LCCI urges SBP to bring down policy rate to eight percent

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LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) called for regionally competitive interest rates and urged the State Bank of Pakistan (SBP) to bring down its key policy rate to eight percent to counter weak growth and revive private investment, said a statement. LCCI President Farooq Iftikhar, Senior Vice President Irfan Iqbal Sheikh and Vice President Mian Abuzar Shad said that the current discount rate at 9.5 percent is still very high and discouraging investment, upgradation and product diversification plans. The LCCI office bearers said that the interest rate should not be higher than eight percent to boost investment and create jobs for the millions of young people entering the job market every year.

They said that the availability of cheaper money is necessary for bringing down the cost of production. They added that Pakistani goods had already lost their due place in the global market for being uncompetitive. They said that high interest rate also keeps manufacturers from investing money in capacity expansion, technological upgradation and product diversification. Thus, the SBP should bring down the policy rate so that the target set in the recently announced three-year Strategic Trade Policy Framework could be achieved.

Courtesy: The News

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