KARACHI: President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi Friday urged the State Bank of Pakistan to reduce the policy rate by 500 basis points or 5 percent.
He emphasized that with inflation falling below 4% and key economic indicators improving, including foreign exchange reserves and a current account surplus, there is ample room for a significant reduction in the policy rate.
Junaid Naqi proposed that the State Bank should lower the interest rate to single digits during the monetary policy meeting scheduled for December 16.
He added that as the year 2024 comes to an end, a substantial cut in interest rates would be a welcome gift to the public for the new year. Such a move would reduce borrowing costs, make loans more affordable for the business community, especially industrialists, and boost economic activity.
He highlighted that increased business activity would lead to higher exports, a stronger rupee, and an overall improvement in the economy.
The KATI president congratulated the government, particularly Prime Minister Shehbaz Sharif and his team, for their effective policies that have successfully steered the economy out of crisis.
He credited the prime minister, the cabinet, and the military leadership for their tireless efforts in overcoming Pakistan's economic challenges.
Junaid Naqi also appreciated the contributions of the Special Investment Facilitation Council (SIFC) in driving positive economic outcomes.
Copyright Business Recorder, 2024
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