Room for interest rate cut, but decision up to SBP: FinMin Aurangzeb

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ISLAMABAD: Finance Minister Mohammad Mohammad Aurangzeb pointed to the possibility of cutting interest rates on Monday, saying that there is a place for financial relaxation but the final decision is from the State Bank of Pakistan (SBP).

In its last meeting, the State Bank of Pakistan (SBP) stabilized the key rate of 11 %, citing inflation threats and external uncertainty due to the Iran -Israeli conflict.

The Central Bank reduced the interest rate by 11 percent to 100 points (BPS) on May 5. The central bank has reduced the rate by 1,100 twenty points since June, leading to a height of 22 %.

Talking to reporters in Karachi today, Aurangzeb said that due to eliminating structural barriers, the economy is now on the path of stability. “The results of the government’s actions are starting to come, and the economic indicators are improving,” he said.

He highlighted that both local and foreign investors are now engaged in efforts to increase economic growth. The Finance Minister noted, “Multi -national companies returned to a profit of $ 2.3 billion in the fiscal year ended June 30, a sign that issues such as profit repayment and debt letters have been resolved.”

He emphasized that banks should play their part in the restoration of sick industrial units and should be active in the privatization process.

“We have asked commercial banks and SBPs after meeting with the governor of the central bank and the heads of commercial banks, Aurangzeb said,” How they intend to contribute to economic stability. His role is very important. “

Aurangzeb made it clear that the new implementation of the Federal Board of Revenue (FBR) is not associated with the sales tax, not the income tax. He also announced the process of tax return filing for salaried individuals and small businesses.

“Now an easy tax form is available on the FBR website,” he said. It will also be presented to small traders and SMEs. “

Responding to a question about financial aid, he said: “We have provided maximum relief to those who take salaries in the available financial space.”

He added that when every finance minister wants rapid development, such a move will put pressure on foreign exchange reserves. Therefore, any decision to reduce interest rates should be carefully reviewed and SBP is eventually biased.

Finnam met OICCI leadership

In addition, overseas investors Chamber of Commerce and Industry (OICCI) hosted the finance minister for high -level dialogue with the senior leadership of major multinational companies operating in Pakistan.

During the session, Aurangzeb shared the “encouraging symptoms” of improving economic indicators and increasing business confidence, as also reflected in the OICCI’s latest survey.

Aurangzeb said, “We are witnessing the early signs of economic recovery, but to free from repeated cycles of instability, Pakistan wants to make bold and sometimes difficult decisions.” “The government is fully committed to helping the business community, ensuring a transparent, forecast and investment environment.”

In response to concerns raised by OICCI members, he assured the government’s commitment to tackle policy challenges and unlock the country’s full investment capability.

The Finance Minister also urged the investors to consider the key to the high -ranking capabilities for investment, including mining and minerals, agriculture, IT, infrastructure, including others.

On this occasion, OICCI President Yousuf Hussain acknowledged the government’s progress in strengthening the economy and emphasized the importance of strengthening the institutions.

“We welcome new signs of better economic indicators and stability,” he said, adding that we should change our institutions, invest in professionalism, and ensure permanent policy -making, “he said, adding that the ability to implement the qualification technocrats and the implementation of the qualifying technocrats.