RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) has demanded cut in interest rates by 100 basis points.

`The February inflation rate has dropped by 2pc and at the same time, oil prices have dropped in the international market. So there is no justification for maintaining higher interest rate,` RCCI President Saboor Malik said in a statement.

He said the business community was expecting major cut in petroleum prices after global oil prices saw major fall but the relief was not passed on in its true spirit.

He demanded the government lower levies on petrol and diesel so that the benefits of f all in the global market could directly reach the people.

He said maintaining the current 13.25pc interest rate would increase uncertainty in the market, especially in the private sector.The rupee depreciation has already diminished the purchasing power of common man.

For industrial revival and promotion of SMEs, interest rates need to be reduced immediately.

He said the growth of exportoriented sectors could only be put on fast pace if loans on low terms being offered by the banks and added that lowering power and gas tariff would also help in reducing the cost of doing business.

He said manufacturing costs had increased manifold due to increase in electricity and gas prices.

The large-scale industry is shrinking due to high energy rates.

According to the government claims, the current account deficit has shrunk and the trade dencit has decreased by more than 60pc.

He again urged to reduce the interest rate immediately so that economic activity could be increased. Staf f Reporter