By Our Correspondent
NANKANA SAHIB – President of the Nankana Sahib Chamber of Commerce and Industry, Sardar Mian Nadeem Jalandhar, has urged the government to bring the interest rate down to 6 percent, saying the current 11 percent rate is excessively high and must be reduced immediately to stimulate economic growth.
In a statement, he emphasized that the State Bank of Pakistan should announce a significant rate cut in the upcoming monetary policy decision on July 30. He pointed out that the present interest rate is unjustifiably high, especially when the average inflation rate in the country has fallen to around 4 percent.
Sardar Mian Nadeem Jalandhar stated that reducing the interest rate to 6 percent would help the government save approximately Rs 3.5 trillion in bank markup, as the current interest payment burden has soared to Rs 8.5 trillion. He stressed that such a move would not only alleviate the government’s fiscal pressure but also lower business costs, boost private sector investment, and revive industrial activity.
He added that the State Bank must support the economy by adopting a pro-growth monetary stance, enabling businesses to breathe and the economy to regain momentum.
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He further noted that even the International Monetary Fund (IMF) recommends that interest rates be maintained only slightly above the inflation rate, but the current gap between inflation and interest rate in Pakistan is disproportionately large and proving detrimental to the overall economy.
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