MULTAN: Multan Chamber of Commerce and Industry (MCCI) on Sunday expressed concerns on significant increase in interest rates by the SBP and stressed on the need to increase exports instead of reducing imports.

In a statement issued here, MCCI President Khawaja Muhammad Hussain observed, raising interest rates by 1.5 per cent to 8.75 per cent would hurt the economy. The domestic industry was facing difficulties due to high production costs, he remarked.

In such a scenario, a sudden 1.5 percent increase in interest rates would lead to further increase in production costs. The community was expecting relief in monetary policy, but an unexpected decision by the SBP, had raised concerns among industrialists.

Khawaja Muhammad Hussain maintained that increase in exports was essential for the recovery of the economy. The Low interest loans are very important for industry. The government should ensure such loans for the export sector to increase exports, enhance foreign exchange reserves and strengthen the value of the dollar.

He appealed the government to reduce interest rates to 8 percent so that loans would be cheaper and small and medium enterprises would continue to use their full potential.