Chairman Pakistan Chemicals & Dyes Merchants Association (PCDMA), Salim Valimuhammad, has called on the State Bank of Pakistan (SBP) to bring the policy rate down to a single-digit level, citing a decline in the inflation rate. He believes this move is essential to stimulate business activities and contribute positively to the country’s economic growth. Valimuhammad urged the SBP’s Monetary Policy Committee to recognize the downward trend in inflation and implement a substantial cut in interest rates.
He explained that lower interest rates would make borrowing from banks more affordable for the business community, helping to address capital shortages and encouraging investment in industries. The PCDMA chairman highlighted the negative impact of high interest rates, which previously incentivized individuals to park their money in banks for higher returns.
He argued that reducing the rate to a single-digit would redirect capital into markets and industries, boosting economic activity and driving industrial growth. Valimuhammad emphasized that if the government is sincere in its efforts to promote business and industrial expansion, it must adopt business-friendly policies such as lowering the interest rate. “Without these measures, all government efforts to revive the economy will prove ineffective,” he cautioned.
