Ahmed Azeem Alvi, President of the SITE Association of Industry Karachi, has called for reducing the policy rate to a single digit in light of the decrease in inflation. He emphasized that providing loans at lower rates is crucial for industries to establish a presence in international markets. He stated that the State Bank of Pakistan should seriously consider this demand in the country’s best economic interests so that the industrial community can effectively address issues such as high production costs and other financial challenges.

In a statement released Friday, the SITE president stated that the current 13% rate is too high. There is still significant room for reduction as inflation continues to decrease. Despite this, it is incomprehensible that the State Bank has not lowered the policy rate to a single digit. Ahmed Azeem Alvi added that their demand is for a 5% reduction in the policy rate, as gradually lowering it would positively affect the national economy. This would also increase the trend of borrowing from banks, help address the capital shortage, and significantly aid in restoring industrial activities to their normal pace.

Mr Alvi added that reducing the policy rate would positively impact increased borrowing from banks and bank borrowing capital shortage. He also suggested that the State Bank convene a monetary policy committee meeting every 15 days to review the inflation rate and take steps to reduce the interest rate to a single digit.

The business community would welcome such a move as they can. Due to the severe economic crisis and rising production costs, borrow at high interest rates due to the sev