Businessmen term 2pc cut in interest rate as disappointing

KARACHI: The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, Mian Zahid Hussain has said that the reform process should be continued so that things can improve and the people can get some relief.

He noted that the central bank shows unnecessary caution in reducing interest rates, disappointing some business segments.

Some sections of the business community are calling the 2% reduction in interest rates disappointing. He said that if the interest rate is brought to 13%, keeping in mind the continuous decline in inflation, it will not positively impact the economy.

However, if interest rates are brought to single digits, not only will economic activities accelerate, but the tendency to borrow from banks will increase, which will encourage the expansion of industries and the establishment of new industries.

He said that government incentives for industrialization are insufficient and urgent measures should be taken to reduce business costs.

Copyright Business Recorder, 2024