Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), stated that the interest rate is expected to be reduced to 7% in the monetary policy announcement next week. He believes the State Bank has room to lower the policy rate to 7% due to a significant decrease in inflation, which has now reached its lowest level.
FPCCI President Atif Ikram added that a reduction in the interest rate should be announced at the Monetary Policy Committee meeting on June 16th. He cited positive economic indicators and a slowdown in the rate of inflation as reasons, emphasizing the importance of passing on the benefits of reduced inflation to the common person. A decrease in the interest rate, he explained, would increase money circulation, encouraging investment from banks into industries. This would boost industrial production, create employment opportunities, and directly reduce poverty by lowering the unemployment rate.
