Governance and economic framework: Businessmen for fundamental restructuring

ISLAMABAD: The business community on Friday called for sweeping economic and administrative reforms, urging a fundamental restructuring of the country’s governance and economic framework to fully realise its growth potential.

Speaking at a press conference, United Business Group (UBG) Patron-in-Chief SM Tanveer – flanked by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh, Islamabad Chamber of Commerce and Industry (ICCI) President Nasir Mansoor Qureshi, and Sheikh Tariq Sadiq, Chairman of the ICCI Founders’ Group – outlined an ambitious vision aimed at revitalising the national economy.

Tanveer claimed that each administrative division in Pakistan possesses the capacity to generate USD 5 billion in exports, projecting a national potential of USD 200 billion – four times the current export volume.

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“Pakistan must now fight the battle of the economy,” he said, proposing an interim target of USD 100 billion in exports.

He emphasised that the prevailing economic structure is unsustainable in the absence of bold reforms and innovation, particularly at the district level.

“A shift towards sectoral and localised economies is already underway,” he noted, adding that efforts are being directed toward empowering regional industries and harnessing grassroots potential.

The UBG leader also called for the creation of more provinces and administrative units, arguing that smaller, autonomous regions would be better equipped to stimulate and manage economic growth.

Tanveer expressed concern over a range of economic issues, including a persistent decline in cotton production, a USD 40 billion trade deficit, and a high policy rate of 11 percent despite inflation averaging around 4 percent.

He urged the State Bank of Pakistan (SBP) to gradually reduce the policy rate to 6 percent, maintaining that lower interest rates would encourage investment and spur industrial activity.

On environmental inefficiencies, he warned that poor water management is costing the national economy approximately USD 25 billion annually.

He called for urgent reforms in water conservation and infrastructure to mitigate the damage to Pakistan’s growth prospects.

Speaking on the occasion, ICCI president Nasir Mansoor Qureshi termed the prevailing economic situation as “extremely challenging” and urged collaborative efforts to transform crises into opportunities.

“We must join hands and develop actionable recommendations to confront our economic realities,” he added.

FPCCI President Atif Ikram Sheikh outlined a roadmap to increase the country’s exports to USD 100 billion by 2030. He noted that the business community has played a critical role in resolving key issues, including those related to Independent Power Producers (IPPs).

“We’ve demonstrated our ability to address complex challenges – now we must channel that experience into achieving export-led growth,” he added.

Meanwhile, Sheikh Tariq Sadiq identified unchecked population growth as a significant obstacle to sustainable development. “Rapid population expansion is placing immense pressure on resources and infrastructure,” he warned.

The business leaders concluded with a united call for the government and private sector to pursue structural reforms and economic realignment to ensure long-term stability and prosperity.

Copyright Business Recorder, 2025