PESHAWAR: Local traders have rejected the increase in power tariffs by Rs4.74 per unit, terming the government decision wasn’t in the best interest of business and industries growth, which should be withdrawn immediately.

The traders’ community while speaking at a meeting here on Sunday attributed the increase in power tariff to the escalated cost of industrial production owing to frequent increase in rates of electricity and gas.

Subsequently, the business community expressed fear that the prices of manufacturing products would also move toward an upward trajectory, which could directly affect the inflation-hit people and become a major cause of unemployment as well. The traders demanded the government withdraw the recent hike in power tariffs in best interest of businesses, industrial and people.

While opposing the announcement of the monetary policy eight times instead of six times a year, the traders termed the decision of State Bank of Pakistan was not in the best interest of businesses and the country’s economy, which should be revised. As per scheduled, they viewed that the SBP would announce monetary policy on December 14, next week, urging for retaining the interest rate in order to maintain sustainability and ensure full recovery of businesses, industries and national economy that had been adversely hit by restrictions of novel corona virus pandemic.

Hasnain Khurshid, president of Sarhad Chamber of Commerce and Industry while addressing the occasion, told the meeting that the SBP had decided to announce monetary policy eight times instead of six times in a year, saying that the move was unfavorable for the national economy, businesses and industrial growth.

Participants of the meeting also slammed the promulgation of ordinance, granting autonomy to State Bank of Pakistan (SBP), aimed at targeting inflation rather than economic growth, calling it an International Monetary Fund (IMF) agenda.

During the last month, the SCCI chief said the SBP had raised its benchmark interest rate by 150 basis points to 8.75 per cent, which has brought negative impacts on the economy, businesses and industrial growth.

Hasnain Khurshid emphasized that reduction in interest rate is inevitable to cope with rising inflation, unemployment and to give a boost to the industrial sector. He noticed the business and manufacturing sector is still reeling from the Covid-19 pandemic, saying that if the interest rate increases further, the situation will be aggravated gravely. He urged the SBP to retain the interest rate as well as emphasizing to withdraw the recent hike in power tariff.

Copyright Business Recorder, 2021