KARACHI: Faraz-ur-Rehman, Patron-in-Chief of Pakistan Business Group (PBGO), Chairman of Pakistan Business Guild, and Former Chairman of Korangi Association of Trade and Industry (KATI), has called on the government to announce a substantial reduction of 500 basis points in the policy rate in one go during the upcoming monetary policy announcement. He stressed that this bold move is critical to reviving the country’s economy and creating a conducive environment for business growth.
“A sharp cut in the policy rate will not only energize economic activity but will also work in favor of the government’s objectives,” he remarked. Faraz-ur-Rehman warned that procrastinating on this decision would further damage the economy, particularly when reducing the policy rate to single digits is already under serious consideration. “Swift action will signal stability and demonstrate the government’s commitment to effective policy implementation,” he added.
Faraz-ur-Rehman explained that lowering the policy rate is crucial to bringing down bank lending rates, making financing accessible to businesses and consumers. This would encourage investments, stimulate economic activities, and contribute to long-term growth and development.
Citing recent data, he highlighted that the Consumer Price Index (CPI) for November 2024 has significantly decreased to 4.9% year-on-year (YoY) from 7.2% in October, a clear indication of improving economic conditions.
“This unexpected drop in inflation is evidence of the government’s strategic planning and the resilience of our business sector,” he noted. He emphasized that such positive trends provide an ideal opportunity for the government to reduce borrowing costs and further stabilize the economy.
Faraz-ur-Rehman assured that PBGO remains fully committed to supporting policies that drive economic recovery and promote stability. He vowed to continue collaborating with government officials, industrial leaders, and global partners to sustain and amplify these gains.
“We will keep advocating for reforms that enhance business growth and improve the standard of living for every Pakistani,” he concluded.
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