KARACHI: Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has urged the State Bank of Pakistan to lower the interest rate to single digits in the upcoming meeting of the Monetary Policy Committee on January 27.
He stated that the current interest rate of 13% is causing severe difficulties for the industry and that immediate measures are needed to restore the economy. He emphasized that the interest rate is still the highest in the region and is contributing to rising inflation and financial burdens on businesses. Due to the high interest rate, the cost of doing business has surged, affecting industrial production and slowing the pace of economic growth.
He further mentioned that the industrial sector is facing challenges in obtaining loans due to the high interest rates, which has increased operational costs and limited new investment opportunities. He stressed that reducing the interest rate is crucial to provide a favourable environment for industries to improve their financial health and contribute to the economy. He also highlighted that in the current economic conditions, it is vital to protect the industrial sector from additional burdens. He added that reducing interest rates would not only create a conducive environment for investment but also generate employment opportunities and stabilize the country’s economy.
The Chairman of PVMA appealed to the government and the State Bank to adopt business-friendly policies and take concrete steps to help industries navigate through the crisis.
He further remarked that the industrial sector is the backbone of the economy, and if its financial burden is not reduced, the negative effects will be felt throughout the country.
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