Islamabad : September 11,2024: Pakistan ‘s top currency dealer has proposed to the State Bank of Pakistan (SBP) to cut the policy rate minimum by 200 basis points .
Talking to NEWSMAN on Wednesday by phone from Karachi ,Pakistan Currency Exchange Dealers Association (PCEDA) chairman , Malik Bostan Khan, said ” SBP must take a bold decision and cut the policy rate as much as possible . It may be more but minimum it should be 200 basis points “. Malik Bostan Khan argued that substantial cut in the policy rate will provide great relief to the government to have billion of rupee in its kitty to spend for development of the country .
PCEDA chief said Pakistan should bring down the policy rate so that the businesses and industrial sector could get financing and inject funds into their business and industrial activity to generate more job opportunities for jobless youth and have surplus to export to earn much-needed forex exchange. “High interest rate is a real threat to Pakistan as it has choked the businesses, besides bringing industrial activity in Pakistan l to a grinding halt”, Mr Malik noted.He added that the government is paying Rs 980 billion to the banks as interest for domestic loans in the current fiscal if the policy rate remains at the current level and with cutting it down to single digit in a year it will save Rs 400 billion that could be used for development of the country. Malik Bostan Khan asserted that Pakistan is passing through difficult times as it is victim of the intriguing international conspiracy . He said despite multi dimensional challenges Pakistan’s economy is showing positive indicators and with substantial cut in the policy rate its pace of growth will increase considerably, he argued.
SBP is meeting on September 12 to review its policy rate. Pakistan ‘s trader bodies and top economists are suggesting to SBP to cut the policy rate up to 500 basis points in its Thursday meeting .