ICCI urged the government. To reduce the interest rate to promote the economy
The Islamabad Chamber of Commerce and Industry (ICCI) has urged the government to cut the benchmark interest rate, which was raised to 15% to save the economy from turmoil
ISLAMABAD, (UrduPoint / Pakistan Point News – July 18, 2022): The Islamabad Chamber of Commerce and Industry (ICCI) has urged the government to cut the benchmark interest rate, which was raised to 15% in order save the economy from trouble.
He said the hike would affect the growth of business activities and cause the economy to collapse again.
In a press release issued here on Monday, ICCI Chairman Muhammad Shakeel Munir said the benchmark interest rate in Malaysia was 2.25%, Indonesia 3.5%, China 3 7%, in Bangladesh 4.75% and in India 4.9%, but it was 15% in Pakistan. why it was not possible for the private sector to compete effectively to promote trade and exports.
He said such a hike in the policy interest rate would impact the growth of industries and the SME sector as these sectors needed cheap loans for their growth and expansion.
He urged the government to step in and have the SBP decision withdrawn with immediate effect to save the private sector from trouble.
The CICI chairman said the business community was concerned about the increase in the interest rate to 15% at a time when electricity, gas and oil prices were already high.
He urged SBP to consult with stakeholders to save businesses and the economy from the negative impact of a hike in its interest rate.
Senior Vice President Jamshaid Akhtar Sheikh and Vice President Muhammad Faheem Khan ICCI said many industries had invested billions of dollars in importing machinery over the past few years at a low margin rate after securing loans from banks.
However, industrialists and exporters would not be able to import machinery and installations at a key rate of 15%, which would lead to a suspension of industrial activities and would therefore be detrimental to the economic future of the country. They also urged the SBP to reconsider its decision and reduce the benchmark interest rate to single digits to facilitate the growth and expansion of commercial and industrial activities.