AIRLINK 175.65 Decreased By ▼ -1.91 (-1.08%)
BOP 11.01 Decreased By ▼ -0.04 (-0.36%)
CNERGY 8.33 Increased By ▲ 0.16 (1.96%)
FCCL 47.10 Decreased By ▼ -0.22 (-0.46%)
FFL 16.02 Decreased By ▼ -0.10 (-0.62%)
FLYNG 27.02 Decreased By ▼ -0.33 (-1.21%)
HUBC 142.45 Decreased By ▼ -4.46 (-3.04%)
HUMNL 13.37 Decreased By ▼ -0.14 (-1.04%)
KEL 4.45 Decreased By ▼ -0.05 (-1.11%)
KOSM 5.91 No Change ▼ 0.00 (0%)
MLCF 61.50 Decreased By ▼ -0.52 (-0.84%)
OGDC 226.31 Decreased By ▼ -8.37 (-3.57%)
PACE 5.80 No Change ▼ 0.00 (0%)
PAEL 44.79 Decreased By ▼ -1.62 (-3.49%)
PIAHCLA 17.93 Decreased By ▼ -0.19 (-1.05%)
PIBTL 10.45 Decreased By ▼ -0.12 (-1.14%)
POWER 12.10 Increased By ▲ 0.11 (0.92%)
PPL 185.99 Decreased By ▼ -5.81 (-3.03%)
PRL 37.25 Decreased By ▼ -0.07 (-0.19%)
PTC 24.14 Increased By ▲ 0.94 (4.05%)
SEARL 99.95 Decreased By ▼ -0.94 (-0.93%)
SSGC 38.40 Decreased By ▼ -1.31 (-3.3%)
SYM 14.89 Decreased By ▼ -0.14 (-0.93%)
TELE 7.75 Decreased By ▼ -0.09 (-1.15%)
TPLP 11.10 Decreased By ▼ -0.01 (-0.09%)
TRG 66.00 Decreased By ▼ -1.29 (-1.92%)
WAVESAPP 11.00 Decreased By ▼ -0.35 (-3.08%)
WTL 1.36 No Change ▼ 0.00 (0%)
YOUW 3.82 Increased By ▲ 0.05 (1.33%)
BR100 12,826 Increased By 19.4 (0.15%)
BR30 38,861 Decreased By -842.2 (-2.12%)
KSE100 118,792 Decreased By -146.5 (-0.12%)
KSE30 36,779 Increased By 22.6 (0.06%)

LAHORE: Business community has demanded further cut in the policy rate to facilitate growth of industrial sector. “We were expecting higher cut in the key policy rate in the aftermath of considerable decline in inflation.

Core inflation has come down to 11.8 per cent in May 2024, the lowest in the 30-month period. Still, we welcome the recent cut in the policy rate as it is a step in the right direction.

The State Bank of Pakistan (SBP) should keep reducing policy rate and gradually bring to a single digit,” said Mian Misbah-ur-Rehman, Chairman Founders Group of Lahore Chamber of Commerce and Industry.

Misbah, who has previously served as the LCCI president, said the consumer prices were showing a declining trend and now the government should improve access of the business community to the finance by cutting the key policy rate.

He suggested the SBP to target core inflation instead of the general inflation. The central bank needed to strip out volatile changes in particular prices to distinguish inflation from temporary fluctuations in inflation.

He suggested ensuring the effectiveness of price control measures through actions against hoarding and malpractices. Drop in inflation was due to the administrative measures taken by the government along with improved agricultural production and reduction in Petroleum price, he said, adding that production of wheat, rice, sugarcane, cotton and maize had increased considerably.

He said that stability in exchange rate was also one of the reasons for easing the inflation as huge quantities of commodities were regularly being imported.

“We hope that the SBP will continue decreasing the policy rate to facilitate borrowings by the private sector. It will prove favourable for the economy by encouraging business expansion and industrialization,” Mian Misbah-ur-Rehman said.

Copyright Business Recorder, 2024

Comments

Comments are closed.