Press Release,
Rawalpindi: (Parliament Times) Government should take immediate measures to control inflation. Power, gas tariff and interest rates should be reduced to promote business activities. Inflation and rupee depreciation have already reduced the purchasing power of the common man. For industrial revival and promotion of SMEs, it is imperative to reduce interest rates immediately.
Addressing executive committee in the chamber, Saboor Malik, president of the Rawalpindi Chamber of Commerce (RCCI) said that prices of food and basic necessities have increased manifold over the past few months. The break-up of inflation of 14.6 percent in January 2020 showed that food and beverages prices increased by 23.65 percent, which is the highest in twelve years since 2008.
Rise in prices of milk, vegetables, fruits, pulses, edible oils, ghee and flour, sugar have affected the purchasing power of the common man. Saving are incurred which has led to local investment being stopped. He said business costs have increased manifold due to the rise in electricity and gas prices.
The large-scale industry is shrinking due to high interest rates. The export-oriented sectors’ growth requires ensuring loans on low terms. The duty on import goods should be reduced as most of our exports are dependent on imported raw materials. The industry need an immediate push to get back on track and this can only be done through interest rate cut and lowering POL prices, he suggested.
President Chamber Sabor Malik said as per government claims, the current account deficit has surplused, and the trade deficit has decreased by more than 60%. However, the government has not yet reduced interest rates so far.
