LAHORE: Chairman Founders Group Mian Misbah-ur-Rehman has expressed strong appreciation for the recent decision by the State Bank of Pakistan for a notable reduction in the mark-up rate.
This crucial move, according to Rehman, is a vital measure that will provide much-needed relief to the business community amid ongoing economic challenges.
He said that the reduction in the mark-up rate is expected to have far-reaching positive effects on the national economy. He stated that lower financing costs will empower businesses to manage their operational expenses more efficiently, especially at a time when inflationary pressures and fluctuating market conditions have been a concern for many entrepreneurs and industrialists.
He said that the SBP's decision will stimulate business activities by making credit more accessible and affordable for small and medium-sized enterprises (SMEs) as well as large corporations. "This reduction in the mark-up rate is a strategic move that will inject liquidity into the market, allowing businesses to invest in new projects, upgrade their infrastructure, and expand their operations," he remarked. "As financing becomes more affordable, we anticipate a surge in entrepreneurial initiatives, which will, in turn, contribute to job creation and economic stability”, he added.
He also pointed out that this rate cut is particularly timely as it comes when many sectors are seeking to recover and rebuild after a period of economic uncertainty. He urged business leaders and investors to capitalize on this opportunity to secure financing at lower costs which could lead to the development of new industries and the strengthening of existing ones.
Misbah-ur-Rehman also expressed optimism that this decision would boost investor confidence, both domestically and internationally as it signals the government and SBP's commitment to supporting economic growth and maintaining a stable financial environment.
While lauding the State Bank’s initiative, he called upon the government and financial institutions to continue their support for the business community through additional measures that further reduce the cost of doing business. He suggested that policies focusing on tax relief, cut in power tariff, and technological advancement would complement the benefits brought about by the reduction in the mark-up rate.
He also expressed hope that the government would extend its focus to the power sector which remains a significant concern for the business community. He stressed the need for comprehensive measures to reduce the power tariff and circular debt that has plagued the sector and called for efforts to bring down the cost of doing business, particularly by lowering energy costs.
Copyright Business Recorder, 2024
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