KARACHI: Korangi Association of Trade and Industry (KATI) President Sheikh Umer Rehan has called on the State Bank of Pakistan (SBP) to reduce the policy rate to single digits, aiming to foster industrial growth and economic activity.

According to Korangi Association of Trade and Industry, Sheikh Umer Rehan stated that the current high interest rates are placing financial strains on the industrial sector, leading to increased production costs and deterring new investments. He emphasized the necessity of affordable financing to enable industries to expand production, set up new manufacturing units, and enhance exports.

Sheikh Umer Rehan highlighted that industrialists are already facing challenges due to high utility tariffs, costly raw materials, and significant tax burdens. He noted that expensive bank financing further exacerbates the cost of doing business, affecting the competitiveness of Pakistani products both domestically and internationally.

The KATI president urged the SBP to consider the needs of the industrial sector, investment trends, and prevailing business costs while formulating monetary policies. He asserted that a reduction in interest rates would allow industries to invest in modern technology, expand production facilities, and generate new employment opportunities, contributing to sustainable economic growth.

Rehan also stressed the importance of providing affordable credit for small and medium-sized enterprises (SMEs), which he identified as crucial players in industrial development and employment generation. He appealed to SBP Governor Jameel Ahmad and the Monetary Policy Committee to devise a strategy for gradually reducing interest rates, taking into account the concerns of the business community.

He concluded by suggesting that a reduction in the policy rate could accelerate industrialization, restore investor confidence, and promote sustainable economic growth in the country.