The Pakistan Chemicals and Dyes Merchants Association has severely criticized the recent 50 basis points reduction in the interest rate, calling the move insufficient and demanding the government to implement a single-digit interest rate to address the country’s serious economic problems.
PCDMA Chairman Saleem Vali Muhammad expressed his dissatisfaction with the decision on Monday, stating that such a minor reduction cannot be beneficial for the financial landscape in the current situation. He stressed that a significant improvement in the country’s economic situation depends on bringing the interest rate down to a single-digit figure.
He argued that a significant reduction in the interest rate is necessary to achieve economic stability so that businesses can obtain loans, which would consequently increase economic activity across the country.
The Chairman warned that if the interest rate is maintained at its current level, business growth will become impossible, and the pace of the country’s economic development will slow down further.
Saleem Vali Muhammad emphasized that until the key policy rate is brought into the single digits, no hope for economic recovery can be expected. He described decisive, positive measures to boost the economy and enhance business activities as the “need of the hour”.