PCDMA urges SBP for lower policy rate

The Pakistan Chemicals & Dyes Merchants Association has asked State Bank of Pakistan Governor Jameel Ahmed to consider cutting interest rates at the Monetary Policy Committee meeting expected on October 26. Chairman Saleem Mukati said borrowing costs were restricting businesses’ access to working capital and holding back commercial activity, Business Recorder reported.

Mukati argued that bringing the policy rate into single digits could support industry and trade, while creating momentum for employment and easing financial pressure on firms. He also said that, amid economic uncertainty and difficulties for Pakistani businesses, higher rates as an inflation-control measure would not be effective and would place the burden on traders and industrialists. The association called on the central bank to take business concerns into account when setting policy.