ISLAMABAD- Pakistan Association of Large Steel Producers (PALSP) has appreciated State Bank of Pakistan’s decision of further reducing the interest rate to 7 per cent and also thanked the Prime Minister of Pakistan and his team for providing further relief to the local industry. It is quite encouraging that the interest rate has continued to decline from 13.25% in early March to 7% now, said a press release issued here Saturday. This is the fifth cut since March with lowest interest rate of 7% in the past 5 years but we have to note that the prevailing Regional Discount Rate is 4 percent and we have to bring it further down to the same level within the minimum possible time. PALSP hoped that the government already trying its best to support the large scale manufacturing will take steps to encourage the struggling manufacturing sector of the country. According to the State Bank’s Monetary Policy statement, the Monetary Policy Committee (MPC) decided in the meeting held on June 25, to shrink the policy rate by 100 basis points to 7 percent. This step depicts the MPC’s narrative that the inflation outlook has improved further, although the economic slowdown in country continues. During the lockdown in April the decline in large scale manufacturing deepened to 41.9 percent. Continuous decline in high-frequency indicators of activity were reported in May. The government adopted smart lockdown with appropriate policies that helped in sustaining in the hard times. Looking ahead, the economy is predicted to improve gradually in next Fiscal Year.