ISLAMABAD -UNS: Atif Ikram Sheikh, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Friday urged the Monetary Policy Committee (MPC) to reduce interest rates by at least 500 basis points in its upcoming meeting on November 4,2024.
“With inflation easing to 6.9% in September and expected to remain between 6.0% and 7.0% for October, Pakistan’s inflation is now at favourable levels. This has created an unreasonably high real interest rate of 10.5% against the current 17.5% policy rate,” he said. “Industries are struggling to maintain their competitive edge in global markets, threatening export revenue and millions of livelihoods,” he added.
According to him, global oil prices have plummeted to record lows, with Brent at around $72 per barrel, significantly reducing Pakistan’s import bill burden. He believes this unique opportunity must be leveraged to benefit the industrial sector.
He further urged the government to restore the Freight Subsidy at a higher rate to meet GOP target prorata, i.e., 1.5 to 2% instead of 1%.
Further, President FPCCI sought elimination of 1.85% cess on temporary imports meant for re-export and machinery imported by exporters to protect SMEs from corrupt FBR practices.
“Implementing these measures will safeguard Pakistan’s export sector, particularly SMEs, and prevent them from being exploited by corrupt FBR officials,” he emphasized.
