Malik Khuda Bakhsh, President of Pakistan Business Forum (Karachi Region) and Convener of the FPCCI Energy Committee, has termed the State Bank of Pakistan’s decision to keep the interest rate at 11% as unrealistic. He pointed out that inflation in May stood at only 3.5%, and generally, across the world, when inflation decreases, interest rates are also lowered. However, this formula is not being applied in Pakistan.

He stated that the business community had demanded that the policy rate be lowered to a single digit to reduce the cost of doing business, thereby enabling Pakistani exporters to compete in the global market. Yet, the State Bank is not reducing the interest rate in line with economic realities to support exports.

Malik Khuda Bakhsh emphasised that the business community is fully supporting the government in its efforts to achieve economic stability in the country. However, the business community also expects the government to make positive decisions to improve business conditions.