PYMA seeks cut in interest rate

KARACHI: The Pakistan Yarn Merchants Association (PYMA) officials have expressed concern over the increase in the interest rates by the State Bank of Pakistan (SBP), despite the demands of the business community.

They said the central bank has increased the interest rates by 150 basis points, and the news is circulating for another increase in the coming days, which will have a devastating effect on the already Covid-19-hit economy.

PYMA central chairman Saqib Naseem and vice chairman Junaid Teli said that there will be a significant increase in the production cost of trade and industry, as well as a storm of inflation.

In a statement, the PYMA office-bearers said the 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.

“Due to the severe economic crisis caused by the coronavirus pandemic, 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 will lead to a severe financial crisis, which is not in any way in favour of the national economy,” they said.

Naseem, Teli appealed to Adviser 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.

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