Pakistan Poultry Association wants review of policy rate

LAHORE: Pakistan Poultry Association (PPA) former chairman and ex-president of Lahore Chamber of Commerce and Industry (LCCI) Abdul Basit has urged the State Bank of Pakistan to review its policies and facilitate the private sector.

Abdul Basit said the cost of fabrication has spiraled increased, reaching the highest level of the last 10 years owing to the vast depreciation of Rupee against the dollar.

He said the situation continued to climb in power and gas tariffs, leading to a slowdown in economic growth. The State Bank of Pakistan’s (SBP) data disclosed that credit to the private sector stands at Rs503.628 billion in the equivalent period of the last fiscal year.

He demanded a significant reduction in the key policy rate, taking it into a single digit, with a view to providing the private sector access to low-cost borrowing. The cost of doing business and cost of production had gone up to collegial levels as the borrowing cost is enormous and capital financing has become more expensive.

Abdul Basit further said that the poultry segment is incapable to pass on the ever-soaring cost of production to the consumers. He said The SBP should step up efforts to get credit flowing at a faster pace and spur growth that slowed at 3.3 percent last fiscal and is expected to narrow further to 2.4 to 3 % in the fiscal year 2020.