KARACHI (December 14, 2024) – Former Chairman of the Pakistan Stock Exchange (PSX), Haji Ghani Usman, has urged the government to reduce the policy rate by 500 basis points to foster economic growth. In a statement, Haji Ghani Usman stated that a significant reduction in the policy rate would not only boost economic activities but also prove beneficial for the government. He noted that unnecessary delays in reducing the policy rate have already harmed the country’s economy.
Haji Ghani emphasized that the government should bring the policy rate down to single digits to create favorable conditions for new investments in the country. Haji Ghani Usman called for a bold move in the announcement of the new monetary policy, recommending a one-time reduction of 500 basis points, which he described as a courageous step under the current circumstances.
He further mentioned that the Consumer Price Index (CPI) for November 2024 has already declined to 4.9% year-on-year over the past two months, compared to 7.2% previously. He questioned why, when the government has acknowledged a decrease in inflation, the interest rate should not be reduced by 500 basis points.
Haji Ghani added that a significant reduction in the policy rate would not only energize economic activities but also align with the government’s objectives. However, any delay in this decision would result in further damage to the economy. Lowering the policy rate is also essential to reduce bank mark-up rates, making credit more accessible for businesses and consumers. This step would encourage investment, enhance economic activity, and contribute to long-term growth and prosperity.
