Industry affairs: Rate cut required to increase growth

SITE association chairman urged SBP to bring interest rate down to at least 9% to spur industrial growth.

KARACHI: SITE Association of Industry Chairman Younus M Bashir has expressed his apprehensions over keeping the interest rate constant in the forthcoming monetary policy, urging the State Bank of Pakistan to bring it down to at least 9% to spur industrial growth. “High interest rates are crippling industrial growth and need to be reduced,” said Bashir. “Despite higher inflation, all the major economies had either curtailed or are in the process of reducing high interest rates to protect their economies.” Bashir further expressed that high mark-up rates is one of the biggest hurdle in the way of investment, adding that it needed to be brought down to keep the industry wheel rolling. He said the government was making its best efforts for economic revival and a cut in interest rate would be a relief to the industrial sector.

Published in The Express Tribune, July 12^th, 2014.

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