The interest rate was already high in Pakistan compared to regional countries and the State Bank of Pakistan (SBP) has made an unprecedented hike of 150 basis points in one go and increased it to 8.75%, said Islamabad Chamber of Commerce and Industry (ICCI) President Muhammad Shakeel Munir.
In a meeting with businessmen on Monday, he said that it would badly affect the growth of business activities and stall the efforts of the government to revive the economy.
Munir said that the policy rate in Singapore was reportedly 0.22%, Thailand 0.5%, Hong Kong 0.86%, South Korea 1%, Malaysia 1.75%, but in Pakistan, it was 8.75%, which showed that the country had highest interest rate in the region.
He said that the hike in policy rate would increase the cost of doing business, turn lending to the private sector costlier, halt the expansion and growth of businesses and discourage new investment.
Published in The Express Tribune, November 30th, 2021.
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