FCCI President Urges Policy Rate Cut to Boost Economic Growth

FAISALABAD: Rehan Naseem Bharara, the President of the Faisalabad Chamber of Commerce & Industry (FCCI), has emphasized that a noticeable reduction in the policy rate is crucial. This move would solidify economic progress, lower production expenses, stimulate exports, and manage inflation, enabling Pakistani exportable goods to effectively compete with regional rivals in the global marketplace.

He stated that other nations have policy rates that are already significantly lower, giving them access to affordable financing that considerably increases their export capabilities. Bharara noted, “Conversely, a high policy rate presents a considerable hurdle by substantially elevating our operational costs.” He further mentioned that despite this disadvantage, Pakistani exporters are making significant efforts to remain competitive on an international scale.

Bharara acknowledged the positive signs within the economy, attributing them to collaborative initiatives between the government and the business sector. He highlighted improvements in Pakistan’s international credit rating and the Pakistan Stock Exchange (PSX) reaching unprecedented heights.

He also mentioned the increase in exports and the current account surplus achieved after fourteen years. The President noted the stabilization of the PKR against the dollar and the successful curbing of inflation. He suggested that the State Bank of Pakistan (SBP) should transition from its excessively cautious stance to more accommodating policies that ensure businesses have access to affordable financing. According to Bharara, “This would be instrumental in decreasing production costs and energizing productive economic activities.”

Bharara proposed reducing the policy rate from its present level of 11% to 6%. He believes this would fulfill the business community’s long-standing request to bring the policy rate down to a single digit and unlock new opportunities for robust and sustainable economic advancement.