LCCI welcomes policy rate cut

The Lahore Chamber of Commerce and Industry (LCCI) on Saturday welcomed 1.5 percent policy rate cut. President LCCI Irfan Qaiser Sheikh in his statement said that the step taken by the State Bank of Pakistan (SBP) would help strengthen the economic indicators. He, however, hoped that after two months when new monetary policy would be announced, the interest rates would further be lowered to single digit.
The president LCCI also thanked Prime Minister Gilani for accepting the LCCI demand regarding drastic cut in the markup rate. It is pertinent to mention here that two days back, in one-to-one meeting with Gilani, LCCI President Irfan Qaiser Sheikh raised the issue of high markup and he categorically assured to bring down the markup rate.
The president LCCI said that the Prime Minister Gilani had proved that he wanted revival of the economy and the industry. He said that the availability of cheaper liquidity to the business community was need of the hour as in the last five years SBP's tight monetary policy had failed. He said that the provision of ample cheaper liquidity is a must to create new businesses but in the last five years the higher interests kept the private sector growth at the lowest ebb causing huge damage to the businesses. Unemployment also increased.
The president LCCI urged the Governor SBP to review all other economy related banking policies and facilitate the private sector that is engine of the growth. He said that in the developed economies, the markup rate is in single digit and they were maintaining it at all costs in the larger interests of their respective economies. Therefore, the Governor SBP should bring markup rate to a single digit in the monetary policy to be announced after two months.