Ayub Zakori Urges Government for Interest Rate Reduction

In a recent meeting held in Peshawar, members of the business community expressed their concerns over the current economic situation in Pakistan. They called upon the government and the State Bank of Pakistan to reduce interest rates in order to boost industries, trade, and businesses, and ultimately improve the country's economy.

The business community highlighted the challenges they are facing, citing the significant increase in prices of imported items and raw materials. This surge in costs has been attributed to the gradual rise in the policy rate by the central bank, leading to a rise in the overall cost of doing business and an increase in inflation.

Ayub Zakori, the president of the Industrialists Association Peshawar, emphasized the detrimental impact of the recent policy rate hike, stating that it has severely affected the already struggling business community. He pointed out that borrowing at interest rates of 25-26% has become increasingly difficult, hampering the growth of industries and hindering revenue generation for the government.

The participants of the meeting expressed concerns about the challenges faced by businesses and industries, particularly in light of high interest rates and escalating power and gas tariffs. They lamented the lack of remedial measures to promote industrialization and criticized the imposition of numerous taxes and duties on industries.

The prevailing economic conditions have led to a slowdown in production, shortages of raw materials, and fears of unemployment among SMEs and large-scale industries. The business community warned that if immediate measures are not taken to address these issues, the economy could face a total closure and default.

The plea from the business community for a reduction in interest rates reflects the urgent need for policy interventions to support economic growth and alleviate the challenges faced by industries in Pakistan. Addressing the concerns raised by industry leaders and implementing measures to promote industrial development will be crucial in steering the economy towards stability and sustainable growth.