Business community demands reduction in interest rate

Peshawar: Members of the business community urged the government and the State Bank of Pakistan to cut interest rates to flourish industries, trade and businesses and improve the economy of the country.

The business community said prices of import items and raw materials increased exorbitantly owing to the gradual increase in policy rate by the central bank, consequently cost of doing business also increased and inflation also jacked up.

According to details, a meeting of businessmen was held under the Chairmanship of Industrialists Association Peshawar President Ayub Zakori in the IAP office, said in a press release issued here on Saturday.

Besides, IAP former presidents, executive members and senior members and industrialists, members of the business community were present on the occasion. The participants of the meeting said that the further increase in the policy rate will work under the prevailing scenario.

“At 25-26pc interest rate, it is hard to borrow from the banks,” he said, adding that it will be hard for the government to earn revenue due to a decline in large-scale manufacturing.

Participants of the meeting said it is very hard for businesses and industry to survive on high-interest rates at a time when the soaring power and gas tariff had already pushed up the cost of doing business, making exports uncompetitive in the world market.