Karachi: Governor State Bank Jamil Ahmed has said that inflation will further decrease in January, loan repayments have improved, which will reduce interest rates.
Addressing the FPCCI, he said that inflation will decrease in January. After January, inflation will fluctuate for 4 to 5 months. The current account is good, in which exports and remittances play an important role.
He said that exports need to be increased further. Growth in exports will improve the current account and balance of payments. Remittances are estimated to increase by $35 billion in FY25. In June 2022, the country’s debt was close to $100 billion. In September 2024, government debt was $100.08 billion.
He said that overall debt repayment has improved. Two billion dollars have also been paid in Eurobonds. Short-term loans have been shifted from long-term loans. The interest rate on loan repayments will be lower.
President FPCCI Atif Ikram Sheikh said that the State Bank brought the interest rate to single digits for economic growth, inflation fell to 4.1 percent in December 2024, the justification for double-digit interest rates in the country has ended. The State Bank has obliged commercial banks to support the business community, industry and exports.
He said that export-led growth is the only viable and sustainable path; we cannot survive on external loans, trade, industrial and SME financing should be made easy and cost-effective.
Senior Vice President FPCCI Saqib Fayyaz Mago said that the import of industrial raw materials should be made competitive by bringing cash margin and LC financing at par with the region, exports and industrial production depend on raw materials, the President FPCCI should be included in the Monetary Policy Committee.
Former Senior Vice President, FPCCI and Member National Assembly Dr. Mirza Ikhtiar Baig said that exports can keep foreign exchange reserves stable on a sustainable basis.
