Karachi: The President of the North Karachi Association of Trade and Industry (NKAATI), Faisal Moiz Khan, has advocated for a substantial reduction in the interest rate by 4% in the upcoming monetary policy announcement. This move, he argues, is essential for bolstering trade activities and enabling Pakistan to compete more effectively with countries like China and Bangladesh in securing international orders.

According to North Karachi Association of Trade and Industry, Khan highlighted the adverse impact of the current 17.5% interest rate on industrial growth and trade expansion, stating that it hampers the country’s ability to increase exports and attract new investors. A reduction in the interest rate is seen as critical to reviving economic activities and supporting the government’s efforts to control inflation, a goal it is pursuing with assistance from the World Bank.

Khan urged the State Bank of Pakistan and its Monetary Policy Committee to consider a 4% cut in the interest rate at their next meeting, emphasizing the need for the Governor of the State Bank to base this decision on robust data. He asserted that such a reduction would not only enhance business activities within the country but also strengthen Pakistan’s position in foreign trade markets and contribute to lowering the inflation rate.

The post North Karachi Trade Association Calls for Significant Interest Rate Cut to Stimulate Trade appeared first on Pakistan Business News.