Reduction in policy rate to boost business activities: PM Shehbaz

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif welcomed the drop in policy rate and said that it would boost business activities, exports and employment opportunities in the country.

Chairing a meeting of the Pakistan Muslim League-Nawaz (PML-N) Parliamentary Party PM Shehbaz said the economy of Pakistan is being stablised, adding that the inflation has scaled down from 38 to eight percent.

He said that the statements of the national and international institutions on Pakistan’s economy are testament to the stability.

The prime minister said that the nefarious designs of those, who want to spread chaos and bring the country to the brink of bankruptcy, have faiuled failure. “The history will always remember those in golden words who sacrificed their politics for the survival of the country,” he added.

Speaking on his recent visit to Saudi Arabia, PM Shehbaz said that a new chapter has been added in Pakistan-Saudi investment partnership du. He said in the Future Investment Initiative, a detailed discussion was held with the Saudi leadership, especially Saudi Crown Prince Mohammed bin Salman.

“Saudi Arabia is a long lasting friend and partner of Pakistan. The Saudi leadership assured all kind of support for the stability and development of Pakistan’s economy,” he added.

The prime minister also informed the PML-N parliamentary party that during visit to Qatar, their leadership also assured to increase investment in Pakistan. He said talks were held for giving practical shape to the projects worth three billion dollars of Qatari investment in Pakistan.

He said Qatar will invest in various sectors including aviation, hoteling, Information Technology and energy sectors in Pakistan.

PM Shehbaz Sharif said the government is taking steps on priority basis to facilitate investment and increase foreign investment in Pakistan. He said reform agenda is being implemented in every sector of the country. He said FBR has been directed to honour such people who pay taxes as they are ambassadors of Pakistan.

During the meeting, the PML-N Parliamentary Party was also taken into confidence regarding the proposed legislation bill in the National Assembly.

Earlier on Moday, the State Bank of Pakistan (SBP) announced to cut its policy rate by 250 basis points (bps) to 15 percent from 17.5 percent amid calls for a big rate drop.

The decision was taken in a Monetary Policy Committee (MPC) meeting of the central bank chaired by SBP Governor Jameel Ahmad.

“At its meeting today, the Monetary Policy Committee (MPC) decided to cut the policy rate by 250 basis points to 15 percent, effective from November 5, 2024. The Committee noted that inflation has declined faster than expected and has reached close to its medium-term target range in October,” a statement issued here read.