LAHORE: “The recent hike in the key rate will hit trade and industry hard. The business community will not be able to get cheap money which will also halt industrial expansion.
In a statement, LCCI President Mian Nauman Kabir, Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq said the Lahore Chamber of Commerce and Industry (LCCI) expects a reduction in margin rates in the context of the high cost of doing business. but the State Bank of Pakistan moved opposite and announced a further increase of 150 basis points.
“How can our industry compete with countries in the international market where the policy rate is zero or below zero,” LCCI leaders questioned and said that a high policy rate would halt industrial expansion.
They said the policy rate should be lowered to single digits to boost economic activities and ensure cheap financing for the industrial sector. They said a high margin rate was no longer sustainable as it had caused immense damage to the economy and would continue to do so unless and until a realistic approach was taken.
LCCI leaders said that despite higher inflation, all major economies had cut or were cutting high interest rates to protect their economies.
They said the State Bank of Pakistan should realize that its ever-tighter stance is inflicting a very heavy loss on the nation, as the economy has already paid a very high price due to the high policy rate.
LCCI officials have urged the State Bank of Pakistan to cut margin rates to inject power into the industrial sector.
Copyright Business Recorder, 2022