Noted Industrialist, former Punjab caretaker Minister of Industry and Ex-President of Multan, Dera Ghazi Khan Chamber of Commerce & Industry Khawaja Jalaluddin Roomi has urged upon the State Bank of Pakistan authorities to withdraw their decision to raise the policy rate by 150 basis points, taking it to 8.75% because this step would bring a flood of dearness, inflation and price hike of essential commodities. Commenting on the fresh monetary Policy, Roomi said that the rate hike was higher than the wider market expectation, which was in the range of 75-100bps,with this action the SBP recognises inflation and current account pressures. He said that Industrialists are unable to meet the demand of foreign buyers on competitive rates because of higher tariff of utilities and other taxes. In prevailing situation SBP has added to the miseries of millions of people attached with Agriculture and Industry by increasing rate of interest by 1.5 %.
Khawaja Jalaluddin Roomi said that people of Pakistan are already hitting hard due to dearness .They are facing hardship in keeping their heart and soul together. Raising policy rarte by 150 basic policy points is tantamount to snatch their last loaf of bread. He said that this step would neither alleviate the poverty and dearness nor cut the inflation not it would be helpful to maintain the value of currency. He was of the view that Policy makers would not be unsuccessful to arrest the current account deficit but also balance of payments also be disturbed.
He reiterated his demand to withdraw current policy rate which would bring a storm of price hike,inflation, current account deficit etc. He said that Pak-rupee was losing its value day by day Now Dollar has appreciated to Rs.175 and current account deficit shot up to 3.5 billion US dollars. He was of the view that policy makers of present Government failed to overcome both issues. Taking advantage of this situation SBP increased the rate of interest from 7 to 8.5 %.
Khawaja Jalaluddin Roomi said that Price-hike is running like non-stop train and it had added to the miseries of common man who is unable to meet his hunger. Business and trade activities are dull.Now SBP has inflicted another wound of higher interest. Such steps may caused to uprising, uncertainty and unrest among the majority of the people. This situation,he added,would be detrimental to Pakistan economy, peaceful atmosphere.
He said that SBP's monetary Committee had convened a meeting in haphazard one week before the schedule and enhanced the policy rate by 150 basic points. which had shattered all business concern.
He said that Pakistan's economy came out of ICU and now its was recovering rapidly, Because pandemic " COVID-19 had badly hit our economy, trade, exports and even all sectors of society.
Khawaja Jalaluddin Roomi said that Dollar's high flight had developed a state of uncertainty, Petroleum products, edible oils and other importables had gone high sky. Now Pakistan Manufacturer,exporter and industrialist is unable to compete the neighbouring countries in World Market.