Karachi Chamber of Commerce and Industry (KCCI) President Abdullah Zaki has said that the State Bank must bring down discount rate by at least 1 per cent to 9 per cent in the forthcoming Monetary Policy Statement for the following two months to spur economic growth and industrialization in the state.
In a program line, President KCCI said that the business community looks to reduce the discount rate as all key economic indicators, ranging from gross domestic product (GDP) growth rate of foreign exchange reserves, fiscal deficit, rupee-dollar parity and the flow of credit to the private sector have been exhibiting signs of betterment.
A favorable reduction in the discount rate would bring down the cost of serving business and offer some respite to the members of the business community who were already under huge pressure due to increase in gas tariff, imposition of Gas Infrastructure Development Cess (GIDC), enhanced load shedding & power failures along with poor law & order situation.
Abdullah Zaki was of the impression that the diminution in the bank mark-up rate would certainly attract new investment, further expansion and industrialization, especially in the material sector, besides creating job opportunities and enhancing exports of the nation.
“The State Bank has to clear that tighter monetary policy position taken over in the past never yielded positive results and now, it is high time that the central bank must soften its stance in order to ensure relief to the businessmen and industrialists who are taking on a major part in Pakistan’s economic progress and prosperity by continuing their businesses in extremely dire conditions”, he added.