FPCCI Calls for Single-Digit Interest Rates to Spur Economic Growth

PESHAWAR: Aun Ali Syed, the Vice President of the Federation of Pakistan Chambers of Commerce and Industries (FPCCI), has advocated for a substantial reduction in the discount rate. He is urging the State Bank of Pakistan to lower the policy rate to single digits in order to stimulate industrial expansion and decrease unemployment levels.

In a statement released on Saturday, he asserted that the current economic climate is highly suitable for decreasing the markup rate to a single-digit figure. Syed emphasized that decreasing the interest rate is essential at this time because it will improve the circulation of money within the economy.

Syed pointed out that economic indicators are showing encouraging signs, with a marked decrease in inflation, which is fostering a positive environment for decreasing the policy rate. He stated, “Now is the ideal moment to reduce the interest rate to single digits,” noting that doing so would increase industrial output and create job possibilities by boosting monetary flow from banks.

He further stated that the State Bank has considerable flexibility to reduce the policy rate to 7 percent and requested that the central bank declare a large reduction in the interest rate during its next meeting on May 5. He concluded, “The advantages of lower inflation must be passed on to the average person.”