RAWALPINDI: The Rawalpindi Chamber of Commerce & Industry (RCCI) has shown strong reservations for increasing further 100 basis points in the interest rate by the State Bank of Pakistan taking it from 12.25 percent to 13.25 percent.
RCCI President Malik Shahid Saleem, in a statement, urged the government to withdraw this raise as it would increase the credit cost of commercial banks, ultimately bad effect on the growth of industrial activities and create more difficulties for the Small and Medium Enterprise (SME) in its efforts aimed at reviving the economy.
“This will hit government badly on its key initiatives towards ease of doing business and providing friendly environment for business activities in the country”, he added.
He said that Pakistan needed quick revival of business and industrial activities to improve the health of the economy, but 100 basis point increase in interest rate would make the cost of credit unaffordable for business community and badly affect their efforts for promoting business activities.
RCCI chief said currently Government is facing pressure on fiscal deficit, and this increase in interest rate will increase the budget deficit. He asked Advisor on Finance Dr. Hafiz Sheikh to review the SBP announcement and must hold a meeting with the business leaders to discuss and devise a new strategy for steering the economy out of current troubles.