ISLAMABAD:The business community Saturday expressed concerned over interest rate hike which will slide down economic growth considerably besides increasing the cost of production compared to neighbouring competitors in global markets.Talking to a delegation of industrialists and traders jointly led by Shahid Nazir and Mufti Yousaf Shah, members executive committee of chamber, Meher Kashif Younis, Coordinator to Federal Tax Ombudsman and former senior Vice President Chamber of Commerce and Industry said an increase in the interest rate also raises the cost of capital resulting in reduction of investment within economy.He said the benchmark rate of 15% is the highest since November 2008 and even three to four times higher than in the region.Meher Kashif Younis lamented that Industrial sector is already under stress of heavy taxation, gradual increase in petroleum products, in gas and power tariffs and levy of fixed charges of electricity which will not only discourage the inflow of foreign and local investors but also tumble down the process of industrialisation resulting in massive unemployment. He said SMES which always play vital role in economic growth and development will also be hit badly by increasing interest rates rendering them non functional. He said many industries including textile sector have invested billions of dollars in importing machinery in the last three years at 4-4.5pc markup rate after obtaining loans from banks which will now lead to suspension of industrial activities and failures to achieve desired targets of economic growth and exports.He urged the government to rescue the industrial and agricultural sectors from impending looming monetary crisis for the survival of the country which he added is pre-requisite worldwide.
Tuesday, October 20, 2026