The North Karachi Association of Trade and Industry (NKATI) and the Federal B Area Association of Trade and Industry (FBATI) today jointly urged the State Bank of Pakistan to slash interest rates by 5% in the next monetary policy announcement.

According to a statement by NKATI and FBATI, Faisal Moez Khan, President of NKATI, highlighted that such a reduction would not only bring the real interest rate to sustainable levels but also enhance loan accessibility for businessmen and industrialists.

He pointed out that with the government acknowledging a decrease in the inflation rate, it is imperative for the Monetary Policy Committee (MPC) to act decisively in the upcoming meeting. Khan believes that lowering the interest rate will spur new industrial investments and generate employment opportunities for the youth, while also alleviating the burden of the country’s domestic debt.

Sheikh Tahseen Ahmed, President of FBATI, emphasized that Pakistan’s current policy rate remains the highest in the region. This situation, he noted, exacerbates fiscal imbalances and strains the national budget.

A reduction, as he argued, would stimulate economic activities, enhance growth, and create a more competitive business environment. Ahmed urged the government to prioritize measures that would attract new investments, asserting that a favorable decision by the MPC on March 10 could set the stage for economic revival.