Summary Business leader calls for lower electricity tariffs and interest rates
LAHORE (Dunya News) – Pakistan’s trade deficit has climbed to an alarming $39.5 billion, marking its highest level in four years, according to SM Tanveer, leader of the United Business Group (UBG) and a prominent industrialist, who has urged the government to take immediate steps to strengthen the country’s export sector.
Speaking on the state of the economy, Tanveer said the widening trade gap reflected a worrying trend, with imports increasing by 8 percent while exports declining by 6 percent. He warned that the current trajectory posed a serious challenge to Pakistan’s economic stability.
According to Tanveer, lasting economic independence cannot be achieved through foreign borrowing, overseas investment financed by debt, or workers’ remittances alone. Instead, he stressed that sustainable economic recovery depends on expanding exports and improving the country’s competitiveness in international markets.
He said one of the biggest hurdles facing exporters is the high cost of energy, which has made Pakistani products less competitive globally. To address the issue, he urged the government to introduce electricity tariffs comparable with those of neighbouring countries, enabling local exporters to compete more effectively in regional and international markets.
Tanveer also highlighted the impact of elevated interest rates on industrial activity, saying that the prolonged high policy rate has almost brought industrial and economic growth to a standstill. He argued that manufacturers are no longer in a position to take on expensive financing, limiting investment and production across key sectors.
Calling on the State Bank of Pakistan to reduce the policy rate, Tanveer said lower borrowing costs would provide much-needed relief to businesses and help stimulate industrial expansion. He also urged the Prime Minister and the Finance Minister to focus on long-term economic reforms rather than short-term measures.
He stressed that a comprehensive and effective strategy is urgently needed to contain the rising trade deficit, warning that timely policy action is essential to support exports, revive industrial growth and strengthen Pakistan’s economic foundations.
