The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged the State Bank of Pakistan to reconsider its decision to keep the monetary policy rate unchanged at 15%, saying it becomes difficult for businessmen to get loans at a high-interest rate.

The business community was expecting a reduction in the interest rate so that the wheel of the economy could run, RCCI President Saqib Rafiq said in a statement received by WealthPK.

“Bringing the policy rate down to a single digit can be very helpful in reviving business activities and turning around the downward slide of the economy amid the prevalent challenging times,“ he said. The policy interest rate in neighbouring countries is under single digit, India 5.90% and Bangladesh 5.75%, he cited.

Saqib Rafiq said that the cost of production has increased many times due to inflation. The high-interest rate would increase the credit cost of commercial banks, ultimately having a bad effect on the growth of industrial activities and creating more difficulties for the small and medium enterprises in their effort to revive the economy, he added.

Pakistan needed a quick revival of business and industrial activities to improve the ailing economy, he said, adding the savings of businessmen and industrialists have decreased due to the economic challenges being faced by the country.

The RCCI chief lauded the finance minister’s announcement of releasing Letters of Credit (LCs) payments up to 50,000 dollars. However, he demanded that due to the delay in the opening of LCs, traders have suffered a lot and demurrage charges should be abolished at the port.

Credit : Independent News Pakistan-WealthPk