Gems and jewellery sector urges reduction in key policy rate

KARACHI: Gems & Jewellery sector has demanded for immediate reduction in interest rates following the drop in inflation.

The country’s inflation has decreased to 9.6 percent in August, the lowest level in nearly three years, due to a higher base effect and reduced prices for non-perishable food items.

After reduction in the inflation rate, Engr. Muhammad Adnan Qadri Convener FPCCI Central Standing Committee on Gems & Jewellery has strongly urged the State Bank of Pakistan (SBP) for a massive cut in the key policy rate to facilitate trade and industry.

“Considering the current economic conditions and with an improved inflation rate, the State bank must cut the key policy rate by at least 4 percent in the next monetary policy to be announced on Sep 12, 2024”, he demanded. He said that a reduction in interest rates is vital to boost economic and industrial activities in the country. Lower interest rates will encourage businesses to invest, expand, and create job opportunities, Qadri said.

“The immediate rate cut will provide the necessary relief to small and medium enterprises, as well as larger corporations, which are the backbone of our economy”, he mentioned.

Lower interest rates will give consumers more disposable income, driving demand and strengthening the economic recovery and will support SMEs and large scale businesses.

Convener FPCCI Central Standing Committee on Gems & Jewellery urged the State Bank and the government to take decisive measures to maintain the momentum of the country’s economic recovery. This is the right time for a positive action to provide relief to the business community as well as masses and bring the economy on the right track, he said and added that rate cut will give a breath to the businesses in the country. He hoped the State Bank will take a positive step toward monetary easing in the next monetary policy.

Copyright Business Recorder, 2024