Islamabad, Dec 14: The All-Pakistan Textile Mills Association (APTMA) has urged the Monetary Policy Committee (MPC) to take bold steps to boost economic growth by reducing the policy rate by 500 basis points in its upcoming meeting on December 16, 2024. The association believes this move is crucial to address the significant challenges facing the economy.
APTMA emphasized that a substantial rate cut would have broad benefits, such as lowering borrowing costs, bringing bank mark-up rates back to single digits, and making credit more accessible for both businesses and consumers. This would, in turn, encourage investment, boost industrial production, and create positive momentum for economic growth.
The association stated that Pakistan’s economy urgently needs support through pro-growth measures, with a significant policy rate reduction being essential. The Consumer Price Index (CPI) for November 2024 had fallen to 4.9% year-on-year, down from 7.2% in October 2024, suggesting a strong foundation for monetary easing.
APTMA warned that delaying this action would lead to unnecessary economic losses, particularly as the government aims to bring interest rates back to single digits. A timely rate reduction would boost investor confidence, enhance economic stability, and demonstrate the success of recent policies.
The association also commended Pakistan’s economic planners and the resilience of the business community for contributing to the recent reduction in inflation and other economic improvements. APTMA reaffirmed its commitment to supporting policies that promote growth and stability, ensuring the prosperity of Pakistan’s people and industries.
In conclusion, APTMA expressed its readiness to collaborate with the government and other stakeholders to sustain and build on these achievements, stating that a decisive move now would pave the way for a stronger, more vibrant economy.
