100 basis points cut in discount rate lauded
Welcoming the 100 basis points cut in the discount rate by the State Bank of Pakistan (SBP), Progressive Group, a representative platform of traders and businessmen has urged the government to pay attention towards other issues hindering the growth of industrial sector and expansion of business activities in the country.
Hailing the government move of bringing down the markup rate it termed it a good omen for business and industrial activities but at the same time urged the rulers to expedite the efforts for resolving the issues of power and gas shortage.
Progressive Group President Khalid Usman and Secretary Information Muhammad Ejaz Tanveer in a statement issued here on Wednesday said that it is good that the government has brought down the rates of markup to some extent after ensuring reduction in the petroleum products' prices in line with the international rates.
However, they said that electricity and gas outages were still hampering the industrial production and business activities in the country.
They said that the business community always direly needs loans on lower rates for setting up new industries or expansion of their business and reduction in markup rate would ensure decrease in their financial issues to a larger extent.
They said that setting up of new industries or expansion in business activities as a result of lowering markup rate would create new job opportunities as well as enhance the government revenue resolving the financial hardships being faced by the state. However, they stated that expan- sion can only be ensured or investment could only be attracted from abroad or inside the country if other issues are resolved amicably.
They said it is the duty of the government to provide an enabling environment to the investors and businessmen so as to accelerate economic activities which would ultimately result in generation of more revenue for the government providing it room to spend more on development side.
They said that business community is committed to support all government efforts for boosting the national economy and expect that the government would reciprocate with same spirit.