The Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 22% in its meeting today.
The cost of credit and access to finance continues to remain tough for common man, said ateeq ur rehman ( economic & financial analyst).
In the past we have neglected spending on human development like healthcare, education, sanitary and clean water, also the acquisition of skills. The fact is, this all needs funds and at times the borrowed funds, which looks impossible under such policy rates.
He added that for us the economic growth is a biggest challenge in the country dominated by young and growing population, they need money for incubation, startups, entrepreneurship, etc. Under such circumstances obtaining finance is so expensive that it is not feasible.
Further, the main reasons for Pakistan current account economic problems is country’s unmanageable level of public debt. The government finds it more challenging to pay off the country’s debt due to the record high policy rates. Our domestic debt is nearly Rs.42 .67 trillion said ateeq.
Indeed, the policy rate is huge and unreasonable.
