Increase in production cost make difficult to continue business: traders

The traders said that the banks were not issuing loans to businessmen, adding that banks preferred to provide loans to the government instead of traders. They said that the government’s dependence on banks to meet budget expenses creates difficulties for traders. They admitted that increase in production cost was due to inflation and SBP was responsible to control inflation, but to control inflation by increasing interest rates were destroying business in the country.According to a report, the government has borrowed Rs 6.24 trillion during July 2010 to May 2011 from banks for budget support.