KARACHI: The President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Anjum Nisar has appreciated the reduction in the policy rates by State Bank of Pakistan (SBP) amid the ongoing coronavirus situation.
In a statement issued today (Friday), FPCCI President has said that the reduction in the policy rate by 4.25 percent in a month was a commendable step of the federal government.
He further said that the step would positively affect the cost of doing business and will encourage investors and industrialists to make new investments in the country.
Mian Anjum Nisar also said that the coronavirus pandemic has affected the global economy and pushed to the depression resulting in a contraction in the economic activities and a threat to unemployment. He told that the expected long-terms effects are more severe than the previous great depression losses.
He apprehended that the economy of Pakistan will contract by 1.5 percent due to coronavirus in the current fiscal year, adding that the government has to take immediate measures to protect the trade and industry that will ensure future employment, economic growth, and socio-economic prosperity.
“Available resources must be utilized to safeguard the trade and industry so that our industry could be able to compete with the global world after this crisis,” he added.
He also said that affected countries have considerably reduced interest rates and Pakistan’s trade industry is also in a dire need to further reduction in the interest rate to nearly 5 percent so it could be sustained under the prevailing conditions.
He further stated that foreign exchange reserves are increasing due to assistance from the IMF, World Bank, Asian Development Bank, and other friendly countries. “In this regard, SBP can now control and manage the market more effectively particularly the exchange rates,” he added.
Earlier on Thursday, the State Bank of Pakistan (SBP) cut the benchmark interest rate by 200 basis points to a 17-month low at 9 percent.
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