As the PSX rises in anticipation of an SBP policy rate drop,
The Pakistan Stock Exchange (PSX) persists in its upward trajectory as investors anticipate the State Bank of Pakistan’s (SBP) pronouncement on monetary policy.
The KSE-100 index presently stands at 92,016 points, having increased by approximately 1,100 points from the prior close of 90,859 points.
The recent increase in the PSX is attributed to the anticipated reduction in the policy rate during the Monetary Policy Committee (MPC) meeting.
United States Currency
The dollar appreciated against the Pakistani rupee by Rs0.07, now valued at Rs277.77.
Business leaders advocate for the government to lower the interest rate to 12.5 percent.
Former federal minister Gohar Ejaz recently stated that the government should promptly declare a winter package for the business.
At the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Office, former provincial minister SM Tanveer and ex-Federal Minister for Commerce Gohar Ejaz endorsed significant economic reforms.
Business leaders implored the government to promptly lower the interest rate to 12.5%, with an additional reduction to 5% by December 31, 2024.
They have requested a specialised winter package to supply electricity to enterprises at a rate of Rs20 per unit to alleviate operational expenses.
Gohar Ejaz warned that Pakistan’s industrial sector is on the verge of collapse, characterising factories as “transforming into graveyards.”
He emphasised that sustaining elevated interest rates will impede growth, noting that nations in the region have effectively maintained their rates in the single digits. “He cautioned that the service sector will not endure if we forfeit the agricultural and manufacturing sectors.”
Ejaz attributed the erosion of economic stability on present economic policies, highlighting the ongoing devaluation of the currency and inflation resulting from capacity payments.
He implored the government to establish a definitive objective of a 10% annual increment in exports, forecasting that this trajectory will elevate Pakistan’s exports to $50 billion within five years. He emphasised the importance of reinstating the confidence of the business sector for the success of the privatisation agenda.
Former provincial minister SM Tanveer emphasised the necessity of incorporating FPCCI in policy-making procedures. “To transform Pakistan into an economic superpower, it is imperative to consult business leaders,” he asserted.
Regional Chairman Zaki Ijaz encouraged the government to acknowledge the importance of the industrial sector and emphasise policies that promote industrial activity to mitigate increasing unemployment.