President of Korangi Association of Trade and Industry (KATI) Faraz-ur-Rehman rejected the decision of the State Bank to increase the interest rate by 100 basis points to 21%. He said that the country is already going through an economic crisis, further increase in the interest rate will cause more destruction, and the decision of the State Bank is causing irreparable damage. Income and sales tax refunds of industrialists are at a halt, and loans from banks have also been made impossible.
President KATI said that in these circumstances, no business is able to do business at 21 percent. Commercial banks will lend 25 to 27 percent which the economy cannot afford.
Faraz-ur-Rehman said that the State Bank should decide by looking at the economic situation of the country. He demanded the Governor State Bank withdraw the interest rate hike immediately as the interest rate in Pakistan is the highest in the region. Expressing his concern, he said that the decisions taken now are posing serious threats to the integrity of the country, but the federal government is not playing a role or taking any notice of the decisions that destroy the economy, chaos in the country. If the government wants to end the industry, then let them know, and the industrialists will transfer their capital abroad. The government does not even understand the problems of the poor, all decisions are being made to eliminate the poor.
President KATI said that due to the anti-public decisions of the State Bank, the economy has suffered continuous destruction. He said that the industrialists are preferring to close the business, which will lead to an unemployment storm. If the government is interested in running a business, it should formulate a comprehensive policy in consultation with all stakeholders like KATI.
Faraz-ur-Rehman said that the people are having to bear the consequences of the decision to continuously harm the economy in the form of a huge increase in street crime. More such decisions will worsen the situation in the country.
President KATI further said that the increase in interest rate will be the last nail in the coffin of the country’s economy.