PESHAWAR: The United Business Group (UBG) leader and former senator, Ilyas Ahmad Bilour has termed the decision to cut the policy rate a further 200 basis points (bps) to 9 percent, announced by the State Bank’s Monetary Policy Committee as insufficient to support coronavirus hit economy of the country.
In a statement issued here Friday, Mr Bilour demanded of the government to reduce interest rate from 9 to 7 per cent. He furthermore stated that the interest rate is zero per cent in rest of the world. On the other hand, he added the industrial and trade sectors are the adversely affected by high interest rate in Pakistan.
Former senator said that despite the further reduction in interest rate announced by State Bank’s Policy Committee, the commercial banks have continuously collected service charges at exorbitant rate. He said the central bank should issue directions to all the commercial banks to collect service charges with ratio of 0.5 per cent.
“Bankers are also Pakistani and so they should put their share under the current depressing and difficult economic conditions due to outbreak of the novel Covid-19 (Coronavirus) pandemic in the country, Mr Bilour stressed.
The UBG leader criticized that the incumbent incompetent government had made 2 per cent reduction in the interest rate after constant demand by the business community. But, he said the business community want to bring down interest rate at 7 per cent. He also asked the government to reduce prices of petroleum products in best interest of poor masses of the country.