Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called for a reduction of 500 basis points in interest rates, urging the central bank to lower the policy rate to 8%.
Sheikh emphasized that there is room for the State Bank to implement this rate cut in the upcoming monetary policy committee meeting. He stated, “Despite the recent decline in inflation, with the rate falling to its lowest level of 0.52%, the current high-interest rates remain a hindrance to business activities.” He added that the current policy rate is unjust and does not benefit the economy.
The FPCCI President highlighted that positive economic indicators and reduced inflation should be beneficial to the public, and a rate cut would help circulate money within industries, creating new job opportunities.
He believes that a 5% reduction in interest rates would encourage banks to invest in industries, which would positively impact the economy.
“Reducing the interest rate is essential for improving the national economy and ensuring financial stability,” concluded Sheikh.
