Karachi, March 19, 2020: Mian Anjum Nisar President, Federation of Pakistan Chambers of Commerce and Industry said that the SBP decision seems totally against the global wisdom under prevailing drastic conditions of the life-threatening disease caused by COVID-19.
Global think tanks and large number of countries are supporting economic activities by introducing ease of doing business and market expansion policies, while SBP ignoring the current devastating conditions around the world that would affect Pakistan’s exports.
The majority of the leading economist were optimistic about the positive move of policy rate cuts about 300 bps to spur economic activities.
Mian Anjum Nisar said that there were strong reasons for lowering interest rates to single digits as oil prices are continuously declining inflation is also going down hence significant cut in the interest rate has become essential which is the demand of the current global situation as well as protection of the national trade and industry.
President FPCCI also apprehended decline in Pakistan’s foreign trade as the Europe is facing severe conditions and the countries where our export goes significantly are under life threat due to coronavirus. America is also under threat hence Pakistan textile and other goods exports may hamper. He further said that we may loss opportunity to avail market penetration for Pakistani products created due to crises in our competitors countries.
In the present situation like other nations Pakistan should also adopt measures to support business activities. The German Government is considering an emergency fund aimed at helping small- and medium-sized companies.
Mian Anjum Nisar said that it’s time for policymakers, central banks and economists to actively consider more radical solutions. We need to build confidence among people, businesses and industry to carryon industrial production to safe millions of people job and their families.
Government should also seek moratorium and negotiate with international donor agencies to support financially as the country has limited resources. Government should also consider reducing cost of doing business through availability of all kinds of industrial input at reduced prices.
The SBP should adopts policies that support economic activities at this time of crises and review its monetary policy by lowering minimum 300 bps according to the market demand.