KARACHI : Sheikh Umar Rehan, the former President of the Korangi Association of Trade and Industry (KATI), has emphasized the critical need for the State Bank to reduce the prevailing high interest rates to single digits, asserting that it is imperative for fostering the growth of the industrial sector. Rehan expressed concern that the elevated production costs in Pakistan hinder the competitiveness of local products in the global market.
Highlighting the adverse impact of high interest rates on the industrialization process, Sheikh Umar Rehan called for urgent measures to alleviate the cost of establishing new industries. The economic growth of the country, particularly in the industrial sector, is currently experiencing significant setbacks, and Rehan attributed part of this decline to the inhibiting effects of high-interest rates on investments, particularly within the industrial domain.
Addressing the broader challenges faced by industries, Rehan pointed out the rapid escalation of costs associated with establishing new ventures. These challenges include not only high-interest rates but also substantial increases in industrial land prices, soaring energy costs, and various other issues collectively impeding the progress of industrialization in Pakistan.
Sheikh Umar Rehan underscored the necessity for immediate actions aimed at reducing production costs and facilitating the establishment of new industries to ensure sustainable development and growth in the country. He expressed disappointment that, despite governmental efforts to discourage imports, insufficient attention has been given to promoting industrialization for export growth.
Emphasizing the critical role of industrialization in providing employment opportunities and addressing rising inflation, Rehan urged the government to reevaluate its fundamental economic policies. He stressed the importance of revising these policies to align to promoteensureial growth, ensuring employment generation, and enhancing the country’s ability to compete globally.
