PCMA calls for 500bps rate cut in upcoming MPC meeting

December 14, 2024 (MLN): Ahmed Chinoy, Chairman Pakistan Cloth Merchant Association has urged the government to support economic growth by reducing the policy rate by 500 basis points on Monday’s much-like announcement in one go. 

He further said that a substantial reduction in the policy rate would not only stimulate economic activities but also be beneficial to the government.

An undue delay leads to unnecessary loss to the country’s economy, especially when the government seriously considers bringing the policy rate down to single digits.

The Consumer Price Index (CPI) for November 2024 has already reduced to 4.9% year-on-year (YoY), compared to 7.2% in the previous month, he said.

He added that a timely action would mark a notable improvement in our economic stability and demonstrate the effectiveness of our recent policy measures.

Lower interest rates will stimulate investment, boost economic activity, and contribute to the overall prosperity of our nation, he added. 

According to him, a considerable reduction has become a need of the hour as it would help bring bank mark-up rates back to single digits, making credit more affordable for businesses and consumers alike.

He said the actual inflation rate has outperformed all predictions and this positive development is a testament to our economic planners' diligent efforts and our business community's resilience.

At PCMA he said, we remain committed to supporting policies that foster economic growth, stability, and prosperity for all.

We will continue to work closely with the government, industry stakeholders, and international partners to sustain and build upon these gains, he resolved further.

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