FPCCI expresses concern on lending rates

[ahlam1399]

KARACHI: Dr. Mirza Ikhtiar Baig, Senior Vice-President FPCCI and Convener Standing Committee on Banking, Credit & Finance expressed serious concern on the increase of SBP policy rate up to 13.2 per cent resulting bank lending rates to go up to 15 to 16 per cent that discouraging new investments and job opportunities in the country.An interactive session with Governor State Bank of Pakistan, Dr Reza Baqir and his team at Federation House, Dr Baig also took up the matter of massive devaluation of Pak-rupee with no provision for hedging of imports. He highlighted high fiscal deficit of record up to 8.9 per cent as on June 2019 against the targeted 4.9 per cent.While answering the questions asked by the industry leaders, the Governor SBP Dr Reza Baqir said they are focusing on three major areas; exchange rate, foreign currency reserves and interest rates. He said previous government used exchange rate as shock observer for the economy and artificially keeping high rupee value which has resulted higher outflows.Dr Baqir said there is a significant reduction in current account deficit. Regarding high lending rate of the banks, he said the real interest rate i.e. difference between SBP policy rate and inflation is nominal and is not the cause to discourage investment, adding that the SBP is already providing concessional lending rates to investors and exporters and we should focus on reducing cost of production and ease of doing business to attract new investment.President FPCCI, Engr Daroo Khan Achakzai, SM Muneer, Zubair Tufail, Khalid Tawab and VPs FPCCI also highlighted the issues of business community. The SBP was represented by MD PBS, Ashraf Khan, Executive Directors, Samar Husnain, Dr Saeed Ahmed, Arshad Mehmood Bhatti, Ali Chaudhry, President Bank Islami, Aamir Ali, President JS Bank Bashir Shamsi, President Sindh Bank, Saeed Tariq, President Meezan Bank, Irfan Siddiqui, President Dubai Islamic Bank Junaid Ahmed, President Samba Bank, Shahid Sattar, President First Women Bank, Naushaba Shahzad and senior executives.http://feeds.feedburner.com/~r/com/cwEr/~4/yRbmQckM96A

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