The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, on Wednesday welcomed a cut in the interest rates. He said that the policy rate reduction proves that the government focuses on the economy and that the country is coming out of problems, not due to statements but practical steps.
Mian Zahid Hussain said that the economic situation is improving rapidly, so there was scope for a reduction in interest rates of up to five hundred basis points instead of two hundred basis points.
Talking to the business community, the veteran business leader said that the interest rate should be in the single digits so businesses grow, people get jobs, and the government gets taxes.
The business leader said that the confidence of the local and foreign business community is continuously increasing, so the government should continue the series of reforms and not allow anyone to derail it.
Mian Zahid Hussain further said that the economic deterioration caused by incompetent rulers’ policies had shaken the country’s foundations. The value of the rupee had been lost, and the highest inflation in the country’s history had taken away the desire to live for millions of people.
At that time, everything was becoming expensive daily. The prices of many items had increased manifold, but people’s incomes had not risen, making it difficult for millions to manage food.
He noted that when Pakistan was rapidly going towards bankruptcy, the change of government and the determination of the military and political leadership changed the situation.
With their hard work, the rupee’s decline was stopped, smuggling decreased significantly, and tax revenue increased, which increased the confidence of domestic and foreign investors and important institutions.
Mian Zahid Hussain said that the reform process should be continued so that things can improve and the people can get some relief.
He noted that the central bank shows unnecessary caution in reducing interest rates, disappointing some business segments. Some in the business community are disappointed with the 2% reduction in interest rates. He said that, given the continuous decline in inflation, bringing the interest rate to 13% will not positively impact the economy.
However, suppose interest rates are brought to a single digit. In that case, economic activities will accelerate, and the tendency to borrow from banks will increase, encouraging the expansion of industries and the establishment of new industries. He said that government incentives for industrialization are insufficient and urgent measures should be taken to reduce business costs.
