Rawalpindi: The Rawalpindi Chamber of Commerce and Industry (RCCI) expressed strong reservations and concerns over the increase of 100 basis points in the interest rate by the State Bank of Pakistan (SBP) taking it from 16 percent to 17pc.

RCCI President Saqib Rafiq in a statement urged the government to withdraw this hike as it will have an adverse affect on the growth of industrial activities and create difficulties for small and medium enterprises (SMEs). Pakistan needs quick revival of business and industrial activities to improve the ailing economy, however a 100 basis point increase in interest rate would make the cost of credit unaffordable for the business community and badly affect their efforts for promoting business activities, he added.

He said a sharp increase in the interest rate would discourage investors from considering Pakistan for investment and badly affect investment in different projects.