WNAM REPORT: Member Central Core Committee United Business Group ( FPCCI) Ahsan Zafar Bakhtawari, welcomed the unusual decline in the Consumer Price Index (CPI) in April 2025, stating that the time has come to immediately reduce the interest rate to 8% and bring down the electricity tariff to Rs. 26 per unit to provide real relief to the economy.
He termed the annual inflation rate of 0.3% a major milestone in Pakistan’s recent economic history and said that it is now imperative to translate this opportunity into policy reforms. He expressed these views while talking to a delegation of the business community.
Ahsan Bakhtawari stated that the 0.3% inflation rate recorded in April 2025 is a historic event, marking the lowest level in decades. This is a clear indication that the prices of essential items such as food and electricity have decreased significantly, offering temporary relief to the general public. However, he emphasized that this improvement must now be converted into sustainable economic relief.
He strongly criticized the current interest rate of 12%, calling it contradictory in light of the 0.3% inflation and a core inflation rate of 7.4%. He argued that when inflation has dropped to such a low level, bringing the policy rate down to single digits is both economically logical and essential for policy coherence. Reducing the interest rate to 8% would stimulate investment, lower borrowing costs, and accelerate economic activity.
He also expressed serious concerns about high electricity rates, saying that they are not only hurting industrial production but also severely impacting the purchasing power of ordinary consumers. He suggested that electricity rates should be reduced to Rs. 26 per unit to provide relief to businesses, boost exports, and maintain the recent success in controlling inflation.
He warned that if this opportunity is not seized, the country could face industrial stagnation, unemployment, and economic slowdown despite the temporary dip in inflation. Now is the time for policymakers, the State Bank, and the Ministry of Finance to take bold and realistic decisions to steer the economy toward sustainable growth.
Ahsan Bakhtawari stressed that the government must implement reforms in the energy sector, reduce circular debt, and lower production costs to help Pakistan gain competitive advantage in global markets. He appealed to the business community, industrial associations, chambers of commerce, public representatives, and economic experts across the country to raise a united voice for lowering interest rates and electricity prices to increase pressure on government policy-making.
