Malik Khuda Bakhsh, a member of the United Business Group (UBG) Core Committee, convener of the FPCCI Central Standing Committee, and a prominent leader in the petroleum and CNG sector, has urged the Prime Minister of Pakistan, the Minister of Finance, and the Governor of the State Bank of Pakistan to lower interest rates by at least 4 to 5 percent in the upcoming monetary policy meeting on November 4. This reduction is necessary to promote trade activities in the country and allow exporters and industrialists to conduct business without fear.

Malik Khuda Bakhsh stated that to curb the worst inflation in the country, it is essential to increase industrial and trade activities. However, the current interest rate of 17.5 percent makes it impossible to foster trade activities and increase exports. A reduction in interest rates will encourage new investors and help the government achieve its goal of reducing inflation, as promised with the assistance of the World Bank.

He pointed out that government statistics clearly indicate that inflation was 6.9 percent in September and is expected to decrease further to 6.3 percent in October. In such circumstances, it is crucial to reduce the interest rate by 4 to 5 percent, with an additional reduction of 5 percent in December to bring it into single digits.

Malik Khuda Bakhsh added that economic and financial experts are also suggesting that as inflation decreases, a corresponding reduction in interest rates is essential to keep the industrial wheel turning. Lower interest rates will provide necessary support to small and medium-sized enterprises (SMEs) and large-scale manufacturing.