President Sialkot Chamber of Commerce and Industry lauds announcement of a cut in the interest rate by 100 basis points to 7%

Sialkot, June 29, 2020 (PPI-OT): Mr. Muhammad Ashraf Malik, President Sialkot Chamber of Commerce and Industry, in a statement given to press lauded the announcement of a cut in the interest rate by 100 basis points to 7% by the State Bank of Pakistan. Mr. Malik said that it was the most positive decision by the Government which was welcomed by the whole business community, as it would be considered as a relief during the time of crisis for the export industry of Pakistan.

The President Chamber was of the view that this step would have promising results in terms of country’s growth prospects and would also serve to gain the investors’ confidence apart from encouraging industries to invest more in their ventures. He also said that the 5th time reduction in the interest rate in four months would provide immediate liquidity to homes and business so to avoid defaults and contain unemployment.

The President Chamber was completely satisfied by the overall reduction of 625 basis points in the space between March 17 and June 25, from the relatively high 13.25pc to 7pc. Mr. Malik, further added that the Exports Industry, which was already facing troubles due to the lockdown, would also gain benefits of the interest rate reduction as it would serve to bring down the cost of doing business.

The President Chamber also expressed his concerns on the sudden and drastic increase in the Petroleum Prices by the Government and said that the whole business community was looking towards the Government to provide relief for the sustainability of the businesses amidst the COVID-19 pandemic and increase of petroleum prices in such unprecedented times was uncalled for as it would increase the logistics costs and would ultimately impact the raw material thus disrupting the total supply chain of the goods manufactured for exports.

He feared that the exporters would ultimately lose competitiveness in the international markets. Mr. Muhammad Ashraf Malik stressed that the Government should reconsider its decision of increasing prices of Petroleum Products in the greater interest of the Industry and the public as it would increase inflation and cost of doing business.

For more information, contact:
Sialkot Chamber of Commerce and Industry (SCCI)
Shahrah-e-Aiwan-e-Sanat-o-Tijarat, Sialkot – 51310, Pakistan
Phone: +92-52-4261881-3
Fax: +92-52-4268835, +92-52-4267919
E-mail: sialkot@scci.com.pk
Website: http://www.scci.com.pk

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