PBF leader pushes for 5 per cent interest rate cut to boost exports

ISLAMABAD: Leader of the Pakistan Business Forum and former Vice President of FPCCI, Captain Abdul Rashid Abro, has said that the State Bank of Pakistan (SBP) should bring interest rates down by at least 5 per cent in the upcoming monetary policy meeting on November 4th.

He said that this reduction is required to boost trade, and help exporters and industrialists operate with more confidence and less risk. Abro pointed out that official data shows inflation was 6.9 per cent in September and is expected to drop further to 6.3 per cent in the ongoing month.

Given these figures, he stressed that reducing the current 17.5 per cent interest rate by 5 per cent is vital, with the goal of reaching single-digit rates by December.

Abro further mentioned that financial experts are also suggesting that lower inflation should naturally lead to a drop in interest rates to keep industries running smoothly.

He believes this would be especially beneficial for small and medium-sized enterprises (SMEs) and large-scale manufacturers, providing the necessary support to boost production

In his view, increasing industrial and commercial activity is key to controlling inflation in the country.

With interest rates as high as 17.5 per cent, it becomes really difficult to encourage trade or see any growth in exports.

According to Business Recorder, Abro argued that lowering these rates would attract new investments and help the government meet its inflation reduction targets, a commitment it has made in partnership with the World Bank.

The final decision on key interest rates will be announced by the central bank next week.

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