Pakistan: The founder and patron-in-chief of Pakistan Business Group, Faraz ur Rehman, along with Chairman Ali Arsh, expressed disappointment over the State Bank’s decision to keep the interest rate at 19.5 percent. They stated that the current economic conditions demand a zero interest rate, but the government’s economic team is only interested in obtaining loans and rolling them back.
Faraz ur Rehman said that the business community and the public have been left without support, and governance cannot be run in this manner. The business community was expecting a substantial reduction in the interest rate, but the State Bank has disappointed them. He mentioned that a lower interest rate is crucial as it would encourage borrowing by the private sector and stimulate economic activities. In Pakistan, the interest rate has been the highest in the region for a long time, leading to inflation, an increase in the cost of living, and a shortage of capital for industrialists.
Faraz ur Rehman further noted that due to the high interest rates, the SME sector cannot afford loans because no industry or business can start with such high interest rates. He emphasized that the government should encourage entrepreneurs and businesspeople rather than those who keep their money in banks and live off the interest. Rehman remarked that repeatedly raising the same question is causing growing disappointment, and Pakistan cannot afford any more wrong decisions.
