Korangi Association flays key policy rate hike

Korangi Association flays key policy rate hike

KARACHI: Salman Aslam, President, Korangi Association of Trade and Industry (KATI), has expressed concern over one percent increase in interest rates.

He said that further increase in monetary policy by SBP to 9.75 per cent would result in more inflation.

President Salman Aslam said that the government was trying to control inflation by raising interest rates but in the current economic scenario this decision could not prove beneficial.

He suggested that the government should provide facilities and incentives to the export industry to increase the country’s exports and increase foreign exchange reserves, thus reducing the pressure on the rupee against the dollar.

President KATI said tightening monetary policy would freeze the economy, which would hurt the economy. The government-set growth target of 5 per cent is likely to be affected.

Salman Aslam appealed to the government to take strict measures to increase exports instead of tightening monetary policy. If imports are reduced then inflation can be brought down.

He said that the SBP’s move would make loans more expensive and would further increase inflation.

Salman Aslam said that Korangi industrial area has full potential to increase exports, if the government provides facilities then KATI can play its full role in increasing exports.

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