KARACHI: The President of SITE Association of Industry, Ahmed Azeem Alvi, has expressed deep concern over the State Bank of Pakistan’s decision to maintain the policy rate at 11 %. In a statement, he said that by disregarding the longstanding demand of the business community to bring the interest rate into the single digits, the central bank has dashed their hopes for economic recovery and growth.
Mr. Alvi questioned the rationale behind not reducing the policy rate despite a visible decline in inflation. He urged the Finance Minister and the Governor of the State Bank to explain the justification for this decision and take the business community into confidence.
“Pakistan is currently receiving encouraging signals from the international community in the wake of its recent success in the Marka-e-Haq. At such a critical juncture, this decision seems ill-timed and presents a potential obstacle to the country’s economic progress,” he said. He added that the nation is united, and Pakistan stands on the brink of achieving significant milestones—making this an opportune moment for bold and forward-looking economic decisions.
SAI Chief reiterated the business community’s demand for a gradual reduction of the policy rate to the range of 5 to 6 %, which, in his view, would stimulate economic activity, boost investment, and generate employment. However, by retaining the rate at 11 percent, the authorities have disappointed investors and industrialists alike.
Ahmed Azeem Alvi expressed hope that the government, along with the Finance Minister and the Governor of the State Bank, would recognize the urgency of the situation, engage with the business sector, and take concrete steps towards restoring economic confidence and accelerating recovery.
