LCCI is fed up with SBP!

Lahore Chamber of Commerce and Industry Friday expressed its dismay over the State Bank of Pakistan’s decision to keep policy rate unchanged and called for bringing it to single digit to encourage new investments, for revival of businesses and to give a jumpstart to the economy which is at a standstill.
In a statement issued here, the LCCI President Irfan Qaiser Sheikh said that the availability of cheaper money to the businessmen is needed to expedite the process of industrialisation that would ultimately result in much-needed job creation.
LCCI president, however, endorsed the SBP view point regarding economic and power sector reforms saying the reforms should be introduced in consultation with the private sector that this the engine of growth. Irfan Qaiser Sheikh said that the business community understands that the ongoing electricity crisis could be overcome to some extent by controlling electricity pilferage. The president said that ongoing economic scenario shows that there was hardly any time left for economic managers of the country to manage things on the economic front therefore, they should all understand that a cut in the policy rate is absolutely necessary to boost up economic activities in the country.
He added that all the major economies, despite having higher inflation, have either curtailed or are in the process of reducing interest rates to protect their respective economies. LCCI president further said that the State Bank of Pakistan should understand that the continued tighter stance was damaging the national economy. It was forestalling industrialisation process in the country, he added.
“If cheaper money would not be made available to the businessmen, nobody would put up new ventures.” LCCI president also urged the government to pass on the benefit of cut in oil prices in the international market as the cost of doing business in Pakistan had gone so high that Pakistani merchandises were no longer competitive in the global market.