KARACHI: Commercial importers have rejected the State Bank of Pakistan’s decision to maintain the policy rate at 10.5 per cent, warning that the move will further strain businesses and delay economic recovery.
Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman Salim Valimuhammad said the decision was unacceptable under the current economic conditions, arguing that a single-digit interest rate is essential to revive economic activity.
He said the policy rate should ideally be brought down to 8–9pc, stressing that Pakistan’s economy was already facing a slowdown, with weak business activity and growing financing challenges for traders and industrialists.
“The cost of doing business has increased sharply, and high interest rates are putting immense pressure on commercial enterprises,” Mr Muhammad said, adding that if the situation persisted, many businesses would struggle to survive.
He noted that lower borrowing costs were critical for restoring confidence and stimulating trade and investment, particularly at a time when liquidity constraints and reduced demand were affecting multiple sectors.
Valimuhammad said the association had been consistently urging the central bank to move towards a single-digit policy rate, but the latest decision had caused deep disappointment among the trading community.
He called on the State Bank to reconsider its stance in light of ground realities, warning that without meaningful relief on interest rates, efforts to stabilise and revive the economy would remain limited.
