SBP move described as \u201cincomprehensible\u201d and \u201ccounterproductive\u201d in the current scenario, Fazal Moqeem says high interest stifling growth, urges bring down it to single digit
\n PESHAWAR
\nSarhad 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.
\nFazal 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 \u201cincomprehensible\u201d and \u201ccounterproductive\u201d at a time when inflation has dropped to just 3%.
\nThey noted that the business community had been expecting a reduction in policy rate to 6.0 percent reduction, but the outcome was unsatisfactory.
\nSenior 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.
\nSCCI warned the high interest stifling growth, choking industrial growth, discouraging investment, and undermining the government\u2019s own economic recovery plans.
\nIt criticized that the central bank has failed to respond to the pressing needs of the economy.
\nThey emphasised that Pakistan\u2019s cost of doing business, ease of doing business, and access to finance are at their lowest levels compared to competitors in key export markets.
\nSenior office bearers made it clear that no economic uplift is possible without a significant reduction in the policy rate to 6.0 per cent.
\nThey went on to say that SBP\u2019s decision would not only hinder commercial activities but also create further difficulties for industries and business community and economic progress.
\nSCCI 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\u2019s vision for economic growth and exports\u2019 growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
SBP move described as \u201cincomprehensible\u201d and \u201ccounterproductive\u201d 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 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-503272","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n