Karachi (06-03-2025) – Faisal Moez Khan, President of the North Karachi Association of Trade and Industry (NKATI), has appealed to the Governor of the State Bank of Pakistan to reduce the interest rate by up to 5% in the upcoming monetary policy. He stated that this would not only bring the real interest rate to a sustainable level but also make loans more accessible to businessmen and industrialists. Faisal Maiz Khan emphasized that the government has acknowledged the reduction in the inflation rate, and in such a scenario, it is crucial for the Monetary Policy Committee (MPC), which will be present in the upcoming meeting, to decide on reducing the interest rate by 5%. This reduction would pave the way for new investments in the industrial sector and create employment opportunities for Pakistan’s youth. He further mentioned that the high interest rates have made servicing Pakistan’s domestic debt unbearable.
Additionally, Sheikh Tahseen Ahmed, President of the Federal B Area Association of Trade and Industry(FBATI), stated that Pakistan still has the highest policy rate in the region, which is putting additional pressure on the national budget and further increasing fiscal imbalances. A reduction in interest rates serves as a stimulus for economic activities, accelerating growth, increasing competitiveness, and improving the business environment. He noted that in order to improve the national economy, the government needs to take significant measures, particularly addressing the issues of investors and industrialists to create a favorable environment for new investments. Shaikh Tehseen concluded by stating that this can only be achieved if the Monetary Policy Committee decides to reduce the interest rate to 5% in its meeting on March 10.
