KARACHI: North Karachi Association of Trade and Industry (NKATI) patron in chief Captain Moiz Khan and president, Naseem Akhtar have lauded cut in interest rate but called it insufficient in serious economic crisis due to COVID-19 outbreak.
In a statement, NKATI leaders said that as the worst economic conditions due to coronavirus pandemic, most countries have reduced interest rates to save trade and economy from destruction.
“Therefore, Prime Minister Imran Khan should also bring interest rates to zero so that the business and economy can be saved from disaster,” the statement read.
The statement added, “The industrialist community was hoping that interest rates would be brought down to at least 5 to 6 percent, but 9 percent interest rate which is lower than in the current dire economic situation and indicating that the government is still not serious,” they added.
According to the NKATI leaders, the biggest benefit of reducing interest rates is to the government itself as 75 percent of the payments are made by the government. “While 25 percent is paid by the business, so 75 percent of the funding can be spent on other people if save in the government’s account,” the leaders added.
Both leaders demanded that interest rates should be brought to zero like the rest of the world, “This move will be vital to preventing the country’s a trade & industry from disaster,” they asserted.
They added, “So that our trade can be restored and the industrial wheels can run and we will be able to compete worldwide, otherwise it will have a very negative impact on exports.”
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