Federation of Pakistan Chamber of Commerce and Industry (FPCCI) President Atif Ikram Sheikh, Patron in Chief United Business Group (UBG) SM Tanveer and FPCCI Regional Chairman and Vice President Zaki Aijaz said that FPCCI call upon the State Bank and the government to urgently address the current economic conditions as we await the new monetary policy announcement. With inflation figures dropping to 9%, it is imperative that immediate steps are taken to reduce the bank interest rates by 4%.
They further stressed that the problem of IPPs should be solved immediately. The task force formed on IPPs should take its decision soon, delay will cause a big loss to Pakistani exports. The price of electricity should be reduced for industries and common man. It is not possible to run industries at this interest rate and electricity rate.
FPCCI Officials emphasized that bank loans are an important source of funding for small businesses, but many small businesses do not have access to them due to high markup interest rates. When interest rates are low, the borrowing cost markup rate is also low. With the increase in demand for credit, economic activity also increases. To sustain economic growth, the growth of industry and trade is very important. Interest rate should also be suitable for this.
FPCCI Chief further said that high level of interest rate and depreciation of rupee are affecting business badly. The policy rate cuts announced at the last two monetary policy meetings have come too little and too late as the business community’s expectations were fueled by a large drop in core inflation.
They demanded that interest rates should be reduced immediately so that Pakistani exporters can compete in international and regional and export markets based on improvement in ease of doing business and cost of doing business.
FPCCI Office Bearers said FPCCI urge the State Bank and the government to act decisively today to ensure the continued momentum of our economic recovery. The time for action is now, and we look forward to seeing prompt measures that will benefit businesses and citizens alike.
