Islamabad: President of the Islamabad Chamber of Commerce and Industry (ICCI), Sardar Tahir Mehmood, has said that in the aftermath of the recent floods, reducing the interest rate is extremely crucial to support the economy and revive business activities. He emphasized that bringing the interest rate down to seven percent would save over Rs. 3 trillion.
He noted that the interest rate has not been reduced for several months, despite the fact that the current situation presents the government with an ideal opportunity to bring it to a single-digit level. According to Sardar Tahir, lowering the interest rate would not only enhance exports but also generate new employment opportunities.
Highlighting the need to reduce production costs to remain competitive in the region, he said that doing business has become increasingly difficult under the current 11 percent markup rate and high input costs.
The ICCI President pointed out that the recent floods have caused massive destruction across the country, particularly in Punjab. He added that 60 percent of the rice crop, 35 percent of the cotton crop, and 30 percent of the sugarcane crop have been destroyed, inflicting severe losses on the economy.
He urged the government to take immediate measures to cut the interest rate in order to support the business community, encourage investment, and put the economy back on the path of growth.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
