The Multan Chamber of Commerce and Industry (MCCI) on Saturday said that there is need of hefty cut in the discount rates by the State Bank of Pakistan as reduction of 50 basis points would not provide any benefit to the business community.
"The SBP has only reduced its policy rate by 50 basis points whereas business community was expecting a hefty cut in the discount rate in the new monetary policy in line with international trend," MCCI President Shahid Naseem Khokhar said in a meeting with business leaders at the Chamber house here.
The reduction of 0.5 percent in the interest rate would not provide any benefit to businessmen, he said, and added that to control the damaging effects of current recession on employment and investment, the government should have announced an expansionary policy to boost growth of business and industrial activities and overcome the problems of unemployment and poverty.
The MCCI President said that power shortages have emerged as one of the most critical factors hampering economic activity in the country. "There is a dire need of immense cut in interest rate to create some room for improving the chances of economic recovery and to remove systemic risks for the financial sector as well," he added.
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