FPCCI rejects hike in discount rate

LAHORE   -  Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has shown its concern over Monetary Policy announced by the State Bank of Pakistan Governor for the next two months, raising its main policy interest rate by 25 basis points to 6 percent after the recent depreciation of the rupee.  

In a statement, FPCCI Regional Chairman Ch Arfan Yousaf said that industry and business-friendly policy should be introduced instead of over-burdening the business community. "State Bank should adopt long-term policies instead of depending on the short-term policy." He said that the SBP should focus on regulating government spending and unabated borrowing instead of increasing bank interest which will pressurize industrial sector and industrial production.  

He said that the SBP has once again reversed the downward trend in the interest rate despite the fact that the industrial sector is still in deep trouble He said Pakistan's exports are jeopardizing from last 3 to 4 years and fallen from the $25 billion to $20 billion first time in the history, our imports $52 billion leading trade deficit to $32 billion during 2016-17. Drastic steps should be taken to fight against increasing the Trade deficit.  He said "The Export oriented -industry is fast losing export markets in the USA and European Union due to the increased cost of doing business".  

He said foreign debt of Pakistan was around $ 60.9 billion in 2013, which has gone up to $ 85 billion by September 2017 showing an increase of over 41 percent during the last four years. He said the constant rise in foreign debt was the major cause of poverty. 

 

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