KARACHI, Nov 20: Commercial banks are now demanding Kibor plus five per cent interest from their customers within a fortnight after the State Bank of Pakistan Governor Dr Shamshad Akhtar announced a two per cent increase in discount rate, with a firm pledge that the interest rates on bank loans will remain unchanged.

A senior businessman, who is a big importer and has stakes in a private power project, complained that one of the major banks, which is now owned and managed by Pakistan’s top business family after privatisation, demanded 20 per cent interest. The complainant who doesn’t want to identify himself, said in a communication to a premier trade body that henceforth the rate of interest of this particular bank would be Kibor plus five.

The bank management did not reply to the businessman when he wrote to the highest authority on board of directors and to its administration.

``This silence is painful from a private management,’’ remarked a leader of the trade body that is taking up this case with the SBP.

Rising interest rates of banks will dominate the discussion that a delegation of 25 Karachi businessmen is having with President Asif Zardari on Friday afternoon at Karachi.

``We apprehended a raise in lending interest rate when the SBP governor announced two per cent raise in discount rate,’’ said Anjum Nisar, President, Karachi Chamber of Commerce and Industry.

Siraj Kassim Teli, a former KCCI president, is leading the businessmen delegation which includes Anjum Nisar and members from all segments of business.

``We want to convey to the president that business has become an impossible task on 20 per cent interest rate,’’ Anjum Nisar said.

Also unacceptable for the business is new tariff of KESC which the KCCI chief believes has a crippling effect on industry. ``The gas tariff is too high, the electricity tariff is crippling and bank interest rate is touching sky,’’ he wondered as to how the business can be done in this extremely hostile environment.

``We go tomorrow with lot of expectations,’’ he said to point out that many in the government are themselves involved in business and understand the implications of a high interest rate, rising tariff of utilities and a host of other problems.