KARACHI: Ahmed Chinoy, Director of the Pakistan Stock Exchange and Chairman of the Pakistan Cloth Merchants Association, has issued an urgent call for the State Bank of Pakistan (SBP) to reduce the policy rate to 6% in the upcoming monetary policy announcement.
Highlighting Pakistan’s economic challenges, Ahmed Chinoy emphasized that declining inflation and easing external account pressures present a critical opportunity to stimulate growth.
He argued that the current high-interest rate environment is stifling productive sectors, particularly small and medium enterprises, exporters, and manufacturers, who face soaring borrowing costs amidst post-COVID recovery, supply chain disruptions, and high utility expenses.
“A policy rate cut to 6% is essential to support industrial revival, enhance private sector credit, and boost domestic investment,” Chinoy stated. He warned that prolonged monetary tightening risks further under-utilizing Pakistan’s productive economy, urging the SBP to adopt a pro-growth stance to unlock sustainable development and employment opportunities.
Chinoy called on the Monetary Policy Committee to act decisively, aligning monetary policy with market realities to provide relief to businesses and drive national economic growth.
