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LAHORE: The increase in policy rate by 50 basis points is wrong and illogical decision of the State Bank of Pakistan as it would push the economy of the country to the wall.
In a joint statement issued here Saturday, the chairman Pakistan Industrial and Traders Associations Front (PIAF) Irfan qaiser Sheikh, Vice Chairmen Iqbal Baig Chugtai and Khawaja Shahzeb Akram said it would have been better if the government had curtailed the policy rate to single digit.
There is a need to make drastic cut in the interest rates to turn the economy around and enhance industrial productivity which was at its lowest ebb due to multiple reasons including acute energy shortage.
The PIAF office-bearers said that it seemed that the policy makers at the State bank of Pakistan are ignorant of the ground realities and they took the decision of increase in the policy rate at the moment when both the trade and industry are facing multiple challenges and are in dire need of some financial package.
"It is in no way a favour to the economy rather it would hit all the segments of the economy very badly therefore the SBP should review its decision in the larger interests of the country."
The PIAF had been convincing the government to bring down the interest rates as keeping it at the highest level on the pretext of controlling inflation was doing no good to the economy.
"If the agriculture and real estate sectors are brought into tax net, it would not only help the government get more revenue but would give it enough breathing space to rationalise existing rate of taxes." -PR
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