KARACHI – Faraz-ur-Rehman, President of the Korangi Association of Trade and Industry (KATI), voiced
disappointment over the State Bank’s decision to maintain the interest rate at 22%. Despite
expectations of a reduction following the promising performance of sukuk bonds in the global market
and a decline in oil prices, the Monetary Policy Committee decided to uphold the current rate for the
third consecutive meeting.
Expressing concern, President Faraz-ur-Rehman highlighted the adverse impact of sustaining the highest
interest rate for six months on various industries, asserting that they are now teetering on the brink of
destruction. He emphasized that prolonged financial strain on industrialists is unsustainable, especially
considering the State Bank’s indication that interest rates may not see a decrease in the coming year.
Faraz-ur-Rehman appealed urgently to the government, urging an immediate reduction in interest rates
to alleviate industrialists from high-cost loans. He argued that such a move would stimulate economic
activities, boost commercial endeavors, promote industrialization, and create much-needed
employment opportunities. He lamented that, given the current scenario, achieving the government’s
growth target of 2 percent appears increasingly challenging.
Despite positive economic indicators, the persistence of a 22% interest rate threatens to impede
economic recovery. Faraz-ur-Rehman emphasized the necessity of reducing the interest rate to shield
the population from the dual impact of inflation and escalating unemployment.
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