Karachi: Syed Mazhar Ali Nasir, the Former Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Vice Chairman of UBG Sindh Region, has called on the government and the State Bank of Pakistan (SBP) to urgently reduce bank interest rates by 4% in the upcoming Monetary Policy to invigorate the struggling economy.

According to Federation of Pakistan Chambers of Commerce and Industry, Nasir highlighted the need for this reduction as critical to alleviating the economic pressures faced by the business community, particularly from high utility costs, which have led to diminished economic activities, reduced exports, lower foreign investment, and rising unemployment. He pointed out that Pakistan’s economy is at a critical juncture, characterized by slowing GDP growth, an expanding trade deficit, and dwindling foreign exchange reserves.

Nasir argued that high interest rates have compounded these challenges by increasing business costs, discouraging investments, and stifling entrepreneurial activity. A reduction in interest rates, he suggested, would rejuvenate economic activities, boost investments, promote entrepreneurship, and ultimately lead to job creation and sustained economic growth.

He also emphasized the plight of Small and Medium Enterprises (SMEs) and cottage industries, many of which are on the brink of closure or already shut down. Lower interest rates, Nasir, would revitalize these businesses by increasing both demand and supply, thereby sustaining the economic momentum necessary for Pakistan’s recovery.