SCCI rejects hike in interest rate by 150 basis points to 8.75pc

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PESHAWAR
President, Sarhad Chamber of Commerce and Industry, Hasnain Khurshid Ahmad has expressed serious reservations over monetary policy yesterday’s announced by State Bank of Pakistan and rejected the hike in interest rate by150 basis points to 8.75 per cent.
He feared the abrupt high increase in interest rate would not only bring negative impacts on industrial production and businesses but a new wave of inflation would also hit every segment of the society.
Hasnain Khurshid was chairing a meeting of industrialists and traders here at the chamber house on Saturday.
SCCI chief informed the State Bank of Pakistan has announced monetary policy for the next two months and raised the interest rate by 1.50%, after which the interest rate has been fixed at 8.75% for the next 2 months.
Earlier, he added that the SBP had fixed the interest rate at 7.25 per cent.
Mr Khurshid said the hike in interest rate by 8.75 per cent is completely unfavorable for businesses and the economy, which are still not fully recovered from the post-coronavirus pandemic scenario.
The chamber president called it a harsh decision which would have negative impacts on industrial production, investment and businesses. He urged the government and SBP to revise its decision in the best interest of the economy and businesses.
Commenting on the government’s decision to suspend natural gas supply to industrial and commercial consumers from next month under load management plan, the SCCI chief said that it would be completely unjust with Khyber Pakhtunkhwa province wherein the natural gas is producing in surplus quantity.
He mentioned that under constitutional article 158-A, the province has first right to fully exploit its natural resource, so unavailability of gas to consumers in Khyber Pakhtunkhwa is sheer negation and against the relevant article of the constitution of the country.
He urged the government to review its decision and ensure uninterrupted gas and electricity supply to industrial, commercial and domestic consumers in Khyber Pakhtunkhwa. Otherwise, the business community will compel in protest against suspension of gas supply in the province.