FAISALABAD: Rehan Naseem Bharara, President Faisalabad Chamber of Commerce & Industry (FCCI) has expressed concern over the maintenance of the policy rate in double digit and said that it may dampen economic and industrial growth in the country.
He said that chambers and trade associations have been demanding for a long time to cut down the policy rate to the single digit to spur economic activities.
He said that Prime Minister Shehbaz Sharif had openly confessed in public meetings that industrial activities could not be expedited with high markup rate. He said that we are thankful to the government that it has gradually brought down the policy rate from 23% to 11% but still it is too high to give a quick start to the industrial activities.
He said that it was particularly detrimental to the SME sector which has severe financial constraints and they could not do profitable businesses with high markup rate.
He said that the economic indicators are improving gradually and inflation has come down to 3.5% and there was a possibility to cut down the policy rate to single digit but the SBP remained over cautious and decided to maintain the policy rate at 11%. He said that this decision has disappointed the business community and demanded that the government must revisit this decision and bring down the policy rate to single digit.
Copyright Business Recorder, 2025
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