The State Bank has been asked to cut the policy rate to provide relief to the business community because inflation has now come down, forex reserves have increased and the current and fiscal account deficits have also declined. - File photo


ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) has urged the State Bank of Pakistan to reduce interest rates.

‘The economy is showing positive indicators while inflation has also shrunk and these are the ideal times that SBP should bring down interest rate to single digit level in forthcoming review of monetary policy,’ ICCI President Zahid Maqbool said.

In a statement, he said that the main objective of maintaining a tight monetary policy was to control inflation and fiscal as well as current account deficits.

Now the inflation has come down, forex reserves have increased and the current account deficit has also declined, he said, adding that it was high time that the government makes a cut in the policy rate to provide relief to the business community.

He was of the view that cutting interest rates to single digit level will produce multiple benefits for the economy.

‘It will lower the cost of doing business, give a strong boost to business and industrial activities, provide easy credit and loaning facilities to trade and industry, promote better investment and exports and generate more tax revenue for the government,’ he added.—APP


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