Cut in interest rate likely soon: minister

[LahoreEstate]

ISLAMABAD, Jan 28: A federal minister told the National Assembly on Wednesday the government was likely to decide soon to reduce the interest rate on bank lending to help a slumping industrial sector.

Responding to a call-attention notice from five opposition members about what they estimated as a five per cent decline in the country’s industrial output in the first five months (July-Nov) of the current financial year, Industries and Production Minister Manzoor Ahmad Wattoo blamed the “very high” 18 per cent mark-up, power and gas cuts and law and order problems for the downturn which, he said, the PPP-led coalition government was trying to rectify.

First he said his ministry was going to take up the issue of the mark-up with the government and Prime Minister Yousuf Raza Gilani in light of his recent discussions with chambers of commerce and industry in various cities and that he expected a favourable decision by the government.

But later, responding to questions from the authors of the notice from the PML-N, he spoke in more clear terms: “The government is seriously considering this matter and is going to take a decision soon to reduce the rate.”

However, he did not indicate or speculate about the extent of the possible reduction, which has long been demanded by the industrial sector after the onset of the present worldwide recession.

Mr Wattoo said the government was actively engaged with “commitment and determination” to tackle the difficulties facing industries through short- and long-term measures, which also included plans to end power cuts, or loadshedding, by December next through an additional power generation of more than 4,000 megawatts, more generation projects afterwards, and natural gas import from Iran and added: “I assure the house that (as a result) the industrial sector will flourish and we will come out of these problems.”

He said the government was close to a decision with Iran for the construction of a gas pipeline whether India joined the project or not.

The minister said the government also planned to import liquefied petroleum gas and wanted to ensure it would not cost more than the domestic LPG.

Earlier, Labour and Manpower Minister and PPP chief whip Khurshid Ahmed Shah suggested to Speaker Fehmida Mirza to wind up by Thursday a staggered debate on President Asif Ali Zardari’s address to a joint sitting of parliament held on Sept 20 before the planned prorogation of the house on Friday.

Two PPP members — Jamshed Ahmed Dasti and Mohammad Hayat Tochi — defended the performance of the president and the 10-month-old coalition government in their speeches on the presidential address before the house was adjourned until 4pm on Thursday.

http://www.dawn.com/2009/01/29/top8.htm