The Multan Chamber of Commerce and Industry (MCCI) on Saturday hailed State Bank of Pakistan's (SBP) decision to cut interest rate by 0.5 per cent and said that it will help stimulate private sector growth. MCCI acting President Bakhtawar Tanvir Sheikh said that the SBP governor deserves appreciation for bringing down the interest rate to 9.0 per cent from 9.5 per cent.
Bakhtawar, however, called for measures to make interest rate cut meaningful and result oriented as if the other economic factor were not taken, they would continue to create problems for the economy in general and for the private sector in particular. The MCCI acting president said that the cut will help ensure availability of cheaper money to cash starved private sector besides encouraging the potential foreign investors for investment in Pakistan.
He, however, hoped that in the upcoming monetary policy, the interest rates would further be lowered to 8 per cent. He said that the provision of ample cheaper liquidity is a must to create new businesses but in the last five years the higher interests kept the private sector growth at the lowest ebb causing huge damage to the businesses and unemployment graph also witnessed an unusual surge.
The president urged the SBP governor to review all other economy related banking policies and facilitate the private sector that is engine of the growth. However, Pensioners Association Chairman Abdul Razzaq Riaz has said that government should not provide relief to the industry at the cost of their monthly income.
He said that government should fix the rate of profit for the national savings on permanent basis. Now their monthly income on the investment Rs 500,000 fell to Rs 2,800 only. He further said that government should withdraw withholding tax on the income of oldage and pensioners accounts.