ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) has urged the government to reduce the policy interest rate to 5 per cent in order to save businesses from the negative impact of coronavirus.
In a statement issued here on Tuesday, President ICCI Muhammad Ahmed Waheed said that due to spread of coronavirus, all shopping malls and business centres are being closed down in major cities due to which business activities are suffering badly.
He said that the best option for the government to provide relief to businesses is to cut interest rate to 5 per cent to cope with the situation emerging after coronavirus.
Waheed said that imported raw material of many industrial units of millions of rupees is stuck up at Karachi port as transport is not available due to lockdown.
He said that industrialists have paid duties of imported raw material, but it has become difficult for them to pay to mark up of banks due to halt in money circulation.
“In these circumstances, the government should cut down the interest rate to 5 per cent and allow the business community to pay reduced mark up in instalments so that they could survive in these tough times”, he added.
He said that cutting down the interest rate to 5 per cent will revive business activities and encourage investment in the country.
He said that due to impact of coronavirus, US, Canada, UK, China and many other countries have made a drastic cut in interest rates, but SBP has reduced policy interest rate by only 75 basis points which are very negligible.
The ICCI President further said that till the time the coronavirus issue would be tackled, the government should defer receipt of electricity and gas bills and banks mark up from the businesses so that they could be able to survive in these difficult times. He said that the business community is standing with the government in this crisis situation and will not allow an increase in the prices of food items so that people may not face any problems on this account.
He said that in cooperation with the business community of Islamabad, a fund is being created to provide necessary relief to the labour class and daily wagers so that they could be provided necessary support in this difficult situation.
Senior Vice President Tahir Abbasi and Vice President ICCI Saif ur Rehman said that oil prices in the international market have come down to historically low levels. They also urged the government to passed on their benefit to the general public.
