The Lahore Chamber of Commerce and Industry (LCCI) on Friday expressed its dismay over the State Bank of Pakistan (SBP) decision to keep policy rate unchanged. The LCCI President Irfan Qaiser Sheikh in a statement called for bringing it to single digit to encourage new investments, for revival of businesses and to give a jumpstart to the economy which is at standstill.
He said that the availability of cheaper money to the business doing people is a must to expedite the process of industrialisation that would ultimately result in much-needed job creation. He, however, endorsed the SBP view point regarding economic and power sector reforms saying the reforms should be introduced in consultation with the private sector that this the engine of growth. He said that the business community understands that the ongoing electricity crisis could be overcome to some extent by controlling electricity pilferage.
He said that ongoing economic scenario shows that there is hardly any time left for economic managers of the country to manage things on economic front therefore they all should understand well that a cut in the policy rate is absolutely necessary to give boost to the economic activities in the country. Irfan Qaiser Sheikh said that all the major economies despite having higher inflation have either curtailed or are in the process of reducing interest rates to protect their respective economies.
He said that the State Bank of Pakistan should understand that its continued tighter stance is inflicting a very heavy loss on the national economy. It is coming in the way of industrialisation process in the country. "If cheaper money would not be made available to the business-doing people, nobody would be putting up new ventures" he added. The LCCI President also urged the government to pass on the benefit of cut in oil prices in the international market as the cost of doing business in Pakistan has gone so high that Pakistani merchandise are no more competitive in the global market.