Lahore, October 03, 2012 (PPI-OT): Founders Group of the LCCI has demanded of the State Bank of Pakistan to play his role to save the national economy and industry by bringing the mark-up rates to single digit reducing it by 2.5 to 3%.
In a statement issued here, the leaders of Founders Group Mian Muhammad Ashraf and Iftikhar Ali Malik said that in any country where the economy is facing a recession, the interest rates are brought down to stimulate growth, whereas in Pakistan it is the other way round. In the last two years interest rates in Europe and the United States have been brought down close to Zero to save the economies from collapse. This is the time that interest rates should be brought down to single digit to spur growth.
They said that a cut of 50 to 100 basis points would not be doing any service to the dwindling economy. They said that it was very unfortunate that we have failed to learn any lesson from the tighter monetary policy stance adopted by the State bank of Pakistan in the yester years.
Founders Group leaders said that ongoing economic scenario shows that there is hardly any time left for economic managers of the country and they all should understand the gravity of the situation that there would be no business community buyer if the interest rates are kept higher.
Mian Muhammad Ashraf and Iftikhar Ali Malik said that it is now before all of us that high discount rate is no more sustainable. It has been causing a great harm to economy and would continue to do so unless and until a realist approach is adopted.
They said that the State Bank of Pakistan should understand that its continued tighter stance is inflicting a very heavy loss on the nation as the economy has already paid a very high price because of high interest rate.
They reminded the policy makers that the private sector was the only hope for salvaging this country from a total economic collapse therefore a significant cut in cost of doing is direly needed.
They said that in the last few years, the private sector had suffered set-backs because of higher cost of doing business. Investment in new industrial projects and expansion in existing industry has come to a standstill. Massive flight of capital has taken place to other countries in the region where investment and business environment is favourable and future prospects are brighter.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854