Welcoming the cut announced by the State Bank of Pakistan on Friday in its key policy rate by 150 basis points to 10.5 percent, Agri Forum Pakistan Chairman Muhammad Ibrahim Mughal said that efforts should be made to bring it to single digit. Talking to Business Recorder here on Friday, Ibrahim Mughal observed that downward revision in the interest rate will boost the business activities in the country besides attracting investment and creating more job opportunities for youth.
He said that it would also accelerate the activities in stocks and real estate sector. Mughal, who is known for his insight in agricultural matters, claimed that it would also bring down the cost of production in the agricultural sector helping to increase per acre yield thus leading to food security.
This would also cut the cost of production of the industrial sector enabling out export oriented industries to compete with other countries in the global markets, he said and added that it would enhance national exports thus bridging the gap between import and exports. Agri Forum Pakistan Chairman said that the State Bank of Pakistan should also strive to bring down the interest rate to single digit so as to solve various issues being faced by the industrial and agricultural sectors of the country due to high mark-up rates.
Copyright Business Recorder, 2012