Lower markup rates make it cheaper to borrow for the industrialists. State Bank of Pakistan should bring down the markup rates to a single digit that would encourage the industries to take out loans to expand their operations.
In a statement, LCCI President Irfan Iqbal Sheikh, Senior Vice President Ali Hussam Asghar and Vice President Mian Zahid Jawaid Ahmad said that high cost of borrowing was discouraging the demand of credit by the private sector and slowing down the economic activities. They said that reduction in markup rate from existing 13.25% to single digit would be a great favour to the industrial sector. It would help the government to attain the target of industrial growth, would reduce the cost of production and would also bring capital of the banks into circulation.
