KARACHI: The State Bank of Pakistan’s move to increase discount rate by 150 basis points to 8.75 per cent will multiply the woes of the auto parts manufacturers, the Pakistan Association of Automotive Parts & Accessories Manufacturers (Paapam) said on Monday.
Paapam Chairman Abdur Razzaq Gauhar urged the SBP to bring down the interest rate to 7pc to encourage industrial expansion and growth which would bring in fresh investments and create jobs for millions of young people entering the job market every year.
The Paapam chief said the interest rate hike would lead to a crisis of unforeseen proportions for the industrial sector in general and the auto parts sector in particular.
“The auto parts manufacturers are currently struggling to survive under the impacts of rising cost of raw materials and freight, rupee fall against the dollar, higher minimum wages and expensive energy,” he added.
Published in Dawn, November 23rd, 2021
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