SM Tanveer, patron-in-chief of UBG and a former provincial minister, warned that the latest World Economic Forum assessment of the Pakistan economy is deeply worrisome and called for immediate policy action to prevent further industrial collapse.
He said that if current conditions persist the country may be forced to return to the IMF, a step that would underscore how critical fiscal and monetary adjustments have become. Tanveer highlighted that in recent years some 140 to 150 major textile units have shut down, draining employment and supply chains linked to the sector.
Tanveer added that the real estate sector has been pushed to the brink by taxes and policy decisions, triggering knock-on effects across nearly 40 related industries. He warned that industries that have closed or relocated are unlikely to return, and millions will join the ranks of the unemployed if remedial measures are not taken swiftly.
On energy and finance, Tanveer pointed out that Pakistan’s energy tariff stands at about 12.5 cents per unit while regional peers pay roughly 6 to 7 cents, and that interest rates in Pakistan remain more than double those in neighbouring countries. He urged the government to bring the policy rate down from 10.5 percent to 6 percent by June to revive investment and production.
Tanveer also noted the paradox of paying capacity charges on around 7,500 megawatts of spare electricity despite limited economic activity, and criticised inconsistencies in billing that see some industries receiving bills calculated at Rs35 per unit instead of the claimed Rs22.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) announced its rejection of the proposed electricity relief package, and FPCCI vice president Zaki Ijaz appealed for the government to declare an economic emergency to stabilise markets. Senior business leader Zafar Bakhtawari emphasised that economic stability is a prerequisite for political stability, while FPCCI vice president Tariq Jadoon urged prompt resolution of the business community’s problems to prevent further deterioration.
Speakers at the briefing stressed that timely, decisive measures are needed to stabilise the Pakistan economy, protect remaining industries and restore investor confidence before damage becomes irreversible.
