Senators furious over State Bank move

ISLAMABAD - Senators both from treasury and Opposition benches Wednesday strongly protested against the increase in the discount rate by State Bank of Pakistan and said the move would bring business activities in the country to a halt.

While debating over the prevailing economic situation of the country in the Upper House, Senators on both sides opposed the two per cent increase in discount rate and said the central bank should have waited for the conclusion of Senate debate.

Leader of the House in the Senate Senator Raza Rabbani, too, admitted that the State Bank had announced the interim monitory policy in a hurry, which was wrong.

Senator Ilyas Bilour said that the discount rate was being cut through out the world to facilitate traders and business community in the ongoing global economic meltdown. He said State Bank’s decision would destroy the country’s industry and would further increase unemployment. He challenged the government’s claims of inflation above 25 per cent, saying that decrease in prices of various commodities in international market had brought down inflation to only 18 per cent and the central bank had no reason to increase the discount rate.