KARACHI: President of Korangi Association of Trade and Industry (KATI) Faraz-ur-Rehman rejected decision of State Bank to increase interest rate by 100 basis points to 21 percent. He said that country is already going through an economic crisis, further increase in interest rate will cause more destruction, and decision of State Bank is causing irreparable damage. Income and Sales Tax refunds of industrialists are at halt and loans from banks have also been made impossible.

He said that in these circumstances, no business is able to do business at 21 percent. Commercial banks will lend 25 to 27 percent which economy cannot afford.

He said that State Bank should decide by looking at economic situation of country. He demanded Governor State Bank withdraw interest rate hike immediately as interest rate in Pakistan is highest in region. He said that decisions taken now are posing serious threats to integrity of country, but federal government is not playing a role or taking any notice of decisions that destroy economy, chaos in country. If government wants to end industry, then let them know and the industrialists will transfer their capital abroad. Government does not even understand problems of poor, all decisions are being made to eliminate poor.

President KATI said that due to anti-public decisions of State Bank, economy has suffered continuous destruction. He said that industrialists are preferring to close business, which will lead to an unemployment storm. If government is interested in running business, it should formulate comprehensive policy in consultation with all stakeholders like KATI.

Published in The Daily National Courier, April, 06 2023

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