Korangi Association of Trade and Industry (KATI) President Salman Aslam, while expressing concern over the hike in interest rates by SBP, said that raising interest rates to 13.75% would lead to an economic slowdown. Consequently, Unemployment and inflation will rise further. He said that the people suffering from the financial crisis could not afford further inflation, and the government should keep the interest rates in line with the rates of other countries in the region.
Salman Aslam says the growth rate in Pakistan has exceeded expectations. This is because on April 7 last month, the SBP announced an emergency monetary policy and raised interest rates by an extraordinary 2.5 per cent, bringing the interest rate to 12.25 per cent. The interest rate has reached 13.75%. Interest rates should be reduced to save industries from collapse.
Salman Aslam said that due to an increase in interest rates, industrialisation in the country has come to a standstill while the running industries and cottage industries are also facing severe problems.
He said that in the present times, the industrialists are already facing severe difficulties in achieving the export targets due to an increase in production cost. Hence it has become almost impossible to do business at the current interest rate.
President KATI said that considering the ongoing political and economic crisis in the country, the decision of the SBP was very disappointing. He said that the rise in interest rates by the SBP has created a wave of concern among the country’s traders and industrialists.
Salman Aslam said that a decision had been taken which would not be helpful to the industries nor will it be beneficial in the current economic situation.
President KATI called on the Prime Minister to immediately notice the situation and issue directives to reduce interest rates for the revival of industries and better performance.
He further said that the solution to the economcountry’s economic problems is the better performance of industries and the establishment of more industries.