KARACHI: FPCCI’s recently conducted monetary policy survey, prior to State Bank of Pakistan’s Monetary Policy Committee meeting, recommended reduction in State Bank of Pakistan’s policy rate by 50 to100 basic points.
Policy Research Unit of Policy Advisory Board, Federation of Pakistan Chambers of Commerce and Industry conducted this survey, which showed 84 percent of the businessmen and researchers on monetary policy suggested that there should be no increase in the policy rate. Nearly half of them suggested cut of 50 to 100 bps, said FPCCI statement here on Monday.
The policy brief issued on the occasion noted with a sigh of relief that the core inflation in the country – the most definitive indicator for setting up the policy rate for any central bank – had significantly subsided to 6.3% in August 2021 as compared to 6.9% in July 2021.
President FPCCI, Mian Nasser Hyatt Maggo said the policy interest rate must not be over 6%.
“For promoting business activities aimed at sustained economic growth in the country, it should be down to 5%.”
He also pointed out that policy interest rate in the region was 3 to 4 percent only and Pakistan had to compete with the regional countries in international market.
FPCCI has recently established Policy Advisory Board under the chairmanship of former Federal Secretary, Mohammad Younus Dagha.
It was tasked with providing research-based expert input for policy advocacy, ease of doing business initiatives and formalizing the business community’s inputs on policies to various governmental departments, institutions and departments.
The board was working to formalize collective opinion of the private-sector for the formulation of business-friendly policies with an objective to foster economic growth and development.