KARACHI: The Pakistan Business Forum (PBF) has lauded the recent 100 basis points (bps) interest rate cut as a positive step but emphasised that further action is required to alleviate financial burdens on businesses. PBF President Khawaja Mehboobur Rehman urged the government to address surging electricity costs, which he described as a major obstacle to industrial competitiveness.
“The reduction in interest rates is a step in the right direction,” Rehman said in a statement. “However, the benefit will remain limited unless electricity prices are brought down. High energy costs continue to undermine the competitiveness of local industries and must be urgently addressed.”
Rehman noted that the current combination of high taxes and steep electricity prices runs counter to Prime Minister Anwaar-ul-Haq Kakar’s vision of fostering economic growth. These financial pressures, he added, are preventing businesses from fully capitalising on the relief offered by lower borrowing costs.
“The tax structure and energy pricing are not aligned with the prime minister’s goal of creating a business-friendly environment,” Rehman added. “Unless these structural issues are resolved, the challenges faced by the business community will persist.”
Rehman also highlighted the importance of maintaining constructive engagement with the International Monetary Fund (IMF) to ensure fiscal stability and economic sustainability. While praising the government’s efforts to manage fiscal issues, he stressed the need for broader international support to bolster long-term growth.
“Constructive engagement with the IMF is crucial for economic stability,” Rehman said. “A sustainable framework supported by international partners is essential to keeping Pakistan on a stable growth trajectory.”
The PBF’s remarks echo growing concerns among industry leaders, who see the interest rate cut as insufficient without complementary measures to reduce energy costs and reform the tax system. Business groups are increasingly calling for a comprehensive policy overhaul to address the structural challenges hindering economic recovery.
