KARACHI: Salim Valimuhammad, Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), has urged the Governor of the State Bank of Pakistan to reduce the policy rate to a single-digit, citing a decrease in the inflation rate. This move, he believes, will boost business activities and have a positive impact on the economy.
In a statement, Chairman PCDMA emphasized that the Monetary Policy Committee should consider the decreasing inflation rate and significantly reduce the interest rate. This reduction will encourage the business community to borrow from banks at a lower cost and address the capital shortage.
He added that when interest rates were high, people invested in banks to earn higher returns. However, if the interest rate drops to a single-digit, capital will flow back to the markets and industries, reviving business and industrial activities.
Salim Valimuhammad reiterated his demand for a single-digit interest rate, stressing that if the government genuinely wants to promote business and industrial activities, it must take business-friendly measures. Otherwise, all government efforts will be in vain.