KARACHI: For economic development, employment provision, sustainable development and increase in tax collection, it is necessary to increase the supply of credit to the private sector, to attract the private sector to obtain credit, it is necessary to reduce the interest rate, the government should immediately But steps have to be taken to bring the interest rate to the rate of 10 to 12 percent.
Pakistan’s economic indicators are improving, inflation has come down to 9%, interest rate has come down from 22% to 17.5%, government investment bond interest rate has decreased, remittances have increased, PIA has been privatized. , reduction in global crude oil prices, improvement in credit rating by Moody’s and Fitch, obtaining a loan of 7 billion dollars from the IMF are the factors that are strengthening Pakistan’s economy.
But to take full advantage of these economic gains, it is essential to fully mobilize the private sector, currently borrowing only 12 percent, compared to 38 percent in Bangladesh and 50 percent in India.
Similarly, the advance-to-deposit ratio has also decreased from 80 percent to 40 percent during the last fifteen years.
The government should immediately take steps to bring the interest rate down to 10-12 percent, control luxury and unnecessary imports, focus on increasing exports and remittances, and support small and medium enterprises. Must be promoted.
