KARACHI: President of Korangi Association of Trade and Industry (KATI) Faraz-ur-Rehman has rejected the decision of the State Bank to increase the interest rate by 100 basis points to 21 percent.

He said that the country is already going through a severe economic crisis and further increase in the interest rate will cause more destruction; so the decision will cause irreparable damage.

He said that no business is able to do business at an interest rate of 21 percent. Commercial banks will lend money at 25 to 27 percent which the economy cannot afford.

He urged the governor SBP to withdraw the interest rate hike immediately as the interest rate in Pakistan is the highest in the region.

He said the government does not even understand the problems of the poor and all decisions are being made to eliminate the poor.

The KATI chief said that due to the anti-public decisions of the SBP, the economy has suffered continuous destruction.

He said that the people are having to bear the consequences of the decision to continuously harm the economy in the form of a huge increase in street crime. More such decisions will worsen the situation in the country.

The KATI chief further said that the increase in interest rate will be the last nail in the coffin of the country's economy.

Copyright Business Recorder, 2023