Former caretaker federal minister Gohar Ijaz, while raising questions over interest rate hike, said on Wednesday that increasing interest rates could have huge economic consequences, reported 24NewsHD TV channel.
In a press statement, Gohar said that one percent increase in interest rate would increase interest payments on loans by Rs600 billion.
He further said that this year, interest payments of Rs8 trillion will increase by another Rs600 billion and as a result, more tax burden would be imposed on public.
“Will more taxes be imposed on people for interest payments? Gohar questioned.
Does an increase in interest rate offer a solution to the oil crisis?
Can increasing interest rates stop inflation caused by oil prices? He questioned.
Gohar Ijaz further questioned that can the State Bank of Pakistan stop the increase in oil prices in the global market? Will increasing interest rates reduce fuel consumption in the country?