- Home
- Pakistan
- News
- FPCCI laments tight monetary policy, urges Governor State Bank of Pakistan to avoid step at this sta ..
FPCCI Laments Tight Monetary Policy, Urges Governor State Bank Of Pakistan To Avoid Step At This Stage
Fahad Shabbir (@FahadShabbir) Published July 18, 2018 | 07:15 PM
Senior Vice President & chairman Budget Advisory Council of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Syed Mazhar Ali Nasir referring to the raise in policy rate by 100 basis points (bps) to 7.50 percent per annum w.e.f July16, 2018 has urged the Governor State Bank of Pakistan Tariq Bajwa to avoid contractionary monetary policy at this stage and ease it to control adverse effects of recession and sustaining the overall growth momentum.
Islamabad, (UrduPoint / Pakistan Point News - 18th Jul, 2018) : Senior Vice President & chairman Budget Advisory Council of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Syed Mazhar Ali Nasir referring to the raise in policy rate by 100 basis points (bps) to 7.50 percent per annum w.e.f July16, 2018 has urged the Governor State Bank of Pakistan Tariq Bajwa to avoid contractionary monetary policy at this stage and ease it to control adverse effects of recession and sustaining the overall growth momentum.
The SVP FPCCI on Wednesday argued that the upward revision in lending rate would translate in multiplying high inflation and increasing the cost of production that would further paralyze the already numb industries.
He said that the State Bank move would hit hard the overall economy as the availability of money to the business community would be more expensive now after jump in the discount rate. The SVP of FPCCI added, "Increasing the policy rate to 7.5% is not appropriate at this time when foreign competitors are coming to Pakistan with low interest rate in their respective countries particularly in the backdrop of CPEC.
Moreover, rising trend in interest rate will discourage local investors to participate in various mega projects". Syed Mazhar Ali Nasir further stated that revival in the growth of industry and services is essential to sustain economic growth which is after many years is showing increasing trend.
The SVP of FPCCI reiterated FPCCI stance that increase in inflation is mainly due to recently rising prices of POL products locally coupled with devaluation of Pak rupees. The SVP of FPCCI expressing fears of skyrocketing inflation in the wake of continuing rupee devaluation against the Dollar has termed it extremely disastrous for the economy as recent exorbitant devaluation of rupee (5%) would open flood gate of inflation for the masses.
He elaborated that Pakistan being an import based economy is compelled to buy most of the inputs including dyes, chemicals, parts, POL etc., and as such the rupee value fall would give a sharp rise to their prices and would be resulted in increase in cost of production and exports.
Related Topics
Recent Stories
Pakistan marks World Press Freedom Day
High-level Saudi business delegation due on May 5
Stocks heat up as US labour market cools
President approves Tax Laws (Amendment) Bill 2024
Implementation of merit, justice to oppressed segments top priorities: CPO
Overseas Kashmir community delegation calls on AJK President, discusses latest s ..
Govt believes in freedom of press: Amir Muqam
Labour urges UK election after Tory losses
Health authorities asked for action against alleged illegal tenders at Services ..
Spain scraps national bullfighting prize sparking debate
Lahore High Court (LHC) Chief Justice Malik Shahzad Ahmad Khan visits Rawalpindi ..
ATC extends interim bail of PTI founder in 3 cases
More Stories From Pakistan
-
RIUJ, NPC jointly organizes seminar on freedom of expression
5 hours ago -
LG&CD deptt appoints Dr Abdullah as Focal Person Media
6 hours ago -
PPP nominates Kundi, Saleem as governors KPK, Punjab respectively
6 hours ago -
Court awards 15-year imprisonment to accused in a rape case
6 hours ago -
PM visits residence of Saira Afzal Tarar, offers condolences over her father's death
6 hours ago -
Police bust gambling gang in Pindigheb area
6 hours ago
-
AJK PM approves Social Protection Ordinance
7 hours ago -
AJK President lauds overseas community for highlighting Kashmir issue
7 hours ago -
BUJ protests murder of KPC President Siddique Mengal
7 hours ago -
AJK PM chairs cabinet meeting
7 hours ago -
Randhawa for completing ongoing projects
7 hours ago -
Bilawal expresses sorrow over bus accident in Diamer
7 hours ago