Islamabad: In a recent statement, Dr. Gohar Ejaz, former caretaker federal minister and Chairman of the FPCCI Economic Think Tank, called for a 4% reduction in interest rates at the upcoming Monetary Policy meeting. Citing the positive shift to 19.5% from higher previous rates and a significant drop in year-on-year inflation, which fell from 27.4% in August 2023 to 9.6% in August 2024, Ejaz highlighted the need for strategic economic adjustments to enhance domestic commerce and export-led growth.

According to Federation of Pakistan Chambers of Commerce and Industry, Dr. Ejaz emphasized the challenges faced by Pakistan in the past two years, marked by the highest inflation rates in the region and steep currency devaluation. Stability in the exchange rate and the recent minimum current account deficit have set the stage for potential economic recovery. He proposed reducing electricity tariffs to 9 cents per unit by eliminating certain taxes and payments, aiming to lower interest rates to 9% within the year to stimulate business investments over fixed bank deposits. Further, he advocated for tax relief for the salaried class and exporters to fuel economic growth and strategic planning for the next decade.