ICCI demands low cost credit for industry to improve productivity

Icci 1

The Islamabad Chamber of Commerce & Industry has called upon the government to focus on introducing low cost credit schemes for the domestic industry in order to improve its productivity, attract new investment and promote exports.
Ahmed Hassan Moughal President and RafatFarid Senior Vice President, Islamabad Chamber of Commerce & Industry said that Pakistan has been depending on foreign loans to run its economy and stressed that government must work on some policies to improve domestic productivity and attract new investment by providing low cost financing to businesses. They said that at present the interest rates were so high that no businessman or investor was ready undertake new business ventures and the best way to cope with this problem was to come up with low cost financing schemes for business and industry.
Ahmed Hassan Moughal said that many business groups were working on projects to expand their existing production capacities, set up new industrial units and upgrade technology, but they have put such projects on hold due to exorbitant hike in the cost of capital investment amid massive currency devaluation and sharp rise in SBP’s interest rates. He said that to reverse this trend, government in collaboration with SBP should work out some new schemes to offer long-term finance at 5-6 percent interest rate for the purchase of industrial machinery and equipment. He emphasized that government should facilitate certain priority sectors including engineering, food processing, information technology and others where Pakistan has strong potential to increase exports. He said that low interest rates were the key requirement to trigger fresh investment in industrial projects and boost exports.