Karachi, May 13, 2024 – The Korangi Association of Trade and Industry (KATI) has called for an immediate reduction in the benchmark policy rate following a significant decline in weekly inflation, as reported by the Bureau of Statistics.
KATI welcomed the notable drop of 1.39 percent in the weekly inflation rate, expressing optimism about the potential relief it could bring to consumers in accessing essential commodities. President Johar Qandhari emphasized the positive trajectory of decreasing inflation but highlighted the ongoing challenges faced by the salaried class in maintaining their standard of living amidst persistently high inflation levels.
President Qandhari identified the declining inflation trend as a catalyst for economic revitalization and urged swift action from the government, particularly the State Bank of Pakistan, to slash interest rates. He argued that lower interest rates would facilitate easier access to affordable loans for industrial investments, ultimately stimulating economic growth and creating employment opportunities. Qandhari projected a potential surge in economic growth of up to 2 percent with the implementation of reduced interest rates.
In addition to advocating for interest rate adjustments, KATI emphasized the need for government intervention in addressing food prices, considering the pervasive impact of inflation on all segments of society. Qandhari stressed the importance of comprehensive governmental measures to alleviate the financial burden on citizens and ensure equitable access to essential goods and services.
The urgency for governmental action to mitigate inflationary pressures was reiterated by Qandhari, who called for a holistic approach to ensure economic stability and prosperity for all citizens. KATI urged policymakers to prioritize measures aimed at curbing inflation and promoting sustainable economic development.
As Pakistan grapples with economic challenges exacerbated by inflation, KATI’s advocacy for a rate cut underscores the pressing need for proactive measures to support businesses and consumers alike. The association’s call for immediate action reflects the concerns of stakeholders across various sectors and highlights the importance of policy responses in fostering a conducive environment for economic growth and prosperity.