The SBP interest rate policy has drawn strong criticism from Pakistan’s business community. On Monday, trade and industry leaders called the State Bank of Pakistan’s decision to keep the policy rate at 11 percent “anti-growth.” They said high borrowing costs are damaging industrial competitiveness and slowing economic recovery. The SBP’s Monetary Policy Committee maintained the rate, citing global uncertainties and domestic risks.
Some business leaders supported the decision, but most disagreed. M. Abdul Aleem of the Overseas Investors Chamber said maintaining stability was sensible because imports were rising while exports were weak. However, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said the rate should have been reduced to 7 percent. He argued that a lower rate would boost growth and cut the government’s debt burden by Rs3.5 trillion.
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Other business representatives also warned that high interest rates were hurting production and employment. FPCCI Senior Vice-President Saqib Fayyaz Magoon said single-digit rates would make goods cheaper and help control inflation. Karachi Chamber of Commerce President Muhammad Rehan Hanif said even a small cut would have been a positive sign. He noted that government borrowing is still high, while credit for private businesses remains tight.
Hanif further said industries are already struggling with record energy and gas tariffs. He urged the government to reduce both interest and utility costs to revive industrial activity. Korangi Association President Muhammad Ikram Rajput added that small and medium enterprises were the hardest hit. “High borrowing costs have made it almost impossible for them to grow or hire workers,” he said.
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The SBP interest rate policy continues to divide opinions across Pakistan’s business sector. Many believe that sustained growth and new investment are impossible without cheaper credit. Business leaders insist that the government must act quickly to align monetary policy with its economic revival goals.