Traders and industries are of the view that a further reduction in the interest rate will benefit both the manufacturing sector and banks, which faced a default of Rs70 billion in 2023. They anticipate that the interest rate will drop to around 15 per cent in the next fiscal year (FY25). The State Bank reduced the policy interest rate by 1.5pc to 20.50pc on June 10, a move that is expected to have a positive impact on the economy. “I believe the government will adopt a pro-growth policy aimed at creating jobs, boosting exports, and reducing its own burden by slashing the interest rate,” said Amir Aziz, an exporter of textile products. However, bankers are sceptical about a significant decline in the interest rate during FY25. (Dawn)
24/6/2024