Commercial importers on Monday strongly condemned the State Bank of Pakistan’s (SBP) decision to maintain its policy rate at 10.5 per cent, cautioning that the move will place further stress on commercial enterprises and hinder the nation”s economic recovery.
The Pakistan Chemicals and Dyes Merchants Association (PCDMA) Chairman, Salim Valimuhammad, labelled the central bank”s resolution as “unacceptable” under the current economic conditions, insisting that a single-digit interest rate is vital for reviving business activity.
Mr Valimuhammad articulated that the policy rate should ideally be brought down to a range of 8-9 per cent. He stressed that Pakistan”s economy is already experiencing a downturn, marked by subdued commercial operations and mounting financing difficulties for traders and industrialists.
‘The cost of doing business has increased sharply, and high interest rates are putting immense pressure on commercial enterprises,’ stated the PCDMA chairman, adding that many businesses would face a struggle for survival if current conditions persist.
He emphasised that reduced borrowing costs are crucial for rebuilding confidence and encouraging trade and investment, particularly at a time when numerous sectors are grappling with liquidity shortages and diminished consumer demand.
Valimuhammad said the association has consistently lobbied the central bank to move towards a single-digit policy rate, noting the latest decision has resulted in profound disappointment throughout the trading community.
He called on the State Bank to reassess its position in light of ground realities, warning that without significant relief on interest rates, efforts to stabilise and rejuvenate the economy would yield limited results.