Businessmen have demanded a competitive interest rate in Pakistan that is at par with regional countries and criticised the central bank for maintaining policy rate at 7% despite a fall in inflation level to 8.9%. He stressed that the positive results of aggressive cut in interest rate from 13.5% in January 2020 to 7% in June 2020 could be judged from 3.94% economic growth rate in fiscal year 2020-21. The trade and industrial sectors require continuous support from the government in form of lower interest rate amidst such external shocks, he suggested. In comments to The Express Tribune, tax expert Ashfaq Tola said that SBP should reduce policy rate to 5%. He said that few businessmen were expecting a hike in the policy rate given that SBP had assumed accommodative stance when Covid-19 dented the economy last year.

Source: The Express Tribune August 01, 2021 03:33 UTC