Business community demands Govt to reduce interest rate to 12.5pc

Lahore: Former federal minister Gohar Ejaz on Saturday demanded that government should announce a winter package for the industry immediately.

At the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Office, alongside former provincial minister SM Tanveer ex-Federal Minister for Commerce, Gohar Ejaz advocated for substantial economic reforms.

The business leaders urged the government to reduce the interest rate to 12.5% immediately, with a further decrease to 5% by December 31, 2024.

They also called for a special winter package to provide electricity to industries at a rate of Rs20 per unit to ease operational costs.

Gohar Ejaz cautioned that Pakistan’s industrial sector was on the point of collapse, describing factories as “turning into graveyards.” He highlighted that maintaining high interest rates would hinder growth, pointing out that countries across the region have successfully kept their rates in the single digits. “If we lose the agricultural and manufacturing sectors, the service sector won’t survive either,” he warned.

Blaming current economic policies, Ejaz noted that persistent devaluation of the currency and inflation driven by capacity payments were eroding economic stability. He urged the government to set a clear target of a 10% annual increase in exports, projecting that such a trajectory would bring Pakistan’s exports to $50 billion within five years. For the success of the privatisation policy, he highlighted the necessity of restoring business community confidence.

Former provincial minister SM Tanveer underscored the importance of including FPCCI in policy-making processes. “If we are to make Pakistan an economic superpower, business leaders need to be consulted,” he stated.

Regional Chairman Zaki Ijaz also urged the government to recognize the significance of the industrial sector and prioritise policies that stimulate industrial activity to counter rising unemployment.