100 basis points cut in policy rate: S M Tanveer shows disappointment

LAHORE: S M Tanveer, Patron-in-Chief of the United Business Group (UBG), has expressed disappointment over the State Bank of Pakistan’s decision to reduce the policy rate by only 100 basis points, saying that a minimum reduction of 200 basis points was expected by the business community.

According to Tanveer, Pakistan’s economy is recovering after a three-year slump, during which economic activity came to a standstill and Rs32 trillion was invested in banks.

He has emphasized that the government must now create a favourable environment for economic growth and development.

Tanveer has suggested measures to boost economic growth, which included an early decision on the IPPs without further delay to ensure a stable power supply, reactivation of the construction sector, which drives 72 related industries, on a war footing, implementation of a realistic monetary policy to reduce the policy rate to 9%, promoting economic growth, and development of a robust fiscal policy focused on growth as the key driver of the economy.

Tanveer commended the Special Investment Facilitation Council’s (SIFC) proactive approach to promoting early cotton cultivation and stressed on the steps for locally produced edible oil. It will yield positive results and reduce the impact on the import bill, he added.

Tanveer said that a substantial reduction in the policy rate would stimulate economic activities, benefit the government, and demonstrate the effectiveness of recent policy measures. He reaffirms UBG’s commitment to supporting policies that foster economic growth, stability, and prosperity for all.

Copyright Business Recorder, 2025