LAHORE: The unprecedented high policy rate of 21 percent in Pakistan has created a sense of unrest among the traders and industrialists in the country.
The high interest rate has resulted in a severe reduction of business activities, with many businesses struggling to compete in the world market due to the costly money from the banks.
The Lahore Chamber of Commerce and Industry’s Senior Vice President, Adnan Khalid Butt, has expressed grave concerns over the issue. He said that if the State Bank of Pakistan (SBP) does not bring the policy rate to a single digit, it will lead to the closure of many industries, resulting in a surge in unemployment in the country.
The high policy rate has caused immense financial burden on the industrialists and traders, making it difficult for them to pay off their loans and continue their businesses. The increased cost of borrowing has led to a significant reduction in investment, resulting in a decrease in economic growth and development.
The businessmen have urged the SBP Chief to take immediate measures to reduce the policy rate to facilitate the business activities and provide relief to the struggling industrialists. They have also demanded a review of the monetary policy to make it more business-friendly and promote investment and growth in the country.
The high policy rate has also had an adverse impact on the stock market, with the investors and traders losing billions of rupees due to the declining value of the stocks. The business community has expressed concern over the issue, urging the government to take steps to address the issue and provide relief to the struggling businesses.
In conclusion, the high policy rate of 21 percent in Pakistan has become a major concern for the business community, with many industrialists and traders struggling to stay afloat. The SBP needs to take immediate measures to address the issue and provide relief to the struggling businesses to promote investment and growth in the country.
