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PRESS RELEASE

Cut in policy rate will support economy : APBF

March 22, 2015

“Lahore (Press Release) – The All Pakistan Business Forum President Ibrahim Qureshi said the SBP governor deserved appreciation for bringing down the interest rate to 8 per cent from 9.5 per cent in short span. However, Ibrahim Qureshi called for measures to overcome energy crisis, security challenges and political instability to make interest rate cut meaningful and result-oriented.

He said that some seven years back in 2007 banks were providing 67 per cent credit to private sector which has fallen to just 37 per cent by 2014. They said as per monetary policy statement January 2015, banks provided total credit of Rs 224.5 billion to private sector during the first half of financial year 2015 as compared to Rs 325.8 billion during the same period of last year which again shows banks’ declining supporting role to private sector.

He said the cut would help ensure availability of cheaper money to cash starved private sector besides encouraging the potential foreign investors for investment in Pakistan.