KARACHI: Leaders and members of the United Business Group (UBG) have expressed their serious concern over the policy rate hike announced by State Bank of Pakistan. Commenting on the hike by 100 basis points, the UBG leaders said that the economy has already been facing multiple severe challenges including massive sharp currency devaluation/ fluctuation, acute energy shortages, dwindling foreign direct investment, growing fiscal imbalances, rising inflation, unbearable foreign debt and depleting foreign exchange reserve.

According to UBG’s central spokesperson Gulzar Feroz, the adverse abrupt decision of SBP to make a steep hike of 100 basis points in benchmark interest rate taking it to 16 pc is a harsh measure badly affecting the business activities of all sectors particularly it would hurt the export.

Under such critical situation it is hard for economy to survive and afford this policy rate hike which would affect the cost of doing business, resulting in unemployment as neither local nor foreign investors would put their money at stake, UBG lamented.

Copyright Business Recorder, 2022