Multan Chamber of Commerce and Industry appealed to the Government and State Bank's Monetary Policy Committee to reduce Minimum 500 Basic Points in Policy Rate in the upcoming MPC Meeting to support the business community and stabilize the economy.
Reduction of 500 bps would help create a better business environment in Pakistan, similar to other developing countries where policy rates are kept in single digits to encourage business growth and investment.
President of MCCI Mian Bakhtawar Tanveer Sheikh stated that the current highest policy rate put a heavy burden on industries and businesses, particularly small and medium enterprises (SMEs), which play a crucial role in any country's economic growth and job creation. He said, "Bringing the policy rate down to single digits is essential for creating a favorable business environment, enabling our businesses to compete globally.
A lower interest rate will encourage investments, boost economic activities, and create employment opportunities, which will help reduce the rate of unemployment."
Furthermore, he highlighted that the high-interest rates are minimizing the productivity and competitiveness of Pakistan's manufacturing and export sectors in international markets. Lowering the policy rate will provide relief to these sectors, increase national exports, and contribute to economic stability. A reduction in the policy rate will also align Pakistan closer to global standards and help make it an attractive destination for investment.