Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, on Thursday said that the country’s economy is improving, so the price of electricity and fuel and the interest rate should be reduced. He said that a reduction in fuel and power prices would provide much-needed relief to the masses while interest rate cuts would trigger economic activities.

Shahid Rasheed Butt said in a statement issued here today that the IMF and other international organizations are satisfied with the financial situation of Pakistan, the deficits have been controlled, and the back of the dollar mafia has been broken.

He said the central bank should be relaxed in this regard and reduce interest rates without further delay. SBP is not reducing the key interest rates for the fourth time since June, which shows that it is unwilling to compromise on the goal of price stability.

SBP thinks that headline and core inflation readings remain high, reserves are falling as foreign official and private inflows dry up, exchange rate stability is still fragile, and a shift to a monetary easing is unsuitable.

Policymakers think that interest rate cuts will result in a spike in imports, drain reserves quickly, hit the exchange rate, and widen the current account deficit.

The business leader noted that the IMF had saved the sinking economy from bankruptcy, after which the caretaker government also proved its responsibility.

On the other hand, the investment council’s performance under the military’s supervision is also satisfactory.

Shahid Rasheed Butt said that now the government should prepare to start another IMF program amid preparation for the election because if the country is not kept under the supervision of the IMF for at least two years, then the politicians will bankrupt it again.

Politicians have consistently mismanaged the economy in such a state that the country starts to collapse, he said, adding that at least five to seven years are required for the economy to come out of the problems. However, he said, if resources are squandered for cheap fame and corruption is not controlled, then even the IMF will not be able to save the country.