Salt Manufacturers Advocate for Interest Rate Cut to Bolster Economic Growth

The Salt Manufacturers Association of Pakistan (SMAP) is appealing to the State Bank of Pakistan’s Monetary Policy Committee (MPC) to seriously consider implementing a substantial decrease of 3–4% in the policy interest rate during the upcoming monetary policy review. This request is made on behalf of its members and the broader industrial sector.

Following in-depth discussions and strategic planning concerning trade and economic obstacles, SMAP, led by Chairperson Saima Akhter, has unanimously agreed that a minimum 3% reduction in the interest rate is crucial. This adjustment is seen as a vital step towards creating a more favorable environment for conducting business throughout the nation.

Ismail Suttar, the Founder Chairman of SMAP, noted that businesses are currently struggling with unparalleled economic difficulties, such as increasing energy expenses, weak demand, and restricted liquidity. He emphasized that Pakistan’s persistently elevated interest rate remains a significant impediment to both industrial and commercial activities.

Ismail Suttar stated that a considerable decrease in the policy rate is necessary to encourage investment from the private sector, stimulate expansion, and pave the way for extensive economic recovery. He pointed out that high borrowing expenses have severely limited the availability of working capital, particularly for small and medium-sized enterprises (SMEs). Lower interest rates would alleviate this burden and unlock the dormant potential of numerous enterprises.

Furthermore, Suttar added that more accessible financing would enable manufacturers, including those in Pakistan’s salt processing industry, to invest in technological advancements, broaden their operations, and improve their export capabilities. Thriving businesses lead to job creation, increased tax revenues, and contributions to the GDP. According to SMAP’s Founder Chairman, this represents the most reliable approach to reducing fiscal deficits and strengthening the rupee.

The business sector acknowledges and respects the SBP’s responsibility to maintain price stability. Nevertheless, the current macroeconomic situation requires a shift toward a monetary policy that supports growth and empowers industries, rather than hindering them. Without easily accessible and affordable capital, Pakistan’s economic recovery will likely remain slow.

The Salt Manufacturers Association of Pakistan urges the MPC to focus on business sustainability, industrial expansion, and job creation in its policy considerations. A reduction in the interest rate would signal strong support for Pakistan’s productive sectors and boost confidence in the overall economy.