Interest-rate increase: FPCCI opposes interest rate hike

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has opposed the idea of hike in interest rates. President FPCCI Malik Zubair Ahmed said upward revision in the interest rates will spell disaster for the faltering economy and damage the investment climate. He said State Bank of Pakistan is bracing for an increase in the policy rate amid continued erosion in value of local currency against dollar on the behest of the IMF. He warned that hike in power prices, POL prices and expected surge in interest rate in absence of any structural reforms may hit sentiments which have turned positive after the May 11 elections. The impact of hike in power and POL prices along with rupee weakness should not be intensified with an interest rate hike.

Published in The Express Tribune, September 5^th, 2013.

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