ISLAMABAD: President Islamabad Chamber of Commerce & Industry Ijaz Abbasi has strongly rejected the new monitory policy and demanded of the Governor State Bank to reduce the interest rates . In a statement here Sunday, he emphasized that before making or to bring a change in the policy, the stakeholders should be taken into confidence by getting their views and recommendations on that particular change.
He showed his great concern over the State Banks Pakistan decision to further raise the interest rate on the pretext of controlling fast increasing inflation in the country. ICCI President expressed concern over further tightening of the monetary policy by increasing the discount rate and one per cent increase in the reserve ratio. He warned that such policy measures would hamper the ability of the banking sector to lend and would ultimately affect the industry.
President ICCI said the decision would not only increase the cost of doing business in Pakistan but would also destroy the local industry which was already facing shortage of power and gas. He said the benefits of higher GDP growth rate, building of foreign exchange reserves, accelerated stock market index and record growth of foreign investment had not trickled down to improve the living standards of common man.
President ICCI said that it was a sorry state of affairs that at a time when the whole industry was already suffering due to high cost of doing business and complaining of being uncompetitive in the global market, the SBP had taken a totally unwise step. He further said that the monitory policy announced by the State Bank governor would not bring any good to the economy but would further deteriorate the situation.
Ijaz Abbasi was of the view that imbalances in the economy such as increasing trade deficit, current account deficit, high saving and investment gap, huge government borrowing and persistent high inflation include food inflation would leave a very negative impact on the national economy.-SANA