S.M. Tanveer, Patron-in-Chief of the United Business Group (UBG), has called on the government to prioritize the facilitation of the business community following successful negotiations with the International Monetary Fund (IMF). He emphasized that while loans may help sustain the government, they do not support the growth of businesses.
Tanveer urged the State Bank of Pakistan to reduce interest rates by 300 basis points, which he believes is crucial for reviving closed industrial units and ensuring employment. Additionally, he called for a resolution to the Independent Power Producer (IPP) issues and urged the reduction of electricity prices to Rs25 per unit, enabling the export sector to better compete regionally.
He stressed that Pakistan needs a revival of business activity, not more loans, and criticized the government’s reliance on borrowing. Tanveer pointed out that the entities that take on the loans are often not the same as those responsible for repayment.
Tanveer also highlighted that a significant portion of Pakistan’s tax revenue—58%—is used to service debts and interest payments, illustrating the country’s ongoing struggle with a debt trap. He criticized the government for taking on loans to cover expenses while development remains largely unaddressed.
Tanveer concluded by urging the government to focus on policies that strengthen the economy by facilitating business growth, rather than relying on further borrowing. He believes that addressing these issues and implementing sustainable economic policies will help Pakistan break free from its debt cycle and foster long-term economic stability.
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