Pakistan Industrial and Traders Associations Front (PIAF) on Monday called for a cut in the markup rate to bolster economy and enhance productivity. While talking to a delegation of Paper Merchants Association led by Khamis Saeed Butt, the PIAF Chairman Sohail Lashari said that State Bank's tight monetary policy stance had been hurting the national economy for the last many years, thus there is an urgent need to bring it to single digit.
The PIAF Chairman said that it is the State Bank alone that responsible for existing double digit markup but the government is the main player that had made heaviest ever domestic borrowing in the last four years leaving little breathing space for business community. He said that the domestic investment at the moment is alarmingly low which has sent a negative signal to the potential foreign investors and now is the time that the federal government should give some patient hearing to the private sector calling.
He said if the government was seriously desirous of having economic turnaround in the coming years it would have to do two things that are: an immediate freeze on domestic and foreign borrowing and secondly put in place a well-tailored strategy to show-case Pakistan's potentials to the outer world.
Lashari said that the State Bank of Pakistan, before finalising the upcoming monetary policy, bear in mind the internal and external challenges, the economy is facing today and if it makes a considerable downward cut, the economic activities would get a boost for a long term. He reminded of the government that it is the private sector that has paid all government dues despite the fact that it had been facing a recession like situation therefore the government should give some relief to the businessmen. He also appreciated the paper merchants' services saying that they are the people who are playing a very positive role for the promotion of education in the country.
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