Trade and industry hails reduction in discount rate
Karachi, December 14, 2012 (PPI-OT): Trade and industry has welcomed reduction in interest rate announced by State Bank of Pakistan in its Monetary Policy. Patron In-Chief, Korangi Association of Trade and Industry (KATI) S M Muneer, Chairman Mohammad Zubair Chhaya, President All Karachi Industrial Alliance, Mian Zahid Hussain and Vice Chairmen Najmul Arfeen while welcoming the reduction of interest rate from 10 per cent to 9.50 per cent by SBP Governor Yasin Anwar.
They however, said that due to the grim situation of economy and non-performing loans (NPLs) mounting rapidly, discount rate should be lower further. “NPLs have now reached to an alarming level of almost Rs800 billion during last four years due to various factors including high mark up rate in Pakistan”, Chhaya said adding that exorbitant increase in cost of doing business and skyrocketing prices of utilities and inputs coupled with highest bank interest rate which highest in the region have resulted in bulging NPLs. Industry leaders have said that interest rates should be lowered to at least 6 per cent so that industries would be able to survive.
For more information, contact:
Korangi Association of Trade and Industry (KATI)
ST-4/2, Sector 23, Korangi Industrial Area,
Tel: +9221 3506 1211 -2
Cell: +92346 2012346
Fax: +9221 3506 1215