SAI Chief terms 1.5% interest rate cut as insufficient

The Site Association of Industry (SAI) President, Muhammad Kamran Arbi, expressed disappointment at the State Bank of Pakistan’s (SBP) cutting interest by just 1.5%. He called the move “insufficient to address the challenges faced by the industrial sector”. In a statement, Mr Arabi highlighted that the SITE Association of Industry had submitted budget proposals to the State Bank, advocating a policy rate reduction of 13-14 per cent. This, he argued, would alleviate capital shortages stemming from the escalating costs of operating industries.

The SAI president further emphasised that the central bank should establish a roadmap for reducing interest rates, outlining measures to alleviate industries’ capital shortages. He urged the industrialist community to be informed if such a roadmap exists, as this would facilitate the implementation of mutually beneficial economic and business-friendly measures through collaborative consultation.

Kamran Arabi expressed optimism that measures like the recent reduction in interest rates will continue in the next monetary policy and the State Bank will seriously consider their proposal and bring the interest rate down to 13-14%. He emphasized that the rate of inflation is gradually decreasing in the country, which needs to be taken into account, so that the people and the business and industrial community can experience significant relief.

 
 

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