Karachi: Ahmed Azeem Alvi, President of the SITE Association of Industry Karachi, has expressed deep disappointment over the State Bank of Pakistan’s decision to maintain the policy rate at 11 percent. He criticized the move, stating that the repeated demand by the business community to bring the interest rate down to single digits has once again been ignored, causing widespread concern among industrial stakeholders.
In a statement, Alvi said that while Prime Minister Shehbaz Sharif continues to emphasize the importance of boosting industrial activity — including the recent announcement of a power subsidy package for industries — the bureaucracy appears to be resisting these efforts. “It seems the Prime Minister’s initiatives for economic revival are not being digested by the bureaucracy,” he remarked. “This is the fourth consecutive time the policy rate has not been reduced, which clearly indicates a lack of alignment with the Prime Minister’s economic vision.”
SAI President further explained that a reduction in the policy rate would have enabled industrialists to access bank financing for purchasing new machinery, thereby enhancing production and generating employment. “The current interest rate is discouraging investment and stalling industrial progress,” he added.
He urged the government to intervene and direct the central bank to lower the interest rate immediately. “Only through a substantial rate cut can we accelerate economic recovery and ease the financial burden on the business community,” Alvi concluded.
