Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called for a 500 basis points reduction in interest rates, urging the central bank to lower the policy rate to 8%.
Sheikh emphasized that there is room for the State Bank to make a rate cut in the upcoming monetary policy committee meeting.
“Although inflation has recently dropped to its lowest level of 0.52%, the current high-interest rates are still obstructing business activities,” Sheikh said, describing the current policy rate as unfair and not beneficial to the economy.
The FPCCI President highlighted that positive economic indicators and lower inflation should be advantageous to the public, and reducing interest rates would help circulate funds within industries, generating new job opportunities.
He believes that a 5% interest rate reduction would motivate banks to invest in industries, boosting the overall economy.
“Lowering the interest rate is crucial for strengthening the national economy and ensuring financial stability,” Sheikh concluded.
