The LCCI leaders emphasize the need to further reduce the interest rate to single digits, highlighting its significant impact on the cost of doing business.
LAHORE: (UrduPoint/Pakistan Point News-June 10th, 2024) Lahore Chamber of Commerce and Industry (LCCI) on Monday praised the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) for its decision to reduce the key policy rate by 150 basis points, bringing it down to 20.5%, effective June 11, 2024.
In a statement, LCCI President Kashif Anwar, Senior Vice President Zafar Mehmood Ch, and Vice President Adnan Khalid Butt hailed this move as a positive step toward economic improvement. They noted that this reduction could help mitigate inflationary pressures, especially as inflation rates are showing signs of decline.
The LCCI leaders emphasized the need to further reduce the interest rate to single digits, highlighting its significant impact on the cost of doing business. They pointed out that lowering the policy rate to single digits would encourage the circulation of funds currently held in banks, thereby accelerating economic activity and growth.
Additionally, the LCCI office bearers stressed the importance of addressing other economic challenges. They called for efforts to lower electricity and gas prices, stabilize the exchange rate, and manage rupee devaluation. These measures are crucial to ensure that the reduction in the interest rate effectively boosts the economy.
The LCCI officials also highlighted the necessity of attracting new investments in the industrial sector. They argued that a substantial cut in the policy rate would support the industrial sector by reducing production costs and enhancing the competitiveness of Pakistani products in the international market. They urged the government to adopt a comprehensive approach to ensure sustained economic growth.
