ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has resented a 100-basis-point (bps) hike in interest rate by the SBP. The central bank on Saturday raised the interest rate from 6.5% to 7.5%. In a statement, the ICCI called on the government to withdraw the exorbitant rate increase as it would enhance the credit cost for commercial banks, badly affect growth of business activities and create more difficulties for private sector in efforts aimed at reviving the economy. ICCI President Sheikh Amir Waheed said the central bank had raised the interest rate by 100 bps in one go, which was an unprecedented move as it was the biggest increase in the past 10 years. “The rate increase will discourage investors from investing in Pakistan and adversely affect CPEC investment,” he said.
Published in The Express Tribune, July 17th, 2018.
Finance ministry, however, says option to be exercised by next government
Islamabad cannot use the money, its only purpose is to support forex reserves
The SBP move is targeted at cutting imports and reducing demand for dollars to stabilise foreign currency reserves
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