LAHORE: S M Tanveer, Patron-in-Chief UBG-BMPP, has urged the government to support economic growth by reducing policy rate by 500 basis points on Monday’s much-likely announcement in a one go.

He further said that a substantial reduction in the policy rate would not only stimulate economic activities but also be beneficial to the government. An undue delay leads to unnecessary loss to the country’s economy, especially when the government is also seriously considering bringing policy rate down to single digit. A timely action would mark a notable improvement in our economic stability and demonstrates the effectiveness of our recent policy measures, he added.

According to him, a considerable reduction has become need of the hour as it would help bring bank mark-up rates back to single digits, making credit more affordable for businesses and consumers alike. Lower interest rates will stimulate investment, boost economic activity, and contribute to the overall prosperity of our nation, he added.

He said the Consumer Price Index (CPI) for November 2024 has already reduced to 4.9% year-on-year (YoY), compared to 7.2% in the previous month.

He said the actual inflation rate has outperformed all predictions and this positive development is a testament to the diligent efforts of our economic planners and the resilience of our business community.

At UBG-BMPP, he said, we remain committed to supporting policies that foster economic growth, stability, and prosperity for all. We will continue to work closely with the government, industry stakeholders, and international partners to sustain and build upon these gains, he resolved further.

Copyright Business Recorder, 2024