It is time for the government and the State Bank to provide relief to industrialists and traders so that business activities can resume and exports can increase, says a business leader.
Karachi: Renowned businessman, Secretary General of UBG Sindh, former Senior Vice President of FPCCI, Chairman of Gohar Group of Companies and Air Karachi, and former Chairman of Abad, Hanif Gohar, has demanded that the State Bank of Pakistan reduce the policy rate in the monetary policy and bring it to single digits.
He said that a policy rate lower than the expectations of the business community would not be effective in reviving the economy. According to Hanif Gohar, the business community was disappointed with the State Bank of Pakistan maintaining the policy rate at a high level of 11 percent in the previous monetary policy, although based on facts, we demanded that the interest rate be brought down to single digits and reduced significantly.
He said that current economic conditions, especially the record low inflation rate, provide scope for a more clear and significant reduction in the policy rate. According to the Pakistan Bureau of Statistics, the inflation rate in April 2025 was only 0.3%, compared to 0.7% in March. In this context, the real interest rate is very high, which is hindering investment, production, and job creation.
He said that interest rates in Pakistan are still the highest compared to other countries in the region even though inflation is the lowest, with the policy rate in India being 6.0 percent, in Bangladesh 10.0 percent, in Vietnam 3.0 percent, and Thailand recently reducing its rate to 1.75 percent. These countries are actively supporting their business sectors, while Pakistan’s industries are bearing the burden of unsustainably high debt costs.
Hanif Gohar further said that small and medium-sized industries, considered the backbone of Pakistan’s economy, are being affected the most. He said that now is the time for the government and the State Bank to provide relief to industrialists and traders so that business activities can be restored and exports can increase.
He said that if industries are not supported at this time, unemployment will increase, investment will decrease, and the government’s revenue targets will also be affected.
