The businessmen of the country have welcomed the State Bank of Pakistan’s (SBP) reduction in the interest rate by 1.5 basis points while unveiling the monetary policy for the next two months, as the fresh move will support investment at both domestic and international level. The business community which was demanding further reduction in the interest rate has taken the new development as a positive move for reducing both the cost of production and doing business in the country. According to Aqeel Karim Dhedi of AKD Securities, the cut in interest rates was a positive step taken by the government. The new monetary policy would help resolve the circular debt issue while reducing the budget deficit. Indirectly the rupee would also be stronger against dollar, he said adding that as Pakistan was negotiating with China and Iran for various financing options, if these plans are materialised it would reflect positively on the value of rupee against the greenback. Talking to Profit, Khalid Tawab, Vice President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said that this was the demand of the businessmen that the interest rate should be in single digit and they would continue demanding further reduction of the rate. The reduction in discount rate to 12.00 per cent from 13.5 per cent, a good decision on the part of SBP, will not only help the private but also the public sector, he said adding that the reduction, however, should be long term as the fresh move was taken for two months. Mian Abrar, President, Karachi Chamber of Commerce and Industry (KCCI) calling the cut in interest rates a positive step taken by the present government, said that the chamber was demanding the reduction for the long time. The rate cut would help the country’s economy which is badly affected by the poor law and order situation and energy crisis. Talking about other challenges in the country, he said, the chamber has held meetings with Interior Ministers and Minister of Petroleum and Natural Gas to resolve the power shortages. It was the efforts made by the chamber and concerned authorities which made the industries load shedding free again for the last few days.
