KARACHI: Abdul Hadi, president Site Association of Industry, has called 7pc policy rate insufficient and urged the Governor State Bank to bring down the policy rate from 7.0pc to 4.0pc in view of the extra-ordinary circumstances and a global economic crisis due to COVID-19 pandemic, so that business & industrial activities could continue unabated.
In a statement issued on Tuesday, Abdul Hadi said that the policy rate in Pakistan is much higher than other countries in the region. The policy rate in Bangladesh is 4pc and in India it is 4.5pc while in Pakistan it is 7pc which is very high, so a reduction in the policy rate is essential to make Pakistani exporters competitive
“Pakistan, like other countries in the region, should bring down the policy rate from 7.0pc to 4.0pc, which would enable exporters to easily compete in the price race in the global markets”, he added. In the result of the lower the policy rate, industries will flourish and the more employment opportunities will be created. The trade deficit will be reduced and foreign exchange reserves will increase also.
Abdul Hadi also demanded reduction in electricity and gas tariffs to reduce the production cost of industries, said that Pakistani exporters should be provided equal business opportunities with those of other countries in the region.
SAI president further said that after the Corona devastation, Pakistan has started receiving canceled export orders of China, Bangladesh and India, which we should take full advantage of, but first government have to reduce of production cost of industries then we can easily enjoy the export advantages and hope that if this will be done, the country’s exports will increase to 40 billion $ in the next two years.