Independent Report
KARACHI: Commercial importers have rejected the State Bank of Pakistan’s decision to maintain the policy rate at 10.5 per cent, warning that the move will further strain businesses and delay economic recovery.
Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman Salim Valimuhammad said the decision was unacceptable under prevailing economic conditions, stressing that a single-digit interest rate was essential to revive economic activity.
He said the policy rate should ideally be reduced to 8–9 per cent, noting that Pakistan’s economy was already facing a slowdown marked by weak business activity and increasing financing challenges for traders and industrialists.
“The cost of doing business has risen sharply, and high interest rates are placing immense pressure on commercial enterprises,” he said, warning that prolonged tight monetary conditions could threaten the survival of many businesses.
Valimuhammad added that lower borrowing costs were critical for restoring confidence and stimulating trade and investment, particularly when liquidity constraints and subdued demand were affecting multiple sectors.
He said the association had consistently urged the central bank to move towards a single-digit policy rate, but the latest decision had caused deep disappointment within the trading community.
Calling on the State Bank to reconsider its stance, he warned that without meaningful relief on interest rates, efforts to stabilise and revive the economy would remain limited.
