PESHAWAR: The business community has opposed the State Bank of Pakistan`s decision to increase the benchmark policy rate by 150 basis points to 13.75 per cent and demanded a deeper cut in policy rate to support the ailing economy and industrial growth in the country.

The demand was raised through a resolution adopted in a joint meeting of the traders and industrialists at the Sarhad Chamber of Commerce and Industry here on Tuesday. The par-ticipants said the decision would prove detrimental to the country`s economy.

The meeting presided over by SCCI president Hasnain Khurshid Ahmad stressed the need that the federal government should take the business community and other stakeholders on board in the policymaking process in order to strengthen the national economy.

Other senior businessmen, including Imran Khan Mohmand and Javed Akhtar, gave suggestions for revival of businesses and sick industrial units.

Theyurged Prime Minister Shehbaz Sharif and finance minister Miftah Ismail to reduce the interest rate. They said that the high markup rate in Pakistan would enhance cost of industrial production and create difficulties in business and trade activities.

The participants through a unanimous resolution categoricallyrejected the recent hike in policy rate, saying it was unaffordable for the country`s economy, businesses and industries. They demanded that the decision should be withdrawn immediately.

They feared that the hike in interest rate would bring a new wave of inflation in the country, which would also negatively impact the country`s exports.

The chamber`s president called for revisiting economic policies. He emphasised that it was essential in the prevailing scenario that policies should be made independently to pull the country of the mess of foreign loans.

He requested SBP`s acting governor Dr Murtaza Syed to take back the decision of increase in interest rate to normalise trade and commercial activities in the country.