Interest rate

The real interest rates have been artificially kept low in Pakistan over the years despite mega-inflation. In real terms, it hovered around 40 per cent. Is it not a fact that the practice failed to bolster the economy, and, in fact, was primarily responsible for landing the country in the present economic meltdown, forcing the State Bank of Pakistan (SBP) to take corrective measures? Additionally, a higher interest rate is a tool to encourage and increase savings, sustain the worth of national currency, control inflation and stabilise the economy by giving fair treatment to all segments of society. Hence, there is a need to keep the interest rate unchanged.
S. ISRAR ALI
KARACHI

Previous article
Next article
Editor's Mail
Editor's Mail
You can send your Editor's Mail at: [email protected].

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

India’s radioactive black market

 “Every country has the right to its own peace and security, but not at the expense of others.” Ban Ki-moon (8th Secretary General of the...

Shameful defeat