- Home
- Business
- News
- Federation of Pakistan Chambers of Commerce and Industry concerns over the high policy rate maintain ..
Federation Of Pakistan Chambers Of Commerce And Industry Concerns Over The High Policy Rate Maintained By State Bank Pakistan
Fahad Shabbir (@FahadShabbir) Published January 30, 2020 | 12:01 AM
Mian Anjum Nisar, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), expressed serious concern over the SBP unchanged policyrate which is at the highest in the region and in this state of monetary economy industry cannot survive and to compete in the international market is absolutely impossible
Islamabad (UrduPoint / Pakistan Point News - 29th January, 2020) Mian Anjum Nisar, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), expressed serious concern over the SBP unchanged policyrate which is at the highest in the region and in this state of monetary economy industry cannot survive and to compete in the international market is absolutely impossible.
Policy rate in India is 5.15 percent, China 4.35 percent, Sri Lanka 8.0 percent, Malaysia 3.0 percent, Thailand 1.25 percent,and Indonesia 6.5 percent while policy rate in Pakistan is 13.25 percent.Economists have consensus on the use of expansionary monetary policy in the state of low economic growth and reduction in GDP to control over the damaging effects of low growth on employment and investment.President FPCCI said that the State Bank of Pakistan is continuously followingcontractionary monetary policy and kept the policy rate at 13.25 percent whileon the other side the government is not providing input material to theindustry such as energy at an affordable level.
Industry is also facing highcost of doing business in Pakistan due to infrastructure and policybottlenecks. Continued monetary tightening has constrained private sector cashflows and Non-performing loans are rising.
NPLs have increased by more thantwenty three percent since it has adopted tight monetary policy.He stated that the SBP keep the high interest rate due to inflationary outlookwhile in Pakistan the inflation is cost push that cannot be controlled throughcontractionary monetary policy.
The major cause of rising inflation in thecountry is increase in the prices of industrial inputs and shortage ofessential items of daily necessity. Actually, first the high cost ofelectricity, gas and petroleum products fuels the inflation in Pakistan and tocontrol over it SBP follows tight monetary policy.Mian Anjum Nisar President FPCCI urged the SBP to reduce the policy rate inorder to increase the demand of private sector credit which will ultimatelyhelp in new industrialization and economic growth.
Related Topics
Recent Stories
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
Nasreen Noori’s book ‘Popatan Jahra Khwab’ launched
Wafaqi Mohtasib inspection team visits Excise and taxation office
AJLAC announces 5th Conference titled ‘People’s Mandate: Safeguarding Civil ..
Pak-US officials engage to enhance trade, investment ties
IBCC to promote educational excellence, expand regional presence
Pakistani 'Blue Helmets' serving UN Peacekeeping Mission in DR Congo set to leav ..
Putin says plans to visit China in May
More Stories From Business
-
Chinese minister felicitates Ahsan Iqbal on reappointment as Planning minister
3 hours ago -
Pak-US officials engage to enhance trade, investment ties
4 hours ago -
Stocks fall as tech shares sink, US economy slows
4 hours ago -
Higher taxes, awareness help decrease cigarettes sale in Pakistan
5 hours ago -
Ahsan Iqbal chairs CPEC JWGs, 13th JCC review-meeting
6 hours ago -
Industries Minister recommends urea fertilizer import to stabilize prices and supply
6 hours ago
-
Honda announces US$11 bn EV battery and vehicle plant in Canada
6 hours ago -
Zhao Shirin calls on Punjab Industries Minister
6 hours ago -
CEO APM Terminals calls on Finance Minister
6 hours ago -
SACM visits GTVC checks attendance register
6 hours ago -
CEO APM Terminals meets Commerce Minister
6 hours ago -
RTO destroys huge quantity of non-duty paid cigarettes
7 hours ago