KARACHI: Korangi Association of Trade and Industry (KATI) has issued an urgent call to the State Bank of Pakistan (SBP) and the Government to promptly reduce bank interest rates in light of the recent decrease in inflation.

KATI President Johar Qandhari emphasized the necessity of a 4% reduction in interest rates to align with the current 9% inflation rate.

Qandhari highlighted that a swift reduction in interest rates is essential to stimulate economic activity, reduce borrowing costs, and encourage businesses to invest, expand, and create jobs. He pointed out that such a move would provide crucial support to both Small and Medium Enterprises (SMEs) and large businesses, which are vital to the economy.

Qandhari stressed that lower interest rates would boost consumer spending by increasing disposable income, thereby driving demand and aiding economic recovery.

President KATI has urged the State Bank and the government to take immediate action to maintain the momentum of the economic recovery, emphasizing that prompt measures are necessary to benefit both businesses and citizens across the country.

Copyright Business Recorder, 2024