KARACHI: Patron-in-Chief of the United Business Group (UBG) SM Tanveer on Monday expressed disappointment over the State Bank of Pakistan’s (SBP) decision to cut its policy rate by only 100 basis points. Tanveer said that the business community had expected a minimum reduction of 200 basis points.

“Pakistan’s economy is finally emerging from a three-year slump,” Tanveer added, highlighting the significant economic inactivity and the Rs32 trillion invested in banks during the downturn. He added that the government must now create a conducive environment for robust economic growth and development.

Tanveer outlined a series of measures to boost growth, including the need for an early resolution on Independent Power Producers (IPPs) to ensure stable electricity supply. He also stressed the importance of reactivating the construction sector, as it is a key driver of 72 related industries. Furthermore, Tanveer advocated for a reduction of the policy rate to 9.0 per cent to stimulate economic activity and the implementation of a growth-oriented fiscal policy.

Tanveer commended the Special Investment Facilitation Council’s (SIFC) efforts to promote early cotton cultivation and stressed the importance of steps to boost local edible oil production to reduce import dependency.