Karachi: The Korangi Association of Trade and Industry (KATI), a prominent industrial advocacy group in Karachi, has welcomed the recent decline in Pakistan’s weekly inflation rate. This news offers a glimmer of hope for citizens grappling with affordability, especially essential goods. However, KATI emphasizes the need for further action to conquer inflation and stimulate economic growth.
KATI President Expresses cautious Optimism About Downward Trend
Johar Qandhari, President of Korangi Association of Trade and Industry (KATI), expressed guarded optimism regarding the reported 1.39% decrease in weekly inflation. He anticipates this trend to provide some much-needed relief for ordinary citizens, making essential commodities more accessible.
Interest Rate Cut Seen as Catalyst for Economic Growth
While acknowledging the positive trend, Qandhari highlighted the ongoing challenges faced by salaried individuals due to high inflation. He pinpointed the need for the government, particularly the State Bank of Pakistan, to take decisive action by immediately reducing interest rates. Qandhari believes this measure would significantly improve access to affordable financing for industrial investments. This, in turn, would propel economic growth and create new employment opportunities. The KATI President estimates that a reduction in interest rates could potentially lead to a 2% surge in economic growth.
Food Price Control and Multi-Pronged Approach Advocated
President Qandhari further stressed the importance of government intervention to control rising food prices. He emphasized that widespread inflation necessitates a comprehensive approach encompassing both interest rate adjustments and measures to address the concerns of all segments of society.
KATI Reiterates Call for Urgent Action
The Korangi Association of Trade and Industry reiterated its call for the government to prioritize mitigating inflationary pressures. Qandhari urged a holistic approach that fosters economic stability and prosperity for all Pakistanis.