SM Tanveer, a leading business figure and Patron-in-Chief of the United Business Group (UBG)- the ruling faction in the FPCCI- today unequivocally denounced the recent 100-basis-point surge in interest rates, cautioning that the nation faces “economic suffocation” as a direct consequence.
Mr. Tanveer highlighted that such a substantial monetary tightening, occurring amidst an upward trajectory in international oil prices, remains unparalleled across the globe.
He cautioned that this move carries severe repercussions for the national treasury, pointing out that with government borrowing currently estimated at approximately Rs60 trillion, merely a one per cent elevation in the rate necessitates an additional Rs600 billion for domestic debt servicing.
The business leader further expressed dismay that the manufacturing segment is disproportionately burdened by these prohibitive lending costs. Coupled with the country”s already highest cost of doing business in the region, he argued, this situation imperils the very existence of local enterprises.
Mr. Tanveer underscored that the twin pressures of exorbitant borrowing expenses and escalating energy charges are actively undermining industrial expansion, leading to a noticeable increase in dormant industrial units nationwide.
Consequently, he called for an immediate reversal of this monetary stance to avert further de-industrialisation and to afford the private sector the essential flexibility required to sustain economic dynamism.