Business Community Demands 4% Decline in the Key Interest Rate

Karachi (Business Reporter): , Pakistan business community is not happy with the current interest rate. State Bank of Pakistan reduced key interest rate by 1 percent but business community is demanding 4 percent decline.

“Interest rate should be around 4 percent,” stated Agha Shahab Ahmed, president of Karachi Chamber of Commerce and Industry. ” State Bank on May 15 fixed interest rate at 8 percent. Agha Shahab believes a 4 percent cut will be much needed impetus for economic revival.

Federation of Chambers of Commerce and Industry, apex body of business community, also expressed dissatisfaction with the 100 basis points cut in the interest rate. In a statement, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Anjum Nisar said : “Given the current deteriorating economic situation, all central banks are supporting their economy by significantly cutting the interest rate along with stimulus packages,” he said. “The current decision is not based on forward looking inflation.”

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