KARACHI: Pakistan Yarn Merchants Association (PYMA) on Friday demanded the State Bank of Pakistan (SBP) to cut interest rate to provide relief to coronavirus hit economy of the country.
In a statement Saqib Naseem, Central Chairman Pakistan Yarn Merchants Association (PYMA), while expressing deep concern over the non-reduction of interest rates by the SBP despite the demands of the business community, said that it has recently increased interest rates by 150 basis points, and news was circulating for increasing interest rates further in the coming days, which will have a devastating effect on the corona-hit economy.
In particular, there will be a significant increase in the production cost of trade and industry, as well as a storm of inflation.
PYMA office-bearer said that economists should give suggestions in the interest of the economy, which would boost business and industrial activities in the country, and bring prosperity.
However, it has been observed that most of the measures taken by the government have increased business and industrial costs and it is becoming extremely difficult for the business and industrial community to run their businesses and industries.
“The severe economic crisis caused by the Corona epidemic, the business and industrial community was already facing a severe shortage of capital and they were struggling to survive. In these circumstances, raising interest rates by the SBP will lead to a severe financial crisis which is not in any way in the favour of the national economy”, they feared.
Saqib Naseem appealed to an advisor to the Prime Minister on Finance and Revenue Shaukat Tarin to reduce interest rates immediately to save trade and industry from collapse so that the traders have easy access to capital and they can continue their business and industrial production activities while overcoming all difficulties.
Otherwise, business and productive activities will be hampered for them, which will have a very negative impact on the economy.
