KARACHI – SITE Association of Industry (SAI) has strongly criticized the State Bank of Pakistan (SBP) for maintaining the policy rate at 11%, warning that the decision could derail the government’s efforts to stimulate economic activity and deter investment.
In a statement, President of the SITE Association of Industry, Ahmad Azeem Alvi, expressed deep concern over the central bank’s decision, reiterating the business community’s long standing demand to bring the policy rate down to single digits.
“Despite a consistent decline in inflation in recent months, the SBP has opted not to ease its monetary policy. This decision is disappointing and counterproductive, especially when the government is striving to revive economic momentum,” said Alvi.
He further emphasized that maintaining high interest rates severely impacts the viability of small and medium-sized enterprises (SMEs), which are already grappling with rising production costs. “Expensive credit is pushing SMEs to the brink. If the SBP cannot slash the rate substantially in one go, it should at least consider gradual reductions to support the industrial sector,” he added.
Alvi pointed out that regional competitors offer business-friendly financial environments with easier and more affordable credit access, urging the SBP to take note and align its policies with global trends to foster local industrial growth.
SAI Chief urged the Monetary Policy Committee to reassess its stance in light of ground realities, stressing that a downward revision in the policy rate is essential for encouraging business expansion, promoting investment, and putting Pakistan back on the path of sustainable economic development.
