Lahore: The Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) has called for a reduction in the current interest rate to 10% to support the business community and enhance investment opportunities. Moazzam Ghurki, President of PCJCCI, highlighted that with inflation at 9%, a substantial interest rate cut is essential in the upcoming monetary policy to bolster the economic landscape and attract more foreign investment, particularly from Chinese partners.

According to Pakistan China Joint Chamber of Commerce and Industry, Ghurki emphasized the need for further rate reductions beyond the modest cuts of 150 basis points in June and 100 basis points in July. These previous adjustments have not met the business community’s expectations for significant relief in the key policy rate. Vice President Hamza Khalid echoed these sentiments, expressing confidence in the government’s understanding of economic matters but stressing the need for more concrete actions to improve the business climate and financing conditions in Pakistan, which lag behind its global competitors.

Salahuddin Hanif, Secretary General of PCJCCI, also advocated for the rate reduction, suggesting it would help Pakistani exporters compete more effectively in regional and international markets by lowering capital costs. He further recommended adjustments to electricity tariffs for the industry and renegotiations of power purchase agreements with independent power producers to complement the proposed interest rate cuts.