PESHAWAR: The Sarhad Chamber of Commerce and Industry (SCCI) President Hasnain Khurshid Ahmad while opposing the announcement of the monetary policy eight times instead of six times a year, saying that it is not in the best interest of businesses and weak economy.
While rejecting yesterday’s decision to make further increase in power tariffs by Rs4.74 per unit, the SCCI president said the cost of industrial production has increased exponentially because of the frequent increase in rates of electricity and gas in the country..
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He noted the prices of manufacturing products had also escalated that could directly affect the inflation-hit people and become a major cause of unemployment as well. He demanded the government that the recent hike in power tariffs in best interest of businesses, industrial and people.
As per scheduled, the SCCI president said the SBP would announce monetary policy on December 14, next week, urging for retaining the interest rate in order to maintain sustainability and ensure full recovery of businesses, industries and national economy that had been adversely hit by restrictions of novel coronavirus pandemic.
Hasnain Khurshid was chairing a meeting of industrialists here at the chamber house on Friday, which was also attended by the chamber senior vice president Imran Khan Mohmand, vice president Javed Akhtar, members, exporters and representatives of the business community.
The meeting was told that the SBP had decided to announce monetary policy eight times instead of six times in a year, saying that the move was unfavorable for the national economy, businesses and industrial growth.Participants of the meeting also slammed the promulgation of ordinance, granting autonomy to State Bank of Pakistan (SBP), aimed at targeting inflation rather than economic growth, calling it an International Monetary Fund (IMF) agenda.
During the last month, the SCCI chief said the SBP had raised its benchmark interest rate by 150 basis points to 8.75 per cent, which has brought negative impacts on the economy, businesses and industrial growth.
Hasnain Khurshid emphasized that reduction in interest rate is inevitable to cope with rising inflation, unemployment and to give a boost to the industrial sector. He noticed the business and manufacturing sector is still reeling from the Covid-19 pandemic, saying that if the interest rate increases further, the situation will be aggravated gravely. Therefore, he urged the SBP to retain the interest rate as well as emphasizing to withdraw the recent hike in power tariff.