KARACHI: Leaders of United Business Group (UBG) have demanded the government to reduce interest rates by 4 to 5 percent for economic growth. The UBG leaders jointly appealed to the government to decrease interest rates by up to 5 percent in the upcoming monetary policy to boost export-oriented industries and accelerate exports.
Supporting the demand of UBG’s patron-in-chief SM Tanveer, the leaders stated that reducing interest rates would increase job opportunities for industrialists, traders, and agricultural experts, leading to a significant rise in industrial investment, which would benefit the government through increased revenue.
They highlighted that, following a reduction in the inflation rate to 9 percent, a decrease in interest rates would further enhance production and exports, provide broader employment opportunities, and boost economic activities. This would lead to lower prices for goods and improve the purchasing power of ordinary citizens, paving the way for greater prosperity across the country.
The UBG leaders reaffirmed their support for SM Tanveer’s call to cut interest rates by 400 basis points, stating that such a reduction would benefit the entire country. They noted that continuous increases in interest rates have severely impacted the industrial sector, particularly Small and Medium Enterprises (SMEs), many of which are struggling or closing down, while even larger industries are shrinking.
They emphasized that SMEs represent the backbone of the economy and need favourable financial conditions to thrive. Reducing interest rates could enable these businesses to grow and contribute significantly to the national economy. Furthermore, a reduction in interest rates would also lower inflation, providing relief to the country’s impoverished population.
The leaders include President Zubair Tufail, Sindh Zone Chairman Khalid Towab, and General Secretary (Sindh) Hanif Goher, central UBG leaders Mazhar Ali Nasir, and Malik Khuda Bakhsh, along with other leaders.
Copyright Business Recorder, 2024
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