Islamabad, Dr. Shahid Rasheed Butt, the former President of the Islamabad Chamber of Commerce and Industry (ICCI), has praised the recent staff level agreement between the Pakistani government and the International Monetary Fund (IMF), describing it as a pivotal achievement for the nation. This agreement, As per Dr. Butt, is poised to bolster the business sector's confidence and improve Pakistan's financial standing internationally.

According to Islamabad Chamber of Commerce and Industry, Dr. Butt commended the State Bank of Pakistan's decision to maintain the interest rate at 22%, a move he believes will anchor economic stability. He noted the current inflation trend, predicting a decrease to 20% and suggesting potential for a rate cut in the upcoming Monetary Policy Committee session, provided economic conditions permit.

Dr. Butt elaborated on the delicate balance of interest rates, indicating that a premature reduction could exacerbate inflation and devalue the rupee, potentially hiking imports and draining the already constrained foreign exchange reserves. He highlighted that despite significant remittances preceding Ramadan, the anticipated depreciation in the dollar's value was not fully realized.

Further, Dr. Butt endorsed the government's commitment to the IMF to accelerate the privatization of underperforming state enterprises, a longstanding issue that has escalated financial losses significantly over the years. He criticized these entities for their inefficiency and urged swift privatization to halt the fiscal hemorrhage.

On tax policy, Dr. Butt relayed the IMF's recommendation for higher excise duties on luxury goods and advocated for uniform excise rates on all cigarette products, irrespective of their origin, and similar taxation on e-cigarettes and traditional tobacco products.