Karachi : The business community requested SBP for reduction by 500 basis points. The current monetary policy rate of 17.5% is still high, which has significantly impacted borrowing costs for businesses and individuals. This high rate will contribute to reduced consumer spending, lower business investment, and slower economic growth. Many sectors, particularly small and medium-sized enterprises (SMEs), are struggling with the increased financial burden, which in turn affects their ability to contribute to economic development and job creation, as a whole.
In recent months, the business community has faced unprecedented challenges due to a combination of high monetary policy rates, elevated electricity costs, and soaring petroleum prices. These economic pressures are having a profound impact on businesses across various sectors, straining their operations and threatening their growth prospects said ateeq.
He added that the current high monetary policy rate has significantly increased borrowing costs for businesses. This has led to higher interest payments on loans and reduced access to affordable capital. As a result, many businesses are struggling with elevated operational costs and constrained investment opportunities. The increased cost of financing is squeezing profit margins and limiting the ability of companies to expand or pursue new projects.
Ateeq added that If we have to seriously pull out the country from current malice and bring a huge positive impact of the economy, radical decisions have to be made of enormous reduction in interest rates and cut in electricity, gas tariffs and petroleum prices.
