RCCI strongly resents 125 basis points hike in SBP’s interest rate
RAWALPINDI ( Web News )
The Rawalpindi Chamber of Commerce & Industry (RCCI) on Thursday showed strong reservations for increasing 125 basis points in the interest rate by the State Bank of Pakistan taking it from 13.75 percent to 15 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 have a 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 125 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, however a 125 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.