Karachi: The Korangi Association of Trade and Industry (KATI) has endorsed the recent 2.5% reduction in interest rates by the State Bank, urging further cuts to stimulate economic growth and address capital shortages in the industrial sector. KATI President Junaid Naqi emphasized the need for a single-digit policy rate, alongside strategic measures to limit imports and protect the national currency.

According to Korangi Association of Trade and Industry, Naqi commended the initial rate decrease but stressed that substantial further reductions are necessary to revive Pakistan’s sluggish economic momentum. He pointed out that high interest rates have not attracted the anticipated 'hot money' investments, and instead have hampered economic development.

Naqi also addressed concerns regarding the potential rise in the import bill and its adverse effects on the Pakistani rupee due to lower interest rates. He advocated for government intervention to restrict imports, ensuring that the rupee’s value remains stable without compromising the growth and competitiveness of the export sector. Furthermore, Naqi called for policies that accurately reflect the real value of the rupee, which he believes is crucial for enhancing the performance of the export industry and the broader economy.