MCCI welcomes SBP decision

RECORDER REPORT

MULTAN: The business community of Multan and Southern Punjab on Saturday welcomed the State Bank’s decision of reducing the mark up rate by 150 basis points.

State Bank of Pakistan (SBP) has announced in its monetary policy to reduce the mark up rate by 1.5 per cent from 12 per cent to 10.50 per cent. It is good augury for the businessmen of the country as the reduction of bank policy rate by 1.5 per cent would revive the business activities, overcome low-growth scenario and encourage new investments, which would ultimately improve the economic growth of the country, President Multan Chamber of Commerce and Industry (MCCI), Mian Anis’A Sheikh said.

He said the availability of cheaper money to the business doing would bring down the cost of business in the country, as the trade and industry were already facing problems due to high cost of energy and its crisis.

Reduction in bank mark up rate could encourage fresh investment in the industry, which had declined to 13.4 per cent in FY11, thus reduction in mark up rate would increase employment and exports of the country in long-term.

Chairman of APBUMA Syed Muhammad Aasim Shah said decision of SBP of cutting the policy rate would create vacuum for new investment as the loan would be available at low rate, which was highly desired by the business community.