FAISALABAD (Dunya News) – United Business Group (UBG) patron-in-chief SM Tanveer has emphasised that Pakistan’s economy cannot progress without the creation of smaller provinces.
Speaking at a press conference in Faisalabad, he argued that the country must follow the administrative models of other nations where decentralisation has driven growth and efficiency.
He revealed that a new export target of $100 billion has been set, pointing out recent improvements such as the cost of production falling from Rs40 per unit to Rs31, and interest rates dropping from 22 percent to 11 percent. However, he stressed that the journey ahead remains long, noting that both the President and Prime Minister are committed to economic development.
According to Tanveer, Pakistan’s GDP currently stands at $412 billion, but the country continues to face severe challenges. He highlighted an annual trade deficit of $40 billion and an unemployment rate of 40 percent. Domestic borrowing has reached Rs80 trillion, attracting 11 percent interest, which, he argued, should ideally be reduced to 6 percent.
SM Tanveer sets $100 billion export target for Pakistan
He noted that Pakistan pays $120 billion in foreign debt and Rs180 trillion in domestic debt, questioning why such financial burdens persist despite the country’s vast resources. “If we cannot repay IMF loans, we cannot reduce electricity prices,” he remarked, adding that industrial policy is being formulated on the advice of the Prime Minister’s Adviser Haroon Akhtar Khan.
Tanveer also underlined the imbalance in access to services, citing Faisalabad division with its 16 million population that must depend on Lahore High Court, which sits only two days a week. He highlighted that the division has 21 hospitals, leaving one hospital for over 700,000 people, and 22,500 schools, many of which he questioned for their performance and competitiveness.
He lamented wastage of resources, mentioning fruits in Gilgit-Skardu, furniture in Chiniot, and industrial hubs in Sialkot and Gujranwala, urging greater empowerment of all 36 divisions of Pakistan.
SM Tanveer also supports creation of new provinces
The UBG patron-in-chief stressed that decentralisation is crucial, whether through administrative units or by forming new provinces. Comparing with India’s 36 provinces, he noted that Pakistan still has only four. He also pointed to South Korea’s restructuring in 1994 and China’s reforms in 1980 as models to learn from.
Tanveer urged the government to act decisively, stating that without smaller provinces, economic growth would remain out of reach. “Call them administrative units or provinces, but make it happen. Without this, progress is impossible,” he said.