LAHORE: The Pakistan Chemical Manufacturers Association (PCMA) has demanded the central bank to reduce the key interest rate to 5 per cent so that the industry can survive and compete with the neighboring countries.
In a statement issued on Friday, association’s chairman Abrar Ahmad said the recent decrease in interest rate to 11pc would not help recover the ailing economy crippled with the growing uncertainty amid the coronavirus outbreak.
The business community, he said, was expecting significant cut in the interest rate in the current difficult times, but “the State Bank of Pakistan had reduced policy rate by only 1.5pc, which is not enough to revive the industry”.
He, however, acknowledged the government for responding positively towards the suggestions floated by the business community in the prevailing crisis, saying that Adviser to Prime Minister on Commerce Abdul Razak Dawood is representing the industry’s case in a very effective manner.
He said the minister had assured to take up all demands of the business community with the government, including a further reduction in the interest rate.
The PCMA chairman welcomed the stimulus package announced by Prime Minister Imran Khan and also hailed the decision of reducing prices of petroleum products by Rs15 per litre.
He asked the government to also reduce prices of gas and electricity for commercial and industrial consumers and allow them to pay these bills in instalments so that businesses could cope with the current crisis.
Ahmad further said many industrial units have made required payments of imported raw materials, but due to restrictions on transportation, their raw material has been lying at ports, while they have to pay banks mark up and demurrage charges.
He demanded the government to order deferring the receipt of banks’ mark up and demurrages for at least six months so that businesses could be able to sail through the current difficult situation.
He said it was difficult for businesses to meet domestic orders in the prevailing circumstances.
The business community in general and the chemical industry in particular stand by the government in this tough time, Ahmad said, adding the overall industry would be able to sustain investment in case the key interest rate is brought down to 5-6pc.
