The Lahore Chamber of Commerce and Industry on Friday castigated the State Bank of Pakistan for raising interest rates under the pretext of controlling the spiralling inflation in the country. Chamber President Mohammad Ali Mian's reaction came following the monetary policy announcement on Thursday, January 31.
Mian said the bank's decision will not only increase the business cost in Pakistan but also destroy the local industry already facing the power and gas shortages. He said monetary policy decisions would ultimately affect the whole production process. "It is a sorry state of affairs that at a time when the whole industry is already suffering because of high cost of doing business and complaining of being uncompetitive in the global market, the SBP has decided otherwise," he observed.
He said the monetary policy would not do any good to the economy instead it will further deteriorate the situation. "Imbalances in the economy such as the increasing trade and account deficits, the high saving and investment gap, huge government borrowing and persistent high inflation including food inflation will leave a negative impact on the economy," he added. He said if the government was serious in promoting the local businesses, it will have to review the monetary policy afresh.