Growth Oriented Monetary Policy requires to stimulate growth – Yassar Sakhi Butt

  • December 01, 2011
The tight monetary policy has created serious problems for the industries which are running far below the required level. Government has not taken any serious measure to maintain macroeconomic balance, resulting in a slow down of economic activity throughout Pakistan.

Yassar Sakhi Butt, President Islamabad Chamber of Commerce & Industry (ICCI) criticizing on the unchanged tight monitory policy of 12 percent and said that it could not bring any positive results to the already bleak economic scenario, thus State Bank of Pakistan should review its course of action.

He emphasized that the Government should take concrete step and advice the state bank to devise a policy that is helpful in attracting investment and the business community as a whole which will help in creating economic activity and generate employment. 

ICCI President said that the banking sector should take measures to strengthen SMEs to stimulate the growth of trade and industry in the country as SMEs are considered the engine of economic growth.

Yassar Sakhi Butt said that usually banking industry in Pakistan was dependent on the strength and performance of the economy in which SME sector has attained an important role in terms of its growth potential and greater employment opportunities. He cited the example of Taiwan, Korea, Brazil, China and Turkey, who have been concentrating their efforts in developing the SME sector.

He was of the view that to promote industrial and economic growth, SBP should cut the mark-up rate down to a single digit. He further said that SBP should initiate special schemes and come up with growth oriented policies to support SMEs.