The State Bank of Pakistan—File Photo
The State Bank of Pakistan—File Photo

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) on Friday urged the State Bank of Pakistan (SBP) to reduce mark-up rate by 150 to 200 basis points in the monetary policy scheduled to be announced on August 10.

“The decision to cut mark-up rate to single digit is essential for reviving the business activities, overcome low-growth scenario, encourage new investments which would ultimately improve the economic growth of the country,” ICCI President, Yassar Sakhi Butt said in a statement.

He was of the view that maintaining mark-up at 12 per cent by State Bank of Pakistan would further fuel the non-performing loans and unemployment in private sector.

He said that the availability of cheaper money to the business doing people is must to bring down the cost of business in Pakistan as the  trade and industry were already facing huge losses on present level due  to high cost of energy and its crisis in the country.

He said reduction in bank mark-up rate could encourage fresh investment in the industry which had declined to 13.4 per cent in FY11, thus reduction in mark-up rate would increase employment and exports of the country in long-term.

He was citing the example of China, where mark-up rate was 6.56 per cent, India 8 per cent, Sri Lanka 7.75 per cent and in Bangladesh 7.75 per cent against 12 per cent in Pakistan.

ICCI President said that the economic meltdown in recent years had already proved that high policy rate had caused a great harm to economy and would continue to widen the fiscal deficit.

More From This Section

3G and 4G auction to yield $1.3bn, says Dar

The fee would be recovered within five years, and the licence would be valid for 15 years.

16 MoUs signed at business meeting

Over 300 representatives of the private and public sectors from CARs, Afghanistan and Pakistan attended the conference.

Bulls stage spectacular rally of 362 points

Bulls tossed KSE-100 index up by 362.38 points to a high at 29,458.15 in a rally effectively led by foreign investors.

Sindh revenue collection jumps by 23pc

Revenue collection in Sindh between July 2013 and March 2014 stood at Rs23.7bn, witnessing an increase of 23 per cent.


Comments are closed.

Comments (1)

zks
August 3, 2012 1:48 pm
What an argument to reduce interest rate while inflation is high. The top priority is to control inflation. Low interest rates will fuel inflation and discourage savings.
Explore: Indian elections 2014
Explore: Indian elections 2014
How much do you know about Indian Elections?
How much do you know about Indian Elections?
Poll
From The Newspaper
Tweets