LAHORE  -   The Lahore Chamber of Commerce & Industry has stressed the need for cut in mark-up rate in the larger interest of trade, industry and economy. LCCI President Almas Hyder on Friday said that the government should reduce the interest rate (SBP policy rate) from the current 10.75% to a single digit. He said that according to the data released by the State Bank of Pakistan, the Consumer Price Index (CPI) based inflation has reduced to 8.8% in the month of April 2019 as compared to 9.4% in March 2019. Core inflation, measured by non-food non-energy inflation, has also reduced to 7% in April 2019 as compared to 8.5% in March 2019.

The LCCI President said that reduction in interest rate was vital as it has made borrowing expensive for private sector and discouraged investment. “This is evident by the fact that Total Investment to GDP ratio of 16.4% is the lowest in the region. Similarly Domestic Credit to Private Sector as percentage of GDP stands at around 17% and is also the lowest in the region.

No doubt that government is making serious efforts to bring down the cost of doing business and for improvement in Pakistan’s international ranking in ease of doing business but it needs policy support”, he said.