Korangi Association of Trade and Industry (KATI) has said that "mere decrease" of 75bps in interest rate by State Bank of Pakistan (SBP) is disappointing and demanded that the policy rate should be in single digit.
President KATI Sheikh Umer Rehan, Senator Abdul Haseeb Khan, Zubair Chapra, Rashid Siddiqui, Farrukh Mazhar and Nadeem Ahmed while speaking at a press conference at Karachi Press Club on Thursday said that economic fallout hit globally due to coronavirus outbreak and demanded that the interest should be reduced by 3 to 5 percent in the country.
They said that the local industry is facing challenges of high production cost and the high interest rate will create severe problems to run businesses in the country. "The industry was expecting a relief and significant reduction in interest rates in monetary policy, but the mere reduction of only 0.75 percent was proved sheer disappointment rather than helping the sector," they said.
They said that the industry is not able to survive with the current policy rate.
They also demanded that the government should announce a special package for industrial workers.