APCPLA concerned over keeping interest rate at 7pc

FAISALABAD: Chairman All Pakistan Cotton Power Looms Association (APCPLA) Rana Azhar Waqar expressed concern over the SBP’s new monitoring policy of keeping interest rates at 7 percent and predicting 07-09 percent rise in inflation.

He said that the government should reduce interest rates as it was an obstacle to new investment and industrial development in Pakistan.

Maintaining interest rates at 7 percent will affect new investments and will keep capital in banks for safe profits rather than commercial activities.

If the same amount is used to set up new industries, it will boost the country’s industrial growth and employment in the country. New opportunities would be created, unemployment would be reduced and government revenue would increase due to industrial development.

He expressed these views while talking to a delegation of businessmen. He said that relief should be given to the industrial and commercial sector by reducing interest rates. The rise in inflation is due to government measures. The continuous rise in petrol and electricity prices has pushed up commodity prices and inflation.

He appealed to the government to reduce the prices of electricity, petroleum products and gas in the industrial sector so that the people could get relief.—PR

Copyright Business Recorder, 2021