PYMA says higher interest rates to increase cost of industries considerably

KARACHI: Saqib Naseem, chairman of Pakistan Yarn Merchants Association (PYMA), and Muhammad Junaid Teli, Vice Chairman of Sindh and Balochistan Region, have said increase the higher interest rates will significantly increase the cost of industries threatening the survival of SMEs.

They urged the Governor State Bank Reza Baqir for immediate reduction of interest rates in the best economic interest of the country and urged to formulate a policy that promotes business and industrial activities not destroyed.

“The Covid-19 epidemic already had a devastating effect on business and industries, the recent political crisis in the country has also troubled the business community as no one at the government level cared about saving businesses and industries from destruction and they were busy only in politics, while now the 250 basis points increase in interest rates by SBP will sink the economy”, they pointed out.

They further said that due to the increasing business costs, it was becoming difficult to do business and run the industries. Therefore, the governor SBP should take any decision keeping in view the political situation and the economic condition in the country so as not to affect the business and industrial activities.

In order to avoid anti-economic decisions, they urged the Governor SBP Reza Baqir, to consult with the business community before making any future decisions.

Saqib Naseem and Junaid Teli also demanded governor SBP to announce a significant reduction in interest rates which are imperative for the development of the country.

Copyright Business Recorder, 2022