KATI president seeks reduction in policy rate

Business Recorder reported that Korangi Association of Trade and Industry President Sheikh Umer Rehan has called on the State Bank of Pakistan to bring the policy rate into single digits at the next Monetary Policy Committee meeting. He said elevated borrowing costs were adding to industrial firms’ expenses and holding back new investment. Rehan urged policymakers to consider the sector’s financing requirements, investment activity and operating costs when setting monetary policy.

He also cited high electricity and gas charges, costly inputs and substantial taxes as pressures on manufacturers, with bank financing adding another cost. Rehan said more affordable loans could help industries expand capacity, establish manufacturing facilities, adopt modern technology, create jobs and lift exports, while also supporting small and medium-sized enterprises. He appealed to SBP Governor Jameel Ahmad and MPC members to set out a gradual rate-reduction approach, arguing that lower rates could encourage industrial activity and investor confidence.