Timely action to bring stability: SM Tanveer

LAHORE:

BG-BMPP Patron-in-Chief SM Tanveer has urged the government to support economic growth by reducing the policy rate by 500 basis points in one go in Monday's monetary policy announcement.

In a statement, he said that a substantial reduction in the policy rate would not only stimulate economic activities but would also be beneficial to the government.

"Undue delay leads to an unnecessary loss to the country's economy, especially when the government is also seriously considering bringing the policy rate down to single digit," he said, adding that timely action would result in a notable improvement in economic stability and demonstrate the effectiveness of recent policy measures.

Tanveer emphasised that a considerable rate reduction had become the need of the hour as it would help bring bank mark-up rates back to single digit, making credit more affordable for businesses and consumers alike.

"Lower interest rates will stimulate investment, boost economic activity and contribute to the overall prosperity of our nation," he added.

The business leader mentioned that inflation measured by the Consumer Price Index (CPI) had already shrunk to 4.9% year-on-year in November compared to 7.2% in the previous month.

"The actual inflation rate has beaten all predictions and this positive development is a testament to the diligent efforts of our economic planners and the resilience of our business community," he remarked.

"At UBG-BMPP, we remain committed to supporting policies that foster economic growth, stability and prosperity for all."