KITE also decries 0.5pc rise
Staff Reporter
KARACHI: Patron in chief Korangi Association of Trade and Industry along with Chairman KITE Razzak Hashim Paracha have expressed surprise and disappointment over State Bank's decision to further enhance the discount rate to 13 per cent on Friday.
Reacting on the decision in a joint statement sent to The Financial Daily they said that this enhancement will lead to further increase in the cost of doing business and will ultimately hit the economic growth which started to show sign of improvement and claimed that the decision will further weaken the already fragile economic recovery.
They maintained that the enhancing of interest rate has not served the purpose in the past and will not serve purpose of reducing fiscal deficit or controlling inflation at all unless the state borrowing is curtailed.
"KATI fears that stock market will take a fresh hit now which will adversely affect the investor's confidence", they argued.
It is pertinent to note that the business community has long been demanding lowering of interest rate as the cost of doing business is the highest in the region.
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