KARACHI: Pakistan Yarn Merchants Association (PYMA) on Friday demanded the State Bank of Pakistan (SBP) to reduce interest rates to boost business and industrial activities in the country.
Saqib Naseem, central chairman at PYMA, said high interest rates are hampering production and thwarting growth of the yarn industry.
“The interest rates have recently increased by 150 basis points, and news are circulating for increasing the rates further in coming days, which will have a devastating effect on the corona-hit economy,” he said.
Naseem feared that there would be a significant increase in production cost of trade and industry, leading to a storm of inflation.
He criticised the government saying that most of the measures taken by her have increased business and industrial costs, leaving the business community into a delicate situation. The association also appealed to advisor to the PM on Finance and Revenue Shaukat Tarin for immediate measures to save the trade and industry from collapse.
PYMA office-bearer said the industry is facing a severe shortage of capital, and plunging interest rates by the SBP would lead to a severe financial crisis, which is not in any way in the favour of the national economy.