KARACHI (Dunya News) - United Business Group Chairman Ahmed Chinoy has said increase in policy rate by the State Bank of Pakistan is a cause of serious concern for the business community.
Ahmed Chinoy said at a time when the commercial and industrial sectors are already under financial pressure, such a tight monetary policy could further slowdown the pace of the economy.
He said increasing policy rate is not in the interest of the country in the current circumstances. Increasing interest rates significantly boost the cost of doing business, making it difficult for traders, exporters, and industrialists to obtain working capital and continue their businesses.
He said this decision may force small and medium-sized businesses to close or shrink, adding, “Textile and clothing markets are the backbone of Pakistan's economy. This decision will affect the textile and clothing markets.”
The chairman said market activities will be affected due to decrease in purchasing power of people and increase in financial costs. He called on policymakers to adopt a balanced and consultative strategy, keeping in mind the ground realities.