IMF loan not sufficient to overcome challenges: UBG patron-in-chief

HYDERABAD: SM Tanveer, Patron in chief of the United Businessmen Group (UBG), stated that Pakistan has entered into a 37 month agreement with the International Monetary Fund (IMF), under which it has secured $7 billion in assistance. However, he noted that this amount is insufficient considering the country’s immense industrial potential.

According to him, Pakistan has the capacity to generate $70 billion in revenue if the domestic industry is provided with the opportunity to flourish. During his visit to the Hyderabad Chamber of Small Traders and Small Industry (HCSTSI), Tanveer addressed local businessmen, highlighting the significant challenges faced by the business community.

He pointed out that the cost of electricity in Pakistan stands at 16 cents per unit, whereas the global average is 6 cents per unit.

Additionally, the country’s interest rate hovers around 20 percent, a figure that is stifling growth and forcing businesses to shut down.

S.M Tanveer stressed that with the right support and favorable policies; Pakistan’s industry has the potential to not only grow but also become a key driver in boosting the nation’s economy.

He urged the government to take immediate steps to address these critical issues and create an environment where local industries can thrive. Chief UBG, emphasized that the key to resolving Pakistan’s economic challenges lies in strategic thinking and bold actions at the national level. He stated that the economy can be revitalized through a reduction in electricity costs, lower interest rates, and boosting exports.

Speaking to businessmen at the HCSTSI platform, Tanveer expressed optimism about the future, predicting that 2025 will mark the “take-off” year for Pakistan’s economy. He also highlighted the Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) commitment to prioritizing agriculture. Tanveer underscored the massive loss of 37 million acre-feet of water flowing into the sea annually, equivalent to $37 billion, and urged a focused effort on water conservation. He reiterated that the Federation, along with all Chambers of Commerce in Pakistan, aims to double or triple business activity to bolster the national economy.

FPCCI President Atif Ikram Shaikh, addressing the gathering, acknowledged the severe impact of rising inflation, high interest rates, and currency devaluation on businesses. However, he assured that the FPCCI is actively engaging the government on these critical issues. He revealed that constructive meetings have been held with the Prime Minister and Federal Ministers, particularly on the matter of Independent Power Producers (IPPs).

As a result, Shaikh confidently announced that by next month, Pakistani businesses and citizens can expect positive news regarding IPPs, signaling a turning point for the business community.

President, Hyderabad Chamber of Small Traders & Small Industry, Muhammad Saleem Memon, delivered a strong message, emphasizing the Chamber’s unwavering commitment to serving the business community without discrimination. He highlighted that the Hyderabad Chamber is the only small chamber in Sindh that continues to support local businesses. However, he expressed deep concern over the significant challenges faced by businessmen in Hyderabad, particularly from the HESCO and Sui Gas Departments. He noted that, in addition to these issues, the Federal Board of Revenue (FBR) has been harassing business owners, making it increasingly difficult to operate. “On one hand, the government offers no support to launch or expand businesses, and on the other, taxes are being raised to unbearable levels, making business operations almost impossible in Pakistan,” he lamented. He praised the FPCCI for playing a pivotal role as the mother body that safeguards the interests of all chambers.

Seth Amin Khatri, Patron in chief of HCSTSI, also spoke at the event, paying tribute to S.M Tanveer father, S.M Muneer, who had made significant contributions to the business community. Khatri pointed out that poor government policies have severely harmed businesses, with the government increasing taxes on the business community to cover its own expenses. However, he expressed hope, following SM Tanvir’s assurances, that 2025 would be a promising year for Pakistan’s economy.

Copyright Business Recorder, 2024