Ahmed Azeem Alvi, President of SITE Association of Industry, has expressed disappointment over the State Bank of Pakistan’s (SBP) mere 100 basis points reduction in the policy rate, demanding the central bank bring the rate down to single digits to revive business confidence.

In a statement, Ahmed Azeem Alvi said, “A single-digit policy rate has been our long-standing demand, but it seems the business community is failing to make the government understand its importance. There’s a psychological impact – if the policy rate enters single digits, it will significantly boost business confidence. However, a one percent cut won’t make any meaningful difference to economic improvement.”

He emphasized that high borrowing costs continue to stifle industrial growth, making it difficult for businesses to expand operations. “At current rates, access to affordable credit remains a major hurdle for industries,” he added.

The SITE Association chief expressed hope that the next monetary policy would finally bring the interest rate to single digits, restoring business confidence. “Once businesses can secure loans at reasonable rates, they will expand operations, leading to positive ripple effects across the economy,” Alvi stated.

He urged policymakers to recognize the urgent need for a more aggressive rate cut, warning that without substantial relief, industrial growth and economic recovery would remain sluggish.