KARACHI: Essani Group CEO Ozair A. Essani welcomed the announcement by Federal Minister for Maritime Affairs Faisal Sabzwari and Minister for Commerce Naveed Qamar to waive demurrage fines on goods stuck at ports.
He expressed concern over the increase in the interest rate of the State Bank to 17 percent. He said that by waiving the fines on goods stuck at the ports, millions of dollars of foreign exchange will be saved and the problems of the importers will end. He said that the State Bank also ended the months-long crisis by allowing 180 days late payment and removing the condition of prior authorization.
Ozair A. Essani said that by clearing the import containers, the shortage of raw materials will end and the public will be spared from bearing the burden of fines. CEO Essani Group said that the increase in interest rate will further increase inflation; the announcement of monetary policy gives the impression that the State Bank wants industrialists to lock up the industry and earn interest by keeping money in banks.
He said that it is surprising that efforts are being made to change the Islamic Shariah system and interest-free banking system in the country. He said that in the current financial crisis, no industry can afford to do business at a 17 percent interest rate. This move will lead to the end of industrial development and the closure of industries while unemployment will increase rapidly.
Further Eassani said that the rich can earn profits by keeping money in the bank, but how will the poor who have no savings survive, the government should also think about them.
In the end, Ozair A. Essani demanded that the interest rate should be reduced immediately to save the industries from closing down; otherwise the economic crisis is likely to become more serious.
