The local business community has warmly greeted Syed Salim Raza on his appointment as Governor, State Bank of
ICCI President said that, as always, business community is fully determined to play their due role in steering the country out of present economic slump by promoting business activities. However, he said the high cost of doing business and particularly high interest rate is proving as the biggest hurdle in the smooth development of business activities. He said due to global recession, almost all developed and emerging countries are slashing interest rates to revive their sagging economies and are offering many stimulation packages while SBP has, in recent past, further hiked interest up to 15 percent which has put a crippling effect on industry. He said due to this factor, many industrial units have closed their operations because they could not afford to survive and pay back loans on phenomenally high interest rates and this phenomenon has rendered thousands of workers jobless creating further unemployment in the country.
Mian Shaukat Masud said that better growth of trade and industry will not only provide strong cushion to the economy, it will also create plenty of job opportunities contributing significantly in reducing the unemployment and poverty in the country. Therefore, he called upon the new Governor SBP to bring down interest rate to single digit level so that businessmen could be facilitated to give a boost to economic activities by availing easy credit. He said easy credit facility will enable them to expand their businesses and enhance their production which will ultimately lead to enhanced exports for the country. He also demanded of the new Governor SBP to take steps to resolve liquidity crunch of banking sector so that they could provide loans easily to the business community as well as to make such fiscal and monetary policies that create a favorable environment for the promotion and growth of trade and industry so that our economy could develop fast and country could be put on the path of progress and prosperity.