Rawalpindi: /DNA/ – The Rawalpindi Chamber of Commerce and Industry (RCCI) has expressed regret over the State Bank’s maintaining the monetary policy rate at 15%. In a statement, RCCI President Saqib Rafiq, said that the business community was expecting a reduction in interest rates so that the wheel of the economy can run. “Bringing the policy rate down to single digit can be very helpful in reviving business activities and turning around the downward slide of the economy amid the prevalent challenging times, “he added. The policy interest rate in neighboring countries is under single digit, India 5.90pc, Bangladesh 5.75 pc, he said.

Saqib Rafiq said that the cost of production has increased many times due to inflation. The high interest rate would increase the credit cost of commercial banks, ultimately having a bad effect on the growth of industrial activities and create more difficulties for the Small and Medium Enterprise (SME) in its effort to revive the economy, he further added.

Due to economic challenges, the savings of businessmen and industrialists have decreased.

 He said that it is difficult to get loans due to high interest rates. As the business of small industries and SMEs depended on credit, he demanded that the decision to maintain interest rates should be reconsidered. He said Pakistan needed quick revival of business and industrial activities to improve the ailing economy.

RCCI chief lauded the Finance Minister’s announcement of releasing Letters of Credit payments upto fifty thousand dollars. However, he demanded that due to the delay in opening of LC, traders have suffered a lot, and demurrage charges should be abolished at the port.