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KARACHI, Jun 10 (APP):President Karachi Chamber of Commerce and Industry (KCCI), Iftikhar Ahmed Sheikh on Monday termed State Bank’s decision of reducing policy rate to 20.5% as a step in right direction and hoped to see further reduction in interest rate.
The KCCI president, in a statement issued here, stated that reduction of 150 basis points was less then expectations of business community but “ We hope that this approach continues in the days to come to gradually bring down the interest rate to single digit.”
He said that lower interest rate in line with the international trends would certainly encourage borrowings by the private sector that would prove favorable for the economy by encouraging business expansion as well as industrialization.
He attributed easing of inflation from 38% to current level of slightly above 11% to administrative measures taken by the government along with improved agricultural production as well as reduction in petroleum price while referring to excellent production of wheat, rice, sugar cane, cotton and maize etc.
He argued that stability in rupee value was also one of the major reasons for easing the inflation as crackdown initiated to deal with black marketing and illegal sale or purchase of dollars and its smuggling outside Pakistan resulted in bringing stability to Pakistani rupee and subsequently eased the inflation.
Iftikhar Ahmed Sheikh hoped to see further reduction in interest rate and said that it would be widely welcomed by the entire business community of the country.