Islamabad, Jan 27: Salim Valimuhammad, Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), has rejected the State Bank of Pakistan’s 1% reduction in the interest rate, calling it insufficient. He raised the question that despite the ongoing decrease in inflation, the failure to bring the interest rate to single digits is creating serious concerns.
In a statement, he said, “When inflation is coming down, why isn’t the central bank making a significant reduction in the interest rate? Only 1% reduction will not provide any significant benefit to the economy. Until the policy rate comes to single digits, it will be difficult for economic activities to recover.”
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Salim Valimuhammad added that while Prime Minister Shahbaz Sharif has repeatedly expressed a desire for a significant reduction in the interest rate, the State Bank continues to refrain from making such a reduction, which is not conducive for the economy. The country will only stay on the path of progress if proper economic recovery measures are taken.
PCDMA president called on the State Bank of Pakistan’s Monetary Policy Committee to consider the ground realities of decreasing inflation and bring the interest rate to single digits in the next monetary policy so that the country can benefit from it.
