Decrease in Interest Rate is very crucial to overcome inflation & Industrial Development, Newly
Elected President KATI.
KARACHI: Johar Ali Qandhari, the newly elected President of the Korangi Association of Trade and
Industry (KATI), has expressed deep concern over the decision by the State Bank to maintain the interest
rate at a high of 22 percent. Qandhari warned that such a move would have severe consequences for
industries, potentially leading to their destruction.
Qandhari emphasized that the current interest rate poses a significant obstacle to achieving economic
goals and contributes to inflation and a decline in the country’s growth rate. He pointed out that
industries are grappling with reduced growth due to high debt, and existing businesses are struggling to
sustain operations with interest rates ranging from 24 to 25 percent. This, in turn, has led to the closure
of some operational industries.
The President of KATI highlighted that Pakistan’s interest rate is notably higher than that of its regional
counterparts, leading to increased inflation and unemployment. He underscored that the business
community has been consistently urging a reduction in interest rates for several months.
Johar Qandhari called on the government to swiftly address the issue by reducing the interest rate to
single digits. He stressed that this reduction is crucial to boost industrialization by providing access to
affordable loans. Qandhari argued that with more accessible financing, the industrial cycle would
accelerate, exceeding the State Bank’s current growth expectations of 2 to 3 percent, and consequently,
leading to an increase in tax revenue.
