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MULTAN, Nov 01 (APP):The Multan Chamber of Commerce and Industry (MCCI) urged the government to reduce the policy rate by at least 5 per cent in the upcoming Monetary Policy Committee (MPC) meeting to support the business community and stabilise the economy.
The reduction would help create a better business environment in Pakistan, similar to other developing countries where policy rates are kept in single digit to encourage business growth and investment.
In a statement issued here, MCCI President Mian Bakhtawar Tanveer Sheikh said that the current high policy rate was proving to be heavy burden on industries, particularly small and medium enterprises (SMEs), which play a critical role in any country’s economic growth and job creation. He said, “Bringing the policy rate down to single digits is essential for creating a favorable business environment, enabling our businesses to compete globally.
A lower interest rate will encourage investments, boost economic activities, and create employment opportunities, which will help reduce the rate of unemployment.”
A reduction in the policy rate would also bring Pakistan closer to global standards and help make it an attractive destination for investment, he added.