ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Ghazanfar Bilour while commenting on the recently announced monetary policy said that hike in policy rate to 6.5 per cent is not appropriate at this time when foreign competitors are coming to Pakistan with a low-interest rate in their respective countries.
A contractionary policy stance would discourage local investors to participate in various mega projects particularly infrastructure development under CPEC.
He further stated that revival in the growth of industry and services is essential to sustain economic growth which after many years is showing increasing trend. The current increase in policy rate 6 to 6.5 per cent will add pressure on the economy to emerge.
Bilour emphasized that under the improving business environment, efforts by the government, the State Bank of Pakistan (SBP) may need to play its vital role by adopting expansionary stance to create opportunities for the local businesses and their participation in the economic activities.
The high policy rate regime along with rupee depreciation adversely affects the intermediate and capital goods sectors.
