The increase in policy rate by 50 basis points is wrong and illogical decision of the State Bank of Pakistan, as it would push the economy of the country to the wall. In a joint statement issued here, the chairman Pakistan Industrial and Traders Associations Front (PIAF) Irfan qaiser Sheikh, Vice Chairmen Iqbal Baig Chugtai and Khawaja Shahzeb Akram said it would have been better if the government curtailed the policy rate to single digit.
There is a need to make drastic cut in the interest rate to turn the economy around and enhance industrial productivity, which was at its lowest ebb due to multiple reasons such as acute energy shortage.
The PIAF office-bearers said that it seemed that the policymakers at State Bank were ignorant of ground realities and thus took the decision to increase the policy rate, now, both trade and industry were facing multiple challenges, in dire need of some financial package.
"It is in no way a favour to the economy rather, it would hit all the segments of the economy very badly therefore, the SBP should review its decision in the larger interest of the country."
The PIAF pointed that it had been trying to convince the government to bring down interest rate as keeping it at the highest level, on the pretext of controlling inflation, was doing no good to the economy.
If the agriculture and real estate sectors were brought into the tax net, it would not only help the government get more revenue, but would also give it enough breathing space to rationalise the existing rate of taxes."
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