Reducing interest rates to single-digit will trigger growth: PBIF

President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain, has said that US-Iran war resulted an increase in oil prices while continued tension between the two countries will become a nightmare for the oil and gas importing countries.

He said in present scenario relaxing import policy and reducing interest rates to single-digit will trigger growth and increase revenue as well as employment in the country.

He said the policy of discouraging imports and keeping the interest rate in double-digit should be changed during the New Year.

Mian Zahid Hussain noted that rupee fell by 31.7 percent against the dollar in 2018-19 causing serious problems for the business community while it regained some ground in 2019-20 but the pace of recovery is not satisfactory.

He noted that accountability, some judicial decisions and other issues have increased political temperature in the country unnerving the business community while the outcome of economic policies should not be ignored anymore.

He said that the business community is avoiding loans from banks while many of those who have borrowed are defaulting on obligations. On the other hand, the banking spread which was 450 basis points during the last year has jumped to 622 basis points which is blocking economic development.