Karachi: Syed Aman Shah, Provincial Convener of Awaam Pakistan Party Balochistan, has expressed serious concerns over the State Bank of Pakistan’s decision to maintain the interest rate at its current level, calling it inappropriate and disappointing for both the public and the business community.
In his official statement, he said that with inflation slowing down, the current account deficit under control, and an urgent need to support business activity, keeping the interest rate at 11% could become a major obstacle in the way of national economic growth and development.
He emphasized that high interest rates have made business loans expensive, particularly affecting small and medium enterprises (SMEs), which are the backbone of the economy. The rising financial burden has stalled new investments and reduced employment opportunities. Similarly, there has been a sharp decline in loans for housing, vehicles, and other essential needs, negatively impacting various sectors of the economy.
Syed Aman Shah further noted that commercial banks are prioritizing investments in government bonds over lending to the private sector, which has weakened the overall business environment and limited access to finance for entrepreneurs and companies.
He demanded that the State Bank and economic policymakers take immediate action to lower interest rates in order to stimulate business growth and investment. He also called for:
· Greater coordination between monetary and fiscal policies for balanced economic progress
· The introduction of concessional loan schemes for SMEs and young entrepreneurs
· Making bank financing easier, more affordable, and accessible for ordinary consumers
“This is not a time for excessive caution, but for bold and visionary decisions,” he said. “If the economy is not given breathing space now, the country could face prolonged stagnation.”
Syed Aman Shah announced that he will soon hold consultations with economists, business leaders, and consumer representative organizations to develop a comprehensive economic policy recommendation package, which will be presented to policymakers to ensure that the public’s voice is heard effectively.
