Karachi – In today’s Monetary Policy, SBP has decided to keep the Policy Rate unchanged at 22%. The rates are massive and they are continuing said ateeq ur rehman (economic & financial analyst).
Under such rates access to Finance is critically difficult not only for SMEs but for the whole Industry, because we import 98% Raw Material to feed our Industry for production which requires cash flow. With such Policy Rates and Kibor borrowing is almost impossible by making the cost of material purchased enormously expensive. Thus, the cost of production increases heavily making local consumers to buy goods at unaffordable prices. Exports also suffer massively due to high cost of production , thus we are out of competition, added ateeq.
It is difficult to understand how this growing inflation is being controlled by such heavy policy rates where the fact is, increasing policy rates increases the inflation, specially the food inflation.
Request is made to decrease the policy rates extensively.
