BY : Ateeq ur Rehman.
(Economic and Financial Analyst).
When the Sbp Monetary Policy Committee meets on 9th March,26 to decide the Policy Rate for the next quarter,there are chances of increase in Policy Rate or a Status Quo due to massive increase in Petroleum Prices, adversely hitting the cost of doing business,and bringing a wave of price hike and Inflation.
Consequently, this unexpected jump in oil prices severely disrupts business activities and the rising cost of manufacturing and production.
The transport fares across the board have risen.The overland transport,public transport,private taxi/rickshaw/bikea,railway, and airlines have increased their fare,thus impacting consumer goods,groceries,fruit,
vegetables,necessary daily use items and medicines to be more expensive.
Also,there are heavy implications on energy/logistics/supply chain threating unemployment to a critical breaking point.
Tremendous raise in inflation is on the cards affecting industry,businesses,
competitiveness,etc, and declying of Exports,thus widening Trade Deficits is immenant.
Ultimately, an increase in Policy Rate will further affect the insufficient credit limit of exporters, access to finanance of Smes, and cost of credit for industries and subsidised loans to agriculture.
