KARACHI – President of Korangi Association of Trade & Industry (KATI) Sheikh Umer Rehan termed higher policy rate as one of the biggest hurdles in the way of industrialization in the country. He was addressing a seminar on SMEs arranged by Dubai Islamic Bank at KATI.
President KATI Sheikh Umer Rehan presents Crest to Heasd of SME & Commercial Banking or Dubai Islamic Bnk M Sohail Siddiq. At the occasion Zaki Sharif also present.
He said that the industrial community has learnt from the recent details of monetary policy by the State Bank of Pakistan that despite a higher percentage of collection and increase in reserve, the growth rate is implicated downwards. “It shows that problem lies elsewhere in the policymaking. With such higher policy rates how can one expect growth of industry and without this how can we expect upward growth of the economy at large” he added.
Sheikh Umer underscored the importance of the SME sector and suggested to bring down policy rate to a single digit. He said that interest-free banking according to tenets of Islamic teaching is the only way to the economic prosperity of the country.
Sheikh Umer Rehan was of the view that higher cost of production had already struck industry badly and with the higher policy rate, cost of establishing a new industry has also increased drastically.
Sheikh said that investment in the industrial sector is the need of the time for sustainable growth, but due to higher rates of interest, it has become nearly impossible to improve.
Mr Rehan suggested the government to fight back the economic woes, there should be a policy to encourage investments especially in the industrial sector of Pakistan.
Umer said that economic imbalance, poverty, unemployment and other problems only can be addressed by speedy industrialization of the country. He also urged the government to reduce policy rate.
