KARACHI – Korangi Association of Trade & Industry (KATI) has termed mere decrease in Interest rate by State Bank of Pakistan as disappointing and unhelpful for industry. In a statement released by KATI President Sheikh Umer Rehan and Head of KATI’s standing committee on economic reforms Senator Abdul Haseeb Khan demanded at least 3 to 5 pc reduction in interest rates as the economic fallout hit globally due to coronavirus breakout.
Sheikh Umer Rehan noted that as historic economic fallout had hit the world economy, industry in Pakistan would also suffer the burnt which is already struggling due to higher cost of production and other financial woes duet to the highest interest rates in country. He said industrial sector was expecting a relief and significant change in interest rates in monetary policy. “But the mere reduction of only 0.75 pc was proved sheer disappointment rather than helping the sector”, he added. He urged the PM Khan to take immediate notice of the situation and direct to bring policy rates at least less than 10 pc.
Senator Abdul Haseeb Khan said that with current policy rates, even after reduction of 75 bases points, industry could not survive and I could cost a heavy price in terms of deindustrialization and unemployment in the country. He said that in view of current global and national economic crisis we were expecting at least at single digit. He said decision by SBP was not even helpful be rather frustrating for industry and business community. He urged to revise the decision and bring policy rates at least on single digit.
