Bulls surge in the PSX amid hopes of policy rate cut by SBP
Business
Benchmark KSE-100 index is currently hovering at 91,947.74 points
MPC meeting to be held today
Dollar appreciates against rupee by Rs0.07, currently standing at Rs277.77
Business leaders urge government to reduce interest rate to 12.5pc
KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) continues to witness upward rally as the investors await the State Bank of Pakistan’s (SBP) announcement regarding monetary policy.
The KSE-100 index is currently hovering at 92,016 points after gaining more than 1,100 points against previous close of 90,859 points.
This latest surge in the PSX is said to be caused by the expected policy rate cut in the Monetary Policy Committee (MPC) meeting.
US CURRENCY
On the other hand, the dollar appreciated against Pakistani rupee by Rs0.07, currently standing at Rs277.77.
Business leaders urge government to reduce interest rate to 12.5pc
Former federal minister Gohar Ejaz said the other day the government should announce a winter package for the industry immediately.
At the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Office, alongside former provincial minister SM Tanveer, ex-Federal Minister for Commerce, Gohar Ejaz advocated substantial economic reforms.
The business leaders urged the government to reduce the interest rate to 12.5pc immediately, with a further decrease to 5pc by December 31, 2024.
They also called for a special winter package to provide electricity to industries at a rate of Rs20 per unit to ease operational costs.
Gohar Ejaz cautioned that Pakistan’s industrial sector was on the point of collapse, describing factories as “turning into graveyards.”
He highlighted that maintaining high interest rates would hinder growth, pointing out that countries across the region have successfully kept their rates in the single digits. “If we lose the agricultural and manufacturing sectors, the service sector won’t survive either,” he warned.
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Blaming current economic policies, Ejaz noted that persistent devaluation of the currency and inflation driven by capacity payments were eroding economic stability.
He urged the government to set a clear target of a 10% annual increase in exports, projecting that such a trajectory would bring Pakistan’s exports to $50 billion within five years. For the success of the privatisation policy, he highlighted the necessity of restoring business community confidence.
Former provincial minister SM Tanveer underscored the importance of including FPCCI in policy-making processes. “If we are to make Pakistan an economic superpower, business leaders need to be consulted,” he stated.
Regional Chairman Zaki Ijaz also urged the government to recognise the significance of the industrial sector and prioritise policies that stimulate industrial activity to counter rising unemployment.
