RCCI President Nadeem Raufl strongly resents 150 basis points hike in SBP’s interest rate
The Rawalpindi Chamber of Commerce and Industry (RCCI) on Friday showed strong reservations for increasing 150 basis points in the interest rate by the State Bank of Pakistan taking it from7.25 percent to 8.75 percent.
The RCCI President Nadeem Rauf in a statement urged the government to withdraw the hike as it would increase the credit cost of commercial banks, ultimately bad effect on the growth of industrial activities and create more difficulties for the Small and Medium Enterprise (SME) in its efforts aimed at reviving the economy.
He said the central bank had raised its interest rate by a sharp 150 basis points in one go. He said that the sharp increase in interest rate would discourage investors from considering Pakistan for investment and badly affect investment in different projects.
Nadeem Rauf said that Pakistan needed quick revival of business and industrial activities to improve the ailing economy which was badly hit by COVID-19 , but 150 basis point increase in interest rate would make the cost of credit unaffordable for the business community and badly affect their efforts for promoting business activities.
RCCI chief said currently the Government is facing pressure on the fiscal deficit, and this increase in interest rate will increase the budget deficit. He urged the finance Advisor Shaukat Tareen to review the SBP announcement and must hold a meeting with the business leaders to discuss and devise a new strategy for steering the economy out of current troubles.