The leaders said that maintaining the interest rate at 11 percent in the current financial situation is not only unreasonable but also the biggest obstacle in the revival of the country's economy. "The best parameter for interest rate reduction or increase is to keep a close eye on inflation over the past three months. Inflation in Pakistan has been at its lowest, so why have we not adjusted the interest rate accordingly? Are we being overly cautious, or do we not want our economy to grow? If we are being cautious, we should still reduce rates by at least 150 to 200 basis points in one go so that the economy can respond positively."They added.
"The low interest rates will encourage industrialists to expand their businesses through bank financing, ultimately boosting exports and local production. This will in the growth of economic dividends through the generation of new jobs for citizens and additional tax revenues for the government," they stated.
This, they said, would help rationalise the monetary policy and align it with the vision of the Special Investment Facilitation Council (SIFC) and the prime minister's economic growth and export strategy. The business community remains dissatisfied with the monetary policy, arguing that it continues to impose an excessively high premium compared to core inflation.
They said that inflation rate in the country has come down to just 4 percent and the Consumer Price Index (CPI) has come down to just 0.3 percent, which clearly shows that now is the time to bring down the interest rate. The interest rate cut by the State Bank will give a new lease of life to industrial activities, increase competitiveness in the global export market, significantly increase private sector investment and save the government about Rs 3.5 trillion in interest on loans. Syed Muhammad Asim Shah said that Pakistan’s economy is currently in dire need of business-friendly and developmental decisions. Industrialists, exporters and investors need a clear, stable and encouraging message at this time, and a reduction in interest rates can be the first strong step in this direction. Imran Mahmood Sheikh said that a reduction in the policy rate will not only help in the revival of industry but will also create employment opportunities by mobilizing the economy and putting the country on the path of self-sufficiency. APBUMA appeals to all business communities, trade organizations and policymakers to unite and raise their voice for a reduction in interest rates so that the foundation of a dynamic, developed and investor-friendly Pakistan can be laid.