Gohar Ejaz hails Govt for slashing policy rate, demands further cut

Former interim Finance Minister Gohar Ejaz has lauded central bank as well as federal government for slashing the interest rates, reported 24NewsHD TV channel.

Taking to his social media account on X, textile giant said that State Bank of Pakistan’s recent decision shows that the government was keen to restore business and economic activity in the country.

Gohar Ejaz said that it was the first and foremost demand of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) which has been met by the government.

He said over 200 points decline in interest rates will put healthy impact on businesses. He said that private sector was demanding that government should further announce cut in key rate and by December 2024, the government should bring it down to 12.5 basis points. Moreover, Gohar Ejaz also advised the government that in order to boosts economic activity, interest rate should be slashed to 9 percent by June 2025.

The State Bank of Pakistan (SBP) Monday announced cut its key policy rate by 250 basis points (bps) to 15 per cent from 17.5pc amid demands for a major rate cut.

The Monetary Policy Committee (MPC) decided to cut the policy rate by 250 basis points to 15 per cent, effective from November 5, 2024, citing decline in inflation faster than expected which has reached close to its medium-term target range in October. SBP highlighted that a sharp decline in food inflation, favourable global oil prices and absence of expected adjustments in gas tariffs and PDL rates accelerated the pace of disinflation recently.