SM Tanveer, Patron-in-Chief of the United Business Group (UBG) and a former provincial minister, has called for reducing the interest rate to 10% and lowering the electricity price to Rs25 per unit. Speaking at a press conference at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) office, he highlighted that high electricity costs and steep interest rates are forcing industries to shut down.
Tanveer questioned the rationale for paying capacity charges to government power plants and called for a forensic audit of all power facilities. He pointed out that the government's debt to local banks has reached Rs50 trillion, with Rs30 trillion deposited in current accounts. Banks pay 10% interest on deposits but charge 22% interest when lending to the government, creating an unsustainable financial burden.
Tanveer, alongside FPCCI President Atif Ikram and Regional Chairman Zaki Ijaz, urged the government to set electricity prices at Rs25 per unit. He pointed out that Pakistan's inflation rate is 9%, while the interest rate stands at 19.5%, far higher than neighbouring countries, where inflation and interest rates are 5% and 7%, respectively.
Tanveer highlighted that Pakistan's defence budget stands at Rs2,500 billion, with substantial amounts going towards interest payments. He argued that lower interest rates and cheaper electricity would boost industries and drive national development. High interest rates, he observed, encourage people to deposit money in banks rather than invest or start businesses. With Rs30 trillion in bank deposits at a 10% interest rate, banks profit by lending to the government at 22%.
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