KARACHI: President of the United Business Group (UBG), Zubair Tufail, has criticised the State Bank of Pakistan’s decision to maintain the policy interest rate at 11 percent, terming it a major obstacle to the growth of domestic industry.
He said the business community has been consistently urging the central bank to bring the interest rate down to a single digit, but the demand has been ignored. “The rate has been maintained contrary to ground realities, which has created deep concern among business circles,” Tufail added.
He noted that inflation has largely been brought under control, and in this context, a reduction of 2 to 3 percent in the interest rate was expected. “Ignoring these facts and maintaining the rate is an unbelievable decision given the current economic conditions,” he remarked.
Tufail further stated that if the Monetary Policy Committee found it difficult to reduce the rate by two or three percent, it should have at least announced a one percent cut to support industrial growth and generate employment opportunities.
“The country’s industries are already under severe pressure due to unbearable electricity and gas tariffs, which have pushed up the cost of doing business. They can no longer sustain the burden of expensive borrowing,” he warned.
Tufail concluded that the State Bank’s move would discourage new investment and slow down industrial progress in Pakistan.
Copyright Business Recorder, 2025
