KARACHI
Abdul Rashid, President of Site Association of Industry Karachi, while questioning that interest rates in Pakistan are the highest in the region, urged the Governor State Bank of Pakistan, Dr. Reza Baqir to immediately withdraw the rise in the key policy rate of 2.5 per cent.
SAI chief asked to reconsider the decision in the best interest of the economy and to protect trade & industry from collapse, because at a time when Pakistan needs stability in the current serious political crisis. In contrast, the central bank’s two-and-a-half percent interest rate hike raises serious concerns in the business community and they fear that if such unwise decisions continue, trade and industry will be ruined.
In a statement, SITE president said that after the devastating COVID 19, it was very difficult for trade & industry to get back on its feet, but the recklessness of decision makers and the anti-business and anti-industrial measures of government agencies have once again jeopardized the survival of businesses and industries.
Abdul Rasheed further said that on the one hand, the continuous devaluation of the rupee and the high flight of the dollar has greatly increased the cost of raw materials and now that interest rates are at an all-time high of 12.25%, the cost of production will rise to unbearable levels.
SAI chief requested Governor SBP Reza Baqir to reconsider the decision to raise interest rates in the best economic interest, adopt a strategy of gradually bringing interest rates to single digit, and also avoid imposing further burdens on trade and industry. As in the current political situation and economic crises, the country cannot afford anti-economic decisions.
