SM Tanveer, head of the United Business Group and former provincial minister, shared positive updates regarding Pakistan’s economy, citing a rising GDP, a stable currency, and growing foreign exchange reserves. He highlighted that the stock exchange is witnessing consistent upward trends, and exports have surged from $27 billion to $33 billion, indicating that both the Special Investment Facilitation Council (SIFC) and the government are performing well.
Tanveer also pointed to inefficiencies in the power sector, revealing that five Independent Power Producers (IPPs) were receiving Rs60 billion annually without generating electricity. The government has revoked their contracts, which will reduce electricity costs by Rs0.70 per unit. However, he noted this reduction is not significant and urged for further action.
He stressed that IPPs are still receiving an excess of Rs1.1 trillion and called for a review of their contracts, advocating that electricity rates could be reduced by Rs10 per unit if more agreements are cancelled. Tanveer believes electricity costs should not exceed Rs26 per unit, warning that expensive electricity is stifling industrial growth.
Looking ahead, SM Tanveer expressed optimism about Pakistan’s economic prospects, forecasting significant improvement by 2025. He emphasized the importance of lowering interest rates to unlock $27 billion currently stuck in banks, which would boost investment and further stimulate the economy.
