English Press Release 23.11.2021

FAISALABAD. Increase of 150 basic points in mark up rate will be detrimental for the economy and is tantamount to stopping the growing exports, said Mr. Atif Munir Sheikh, President Faisalabad Chamber of Commerce & Industry (FCCI).

Commenting on the recently held meeting of the Monetary Policy Committee of the State Bank of Pakistan (SBP), he said that the majority of the business community belong to the SME sector with limited financial resources. He said they have to depend on loans and increase in markup will add additional burden on them instead of bringing down the cost of production. “Depreciation of PKR will further complicate the business of import and export”, he said and added that the SBP has totally ignored the interests of the business community which will have negative repercussions on the overall business environment in addition to intensifying inflation. “Recent increase in markup will make our exportable surplus uncompetitive in the global markets”, he said and added that Special Assistant to Prime Minister Mr. Abdul Razak Dawood has made hectic efforts to put the exports on growth trajectory but this increase will nullify his serious efforts and further squeez our export earnings and foreign exchange reserves. He demanded that the Government must intervene and withdraw this unjustified increase in markup rate. He further said that it will also help the Government to control inflation which has made the life of poor masses miserable.

Meanwhile Mr. Imran Mahmood Sheikh Senior Vice President FCCI has also termed this increase as a noose for the entire industrial sector and said that the increase in production cost will force industrialists to close down their units which will also render millions of workers jobless. He said that the SME sector was already passing through a critical stage and increasing markup would further aggravate this situation. He also expressed concern over the decision to increase the number of meetings of the Monetary Policy Committee from 6 to 8 in a year. He said that it will foment uncertainty and no businessman could make long term agreements with futuristic vision.   

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