KARACHI: The leaders of the United Business Group (UBG) have strongly criticized the decision of the State Bank of Pakistan’s Monetary Policy Committee to keep the interest rate unchanged at 11% instead of reducing it.
UBG President Zubair Tufail stated that the decision to maintain the policy rate is disappointing and will have negative effects on the economy.
He said that the State Bank has ignored all relevant facts by keeping the rate at 11%, despite consistent demands from the business community to bring the rate down to at least single digits to align more closely with policy rates in other countries of the region.
By ignoring the long-standing demand of the business community to lower the policy rate into single digits, the central bank has dashed all hopes, Tufail added.
He further said that when the country is witnessing a clear decline in inflation, it is concerning that the policy rate has not been reduced accordingly.
He called on the Finance Minister and the Governor of the State Bank to include the business community in the decision-making process regarding interest rate policies. He emphasized that the demands of the business community across Pakistan have been overlooked, and that it is imperative to reduce the policy rate to at least a single-digit level.
Copyright Business Recorder, 2025
