KARACHI (14th Dec. 2024) Syed Mazhar Ali Nasir, former Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Member of the Core Committee of the United Business Group (UBG) and UBG Vice Chairman Sindh Region has urged the government to reduce the policy rate by 500 basis points to support economic growth.
The recent reduction in policy rates has resulted in economic prosperity, benefiting all segments of the economy. To further boost economic growth, Syed Mazhar Ali Nasir emphasized the need for a substantial reduction in the policy rate. A 500 basis points cut in the policy rate would stimulate economic activities, benefit the government, and enhance the confidence of local investors. It would also attract foreign investment, crucial for the economy.
Syed Mazhar Ali Nasir noted that the Consumer Price Index (CPI) for November 2024 decreased to 4.9% year-on-year (YoY), compared to 7.2% in the previous month. This positive development is a testament to the diligent efforts of economic planners and the resilience of the business community. A timely reduction in policy rates would mark a notable improvement in economic stability, demonstrating the effectiveness of recent policy measures. It would also help bring bank mark-up rates back to single digits, making credit more affordable for businesses and consumers alike. Lower interest rates will stimulate investment, boost economic activity, and contribute to the overall prosperity of the nation.
