KARACHI: Pakistan Vanaspati Manufacturers Association (PVMA) Chairman, Sheikh Umer Rehan, has strongly urged the government and the State Bank to reduce the interest rate by 500 basis points (5%) in the upcoming Monetary Policy Committee (MPC) meeting on Monday, November, 4.

Sheikh Umer emphasized that the policy rate should be swiftly brought down to single digits in the next committee meeting to support economic stability and ease financial pressures on businesses.

He highlighted the recent dip in inflation, which has reached 6.3% in October, while the real interest rate currently stands at 10.2%.

Citing these indicators, he advocated for an immediate reduction in the interest rate from 17.5% to 12.5%, aligning it with inflation and the real interest rate, making financing more accessible for industry and business.

He stressed that bringing the policy rate to single digits is crucial to reduce the cost of borrowing, encourage investments, and make bank loans affordable.

Copyright Business Recorder, 2024