Increased interest rate will cut GDP, employment prospects: Mian Zahid Hussain - Press Release issued by Pakistan Businessmen and Intellectuals Forum.

Karachi -- September 22, 2021 (PPI-OT)

Following is the text of press release issued by Pakistan Businessmen and Intellectuals Forum (PBIF)

Quote

Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said interest rate hike by 0.25 percent will hit economic activities.

The decision will increase the cost of doing business hitting increasing economic activities while it will make exports costly to some extent. Mian Zahid Hussain said that the business community favours interest rates at five percent but was satisfied over seven percent interest rate and they were borrowing resulting in economic activity while masses were also taking interest in house and car financing which will be compromised.

Talking to the business community, the veteran business leader said that economic activity has triggered imports but stagnant exports have increased trade and current account deficit. The situation was resulting in exchange rate erosion fanning inflation which prompted the central bank to hike rates to reduce demand in the market which will also reduce employment opportunities and GDP.

He noted that Pakistan is an agricultural country but wheat, sugar...