KCCI appreciated the State Bank’s move to reduce discount rate


KARACHI (PR): Karachi Chamber of Commerce & Industry’s President Mian Abrar Ahmad, in a press statement, appreciated the State Bank’s move to reduce discount rate by 150 basis points in monetary policy and urged to bring it down to single digit. He said that at present, the situation is compounded because the credit of private sector is going up whereas reluctance is also observed by banks for providing financial support to industry due to energy crisis and negative industrial growth owing to high cost of production and manufacturing as well as massive borrowing by the Government.

He stated that to attract foreign and domestic investment, good law and order, political stability, provision of uninterrupted electricity and low interest rates are crucial. He said that he as President KCCI has strongly recommend to Government of Pakistan to come up with clear cut energy security plan for next 20 years to be shared and approved by all political parties of Pakistan and finally to be approved by the parliament thus all political parties whether in the government or not would be responsible to follow and implement the proposed energy security plan. This 20 years Energy Security Plan should be based on 40% from nuclear, 40% from Thar Coal and 20% from hydal and alternate energy or else coming generations of Pakistan would never forgive governments of the time. In Pakistan due to energy crisis our industry is working eight hours or less than that compare to India, China and other countries where industry is running 16-24 hours a day. Can you imagine the resilience of Pakistani nation and business community that we are competing the world by only working 8 hours a day what would happen if we work 24 hours a day like any other country?

President KCCI Mian Abrar Ahmad observed that the leadership of Businessmen Group and himself time and again, in various meetings held with high-ups at Islamabad urged to bring down the interest rate to single digit. He perceived that the concerned quarters raised the interest raise on the basis to cut down the inflation but in vain. He urged that Governor State Bank of Pakistan to ensure participation and consultation of KCCI and other stakeholders in formulation/ debate and implementing of Monetary Policy.

He stated that the worst ever energy crises of the history demands an immediate national energy road map, elimination of load-shedding and decreasing trend in in highest ever utility tariffs, discount rate in single digit which have collectively increased the cost of production and manufacturing and emerged as the most critical factors hampering the economic activity and industrial growth of Pakistan.