Minister seeks loan relief as 25% rates bite

Says rescheduling loans could revive industry; PM tells LCCI govt working closely with private sector

LAHORE:

Federal Minister for Communications Abdul Aleem Khan has called for measures to reduce industrial production costs, including rescheduling loans of affected businesses, acknowledging that running enterprises at an interest rate of 25% was extremely difficult, and has urged the government to direct banks to consider relief for industrialists hit by economic difficulties.

Addressing a meeting at the Lahore Chamber of Commerce and Industry (LCCI) on Saturday, Khan said he had already submitted proposals to the prime minister to reduce production costs and would present the business community's recommendations to the government, adding that he would continue efforts to resolve business-related issues within his authority. "It was extremely difficult to run a business by borrowing at an interest rate of 25%," he said, arguing that rescheduling could help affected firms resume operations.

Briefing business representatives on the National Highway Authority's (NHA) finances and infrastructure projects, the minister said the authority's annual revenue stood at around Rs66 billion when he assumed responsibility approximately two and a half years ago, and that its target for the current year has been set at Rs160 billion.

He said a substantial portion of NHA revenue was consumed by salaries, road repairs, routine maintenance and rehabilitation of bridges and roads damaged by floods. Expenditure had been capped at around Rs50 billion, while additional revenue from toll taxes and other sources was planned to be channelled into new road projects.

Khan said Rs224 billion had been allocated for ongoing projects under the Public Sector Development Programme (PSDP), with most funds earmarked for national highways in Balochistan.

On connectivity, he said work was under way on a proposed Lahore-Islamabad route that would reduce the distance between the two cities from approximately 380 kilometres to 280 kilometres, improving connectivity for Gujranwala, Gujrat, Lala Musa, Kharian and Jhelum.

He said additional toll revenue from the Faisalabad Motorway had helped make the project possible, and announced plans to expand the Sialkot Motorway from four lanes to six, while the Lahore-to-Khyber Motorway was targeted for completion in 2027. The Balochistan Expressway was expected next year and the Peshawar Northern Bypass next month.

Separately, Prime Minister Shehbaz Sharif told a delegation of the Lahore Chamber of Commerce and Industry (LCCI) Founders Group that the government was working with the private sector to promote economic activity and create an environment conducive to business, at a meeting that discussed the economic situation, trade promotion and industry's challenges.

The delegation apprised the prime minister of the issues faced by the business community and shared its proposals, and emphasised mutual cooperation in promoting industry, increasing investment and expanding trade.

It acknowledged the services he rendered to the chamber during his tenure as its president. Federal Ministers for Law and Justice Azam Nazeer Tarar, for Information and Broadcasting Attaullah Tarar and for Petroleum Ali Pervaiz Malik also attended. WITH ADDITIONAL INPUT FROM APP