KARACHI: The country is currently witnessing the fourth wave of the pandemic which is increasing the infection ratio to 26% in the city of Karachi and devastating the whole business scenario.

The SBP kept the interest rate at 7% unchanged to support businesses during the Covid-19 pandemic, said Ateeq-ur-Rehman, advisor to the KCCI on banking and insurance.

"The policy rate is revised up or down or kept unchanged in relation to the inflation and economic activities. I am afraid growing inflation and continuous price hike of commodities has become an economic disaster for the common man," he said.

He said that Current Account Deficit is at $1.8 billion due to higher import bill inclusive of import of agricultural commodities, industrial raw material and capital goods while trade deficit stands at $28.15 billion.

The rising trend in the international commodity market, upward adjustment in utility tariffs by the government, rupee depreciation, persistent pressure on balance of payment and debt burden also speaks volumes of upside inflation trends, which is unbearable for the common man.

A slash of 3 to 4 percent in basis point would have been more supportive for businesses and especially for the SMEs of the country, said Ateeq.

Copyright Business Recorder, 2021