Home Business APBF backs SBP policy rate cut as private capital inflows are weak...

APBF backs SBP policy rate cut as private capital inflows are weak yet

APBF backs SBP policy rate cut as private capital inflows are weak yet

 (APBF PR: May 23th, 2016) – With weaknesses in private capital inflows continue to persist, the All Pakistan Business Forum (APBF) President Ibrahim Qureshi on Monday supported the Central Bank’s decision to cut policy rates by 0.25 % to spur growth, saying the decision would infuse confidence in the business community and propel economy which was hostage to the past policy of austerity.“The businessmen welcomed the SBP’s decision of cutting interest rate by another 25 basis points to 5.75%, as the rate cut would help boost private sector growth.” However, he complained that lending to private sector by the commercial banks during the last 10 months of current fiscal year has not picked up pace.Qureshi said the State Bank governor deserved appreciation for bringing down the interest rate to 5.75%. He also called for steps to fight energy crisis, security challenges and political instability to make interest rate cut meaningful and result-oriented.Ibrahim Qureshi said that the decision reflects coordination among important institutions but reduction in interest rate will not serve the purpose unless the pace of reforms is increased. He called for supporting large scale manufacturing and credit to the private sector which is sliding, stopping flight of capital, improving tax machinery and curbing speculation of different sectorsSome eight years back in 2007, banks were providing 67 per cent credit to private sector which has fallen to just 37 per cent by 2014, he said. He added as per monetary policy statement January, banks provided total credit of Rs 224.5 billion to private sector during the first half of current financial year as compared to Rs 325.8 billion during the same period of last year which again shows banks’ declining supporting role to private sector.

Must Read

Mobilink Microfinance Bank joins the coveted global club of ACCA Approved Employers

Mobilink Microfinance Bank Ltd. (MMBL), Pakistan’s largest digital bank, has been recognized as an Approved Employer for its outstanding employee development and training initiatives...

TECNO brings exciting discount offers on Daraz Mobile Week 2021

Lahore – Friday, June 18, 2021: TECNO brings exciting offers for the fans on the Daraz Mobile Week 2021. There will be up to...

vivo Introduces Amazing Offers for Daraz Mobile Week 2021

vivo presents amazing offers to its customers in collaboration with Daraz.pk for Daraz Mobile Week 2021 starting from June 16, 2021. The customers are...

Jazz partners with Sinch to secure A2P messaging for its mobile subscribers

Sinch’s Managed SMS Firewall and A2P Services to deliver spam and fraud protection for 69 million Jazz subscribers     Islamabad – June 16, 2021: Sinch AB...

realme Brings Jaw Dropping Discounts on Daraz Mobile Week 2021

Lahore, Pakistan – Thursday, June 17, 2021: The month of June is getting more excited for realme fans as the company has brought in fantastic...