KARACHI: Ahmed Azeem Alvi, President of the SITE Association of Industry(SAI) has expressed disappointment over the State Bank of Pakistan’s decision to reduce the policy rate by only 50 basis points, terming the move insufficient to provide any meaningful relief to the struggling industrial sector.
In a statement, SAI President said that given the severity of the current economic challenges, such a marginal cut would do little to ease the pressure on businesses. He stressed that the government must adopt a clear and coherent strategy if it intends to keep domestic industries afloat.
Mr Alvi said that local industries were already under immense strain, while imports had come to a standstill. At the same time, he added, persistently high interest rates had trapped both businesses and the public in a cycle of inflation and unemployment. “People are losing jobs every day. The government must bring the policy rate down to single digits so that the economy can breathe and employment opportunities can grow,” he said.
Criticising what he described as misplaced government priorities, the SAI president said that IMF conditions and bureaucratic hurdles were preventing timely and effective decision making. “When it comes to the economy, it seems no one is genuinely concerned. The government is failing to take long term, meaningful decisions,” he remarked.
Mr Alvi warned that unless the government moves swiftly to further reduce interest rates and introduce business friendly policies, industrial activity could grind to a halt. Such a scenario, he cautioned, would deepen unemployment and push the country into an even more severe economic crisis.
