RAWALPINDI/ LAHORE                 -             Rawalpindi Chamber of Commerce and Industry (RCCI) President Saboor Malik has shown dismay on government decisions for maintaining the interest rate unchanged at 13.25 percent.

In a statement issued here on Tuesday, RCCI President said that the business community was hoping that interest rate would.

He said that Pakistan needed quick revival of business and industrial activities to improve the health of the economy. The current rate of interest rate, 13.25 percent, had made the cost of credit un-affordable for business community and badly affected their efforts for promoting business activities.

RCCI chief said that Pakistan economy is facing huge challenge of export fall, contraction in Large Scale Manufacturing (LSM), unemployment, lack of infrastructure and impediments in taxation. The sharp decline in low interest can re-energize the industrial wheel, he added. Lower interest rate will also ease the pressure on government to make its key projects like Kamyab Nojwaan and Ehsaas, he further added.

The government recent data showed the government has succeeded in bringing down the current account deficit. The country’s current account deficit, in the last fiscal year, clocked in at $12.75bn, down 36 per cent from record-high $19.9bn in FY18.

This has given a huge breathing space and SBP should review its decision on maintaining the interest rate, he suggested.

Meanwhile, the Pakistan Industrial & Traders Associations Front has shown its anger over the central bank’s decision to keep the benchmark interest rate unchanged for the third consecutive time at the eight-year high of 13.25% for the next two months, disappointing the whole trade and industry which was expecting reduction in the key policy rate in view of some stability in economic indicators.