ICCI hails 100 basis points cut in policy interest rate by SBP.

Islamabad -- The business community at Islamabad Chamber of Commerce and Industry (ICCI) has hailed the decision of SBP to make 100 basis points cut in policy interest rate and termed it a positive development that would help in addressing the economic slowdown of the country due to Covid-19 pandemic.

Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce and Industry said that SBP has taken a wise decision by making 1 percent cut in policy interest rate to bring it down to 7 percent.

However, he said that the interest rate in Pakistan was still the highest in the region as the interest rate in China was 3.85% and India 4% due to which it was difficult for Pakistani entrepreneurs to compete effectively with regional countries for exports.

He said a low interest rate was the key requirement to spur business and economic activities and stressed that SBP should bring interest rate down to below 4% that would help businesses and industrial units in revival and growth leading to turning around the downward slide of the economy.

ICCI President further emphasized that SBP should issue a notification to commercial banks to immediately pass on the benefit of the latest reduction in interest to end consumers that would provide them great relief in these difficult times.

He said that normally banks take time to give benefit of reduced...