Kardar ‘Worried’ Pakistan Rate Rises May Hurt Growth

Pakistan’s inflation-fueling government borrowing is forcing the central bank to raise interest rates, “crowding out” investment and undermining economic growth, Governor Shahid Kardar said.

“I am worried about the growth aspect, what is going to happen to the private sector,” Kardar, 58, said in Karachi yesterday in his first interview since taking charge in September. “We need 8 percent to 10 percent growth just to absorb the annual increase in the labor force.”