KARACHI: S.M. Tanveer, the Patron-in-Chief of the United Business Group and a leading business figure, has expressed strong opposition to a recent 100-basis-point increase in interest rates. He asserted that despite rising global oil prices, such an increase is unprecedented internationally.
According to United Business Group, Tanveer highlighted the impact of this monetary policy on the national finances, noting that with government borrowing around Rs60 trillion, a one percent rise in rates results in an additional Rs600 billion needed for domestic debt servicing.
Tanveer also criticized the burden placed on the manufacturing sector, which now faces significant challenges due to high interest rates and already high business costs. He warned that the combination of these factors could threaten the survival of local industries.
He stressed that the rising interest rates, alongside increasing energy costs, are hindering industrial growth and leading to a rise in closed industrial units across the nation. As a solution, Tanveer called for an urgent reversal of the policy to prevent further industrial decline and to support the private sector in maintaining economic activities.
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