Daily Times

The Multan Chamber of Commerce and Industry (MCCI) appealed to the State Bank of Pakistan (SBP) and the government to urgently review the current economic conditions before announcing the new monetary policy. With inflation rates having dropped to 10 pc, it is necessary to reduce the bank interest rates by at least 4 pc (400 basis points) to facilitate economic recovery, it said.

In a statement issued here on Monday, Multan Chamber of Commerce and Industry (MCCI) President Mian Rashid Iqbal emphasized that reducing interest rates is crucial for several reasons. Low interest rates will immediately attract investment from businesses, leading to job creation across the country and economic growth, he said and added that small and medium-sized enterprises (SMEs) and large companies are the backbone of the economy.

An immediate reduction in interest rates will provide them with financial stability so they can invest and achieve long-term stability, Mian Rashid Iqbal noted.

A cut in interest rates will also increase consumers’ disposable income, leading to higher demand for goods and services and growth in key sectors of the economy.

The MCCI president highlighted the urgent need for these measures in the current business climate and urged the government and the SBP to reduce the interest rate by 400 basis points in the September monetary policy, gradually bringing it down to 10 pc. This step will be a crucial move in stabilizing the economy.