Ex-minister Gohar Ejaz laments 11 percent interest rate

Former caretaker federal minister Gohar Ejaz said on Thursday that the Finance Ministry had admitted that the interest rate was not decreased despite a drop in inflation in June, reported 24NewsHD TV channel.

In a statement, he said that the State Bank of Pakistan’s (SBP) policy rate was not in harmony with inflation.

He further said that reasons had been given in the monetary policy for maintaining the interest rate. “How on earth could the inflation, resulting from a hike in gas tariff, be controlled with the help of interest rate?” he questioned.

He lamented that the SBP continued to retain the interest rate at 11 percent, which was six per cent more than the rate of inflation. “The taxpayers have to pay an additional Rs3,000 billion to banks due to a high interest rate.”

“No economy could withstand such mistakes,” Ejaz opined. 

Reporter: Waqas Azeem