LAHORE, Feb 8: The Lahore Chamber of Commerce and Industry (LCCI) on Friday expressed its dismay over the State Bank of Pakistan’s decision to keep policy rate unchanged and called for bringing it to 8 per cent to encourage new investments, revive businesses and give a jumpstart to the stalled economy.

In a statement issued, LCCI President Farooq Iftikhar said the availability of cheaper money to the business community was a must to expedite the process of industrialisation that would ultimately result in the much-needed job creation. He said all major economies despite having higher inflation had either curtailed or were in the process of reducing interest rates to protect their respective economies.

He said the State Bank of Pakistan should understand that its monetary policy stance was inflicting a heavy loss on the national economy. It was coming in the way of the industrialization process in the country. “If cheaper money is not available to the business-doing people, nobody will put up new ventures.”

He said high interest rate also prevented the manufacturers from investing money in capacity expansion, in technological upgradation and product diversification therefore the SBP should bring it down so that the target set in the recently announced three-year Strategic Trade Policy Framework could be achieved.—Staff Reporter