ISLAMABAD (NNI) - The Pakistan Economy Watch (PEW) on Sunday lauded the decision of State bank of Pakistan (SBP) to cut policy rate by 1.5 percentage points to prop up growth. The decision is surprising but pleasing, it will trigger expansion plans and buoy up stock market, it said. Government should not use the development to seek cheap credit which has already harmed growth of the productive sector, said Dr. Murtaza Mughal, President of the Pakistan Economy Watch. Decision of the SBP will please industrial sector and help reduce ratio of defaults, he said adding that it will help our economy which is slowest in the region. However, government is set to hike power tariff by four per cent which will be a serious blow to the efforts of SBP to contain inflation and balance economy, said Dr. Murtaza Mughal. He said that authorities should take measures to spur growth as interest rates alone cannot help overcome all issues we are facing. Rates slash has nothing to do with energy scarcity, security situation, foreign affairs, natural disasters and political uncertainty, he added. Something should be done to effectively deal with weakening rupee which is adding fuel to fire of inflation and made imports costly, foreign investment is falling at an alarming rate, relations with America, the biggest donor are strain while international lenders are unhappy over failed commitments. Pakistan is facing one of the lowest expansions in the past decade due to inefficiency of politicians, floods and militancy, he said adding that resentment of masses has hit the peak.