Lahore, March 27, 2020 (PPI-OT): Pakistan Chemical Manufacturers Association (PCMA) has demanded reduction of the key interest rate to 5% so that the industry can be able to survive and compete with the neighbouring countries. Mr. Abrar Ahmad, Chairman PCMA, while commenting on the recent decrease in interest rate to 11%, said that the meagre current reduction in the interest rate would not be able to recover the ailing economy crippled with the growing uncertainty amid coronavirus pandemic.
The business community was expecting significant cut in the interest rate in the current difficult time to be faced by the investors, but SBP has reduced policy rate by only 1.5 percent, which is not enough to revive the industry, he said and stressed that government should bring down policy interest rate to at least 5 percent that would provide significant relief to the business community in these difficult times.
He acknowledged that in the prevailing crisis, government of Pakistan was responding to the business community’s suggestions very positively and the Advisor to Prime Minister on Commerce, Industry and Textile Mr. Abdul Razzak Dawood was representing the case of industry in a very effective manner”, who has assured to take up business community’s demand with the government to consider further reduction in the interest rate.
Chairman PCMA welcomed the stimulus package announced by the Prime Minister Imran Khan and also hailed the decision of reducing prices of petroleum products by Rs.15 per litre as it would provide good relief to the inflation-stricken people. He said that the government should also reduce the prices of gas and electricity for commercial and industrial consumers and allow them to pay these bills in instalments so that businesses could cope with the current crisis.
He further said that many industrial units have made required payments of imported raw material, but due to restrictions on transportation, their raw material was lying at ports while they have to pay banks mark up and demurrage charges. Chairman PCMA demanded that government should order deferring the receipt of banks mark up and demurrages for at least six months so that businesses could be able to sail through the current difficult situation.
He said that in the prevailing conditions, it was difficult for businesses to meet the domestic orders. The cut in the utility charges for commercial and industrial consumers would reduce their problems to some extent, he said adding that business community and chemical industry in particular were standing with the government in this tough time and would be able to sustain investment in case the key interest rate is brought down to 5-6%.
For more information, contact:
Pakistan Chemical Manufacturers Association (PCMA)
407-Eden Heights, Jail Road, Gulberg, Lahore, Pakistan