Islamabad
\nThe Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Friday that the national economy is currently at a critical juncture.
\nHe said immediate and effective measures are needed for rapid development; therefore, the State Bank of Pakistan should significantly reduce the interest rate.
\nMian Zahid Hussain said that reducing the interest rate would boost business activity, increase the growth rate, create employment opportunities for the public, and benefit the government while reducing the burden of public debt.
\nTalking to the business community, the veteran business leader said that high interest rates adversely affect the economy. They make access to loans difficult for businesses and limit investment opportunities. The industrial sector suffers when interest rates are high and consumers\u2019 purchasing power declines.
\nPakistan\u2019s GDP growth has remained below expectations in recent years, mainly due to high interest rates that increase business costs. He said that if the State Bank reduces the interest rate, the private sector will gain access to cheaper loans, and new investment opportunities will open up, especially for small and medium enterprises (SMEs), which are the backbone of Pakistan\u2019s economy and are in dire need of affordable financing.
\nThe business leader said the current interest rate is unbearable for SMEs, preventing them from enhancing their production capacity or investing in new projects.
\nMian Zahid Hussain suggested that the central bank cut the interest rate by at least three percent to stimulate economic activity, support businesses, create new employment opportunities, and increase the public\u2019s purchasing power, thereby reducing inflationary pressure.
\nHe acknowledged that some experts fear a reduction in interest rates could fuel inflation. However, if the rate cut is carried out balanced alongside other policies, the situation can be controlled. Targeted subsidies and tax incentives could support the productive sectors in this regard.
\nHe emphasized that reducing interest rates would be a bold decision, but caution is also necessary to ensure that financial stability is not jeopardized. Strict policies are also a major obstacle to economic recovery.
\nMian Zahid Hussain concluded that the economy requires new resolve and policy reforms. The State Bank should consider the demands of the business boost while business people want a cut in the policy rates, enabling the beginning of a new era of economic growth. He said this step would stabilize the national economy and help Pakistan advance in the global economic race.<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabad The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Friday that the national economy is currently at a critical juncture. He […]<\/p>\n","protected":false},"author":2,"featured_media":466256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-476261","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n