Don't hike interest rates

Business Recorder op-ed writer Ali Khizar seems to have done a huge favor to country's policymakers by arguing against any further increase in policy rates. Although the dollar-rupee parity has further weakened following the announcement of budget for fiscal year 2019-20, there are no cogent grounds for a further monetary tightening case. His is a plausible argument" The budget and medium term economic framework have two sides - fiscal and monetary. On the fiscal - main taxation, the direction is right and the policy paradigm shift is towards much needed documentation of the economy where both high tax collection and flow of informal money into the system should ideally reduce the need of monetary tightening."
The SBP is therefore requested to refrain from further hiking the interest rates in its upcoming monetary policy committee meeting because the deepening economic slowdown is too formidable a challenge to overcome.