Lahore, May 13, 2014 (PPI-OT): The Lahore Chamber of Commerce and Industry on Tuesday called for minimum 100 basis point cut in policy rate to give required boost to economic activities in the country.
In a statement issued here, the LCCI President Engineer Sohail Lashari said that a cut of 50 basis points would not be doing any service to the economy that has just taken off therefore the State Bank of Pakistan would have to soften its stance to ensure relief to the businessmen.
“ Easy access to financing is a prerequisite to strengthen investment scenario and to reap the benefits of GSP Plus status therefore the government should also focus in this area to achieve desired economic gains.”
It is also necessary to promote regional trade, the LCCI President added. He said that it was very unfortunate that we have failed to learn any lesson from the tighter monetary policy stance adopted by the State Bank of Pakistan in the yester years.
Engineer Sohail Lashari said that the SBP should understand high discount rate would not work anymore because the business community needs cheaper money to initiate expansions in their projects.
He said that the fact remains that all the major economies of the world have either curtailed or are in the process of reducing high interest rates despite higher inflation.
The LCCI President said that the continued tighter stance is coming in a big way in the industrial expansions besides discouraging the foreign investors.
They urged the State Bank of Pakistan to announce at least 100 basis points cut in mark-up rates that would certainly give boost to the economic activities in the country.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854