RLNG relief, SBP rate cut and stronger reserves positive for economy: Tanveer Ahmed Sheikh 

By Commerce Reporter

LAHORE, December 16, 2025: The Lahore Chamber of Commerce and Industry (LCCI) has welcomed a series of positive economic developments, including the reduction in imported Re-Gasified Liquefied Natural Gas (RLNG) prices, a 50 basis points cut in the policy rate by the State Bank of Pakistan (SBP), improvement in foreign exchange reserves beyond the IMF’s December target, and Prime Minister Shehbaz Sharif’s renewed emphasis on privatisation of the energy sector.

Read also: LCCI SVP Tanveer Sheikh urges govt to cut fuel prices as global crude hits one-month low

Senior Vice President LCCI, Tanveer Ahmed Sheikh, said that the Oil and Gas Regulatory Authority’s decision to reduce imported RLNG prices by up to 5.90 percent for gas utilities is a timely relief for the industrial sector. He noted that the price reduction for Sui Northern Gas Pipelines Limited and Sui Southern Gas Company would help ease cost pressures on businesses, especially energy-intensive industries such as textiles, steel, chemicals and export-oriented units.

He said high energy costs have long been a thorn in the side of Pakistan’s manufacturing and export sectors, eroding competitiveness in regional and global markets. Any relief in gas prices, he added, goes a long way in reducing production costs and improving cash flows for businesses already operating under tight margins.

Commenting on the State Bank of Pakistan’s decision to cut the policy rate by 50 basis points, the SVP LCCI termed it a confidence-building step for the business community. He said the move sends a positive signal to investors and reflects improving macroeconomic indicators. According to him, lower interest rates will help revive industrial activity, support working capital requirements and encourage new investments.

Tanveer Ahmed Sheikh also welcomed the fact that SBP’s foreign exchange reserves have surpassed the IMF’s December 2025 target of USD 15.5 billion. He said the achievement points to better management of external accounts, improved inflows and growing trust of international partners in Pakistan’s economic direction. Strengthening reserves, he added, will help stabilise the exchange rate, keep inflation in check and improve the country’s overall financial standing.

The SVP LCCI further praised Prime Minister Shehbaz Sharif’s emphasis on privatisation as a key tool to reform and transform the energy sector. He said the business community has long advocated structural reforms in power generation and distribution companies to overcome inefficiencies, line losses and governance issues that continue to burden the economy.

He stressed that privatisation, if carried out in a transparent and well-planned manner, can improve service delivery, reduce losses and attract private investment into the energy sector. This, he said, would ultimately lead to lower energy costs, improved reliability and long-term sustainability.

Tanveer Ahmed Sheikh concluded that the combination of lower energy prices, reduced borrowing costs, stronger reserves and structural reforms shows that the economy is slowly turning a corner. He urged the government to maintain policy consistency, avoid sudden shocks and continue engaging with stakeholders so that these positive steps translate into sustained growth, higher exports and job creation.

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