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KATI urges SBP to reduce policy rates

By Our Correspondent
September 07, 2024
President of Korangi Association of Trade and Industry Johar Qandhari while meeting with a delegation in Karachi on February 20, 2024. — Facebook/Korangi Association of Trade And Industry
President of Korangi Association of Trade and Industry Johar Qandhari while meeting with a delegation in Karachi on February 20, 2024. — Facebook/Korangi Association of Trade And Industry

KARACHI: The Korangi Association of Trade and Industry (KATI) has issued an urgent call to the State Bank of Pakistan (SBP) and the government to promptly reduce bank interest rates considering the recent decrease in inflation.

KATI President Johar Qandhari highlighted the necessity of a 4.0 per cent reduction in interest rates to align with the current 9.0 per cent inflation rate.Qandhari added that a swift reduction in interest rates is essential to stimulate economic activity, reduce borrowing costs and encourage businesses to invest, expand, and create jobs.

He pointed out that such a move would provide crucial support to both small and medium enterprises (SMEs) and large businesses.Per Qandhari, lower interest rates would boost consumer spending by increasing disposable income, thereby driving demand and aiding economic recovery.