KARACHI: Despite mounting pressure from industry for immediate relief, a rate cut in the upcoming monetary policy appears unlikely, as the International Monetary Fund (IMF) has advised maintaining tight liquidity to curb expected inflation.

Industrial leaders have called for a reduction in interest rates to help them stay competitive globally, but the government appears satisfied with low economic growth, shrinking exports, rising imports and worsening poverty.

Several manufacturers have already begun shifting operations to Egypt, Mexico, Dubai and Vietnam. Some analysts say pressure is building for at least a 100 basis point cut when the policy is announced on Monday, though most believe the IMF’s stance will prevail.

The last reduction in the policy rate........

© Dawn Business