ISLAMABAD, Nov 30 (INP-WealthPK): The business community believes that the 150 basis points increase in the interest rate will hurt the economic growth and mar investment in the country. “The government is urged to review the State Bank of Pakistan’s decision to massively hike the policy rate from 7.5% to 8.75% in one go,” says Nadeem Rauf, the president of Rawalpindi Chamber of Commerce & Industry (RCCI). The 150 basis points increase in the interest rate is going to increase the credit cost of commercial banks, will badly hit the growth of industrial sector and create more difficulties for the small and medium enterprises, which play key role in revival of economy, he fears. “Pakistan needs a quick revival of business and industrial activities to for sustained economic growth to recover from the effects of Covid-19 pandemic,” he says, and reiterates that a 150 basis points increase in interest rate will make the cost of credit unaffordable for the business community. The RCCI head says the government is currently facing stress on the fiscal deficit, and an increase in interest rate will further increase the budget deficit. He urges Finance Advisor Shaukat Tarin to review the SBP’s decision and call a meeting with the business community to formulate a new mechanism for economic revival.