Lower the interest rates
A lot has been said about establishing a single-digit interest rate. Even though the authorities have expressed their wish to bring down the interest rate on lending to single-digit in all banks—as high rates are sometimes the main reason for loan defaults—the full-fledged implementation of it is far from certainty. But what is the reason for this delay?
I believe it is also the responsibility of economists to persuade and pressure the authorities to apply the single-digit interest rate as early as possible. High rate of interests will not yield good results for the overall society and instead lead to large numbers of loan defaulters. Our economy has already seen and suffered the consequences posed by such loan defaulters, many of whom have a sense of impunity.
It should also be noted that bad loans are piling up and its harmful impact is often reflected upon the overall economy. It is high time the authorities looked into the matter with greater urgency.
Nadim Ahmed, by email
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