President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Javed Bilwani, criticized the State Bank’s decision to maintain the policy rate at 11 percent, stating that despite significant reductions in inflation and industrial competitiveness, the bank’s stance remains unchanged, causing considerable concern within the business community.

Bilwani highlighted the Chamber’s disappointment, noting that there has been a longstanding expectation for lower interest rates to boost economic activities, reduce operational costs, and assist industries facing difficulties. According to Bilwani, the continuous high interest rate overlooks key market indicators and weakens business confidence at a critical juncture for the country’s economic recovery.

The KCCI president also mentioned that the high interest rate is negatively impacting Pakistan’s industrial sector, reducing its competitiveness both regionally and globally. This struggle is not limited to Pakistani exporters attempting to carve out a niche in international markets, but also extends to local manufacturers competing against cheaper imported goods.

Furthermore, Bilwani criticized the central bank’s overly cautious strategy in light of global economic pressures, such as geopolitical tensions and fluctuations in oil prices. He emphasized that while these external threats are significant, the strategy should not suppress local production and investment. Bilwani called for a financial policy that supports growth and development rather than restricting it.

Concluding his statement, Bilwani expressed the need for the State Bank to reconsider its position and adopt a more supportive role for the economy’s productive sectors. He stressed that Pakistan should leverage its developmental potentials rather than being restricted by financial policies.