SCCI, UBG and FPCCI demand to reduce policy rate to single digit

Policy rate slash is inevitable for business and economic growth, say traders, business leaders, Businesses and industries won’t sustain under the high interest rate
PESHAWAR
Business community urged the State Bank of Pakistan to slash the policy rate to single digit in the Monitoring Policy Meeting to flourish business, industries and economy.
Speaking at a joint press conference here at the chamber house Tuesday, Sarhad Chamber of Commerce and Industry president Fazal Moqeem Khan, the United Business Group Patron in Chief S.M Tanveer along with FPCCI regional office bearers, traders leader and others stated business community is in a great trouble since the last two year whereas business and industrial growth have been slowed down in the prevailing situation.
During the press conference, SCCI senior vice president Abdul Jalil Jan, vice president Shehryar Khan, members of the chamber’s executive committee Adnan Nasir, Nadeem Rauf, Ashfaq Ahmad, Sultan Muhammad, Gul Zaman, Aftab, Iqbal, FPCCI KP regional chairman Haji Muhammad Afzal, Kasur Chamber president Kashif Kokar, President Bajuar Chamber Haji Lali Shah, Umar Saleem from Peoples Trade Wing, former presidents Fuad Ishaq, Malik Niaz Ahmad, former senior vice presidents Sanaullah Khan, Imran Khan Mohmand, former vice president Javed Akhtar and Monawar Khurshid, Ihsanullah, Affaf Ali Khan, Ismail Safi, Saddar Gul, Hamoodur Rehman, Saddar Gul, Faiz Rasool, Ishtiaq M Paracha and Secretary General SCCI Muqtasid Ahsan, traders leaders, importers and others.
The business leaders asserted it is impossible to run business and industries under the present policy rate.
They noted the economic indicators are highly positive and there must be a reduced policy rate at single digit.
Fazal Moqeem said it is dire need of hour to take bold decisions during MPC which is scheduled on today (Wednesday), which is imperative for revival of the economy.
The SCCI chief said the business community, particularly in Khyber Pakhtunkhwa were faced with great hardships owing to increase in cost of doing business, availability of limited loans and reduction in consumer demand.
Moqeem went on to say that the high policy rate would discourage investment in the private sector, create delay in extension projects and decrease employment avenues.
The chamber president said a record inflation rate has come down as per government claims whereas the country’s reserves also improved.
Similarly, he said economic indicators and Pakistan rating in the global market were improved as per international rating agencies.
He said it is highly unacceptable to maintain the policy rate at 11 percent and it is in dire need of hour to make a significant decrease in it.
Fazal Moqeem said if the policy rate would reduce to single digit that can lower pressure on investment and restore speed of business and industries at small and large scale level.
He opined the reduction in rate of loan would definitely provide relief to the business community and pave the way for sustainable economic growth and provision of employment opportunities in the country.
S.M Tanver warned if the policy rate would maintain at the high rate that will further devalue the local currency.
“How can business and industries flourish in the absence of ease of doing business and competitiveness, “ the UBG leader said.
Replying to a question, Mr Tanveer said according to the official data, the inflation rate stands at 4 to 5 percent.
He added it is highly appreciable that the policy rate was gradually brought down to 12 percent from 23 percent in a few years.
“Our demand is to bring down the policy rate to single digit”,
“We want to improve the country export to 100billion dollar and create employment opportunities”,
To another question regarding fulfillment of the demand, the UBG leader said the business community had remained successful in fighting against IPPs agreement and forced the government to renegotiate with IPPs.
From Karachi to Khyber, the business community had raised a voice against anti-business policies and reversed them by the government due to their agitation movement, S.M Tanveer said.
Similarly, he said electricity tariff has been reduced to Rs31 per unit from Rs48 per unit owing to unified efforts of the business community across the country.
Responding to another question, S.M Tanveer said the government is borrowing from commercial banks Rs3.5trillion.
He hoped the SBP in today’s MPC’s meeting will reduce the policy rate to single digit.