Islamabad
Chairman Pakistan Industrial and Traders Association Front (PIAF), Mian Nauman Kabir has said that the drop in the policy rate is essential to make Pakistani exporting sector as well as the local industry competitive, as the interest rates in regional are still lower than Pakistan.
In a joint statement with vice chairman Javed Siddiqi on Sunday, he said that after the corona devastation, Pakistan should take advantage of those export orders canceled by the other regional countries. For this, the government will have to reduce production cost of the industries to avail this offer by the international buyers.
Mian Nauman Kabir said the future anticipated expected inflation will further decline due to low demand amidst second wave of coronavirus. On the other hand external front is also presently sustainable due to foreign financial support and rescheduling of debt that has supported reduction in current account deficit, he added.
He further stated that with both demand-driven and import-based inflation is in check, so it needs to further slash the interest rates as the businesses cannot survive on such uncompetitive KIBOR rate. The impact to banks on their deposits will be insignificant as majority is demand deposits instead of time deposits. While appreciating the central bank’s role in sustaining economic growth through supporting trade and industry.
