President Lasbela Chamber Ismail Suttar rejects the State Bank's decision to keep monetary policy unchanged at 10 percent for the next two months despite the fact that various economic indicators of the country have started showing signs of improvement.
He said exporters have already suffered monetary losses due to abrupt fall of dollar and facing financial crunch, the central bank has remained unmoved while industry was expecting at least one percent reduction in interest rate. He urged the State Bank to review its decision and bring down the key policy rate by at least one percent to nine percent in order to reduce the cost of doing business. President LCCI further advised the government to take business community on board prior to taking such decisions having a direct impact on cost of doing business.
He said the mechanism to control inflation through this measure would not work as government the major borrower of the banks borrowed huge money. He added that the availability of surplus liquidity in the market is always essential as its absence is the prime reason behind lack of investment in the industry.