SM Tanveer calls for 500bps rate cut to bolster growth

KARACHI: Patron-in-Chief of United Business Group (UBG)-BMPP has called for a 500 basis points (bps) cut during Monday’s (Dec 16) highly anticipated monetary policy announcement.

“A sharp reduction in the policy rate is the need of the hour,” Tanveer said. “It will breathe life into our economy, spur investment and bring the government closer to its goal of achieving single-digit rates. Delaying this move will only inflict further harm on the country’s economy.”

He argued that lowering the policy rate would unlock affordable credit for businesses and consumers, paving the way for increased economic activity and growth. “When interest rates fall, businesses thrive, investment flourishes and our nation prospers. This is a win-win for everyone,” he added with conviction.

Tanveer pointed to November’s Consumer Price Index (CPI), which dropped to a remarkable 4.9 per cent year-on-year (YoY) from 7.2 per cent the previous month. “This incredible achievement is proof of our economic planners’ hard work and the resilience of our business community,” he remarked.

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

“At UBG-BMPP”, 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.”