LAHORE-The LCCI Tuesday said the SBP should reconsider its decision to maintain the policy rate at seven per cent. In a statement issued here, LCCI President Irfan Iqbal Sheikh, Senior Vice President Ali Hussam Asghar, Vice President Mian Zahid Jawaid Ahmed said that due to COVID-19, the business community especially the SMEs were expecting that the SBP would further reduce the policy rate to provide breathing space to industrial sector, which was already struggling. They said it was important for the much-needed new investment in the industrial sector, adding that a note-worthy cut in the policy rate would help the industrial sector to keep the ball rolling. The LCCI office-bearers said the reduction in policy rate would benefit the industrial sector in many ways i.e. it would reduce production cost and bring the competitiveness among Pakistani products with international market.

 They said even before coronavirus pandemic, countries like Switzerland, Denmark, Japan were aiding their industrial sector with lowest interest rate and maintained the policy rates at lowest for the last many years. The LCCI office-bearers said that due to COVID-19, the business community was facing multiple issues like cash flow, capacity generation, exports etc.  They demanded the government facilitate the sectors in this time of lurch by further reducing the policy rate.