President of The Lahore Chamber of Commerce and Industry (LCCI) Irfan Iqbal Sheikh on Tuesday said the State Bank of Pakistan (SBP) should reconsider its decision to maintain the policy rate at seven percent.
In a statement issued here The LCCI President Irfan Iqbal Sheikh, Senior Vice President Ali Hussam Asghar, Vice President Mian Zahid Jawaid Ahmed said that due to Covid-19 the business community especially the SMEs were expecting that SBP will further reduce the Policy rate to provide breathing space to the industrial sector which is already struggling.
They said it was important for the much-needed new investment in the industrial sector, adding that a noteworthy cut in the policy rate would help the industrial sector to keep the ball rolling. The LCCI office-bearers said the reduction in policy rate would benefit industrial sector in many ways i.e it will reduce the production cost and brings the competitiveness among Pakistani products with international market. They said even before Corona countries like Switzerland, Denmark, Japan are aiding their industrial sector with lowest interest rates and have maintained the policy rates at lowest for the the last many years.
The LCCI-office bearers said the due to Covid-19 the business community is facing multiple issues like cash flow, capacity generation, exports etc.
They demanded the government to facilitate these sectors in this time of lurch by further reducing the policy rate.
