Business community not happy with ‘minor’ cut in policy rate

The business community has expressed dissatisfaction over minor reduction in policy rate and termed it like a drop in the ocean and urged the State Bank of Pakistan (SBP) to bring policy rate in single digit. They were of the opinion that there is no relief for industry, trade or any other sector due to this minor cut and urged the government to review the decision immediately in the large interest of economic growth. They also termed the reduction as too little, too late for economic growth and expansion. The monetary policy announced the policy rate reduction after keeping the status quo unchanged for the fourth consecutive time. President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Rehan Hanif, has expressed deep disappointment over the State Bank of Pakistan’s decision to reduce the policy interest rate by a mere 0.5 percent, stating that such a token adjustment falls far short of what is urgently required to revive Pakistan’s fragile economy and restore business confidence.