The Islamabad Chamber of Commerce and Industry (ICCI) has welcomed the State Bank of Pakistan decision to cut discount rates by 150 basic points from the existing 13.5 percent.

Considering the current economic slowdown, the SBP made a cut in the discount rate which was highly appreciative. This step was need of the hour and an imperative move towards the revival of economy and the industry, Yassar Sakhi Butt, President ICCI said in a statement.

He said that banks should also ease out its strict conditions for financing to support industrial sector and small scale enterprises to survive. To promote industrial and economic growth, the Government and the SBP should cut the mark-up rate down to a single digit, he emphasized.

ICCI President said that high mark-up rates and less availability of cheaper credit for the private sector especially for setting up industrial units or reviving sick industrial units is hindering the future investment.

Butt was of the view that severe energy crisis and precarious law and order conditions continue to render domestic economic environment least conducive for productive activities. He lauded the Government decision to balance inflation and growth considerations through the expansionary monetary policy because tight monetary policy was not appropriate solution to economic problems.

He proposed that it is need of the time that Government should introduce a policy of different interest rates according to the sectors such as i.e., construction, oil and gas, home loans, transport and export projects so that there is more growth in sectors which ultimately contribute more to the national economy and national exchequer.