Captain A Moiz Khan Patron-in-chief and Noor Ahmed Khan, Chairman, North Karachi Association of Trade and Industry (NKATI) commenting on recently announced monetary policy for July-December 2008 said that further tightening of monitory policy by 100 base point increase would have a negative impact on the economy of the country and the business community alike.
They said that following the announcement of monitory policy all commercial banks are bound to increase the lending interest rate to their customers, which would further increase the cost of doing business.
They said that as observed by the governor of State Bank while announcing the monitory policy, the need of the hour is that the government must stop borrowing from SBP for non-development expenditures, which has broken all the previous records by borrowing Rs 32 billion in 25 days and added that artificial measures could not help improve the downswing of the economy.-PR