KARACHI: Korangi Association of Trade and Industry (KATI) President Junaid Naqi has urged the State Bank and the government to immediately announce a reduction in interest rates in view of the recent drop in inflation before the announcement of the new monetary policy in the country.

KATI President Junaid Naqi has demanded that in the meeting of the Monetary Policy Committee, keeping in mind that inflation will reach 6.9% in September and further decrease to 6.3% in October according to the government data. The interest rate should be reduced by 4% to 13.5%.

He said that the same expectation is being expressed by economists and economists that the rate of interest must be reduced in proportion to the reduction in inflation in the country so that the industrial wheel can run.

The president KATI said that there is a long-standing demand of the industrialists and businessmen that the policy rate should be reduced for the promotion of economic activities.

Junaid Naqi added that this initiative will reduce the cost of borrowing and economic development will be achieved by creating business activities, investment, employment opportunities. Small and Medium Enterprises (SMEs) and large-scale manufacturing, which are the backbone of the economy, will get the necessary support. Otherwise, there is a fear that economic growth, including large-scale manufacturing, may suffer from degradation.

Junaid Naqi stressed that low interest rates will boost demand by increasing the spending power of consumers and contribute to economic recovery.

Copyright Business Recorder, 2024