KARACHI: S M Tanveer, Patron-in-Chief of the United Business Group (UBG) has stressed the need for immediate revolutionary measures to propel Pakistan into a new era of economic progress and prosperity.

Tanveer hoped President Zardari and Prime Minister Shehbaz Sharif will address key challenges facing Pakistan.

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 emphasised 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-subsidisation 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 emphasised the need to provide power to industries at a cost not exceeding 9 cents and gradually reduce bank interest rates to single digits, recognising that current rates of 22 percent bank interest rate pose a significant barrier to business operations.

He urged the government to expedite the privatisation process to eliminate loss-making organisations 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.

Copyright Business Recorder, 2024