‘More policy rate cut needed to boost economic activity’

KARACHI: President of the Hub Chamber of Commerce and Industry, Yakoob H Karim welcomed the 250 basis points reduction in the interest rate by the State Bank of Pakistan, however he said that this reduction is still insufficient to boost the economic activity vis-a-vis low prevailing inflation rate of 7%.

He further said that the only way of success for the government’s aim to reduce inflation is to incentivise the business and industrial sector for expanding trade and industry in many folds and creating employment opportunities. This would not be possible on current discouraging high rates of interest for investments.

The government’s objective to control inflation is not possible without the bunnies and industrial progress with the mark-up rate of 15.0%, even after current reduction by the State Bank.

Yakoob said that the proposed reduction in the mark-up rate will increase the business activity and would create a conducive environment for the investments.

He urged the government and State Bank of Pakistan’s Monetary Policy Committee to consider this reduction in the interest rate in the best interest of the nation through rapid industrial and business growth.

Copyright Business Recorder, 2024