LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged the State Bank of Pakistan (SBP) to avoid any further hike in the policy rate, as it would hinder economic growth, a statement said.

LCCI president Mian Nauman Kabir, senior vice president Mian Rehman Aziz Chan and vice president Haris Ateeq said that the State Bank should bring down the interest rate by at least 250 to 300 basis points to give a boost to the economic activities and to revive the industrial sector.

The policy rate of 8.75 per cent was considerably higher than other economies in the region (India 4 per cent, Bangladesh 4.75 per cent, China 3.85 per cent and Sri Lanka (5 per cent).

“It means that access to finance, which is imperative for the industrial growth is already more expensive in Pakistan, compared with other regional economies. Credit availability to [the] private sector in Pakistan is currently only 17 per cent of GDP, which is also the lowest in the region,” they said.

The LCCI office-bearers said any decision to increase the policy rate further would have dire consequences on the economic growth. It would surely hinder the process of industrialisation and private sector growth, they said, adding that Pakistan should bring the interest rate at par with the regional countries.

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