The Lahore Chamber of Commerce and Industry (LCCI) has described the recent reduction in the central bank's key policy rate as a welcome move, but insists that bringing interest rates into single digits is now critical for economic survival. The call was made during an Extraordinary General Meeting (EOGM) of the Chamber held on Monday.
Chamber Hails Rate Cut, But Demands More Relief
Addressing the gathering, LCCI President Faheem-ur-Rehman Saigol stated that the State Bank of Pakistan's decision to cut the policy rate by 50 basis points is a positive development that will help stimulate economic activity. However, he emphasized that given the current economic climate, it has become imperative to reduce the interest rate to a single-digit figure to provide real relief to businesses.
Saigol painted a grim picture of the operating environment, stating that the cost of doing business in Pakistan has escalated to an unbearable level. This, he warned, is making it extremely difficult for the industrial and trade sectors to function effectively. He stressed that the industrial sector is in dire need of immediate and substantial relief measures from the government.
High Costs and Policy Reforms in Focus
The LCCI chief issued a stark warning about a dangerous trend for the national economy. He said that the combination of high interest rates, expensive electricity, and costly gas tariffs is creating immense pressure, forcing many industries to consider relocating their operations to other countries. This exodus, if not checked, could have severe long-term consequences.
To restore competitiveness, Saigol demanded that electricity prices be brought down to match those in other regional countries. He also addressed the fiscal challenges, calling for a broadening of the tax net by incentivizing non-filers to become taxpayers, while simultaneously providing more facilitation to existing filers. His demands included the establishment of a simple, transparent, and business-friendly tax system and the abolition of unnecessary withholding taxes that complicate compliance.
Boosting Exports and Ensuring Policy Continuity
Highlighting the growing trade deficit, the LCCI President underscored the urgent need to promote exports. He called for the restoration of the Final Tax Regime for exporters and emphasized the importance of timely payment of duty refunds to improve their liquidity and operational capacity.
SAARC Chamber Vice President Mian Anjum Nisar, who also spoke at the event, thanked the members for their participation. He echoed the concerns about rising business costs, labeling them a serious challenge for industry and trade. Nisar called for policy continuity and practical, actionable measures from the government to address the core issues. He urged authorities to provide concrete relief to industrialists and traders through meaningful tax reforms and measures aimed at reducing overall production costs, which would in turn boost economic activity.
The EOGM was attended by a large number of prominent business figures, including LCCI Senior Vice President Tanveer Ahmed Sheikh, Vice President Khurram Lodhi, former LCCI president Muhammad Ali Mian, former senior vice presidents Zafar Mahmood Chaudhry and Khalid Usman, former vice presidents Haris Ateeq and Shahid Nazir, Executive Committee Members, and numerous general members. The meeting discussed all agenda items in detail, which were later approved by a majority vote.
Concluding the session, the members reaffirmed their collective commitment that the Lahore Chamber would continue to play a proactive and effective role in safeguarding the rights of the business community and advocating for business-friendly policies in the future.
