Tanveer expresses dismay over low rate cut

LAHORE:

United Business Group (UBG) Patron-in-Chief SM Tanveer has expressed disappointment over the State Bank of Pakistan's (SBP) decision to reduce policy rate by only 100 basis points (bps), saying that the business community had expected a minimum reduction of 200 bps.

In a statement, Tanveer pointed out that Pakistan's economy was recovering after a three-year slump, during which economic activity came to a standstill and Rs32 trillion was invested in banks. He emphasised that the government must now create a favourable environment for economic growth and development.

Suggesting measures for boosting growth, he called for an early decision on the independent power producers (IPPs) to ensure stable power supply, reactivation of the construction sector, which drives 72 related industries, implementation of a realistic monetary policy by reducing the rate to 9% and developing a robust fiscal policy.

Tanveer commended the Special Investment Facilitation Council's (SIFC) proactive approach to promote early cotton cultivation and stressed the need for steps to locally produce edible oil. "It will yield positive results and ease the impact on import bill."