LCCI for policy support to help industry overcome economic challenges

LAHORE: Lahore Chamber of Commerce and Industry (LCCI) President Faheemur Rehman Saigol said here Monday that in the current economic situation, strong policy support is essential to help the industrial sector, as industry can play a key role in pulling the economy out of existing difficulties.

Sharing his viewpoint with media on the State Bank of Pakistan’s decision to keep the policy rate unchanged at 10.5 percent, he said that the business community has long been urging that the interest rate should be brought down to a single digit so that industrialists can access cheaper financing and business activities can grow.

Saigol said that Pakistan’s industrial sector is already facing many challenges, including high production costs, expensive energy and economic pressures, while global uncertainty is also affecting businesses. In such conditions, a high interest rate creates additional problems for industry because expensive borrowing discourages new investment and industrial expansion.

He said that if the economy is to be placed on strong and sustainable foundations, the industrial sector should be strengthened, as it creates jobs, increases exports and supports overall economic stability.

The LCCI President said that in the current global environment, especially with tensions in the Middle East and rising oil prices, Pakistan needs economic policies that create a supportive environment for industry, trade and investment. He expressed hope that in the upcoming monetary policy reviews, the concerns of the business community will be considered and the policy rate will be reduced so that industrial and economic activity can gain momentum. APP