President of Korangi Association of Trade and Industry (KATI) Faraz-ur-Rehman expressed serious concern about the State Bank increasing the interest rate by 3 percent to a level of 20 percent and the dollar price in the interbank market exceeded the new historical high of 285 rupees. He said that there are reports of the IMF’s condition to bring the value of the dollar equal to the Afghan border rate, and accepting the condition of raising the interest rate would bring the economy to the brink of collapse.
President KATI said that the IMF is increasing their conditions day by day، and the rising interest rates and the value of the dollar will be the last nail in the coffin of the crippled economy. Faraz-ur-Rehman demanded that the series of decisions that threaten the security of the country should be stopped. He said that the decision to increase the interest rate in the current crisis is not wise. With industries closing down and businesses heading for recession, further increases in monetary policy would be disastrous.
Faraz-ur-Rehman said that the current situation will cause a storm of unemployment and a flood of inflation, which leads to an expectation of increasing crime. Investors will prefer to keep money in banks and earn interest, while the poor will suffer from unemployment and an inferiority complex. President KATI demanded Prime Minister Shahbaz Sharif, Finance Minister Ishaq Dar and Governor State Bank Dr. Jameel Ahmed reconsider the decision and save the country from destruction.
In such difficult situations, the industrialist and investor will have no other option but to close the industries.