MULTAN: Syed Muhammad Asim Shah, Chairman of the All-Pakistan Bed Sheet and Upholstery Manufacturers Association (APBUMA), has called for a significant reduction in interest rates to support Pakistan’s home-made textile industry and manufacturing sector. In a recent statement, Shah urged the State Bank of Pakistan and the federal government to consider a 4% cut in the interest rate at the upcoming Monetary Policy Committee meeting.
Shah noted that the country’s inflation rate has recently decreased to 9%, a development he views as highly encouraging for the national economy. He commended Prime Minister Shahbaz Sharif and his team for their efforts to improve the economic situation despite difficult circumstances.
Shah emphasized that a further reduction in interest rates is crucial for maintaining the positive trend of falling inflation. He argued that lowering interest rates would boost investment and trade activities, leading to job creation and increased government revenues.
He pointed out that prolonged high interest rates have adversely affected small and medium-sized enterprises (SMEs). Shah highlighted a comparative analysis showing that SMEs in Pakistan receive only 5% of bank financing, while their counterparts in Bangladesh and India receive about 25% and 18%, respectively.
To foster sustainable economic growth, Shah stressed the need to enhance financing for SMEs. He expressed hope that the government will give greater attention to the SME sector and that a reduction in interest rates will encourage more investment in this critical area of the economy.
In conclusion, Shah expressed confidence that the government and the State Bank would act swiftly on these recommendations to further strengthen the positive economic trends currently underway.
