Business community has expressed mixed reaction over the monetary policy announced by State Bank of Pakistan (SBP) for the next two months. President Korangi Association of Trade and Industry (KATI) Rashid Ahmed Siddiqui has welcomed SPB decision to reduce discount rate by 50 basis points.
He said that the reduction would ultimate reduce the cost of manufacturing through slightly. He further said that in prevailing condition the business community was expecting at least 100 basis points cut in the policy rate, which would have helped promote investment in the country.
However, he expressed the hope the slight cut will too help in reduction of goods prices. Former Vice President FPCCI Zubair Tufail said that the cut in discount rate was insufficient and there was still room for further 100 basis points cut. He said that the government got the benefit of reduction in oil prices and it must be passed on to general public.
He said that during the last two months oil prices had come down by 25 percent in international market which helped to reduce import bill by about 25 percent as well. He said that prices of palm oil, Liquefied Natural Gas (LNG) and all imported raw materials were coming down whereas the SBP reduce discount rate by just 50 basis points, which is just a peanut. He advised the government to import LNG on prevailing market rate.
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