Talking to Business Recorder, he said that the hike in interest rate played wreak havoc to the access to finance for the business community as a whole and for SMEs and startups in particular.
He added following the higher interest rate the non performing loan escalated. Also the rates and payment of car / house financing (consumer financing) became unbearable.
The tightened monetary policy has also impeded the progress of private sector with adverse effects on the economy. Due to increased discount rates, the non-performing loans of banks are also increasing therefore, the state of affairs demand the government to take notice of the facts before taking decisions.
The cost of doing business and cost of production have shot up to the level of uncompetitiveness. Under this, the cost of borrowing is huge and capital financing become more expensive.
Ateeq said that how long this IMF chronic dependence will continue as practically speaking the fiscal deficit of every organization is widening with current expenditure soaring to its heights. For example logistics and supply chain mechanism is running out of entrepreneurs' hand.