PBIF chief urges SBP to cut interest rates

Updated 28 Jan, 2020

He said that the economy has been taken as hostage by political instability, high interest rates, increasing energy tariff, exchange rate erosion and hike in the price of food items.

He noted that skyrocketing food inflation is pushing poverty in the country and a good number of people have no option but to spend up to 60 percent of their income on food items.

They are compromising on education, health and other necessities leaving them with a little possibility to buy other items which is resulting in reduced demand and sluggish production.

Exchange rate erosion, rising power and gas tariff, the increased price of petroleum products and amplified transportation costs has damaged production while the whole burden is being shifted to masses that lack the capacity to absorb the shocks.

He noted that wheat price is a benchmark for rest of the food items and if it is not controlled it will push up the price of all food items resulting in unprecedented food inflation which can result in further economic slowdown in a situation when gas supply has disrupted for industrial sector since one and a half months.

Therefore, he said, strict action should be taken against profiteers and hoarders so that no artificial crisis can be engineered in the future.

He said that the issue of flour price should be settled as soon as possible otherwise millions will fall below the poverty line.

Copyright Business Recorder, 2020

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