SBP move described as “incomprehensible” and “counterproductive” in the current scenario, Fazal Moqeem says high interest stifling growth, urges bring down it to single digit
PESHAWAR
Sarhad Chamber of Commerce and Industry expressed dismay over State Bank of Pakistan decision to once again keep the policy rate unchanged to 11 percent, calling for reduction in it to single digits to stimulate economic activity and boost exports.
Fazal Moqeem Khan, President Abdul Jalil Jan, Senior Vice President, Shehryar Khan, Vice President and the whole executive committee of the chamber in a joint statement here on Tuesday reacted sharply over the Central Bank decision to retain policy rate at the highest rate, described it “incomprehensible” and “counterproductive” at a time when inflation has dropped to just 3%.
They noted that the business community had been expecting a reduction in policy rate to 6.0 percent reduction, but the outcome was unsatisfactory.
Senior office bearers said the inflation ratio consistently declines in the last few months whereas the national economy is moving toward a positive trajectory as per government statistics and indicators despite that interest rate had kept at double digit, which is a completely unwise decision, called to reconsider it.
SCCI warned the high interest stifling growth, choking industrial growth, discouraging investment, and undermining the government’s own economic recovery plans.
It criticized that the central bank has failed to respond to the pressing needs of the economy.
They emphasised that Pakistan’s cost of doing business, ease of doing business, and access to finance are at their lowest levels compared to competitors in key export markets.
Senior office bearers made it clear that no economic uplift is possible without a significant reduction in the policy rate to 6.0 per cent.
They went on to say that SBP’s decision would not only hinder commercial activities but also create further difficulties for industries and business community and economic progress.
SCCI stressed an immediate and single-stroke rate cut to rationalise the monetary policy and align it to the vision of special investment facilitation council (SIFC) and the Prime Minister’s vision for economic growth and exports’ growth.
