Nazir Siyal
KARACHI: President Bin Qasim Association of Trade and Industry, Shakeel Ashfaq, citing the disconnect between falling inflation and the need for industrial growth, has urged the Monetary Policy Committee (MPC) to reduce the interest rate.
Shakeel Ashfaq has called on the MPC to reduce the interest rate by at least 400 basis points in its upcoming meeting on November 4, 2024, highlighting the significant mismatch between the current policy rate and Pakistan’s notably reduced inflation rate.
Despite inflation dropping maintaining such high rates fails to reflect the country’s economic realities and places undue costs on industries essential for economic recovery.
The industrial sector is particularly affected by these high borrowing costs. Without access to affordable financing, key sectors are unable to expand, innovate, or compete effectively, jeopardizing broader economic growth and employment levels in the country.
BQATI emphasizes that a substantial rate cut is necessary to realign monetary policy with the current inflationary environment, boost industrial productivity, strengthen export competitiveness, and safeguard millions of critical jobs for Pakistan’s economic future.
