KARACHI Syed Mazhar Ali Nasir, Vice Chairman UBG Sindh Region has appealed to the government and the State Bank of Pakistan (SBP) to consider the long-standing demand of the business community for an immediate reduction in bank interest rates in the upcoming Monetary Policy.
With inflation rates already dropping to 9%, Syed Mazhar Ali Nasir emphasized that a 4% reduction in interest rates is crucial to provide relief to the business community, which is facing economic challenges due to exorbitant power and gas charges.
This has resulted in diminished economic activity, reduced exports, lower foreign direct investment, and increased unemployment.
Pakistan's economy is currently facing a critical juncture, with a slowing GDP growth rate, a widening trade deficit, and decreasing foreign exchange reserves. The country's economic growth has been hindered by high interest rates, which have increased the cost of doing business, reduced investment, and discouraged entrepreneurship.
A reduction in interest rates will help stimulate economic activity, increase investment, and promote entrepreneurship, ultimately leading to job creation and economic growth.
Small and Medium Enterprises (SMEs) and cottage industries, which are either closed or on the verge of closure, urgently need relief in the form of reduced bank interest rates to survive. A reduction in interest rates will increase demand and supply, keeping the economic wheel moving and giving momentum to Pakistan's economic recovery, Syed Mazhar Ali Nasir added.
Copyright Business Recorder, 2024
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