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Pakistan Computer Association (PCA) has vehemently castigated the State Bank of Pakistan's decision of raising interest rate from 10 to 10.50 percent. Munawar Iqbal, President of Pakistan Computer Association (PCA) on Saturday reacted strongly to SBP monetary policy.
He said the bank's decision is not based on ground realities and pragmatism. This will not only increase the already high cost of doing business in the country but also destroy the local industry already facing the power and gas shortage/outages, says a press release.
He said monetary policy decision would ultimately affect the whole production process. It is highly regretted that at a time when every industry is already suffering due to high cost of doing business and production, complaining of being uncompetitive in the world market, and struggling for its survival, SBP has decided otherwise.
Monetary policy instead of improving the present alarming state of affairs and discontentment shall further deteriorate the situation. Current rapidly increasing trade and balance of payment imbalances, dwindling saving owing to higher consumption eventually leading to low investment, huge unproductive government borrowing to meet budgetary gap, persistent highly unbearable inflation particularly food inflation making the lives of common people miserable, creating discontentment among the public and will certainly leave negative impact on the economy. Government should immediately review the monetary policy seriously considering ground realities otherwise it would face harsh criticism from the people.-PR

Copyright Business Recorder, 2008

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