Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh has called for a 500 basis points reduction in interest rates, urging the central bank to bring the policy rate down to 8%.
Sheikh emphasized that there is room for the State Bank to cut rates in the upcoming monetary policy committee meeting.
"Despite the recent decline in inflation, with the rate falling to its lowest level of 0.52%, the current high-interest rates remain a hindrance to business activities," Sheikh stated. He added that the current policy rate is unjust and does not benefit the economy.
The FPCCI President pointed out that positive economic indicators and reduced inflation should benefit the public, and a rate cut would help circulate money within industries, creating new job opportunities.
He believes that a 5% reduction in interest rates would encourage banks to invest in industries, which would positively impact the economy.
"Reducing the interest rate is essential for improving the national economy and ensuring financial stability," concluded Sheikh.
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