RCCI dismay on interest rate unchanged

RAWALPINDI, NOV 22 (DMN): RCCI dismay on interest rate unchanged. The Rawalpindi Chamber of Commerce and Industry (RCCI) President Saboor Malik has shown dismay on Government decisions for maintaining the interest rate unchanged at 13.25 percent.

In a statement, RCCI President said that the business community was hoping that interest rates would fall as few days back Governor State Bank (SBP) Reza Baqir informed the business community about the improvement and stabilization of the country’s economic situation and economic indicators.

He said that Pakistan needed quick revival of business and industrial activities to improve the health of the economy, the current rate of interest rate, 13.25 percent, had made the cost of credit unaffordable for business community and badly affected their efforts for promoting business activities.

RCCI dismay on interest rate unchanged

The government recent data showed the government has succeeded in bringing down the current account deficit. 

The country’s current account deficit, in the last fiscal year, clocked in at $12.75bn, down 36 percent from record-high $19.9bn in FY18.

The data for October showed the current account was positive 99m against a net deficit of $1.28bn in the same month of previous fiscal year.

This has given a huge breathing space and SBP should review its decision on maintaining the interest rate, he suggested.

RCCI dismay on interest rate unchanged

RCCI Chief said that Pakistan economy is facing huge challenge of export fall, contraction in Large Scale Manufacturing (LSM), unemployment, lack of infrastructure and impediments in taxation.

The sharp decline in low interest can re-energize the industrial wheel, he added. Lower interest rate will also ease the pressure on Government to make its key projects like Kamyab Nojwaan and Ehsaas, he further added.=DMN

==============