SM Tanveer disappointed by 100bps cut in policy rate
Business
Pakistan’s economy is slowly recovering after a three-year slump
LAHORE (Web Desk) – United Business Group (UBG) Patron-in-Chief SM Tanveer 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.
In a statement issued on Monday, Tanveer said, "Pakistan’s economy is slowly recovering after a three-year slump, during which economic activity came to a halt, and Rs32 trillion was invested in banks."
He urged the government to create a favorable environment for economic growth and development.
Read also: SBP brings policy rate down to 12pc in line with expectations of stakeholders
Tanveer proposed several measures to boost economic growth, including a prompt decision on the IPPs to ensure a stable power supply, reactivating the construction sector—which supports 72 related industries—on an urgent basis, implementing a realistic monetary policy to reduce the policy rate to 9%, and promoting a robust fiscal policy focused on growth as the core driver of the economy.
He also commended the Special Investment Facilitation Council's (SIFC) proactive steps to encourage early cotton cultivation and the development of locally produced edible oil, which, he said, would yield positive results and help reduce the import bill.
Tanveer concluded that a substantial reduction in the policy rate would stimulate economic activity, benefit the government, and demonstrate the effectiveness of recent policy measures.
He reaffirmed UBG’s commitment to supporting policies that promote economic growth, stability, and prosperity for all.
