There is a room to further Cut Policy Rate: Federal Finance Minister

RAWALPINDI ( WNAM REPORT ): The Rawalpindi Chamber of Commerce and Industry (RCCI) has welcomed Federal Finance Minister Muhammad Aurangzeb’s acknowledgement of the need to reduce interest rates, describing it as “a milestone achievement born of RCCI’s sustained advocacy.”
Speaking as Chief Guest at RCCI’s Independence Day and Marka-e-Haq celebrations — marking the first-ever visit by a sitting Finance Minister to the Chamber — Aurangzeb stated:
“While the policy rate and market-based exchange rate are determined by the State Bank of Pakistan and the Monetary Policy Committee, my personal view, based on core and average inflation trends, is that there is room to further reduce the policy rate.”
RCCI President Usman Shaukat noted that the Chamber has consistently urged the government to take swift measures for economic revival — including bringing interest rates into single digits, reducing electricity and gas tariffs, and lowering tax rates to boost business activity and job creation.
The Finance Minister praised RCCI’s proposals, reaffirming that fostering a business-friendly environment is a top priority for the government and Prime Minister Shehbaz Sharif.
“Our goal is to ensure that economic policies benefit all segments of society. With consumer confidence at record highs, improved credit ratings from S&P, Fitch, and Moody’s, and steady economic growth, Pakistan is on a strong trajectory,” Aurangzeb said.
He also highlighted key developments, including: Significant policy rate cuts over the past 18 months, with further reductions anticipated, Comprehensive FBR reforms to broaden the tax base, Record foreign exchange reserves and an improved domestic business climate, Privatization of state-owned enterprises and pension reforms, Targeted electricity price reductions, Record investor participation in the Pakistan Stock Exchange and Progress on the U.S. tariff deal and ongoing IMF discussions
Upon arrival, the Finance Minister was received by RCCI President Usman Shaukat, Senior Vice President Khalid Farooq Qazi, Vice President Fahad Barlas, and other office bearers. The event featured a flag-hoisting ceremony attended by senior government officials, business leaders, and dignitaries, followed by a documentary showcasing RCCI’s contributions to Pakistan’s economic development.