LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) on Monday hailed the State Bank of Pakistan (SBP) for one percent cut in interest rate and said that it would not only help stimulate private sector growth but would also bring down the inflation rate.
In a statement issued here, LCCI President Ijaz A. Mumtaz, Senior Vice President Mian Nauman Kabir and Vice President Syed Mahmood Ghaznavi said that the Governor State Bank deserves appreciation for bringing down the interest rate to 8.50 per cent from 9.5 per cent. “It was longstanding demand of the Lahore Chamber of Commerce & Industry that markup rate should be at the lowest to provide some breathing space to the industrial,” the LCCI president added.
Ijaz A. Mumtaz, however, called for measures to make interest rate cut meaningful and result oriented as if the other economic factor were not taken, they would continue to create problems for the economy in general and for the private sector in particular. He said that perhaps the LCCI is the only chamber of commerce in the country that had termed a considerable cut in policy rate a panacea to low investment phenomenon.
The LCCI President said that the cut will help ensure availability of cheaper money to cash starved private sector besides encouraging the potential foreign investors for investment in Pakistan. He, however, hoped that in the upcoming monetary policy, the interest rates would further be lowered to 7 per cent.
LCCI office-bearers said that the provision of ample cheaper liquidity is a must to create new businesses but in the last five years the higher interests kept the private sector growth at the lowest ebb causing huge damage to the businesses and unemployment graph also witnessed an unusual surge.
LCCI President Ijaz A. Mumtaz urged the Governor State Bank of Pakistan to review all other economy related banking policies and facilitate the private sector that is engine of the growth.
