SITE Industrialists Criticize Minimal Rate Cut as Inadequate

KARACHI: The SITE Association of Industry has voiced its dissatisfaction with the State Bank of Pakistan’s recent policy decision to cut the interest rate by only 50 basis points. Ahmed Azeem Alvi, the association’s president, argued that the modest reduction fails to deliver the necessary relief to the beleaguered industrial sector.

In a statement, Mr. Alvi emphasized that the current economic challenges warranted a more substantial rate cut. He urged the government to formulate a coherent strategy to support domestic industries that are facing mounting difficulties.

Local industries, according to Mr. Alvi, are struggling significantly as imports have stalled. The prevailing high interest rates, he noted, have exacerbated inflation and unemployment, trapping both businesses and the public. “Daily job losses are a reality. The policy rate needs to drop to single digits to revive the economy and boost employment,” he stated.

The SAI president criticized what he sees as misplaced governmental priorities, attributing the slow decision-making to IMF conditions and bureaucratic obstacles. He remarked, “When it comes to the economy, genuine concern seems absent. The government is failing to make long-term, meaningful decisions.”

Mr. Alvi cautioned that without swift action to further lower interest rates and introduce conducive business policies, industrial activity might cease. Such an outcome, he warned, would exacerbate unemployment and plunge the nation into a deeper economic crisis.