Karachi, July 30, 2025 – Salim Valimuhammad, Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), has expressed strong disappointment over the State Bank of Pakistan’s (SBP) decision to maintain the policy interest rate at 11 percent, labeling it a setback for business sentiment and industrial growth.
In a statement, he urged Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and the Governor of the State Bank to immediately review the policy and reduce the rate to a single digit. He argued that lower interest rates are critical to stimulating economic activity, improving access to affordable loans, and fostering job creation. “This is not a wise decision in my view,” he stated, pointing to the recent decline in inflation as a reason to cut rates. “Inflation has already come down, and businesses are under enormous pressure. If such high interest rates continue, it will further burden the business community, which is already struggling.”
He criticized the SBP for disregarding the business sector’s repeated calls for a rate reduction, emphasizing that such a move would provide relief to entrepreneurs and industrialists. He highlighted a perceived inconsistency in government policy, noting, “On one hand, the government claims inflation is decreasing, but on the other hand, the interest rate remains unchanged. This policy inconsistency is damaging economic recovery.”
The PCDMA Chairman warned that maintaining the 11percent rate could stagnate business activity and hinder economic revival. He called for reduction in the next quarter to ease credit availability and boost industrial output. “Until access to affordable loans is ensured, businesses will not flourish, nor will the government be able to increase its revenue,” he stressed, underscoring the need for a lower policy rate to restore business confidence and stabilize the economy.
Salim Valimuhammad call for a policy review aligns with ongoing debates about balancing inflation control with economic growth, particularly as Pakistan navigates IMF-mandated reforms and external pressures like rising global commodity prices.
