Former Chairman of the Rice Exporters Association of Pakistan (REAP) and Convener of the FPCCI Standing Committee on Energy, Rafiq Suleman, appreciated the State Bank of Pakistan’s decision to cut the interest rate by one percent. He stated that although the reduction did not meet expectations, it is still a positive move considering the current economic conditions. The business community, he added, hopes that the interest rate will be further reduced in the coming days to bring it down to single digits.

Rafiq Suleman said that a lower interest rate would improve business activity, particularly benefiting farmers. If farmers can obtain affordable financing from Islamic banks and hold onto their crops, they stand to gain more. In particular, rice, wheat, and maize farmers are likely to benefit significantly from the reduced interest rate.

He further stated that the business community had expected a three percent cut, which would have brought the interest rate into single digits, especially since both the government and the State Bank Governor have acknowledged a notable decline in inflation. However, contrary to those claims, only a modest reduction was made. There is a pressing need to bring the interest rate into single digits to encourage investment and ensure the availability of capital in the country.

Rafiq Suleman added that the Monetary Policy Committee’s decision to reduce the rate by one percent still signals relief for the national economy. He emphasized that industrialists can only fully utilize their industrial and export potential when interest rates are determined based on economic realities. New domestic and foreign investments will follow, creating job opportunities as well.