Industrialists demand single digit policy interest rate

Islamabad:A delegation of Islamabad Industrial Association (IIA) led by its President Muhammad Ahmed Waheed visited Islamabad Chamber of Commerce & Industry (ICCI) to congratulate Ahsan Zafar Bakhtawari President ICCI for one year extension in his tenure and called upon the government to reduce 22 percent policy interest rate to single digit level that would help boost industrialization, enhance exports, create jobs and revive the economy, says a press release.

Addressing the delegation, Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce & Industry said that 22% central bank’s interest in Pakistan was highest in the whole Asia as interest rate in Japan is -0.1%, Taiwan 1.88%, Thailand 2.25, Malaysia 3%, China was 3.4 %, Vietnam 4.5%, and Indonesia & Hong Kong 5.75%, Bangladesh and India 6.5%. He said that the high interest rate has made our industry uncompetitive in the national market due to which our exports are also suffering. He said that the best way to revive the economy is to focus on export-led growth of the economy for which single digit interest rate is the key requirement.

Muhammad Ahmed, President, Islamabad Industrial Association said that it has become almost impossible for industry to get credit from banks at such high interest rate due to which expansion of industries has halted. He said that the high interest rate was also a major hurdle in promoting new investment in Pakistan and stressed that the government should look into this serious issue to facilitate the growth of business and investment in the country. Khalid Iqbal Malik, ICCI Group Leader said that many investors are keen to set up industries in the Islamabad region but due to absence of a new industrial zone, they are unable to make new investments.