FCCI calls for significant cut in policy rate
FAISALABAD: Faisalabad Chamber of Commerce and Industry (FCCI) President Farooq Yousaf Sheikh has called for a significant reduction in the policy rate at the Monetary Policy Committee meeting scheduled for September 14. He said that despite the regional situation, Pakistan’s economy has continued to improve, while the country’s foreign exchange reserves have also increased. In view of these…
Faizabad: Faisalabad Chamber of Commerce and Industry (FCCI) President Farooq Yousaf Sheikh has urged a substantial decrease in the policy rate at the upcoming Monetary Policy Committee meeting on September 14. Sheikh emphasized that despite regional challenges, Pakistan's economy has shown progress, with foreign exchange reserves also increasing.
Given these developments, he argued that lowering the policy rate would allow domestic industries to secure cheaper funds, thereby stimulating production and generating new job opportunities. Sheikh highlighted that chambers of commerce nationwide have been advocating for a policy rate reduction for years. He noted that while the government has reduced the rate from 23% to 11.5%, it remains significantly higher than rates in neighboring countries.
Consequently, the production costs of Pakistani export products have risen, making them less competitive in global markets. Sheikh proposed that the State Bank of Pakistan should bring the policy rate down to 5% to spur industrial and productive activities and further bolster economic growth.
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