Business community rejects 1.50bps hike in policy rate
Something needful should be done on economic fronts to make a fast comeback: Faheem Saighol
The way we are increasing input cost will push away Pakistan from export market: FEBR president
M Jahangir Hayat
LAHORE: The business community Monday rejected the 1.50 basis points increase in the policy rate and reacted that the hike in the interest rate will add to the input cost of the goods and articles thereby shattering the dream of increasing exports.
They were of the view that this is a very critical time for the Pakistani economy and decisions must be taken in larger national interests.
In order to compete with the world Pakistani products need to be made competitive in the international market and after such decision where interest rate has been increased to 12.25 bsp is alarming for the export sector.
They said that in order to increase exports the manufacturing sector must be provided with the lower interest rate to access the cheaper funding.
“The way we are increasing input cost will push away Pakistan from the export market which is something not affordable for the economic health of the country,” Friends of Economics and Business Reforms President Kashif Anwar said.
“If we want to compete the world we should provide level playing field to the production sector so that finish goods could be exported at cheaper prices,” he added, explaining that if the cost of production is not adjusted properly we will have to face both short-term and long-term issues.
Cost of production will increase for the both local and export sectors, electricity and gas prices have already been a challenge for the economy. Due to rise in policy rate lending to private sector will tend to decrease and in such circumstance doing business will be an uphill task,” Zeshan Kahlil, Lahore chamber of Commerce and Industry former vice president told Daily The Business.
He urged the government to take steps fissile for the trade and industry as the solution of all the economic ills is in keeping the wheels of trade and industry running.
“This extraordinary and uncalled for hike of 1.50 basis points in the interest rate may prove to be the last nail in the coffin,” LCCI vice president Faheemur Rehamn Saighol said while reacting and added that the economy is fast deteriorating.
Business community is worried about the senseless decisions of the government. God knows what is going to happen with us as the economy is nose-diving.
“There have been reports that in the region Pakistan is one country running very fragile economy and the weakest dollar is no way favorable for the country,” he said, concluding that something needful should be done on the economic fronts to make a fast comeback or we have to be ready for facing the consequences.
All Pakistan Poultry Association Former Chairman Abdul Basit reacted that everything will get a big blow. “Industry will suffer, business will be closed, unemployment increase and revenue fall,” he concluded.