Captain Abdul Rashid Abro, central leader of the Pakistan Business Forum and former Vice President of FPCCI, has urged the State Bank of Pakistan Governor to lower interest rates to at least 5% in the monetary policy meeting scheduled for November 4. He stated that this reduction is essential for promoting trade activities in the country, enabling exporters and industrialists to operate without fear or risk.

Captain Abdul Rashid Abro highlighted that current government statistics indicate that inflation was 6.9% in September and is projected to decrease further to 6.3% in October. Under these circumstances, he emphasized the urgent need to reduce interest rates from 17.5% to 5% and lower them to single digits by December.

He pointed out that economic and financial experts also indicate that, given the decline in inflation, a corresponding reduction in interest rates is necessary to keep the industrial wheel turning. Lowering interest rates will provide essential support to small and medium enterprises (SMEs) and large-scale manufacturing.

Captain Abdul Rashid Abro added that to curb severe inflation in the country, it is crucial to increase industrial and commercial activities. However, with the current interest rate of 17.5%, fostering trade activities is not feasible, and consequently, exports will not see an increase. Nevertheless, a reduction in interest rates would encourage new investments and assist the government in achieving its target of reducing inflation, a commitment made with the support of the World Bank.