KARACHI - Karachi Chamber of Commerce & Industry’s President Mian Abrar Ahmad, appreciating the State Bank’s move to reduce discount rate by 150 basis points, urged SBP to bring it down to single digit.
In a press statement, he said that at present the situation is compounded because the credit of private sector is going up whereas reluctance is also observed by banks for providing financial support to industry due to energy crisis and negative industrial growth owing to high cost of production and manufacturing as well as massive borrowing by the government.
He stated that to attract foreign and domestic investment, good law and order, political stability, provision of uninterrupted electricity and low interest rates are crucial. President KCCI said that he as president KCCI has strongly recommend to Government of Pakistan to come up with clear cut energy security plan for next 20 years to be shared and approved by all political parties of Pakistan and finally to be approved by the Parliament.
President KCCI Mian Abrar Ahmad observed that the leadership of Businessmen Group and KCCI in various meetings held with high-ups at Islamabad urged to bring down the interest rate to single digit. He perceived that the concerned quarters raised the interest raise on the basis to cut down the inflation but in vain. He urged that Governor State Bank of Pakistan to ensure participation and consultation of KCCI and other stakeholders in formulation/debate and implementing of Monetary Policy.
He stated that the worst ever energy crises of the history demands an immediate national energy road map, elimination of load-shedding and decreasing trend in highest ever utility tariffs, discount rate in single digit which have collectively increased the cost of production and manufacturing and emerged as the most critical factors hampering the economic activity and industrial growth of Pakistan.