Pakistan Businessmen and Intellectuals Forum's (PBIF) president Mian Zahid Hussain said here on Monday that the government would require policy interventions to improve the country's situation as the recent cut announced in the interest rate by the central bank was not enough to stimulate the growth.
In a statement issued here on Monday, he said that SBP has anticipated good income through Euro and Sukuk bonds, IMF loan and government receipts, but did not shed enough light on declining exports, reduced tax collection, unsatisfactory investment climate and the plight of large scale manufacturing sector.
"In fact, the bank linked improved exports to situation in the US and EU, while ignoring to clearly mention the problems and their reasons at home," he said, and added: " The policy review hopes that manufacturing will pick up due to improved energy supplies, but the reason for the improvement in energy situation, was not divulged."
The PBIF chief opined that though the reduced policy rate was being termed beneficial for productive sector which would be able to secure more loans from commercial banks, the ground reality was otherwise. "The private sector was getting more loans when the interest rate was in double digit before the record fall in the global oil prices," he said, adding that the cut will only help government in getting loans.
He also stated: "Banks continue to ignore private sector, including SMEs, and their advances are falling steadily since November last year despite a reduction of 3.5 per cent in the interest rate." He said that economy needed solid steps as only hopes and prayers will not resolve pressing economic issues, besides the interest rate is not a magic wand to resolve all problems.
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