300bps cut in policy rate urged

KARACHI: Employers Federation of Pakistan (EFP) President and Economic Council Chairman Ismail Suttar has urged State Bank of Pakistan Governor Reza Baqir to further reduce the policy rate by 300 basis points, a statement said on Friday.

The recent stimulus measures will not be sufficient and will exacerbate the prevailing recession. Businesses and SMEs will face severe liquidity crunch in running operations, he added.

Suttar thanked the SBP governor for accepting the EFP Board proposals in a recent digital meeting, and said that employers have lauded the recent collateral relaxations and refinance scheme for the payment of wages and salaries to the workers and employees of the business concerns by the central bank. The EFP President advocated swift and continued governmental protection of the interests of manufacturers, workers and small businessmen and prayed that Pakistan soon resumes industrialisation on war footings basis.