He said that industrial community has learnt from the recent details of monetary policy by the State Bank of Pakistan that despite higher percentage of collection and increase in reserve, growth rate is implicated downwards. “It shows that problem lies elsewhere in the policy making. With such higher policy rates how can one expect growth of industry and without this how can we expect upward growth of economy at large” he added.
He underscored the importance of SME sector and suggested to bring down policy rate to single digit. He said that interest free banking according to tenets of Islamic teaching is the only way to economic prosperity of the country. Sheikh Umer Rehan was of view that higher cost of production had already struck industry badly and with the higher policy rate, cost of establishing a new industry has also increased drastically.
He said that investment in industrial sector is the need of the time for sustainable growth, but due to higher rates of interest it has become nearly impossible to improve. Mr. Rehan suggested the government to fight back the economic woes, there should be a policy to encourage investments specially in industrial sector of Pakistan. He said that economic imbalance, poverty, unemployment and other problems only can be addressed by speedy industrialization of the country. He also urged the government to reduce policy rate.