PIBC urges SBP to avoid taking decision harming economy

KARACHI: Abid Nisar, Chairman of the Pakistan Indonesia Business Council (PIBC) of FPCCI, while expressing deep concern over the increase of 250 basis points in the policy rate, appealed to the Governor, State Bank of Pakistan, Dr Reza Baqir, to take such decisions which would not harm the economy.

In an appeal, Abid Nisar said that in light of the current political situation, SBP should announce significant reduction in interest rates to save businesses and industries from collapse, while stakeholders must be consulted before making any decision in this regard.

He was of the opinion that the political crisis in the country has already had a negative impact on business and industrial activities and in such a scenario, an increase in the policy rate will definitely destroy the economy.

Abid said, “Despite the gradual improvement in the country’s exports, such decisions are beyond comprehension as the central bank must be aware of its negative effects on the economy before making any decision. Unfortunately, the SBP, as a regulator, did not take into account the impact of its decisions on the economy, business and industry.”

Copyright Business Recorder, 2022