Karachi: Farhan Hanif, a prominent industrialist and leader of the United Business Group (UBG), has urged the Governor of the State Bank of Pakistan to lower the policy rate to 10% to be in line with the current inflation rate of 9%. This statement was made ahead of the Monetary Policy meeting scheduled for September 12, 2024, where Hanif calls for a substantial reduction of 400 basis points in the interest rate.

According to United Business Group, Hanif has positioned himself as a key advocate for economic reforms under the guidance of UBG’s patron-in-chief, S.M. Tanveer. He argues that such a rate cut is crucial for fostering new industrial investments essential for the nation’s economic growth. Hanif pointed out the dire conditions for obtaining loans due to prohibitively high interest rates, which significantly hamper both small and large industrial sectors.

Hanif also compared Pakistan’s policy rate unfavorably with neighboring countries, noting that lower rates in Bangladesh (8.50%) and India (6.50%) give their exporters a competitive edge. He emphasized that reducing the policy rate and production costs are critical steps to enhance Pakistan’s export competitiveness in the global market.