KARACHI: State Bank of Pakistan has kept the policy rate at 11% on Wednesday (30th July, 2025).
SBP had kept the rate unchanged on 16th day of June too. It is pertinent to mention here that in June 2024 the policy rate was 22% which was slashed in seven intervals.
Earlier, various trade & industry organisations have urged the SBP to reduce two to three percent in the policy rate. The PBF criticised the current interest rate of 11pc, calling it unjustifiable sd Consumer Price Index-based inflation had plummet to 4pc. Faisal Moiz Khan, President of the North Karachi Association of Trade and Industry (NKATI), has urged the State Bank of Pakistan to announce a reduction of at least 2 to 3 percent in the policy interest rate during its upcoming Monetary Policy Committee meeting scheduled for 30th July.
He emphasized that the policy rate must be brought down to a single digit to support the revival of industrial activity and economic recovery.Faisal Moiz Khan stated that Pakistan’s interest rate is significantly higher than that of other countries in the region, putting it at a serious competitive disadvantage. He warned that under such conditions, not only is doing business becoming increasingly difficult, but the very survival of industries is at stake.
“There is an urgent need for practical measures to reduce the interest rate,” he said, “so that the business community — especially small and medium-sized enterprises (SMEs) — can receive much-needed relief, as they are currently facing severe challenges due to high borrowing costs,” he maintained. Faisal Moiz Khan also reminded that Prime Minister Mian Shehbaz Sharif had promised the business community that the interest rate would be brought down to single digits by the end of 2024.Â
“However,” he noted, “seven months into 2025, the rate remains in double digits. It is imperative that the State Bank’s Monetary Policy Committee takes a realistic and fact-based approach in its upcoming meeting and announces a significant cut in the policy rate.”
Newspakistan.tv
