan can break free from its debt trap and foster a more robust economy.
Copyright Business Recorder, 2024
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