KARACHI: Faisal Moiz Khan, President of the North Karachi Association of Trade and Industry (NKAATI), stated that in order to promote trade activities in the country and successfully compete with China and Bangladesh for orders, it is crucial to reduce the current interest rate by at least 4% in the upcoming monetary policy.
Faisal Moiz Khan emphasized that to curb the worst inflation in the country, an increase in industrial and trade activities are essential.
However, the current interest rate of 17.5% makes it impossible to promote trade activities and increase exports. He noted that a reduction in the interest rate would encourage new investors and support the government’s objective of reducing inflation, which it has pledged to achieve with the help of the World Bank.
Faisal Moiz Khan urged the State Bank of Pakistan to decide on a 4% reduction in the interest rate in the upcoming Monetary Policy Committee meeting and for the Governor of the State Bank to determine the interest rate based on factual data. He stated that a 4% reduction in the interest rate would not only increase business activities in the country but also enhance Pakistan’s foreign trade and contribute to lowering inflation.
Copyright Business Recorder, 2024
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