UBG Criticizes Pakistan’s Decision to Maintain 11% Policy Rate

Karachi: The United Business Group (UBG) has expressed strong disapproval of the State Bank of Pakistan’s recent decision to keep the interest rate steady at 11%. According to UBG President Zubair Tufail, the Monetary Policy Committee’s decision has disregarded calls from the business sector to reduce the rate.

Tufail argued that the unchanged policy rate could negatively impact the economy. He highlighted that the business community has long advocated for a reduced rate, suggesting that aligning it with single-digit figures seen in other regional countries would be more beneficial.

The central bank’s decision to maintain the rate at 11% has disappointed many, Tufail noted, adding that it undermines efforts to support local businesses. He pointed out that the decision comes at a time when inflation is reportedly on a decline in the country.

In his statement, Tufail urged the Finance Minister and the Governor of the State Bank to involve business leaders in discussions on interest rate policies. He stressed that the business community’s input is crucial and that their demands for a reduced policy rate should not be ignored.