FPCCI laments decline in private sector credit

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Engr Daroo Khan Achakzai has shown his serious concern over the decline in private sector credit by Rs4.1 billion in the first four months of the current fiscal year.

He said the decline in demand for private sector credit is due to the high cost of borrowing and slow economic activity in the country, which will subsequently affect the next year economic growth and unemployment.

Commenting on the monetary policy, he said that State Bank of Pakistan continuously adopted contractionary monetary policy and kept the policy rate at 13.25pc, while on the other hand, the government had declined profit rates on the National Saving Schemes (NSS) which were discouraging the savings culture in Pakistan.