SBP asked to reduce interest rate

Businessmen demand reversal of 250bps hike

KARACHI:

Businessmen have urged State Bank of Pakistan Governor Dr Reza Baqir to reverse the 250 basis point hike in the interest rate which was done on Thursday.

In an emergency meeting on Thursday, the central bank sharply hiked the policy rate to 12.25%.

In a statement on Monday, FPCCI Pakistan Indonesia Business Council Chairman Abid Nisar emphasised upon central bank’s governor to play his due role and take decisions that could aid the economy.

Nisar expressed deep concerns over the increase in the policy rate.

Referring to the current political situation, he appealed SBP to announce a significant reduction in the interest rate to save businesses and industries from collapse.

“Stakeholders must be consulted before making any decision in this regard,” he said.

He urged the SBP governor to end the woes of the business community and decrease the policy rate in consultation with the businessmen to improve the business environment and facilitate traders. According to him, it would give a push to the business and industrial activities.

The political crisis in the country has already harmed businesses and industrial activities and in such a scenario, an increase in policy rate will destroy the economy, he said.

Published in The Express Tribune, April 12^th, 2022.

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