SM Tanveer urges govt to reduce interest rate to single digit

PESHAWAR (Dunya News) – United Business Group (UBG) Chairman SM Tanveer has stressed that the top priority of the business community is Pakistan’s economic growth, and urged the government to bring down the interest rate to a single digit.

Speaking at a press conference in Peshawar, he said the current 11 percent interest rate is irrational and holding back the country’s economic potential.

“The monetary policy is due tomorrow, and this is the right time to cut the interest rate to 6 percent to speed up development,” he added.

Tanveer pointed out that the business community has been under pressure for the last two years.

He also recalled that the FPCCI had to fight a tough 18-month battle against the IPPs (Independent Power Producers) before the government realised the problem and reconsidered the agreements.

Read also: SM Tanveer urges SBP to slash interest rate to 6pc in upcoming monetary policy

“We want to see $100 billion worth of business activity in Pakistan,” he said. “We’ve struggled hard to push interest rates down, and we firmly believe it must now drop into single digits.”

He questioned the government’s reasoning, saying, “How can we compete with international markets under such high borrowing costs? The government says if we lower the rate, the economy will boom too fast and burst—what kind of logic is that? If interest rates aren’t cut, the rupee will lose more of its value.”

SM Tanveer made it clear that unless the cost of borrowing is reduced, investors will stay on the sidelines, and Pakistan’s growth targets will be hard to meet. He urged policymakers to listen to the voice of industry and make bold decisions to fix the economy.