Auto-parts' Manufacturers and Exporters Association, Chairman Tahir Javaid Malik has termed increase in the discount rate as unwise and an untimely step on the part of the State Bank of Pakistan (SBP) and urged governor SBP to review it keeping in view the ground realities otherwise, economy would not be able to be out of woods.
Malik said that at the time when economy is facing multiple internal and external challenges and investment is not at its desired level, further increase in the rate would not be doing any service to the country.
He further said this increase would also put a very negative impact on the productivity of the industrial sector, as it would jack-up cost of doing business, thus discouraging the process of industrialisation in the country. He added that increase in the discount rate would particularly hit small and medium industries, as they would not be able to pay their outstanding loans.
Auto-parts exporters' association chairman also took strong exception of acute gas load-shedding and repeated increase in electricity tariff, saying Pakistani goods are fast losing their place in the international market and global buyers are making business deals in the neighbouring countries.