Altaf A. Ghaffar
Acting President KCCI
KARACHI: Altaf A. Ghaffar, Acting President of the Karachi Chamber of Commerce & Industry (KCCI), has expressed dissatisfaction with the State Bank of Pakistan’s decision to reduce the interest rate by 2 percent, bringing it to 17.5 percent. Ghaffar had hoped for a more significant cut of at least 5 percent and believes that the 2 percent reduction falls short of expectations and does not align with the recent drop in inflation, which is now in single digits.
While recognizing that this is the third consecutive reduction, which has brought the rate down from 22 percent, Ghaffar argued that the current rate remains too high. He called for a more substantial decrease, ideally to 7 or 8 percent, to better support economic growth. Lower interest rates, he argued, would promote borrowing and expansion, reducing the financial strain on both businesses and consumers.
Ghaffar welcomed the State Bank’s ongoing efforts to ease monetary policy but stressed that further cuts are crucial for revitalizing the economy and supporting the manufacturing sector. He also noted that the recent decline in inflation is more attributable to government actions and improved agricultural production than to the State Bank’s policies.
