Korangi Association of Trade and Industry (KATI) President Junaid Naqi has demanded from the State Bank and the government that the Central Bank immediately announce a reduction in interest rates in view of the recent drop in inflation before the announcement of the new monetary policy in the country.

KATI President Junaid Naqi has demanded that in the meeting of the Monetary Policy Committee, keeping in mind that inflation will reach 6.9% in September and further decrease to 6.3% in October, according to government data. The interest rate should be reduced by 4% to 13.5%. He said that economists and economists are expressing the same expectation that the rate of interest must be reduced in proportion to the reduction in inflation in the country so that the industrial wheel can run.

President KATI said industrialists and businessmen have long demanded that the policy rate be reduced to promote economic activities.

Junaid Naqi added that this initiative will reduce the cost of borrowing, and economic development will be achieved by creating business activities, investment, and employment opportunities. Small and medium industries (SMEs) and large-scale manufacturing, which are the backbone of the economy, will get the necessary support. Otherwise, there is a fear that economic growth, including large-scale manufacturing, may suffer from degradation.

Junaid Naqi stressed that low interest rates will boost demand by increasing the spending power of consumers and contribute to economic recovery.

President KATI appealed to the State Bank and the government to take immediate steps that the benefit of interest rate reduction takes time to reach the lower level, however, timely steps are needed to promote economic activities from surplus in exports.