NKATI President Urges Interest Rate Cut to Stimulate Economic Growth

Karachi: The President of the North Karachi Association of Trade and Industry (NKATI), Faisal Moiz Khan, has called on the State Bank of Pakistan to lower the policy rate by 2 to 3 percent in its upcoming monetary policy meeting. He advocates for a single-digit interest rate, stressing its importance for industrial growth and economic recovery.

Faisal Moiz Khan expressed concerns that the current policy rate of 11 percent undermines the efforts of Prime Minister Mian Shahbaz Sharif and Field Marshal General Syed Asim Munir to strengthen the national economy. He noted that reducing the rate would enable the industrial sector to secure loans for new machinery, boosting production and employment, and aligning with the Prime Minister’s vision of enhancing exports.

High-interest rates, Khan argued, have deterred new investments and stalled industrial development. He highlighted the struggle of the private sector with steep energy and gas prices, which is compounded by the burden of high-interest loans. He urged the state to consider the competitiveness of Pakistan compared to regional counterparts, where interest rates are significantly lower, putting local businesses at a disadvantage.

Khan reminded that Prime Minister Shahbaz Sharif had committed to reducing the interest rate to single digits by the end of 2024. With 2025 drawing to a close, he noted that this promise remains unfulfilled, urging immediate action to provide relief to small and medium-sized enterprises facing costly loans.