On Thursday, the Rawalpindi Chamber of Commerce and Industry (RCCI) expressed strong opposition to the State Bank of Pakistan’s decision to raise the interest rate by 125 basis points, from 13.75 percent to 15 percent.
The government was asked to reverse the hike by RCCI President Nadeem Rauf in a statement because it would raise the cost of loans for commercial banks.
In a statement, RCCI President Nadeem Rauf urged the government to reverse the increase because it would raise the cost of credit for commercial banks, negatively impact the expansion of industrial activities, and make it more difficult for Small and Medium-Sized Enterprises (SMEs) to pursue efforts to revive the economy.
The central bank, according to him, abruptly increased its interest rate by 125 basis points all at once. According to him, the sudden rise in interest rates would make potential investors think twice about investing in Pakistan and negatively impact investment in various projects.
According to Nadeem Rauf, Pakistan’s struggling economy urgently needs a boost in business and industrial activity. However, a 125 basis point increase in interest rates would make credit costs unaffordable for the business community and negatively impact their efforts to promote business activities.
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