FAISALABAD: A visible cut in policy rate has become imperative to consolidate the economic achievements, reduce production cost, enhance exports and control inflation so that Pakistani exportable surplus could compete with their regional arch rivals in international markets, said Rehan Naseem Bharara, President Faisalabad Chamber of Commerce & Industry (FCCI).
He said that the policy rate is already half in other countries and availability of cheap finances help them to give a quantum jump to their exports. “On the other hand, high policy rate has become a major impediment as our cost of doing business has increased manifold”; he said and added that despite this disadvantage, our exporters are trying hard to compete at the international level.
He said that the economy has witnessed signs of improvement due to the collective efforts of the Government and business community. “International credit rating of Pakistan has improved and PSX touched a historically highest mark.”
He said that similarly our exports have also witnessed increase while the current account remained surplus after 14 long years. He said that PKR is also now stable against the dollar while inflation has been contained to the lowest. He said that in these circumstances SBP should come out of over cautious prudence and instead adopt liberal policies to ensure cheap finances for businesses. “It would help bring down the cost of production and spur productive economic activities.”
He suggested that the policy rate should be brought down from current 11 to 6%. He said that it would not only fulfil the long pending demand of the business community to bring policy rate to single digit but also open new avenues of economic uplift on solid and sustained basis.
Copyright Business Recorder, 2025
