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SUKKUR, Jul 29 (APP):Sukkur Chamber of Commerce and Industry (SCCI) President Muhammad Khalid Kakezai on Tuesday has emphasized that bringing down the interest rate to a single digit is imperative for the survival of the national economy. The current policy rate of 11 percent set by the State Bank of Pakistan is exceptionally high and needs to be reduced urgently.
In a joint statement with Senior Vice President Amit Kumar and Vice President Malik Muhammad Owais Rais, Kakezai said that considering the global economic conditions, national inflation, and industrial requirements, the interest rate should be around 6 percent. However, at the very least, it should be brought down to below 9 percent immediately to give a boost to the country’s industrial, commercial, and export activities.
Abdul Majeed Qureshi, Convener of the Banking and Finance Committee, highlighted that the government itself borrows trillions of rupees from banks, incurring an annual interest burden of Rs 8.5 trillion. A reduction of 2-3 percent in the interest rate could result in savings of Rs 1.5 to 2 trillion annually, which could be utilized for education, healthcare, infrastructure development, and supporting small traders.
The business leaders pointed out that other regional countries, such as India, Bangladesh, and Vietnam, have much lower interest rates compared to Pakistan, enabling their industries to access cheap financing and increase exports in the global market.
They stressed that while the State Bank has made some minor reductions in recent months, the current rate of 11 percent remains a significant obstacle to investor confidence. Until the interest rate is brought down to a single digit, affordable financing and economic recovery will remain elusive.
Kakezai reminded that Sukkur Chamber has repeatedly drawn the attention of the State Bank and Ministry of Finance to this critical issue in the past. He emphasized that countries that have maintained single-digit interest rates have seen increased investment, expanded exports, and created more job opportunities.
The Sukkur Chamber of Commerce and Industry has demanded that the State Bank adopt a clear policy to gradually bring down the interest rate to 6 percent and immediately reduce it to below 9 percent to support the economy, provide relief to the public, and promote business.