KATI lauds MPC decision, hopes for cut in policy rate

KARACHI: Patron-in-Chief of Korangi Association of Trade & Industry (KATI) S.M Muneer and President Saleem-uz-Zaman welcomed the decision by State Bank of Pakistan of maintaining policy rate on 7 pc however suggested to consider more reduction in policy rate due to prevailing condition caused by COVID-19 pandemic, says a Press release.
SM Muneer said that Monetary Policy Committee have taken a right decision while to move in right direction as per the current economic circumstances there are some more initiatives were needed. He mentioned that MPC also decided to continue fiscal, monetary and credit stimulus, it was a wise decision as during the pandemic these kind of financial assistance from government to industry should continue to shore up industrial growth. He said that according to MPC report the numbers of industrial production indicates recovery in large manufacturing industries which is an encouraging sing.
President of KATI Saleem-uz-Zaman said that central bank advised MPC for a well needed decision to maintain policy rate on 7pc while there is need to bring it down more. He also suggested to control price hike especially basic food commodities.
He said that now we are waiting for the announcement of National Industrial Policy and hopeful that PM Khan would give more relief to the SMEs sector as he already acknowledged the issue related to cost of production.
Saleem-uz-Zaman said that interruption in gas supply and higher prices are one of the biggest burdens on struggling industries due to local and global economic slowdown due to COVID-19 pandemic.
He urged that COVID-19 crisis is not over yet, the government should continue its policy to facilitate the industry and should come up with more packages to enhance our competitiveness in international market. KATI’s leadership also applauded the efforts done by economic team of PM Khan for creating viable environment for business and industrial activities.