FPCCI for reducing markup rate to boost economy

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday underlined the need for reducing markup rate to boost trade, industry and economy.

Talking to a delegation of leading industrialists and traders led by Chairman United Business Group Iftikhar Ali Malik, FPCCI President Engineer Daroo Khan Achakzai said the apex trade body interacted with the Governor State Bank of Pakistan and presidents of other banks.

They also discussed the fiscal and monitory policies, economic growth, credit expansion, and performance of the agriculture, manufacturing, service sectors of the national economy, said a press release issued here today.

He said FPCCI urged the need for introducing business-friendly policy.

He also urged the SBP to focus on regulating government spending and unabated borrowing instead of increasing bank interest which will affect the industrial sector.  He further said the export-oriented industry was fast losing markets in the USA and European Union due to the increased cost of doing business.

Daroo Khan also pointed out that public money in commercial banks was being utilized to finance the fiscal deficit, which was creating a saving-investment gap in the economy that is also leading to several economic problems including unemployment, inflation and disinvestment.

He also urged for utilizing the public money for enhancement of trade and investment activities through bank loans at a lower interest rate.

On this occasion, Iftikhar Ali Malik said business community reposed full confidence in the dynamic leadership of Prime Minister Imran Khan and now it was the government’s turn to create business friendly environment in the country to speed up economic activities.

He said in order to encourage businessmen to stay in the country and for stopping capital flight, there was a need to provide special incentives like tax exemption rebate on bank loans, subsidized power and gas bills for industrial development, job creation and absorb skilled and sami-skilled workforce.

He also called upon the government to provide relief to textile and leather units to keep the wheel of industries moving. He stressed the need to boost exports by giving incentives to exporters.

He also urged for evolving further growth-oriented monetary policies to help strengthen the national economy on sound footings.

Iftikhar Malik also urged the need for promoting intra-regional trade as huge potential existed in different sectors of the economy.