KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the State Bank to reduce the discount rate to give breathing space to the industry.

In a statement issued on Friday, FPCCI President Zakaria Usman said that reduction in policy rate by the SBP will ensure affordable financing for the industrial sector. He said monetary policy should be liberal to promote business-friendly environment.

Productivity was in decline due to sit-ins in Islamabad and floods, he said, adding that rising cost of doing business was making it difficult for businesses to clear their bank liabilities. Usman said that the benefit of contained inflation should be passed on to the business sector.

The FPCCI chief was critical of the policy to divert public money in commercial banks to finance the fiscal deficit widening saving-investment gap in the economy.

Published in Dawn, September 20th, 2014