Karachi, Trade and industry has demanded of the government to reduce interest rate to single digit in the forthcoming Monetary Policy by the State Bank of Pakistan (SBP).
The patron In-Chief Korangi Association of Trade and Industry (KATI) S M Muneer, Chairman Ehtesham Uddin, President All Karachi Industrial Alliance (AKIA) Mian Zahid Hussain, Vice Chairmen, Hasham A Razzak, Tariq Malik and prominent industrialist Syed Johar Ali Qandhari said that SBP is scheduled to announce Monetary Policy on August 10, 2012 and Governor SBP Yasin Anwar should reduce bank interest significantly as mark up rate in Pakistan are still highest in the region.
They said that due to high mark up rates in Pakistan industry is suffering badly and the volume of non-performing loans (NPLs) is increasing alarmingly.
Muneer said that the State Bank of Pakistan (SBP) statistics revealed that an incremental of 10 percent or Rs56.54 billion has been witnessed in total NPLs of banking industry during CY11. With current increase, cumulative NPLs of banks and DFIs mounted to Rs 623.193 billion as on December 31, 2011 compared with Rs566.645 billion as on December 31, 2010. This is extremely serious situation and also a threat to the banking industry.
He said that in such a grim situation how the industries that are struggling for their survival could bear high mark-up rate. The industry s representatives have earnestly demanded of the SBP Governor to bring the bank rate into single digit.