ISLAMABAD: A delegation of Islamabad Industrial Association (IIA) led by its President Muhammad Ahmed Waheed visited Islamabad Chamber of Commerce and Industry (ICCI).
They congratulated Faad Waheed on assuming charge as the Acting President ICCI, said a press release.
During the interaction, Faad Waheed, the Acting President of the Islamabad Chamber of Commerce and Industry, highlighted that the prevailing 22 percent policy interest rate poses a significant obstacle to fostering industrial activities. He called upon the government to reduce it to a single-digit level, emphasizing that such a move would stimulate industrialization, encourage investment, elevate exports, generate employment opportunities, and revitalize the economy.
Waheed pointed out that Pakistan’s industry faces the highest interest rate in Asia, contrasting it with rates in other countries: Japan (-0.1%), Taiwan (1.88%), Thailand (2.5%), Malaysia (3%), China (3.4%), Vietnam (4.5%), Indonesia & Hong Kong (5.75%), Bangladesh and India (6.5%). He emphasized that the excessively high interest rate renders the domestic industry uncompetitive globally, resulting in subdued export growth.
In line with his views on economic revival, Waheed stressed that focusing on export-led growth is paramount, with a single-digit interest rate being a key requirement for achieving this goal.
President of Islamabad Industrial Association, Muhammad Ahmed, underscored the role of the private sector as the engine of economic growth. He expressed concern over the 90 percent decline in the bank’s net lending to the private sector during the first 10 months of the current fiscal year. This decline has led to negative growth in many industrial sectors, making it challenging for small and medium-sized industries to access credit at the high prevailing interest rates.
Ahmed emphasized that the high-interest rate is a significant impediment to new investments in Pakistan and called on the government to address this issue urgently to facilitate business and investment growth in the country.
Engineer Azhar ul Islam, Vice President ICCI, added that despite investor interest in establishing industries in the federal capital, the absence of a new industrial zone has hindered new investments. He urged the government to extend full cooperation to ICCI for the establishment of a new industrial estate in the region, highlighting the multiple benefits it would bring to the economy. —APP
