Korangi Association of Trade & Industry has demanded a major cut to interest rate in upcoming monitory policy of State Bank. In a statement released by association President of KATI Sheikh Umer Rehan, Senator Abdul Haseeb Khan, Senior Vice President Muhammad Ikram Rajput, Syed Wajid Hussain and members of executive committee of KATI urged the PM and Governor SCB to immediately decrease policy rate for the sake of survival of industry in the country.

Sheikh Umer Rehan said that with 13.25 interest rate industry couldn’t thrive, as it is already struggling the higher cost of production and others woes. He said that due to higher cost of production our industry has already lost its larger ground in international competitive market and because of higher policy rates industry were facing liquidity and other financials hurdle in the way of its survival. He urged the PM Khan and Governor SCB DR. Reza Baqir to immediately take measures to resolve this issue.

Senator Abdul Haseeb Khan was of the view that higher interest rates were aggravating the phenomenon of deindustrialization in the country which could be the biggest challenge for our economy. He said that there is a simple formula that if industry would thrive economy would also flourish with it otherwise there is no cure for the ailing economy of any country. He noted the due to international economic slowdown after spread of Coronavirus would also hit our exports and industry in Pakistan would also suffer the burnt. He suggested that in the view of current national and global economic scenario it would be wise to cut interest rates, especially for struggling industry. He also said that if in upcoming monitory policy rate wouldn’t cut significantly, industry reserves all right to raise voice against it.