Ahmed Azeem Alvi, President of the SITE Association of Industry(SAI) has voiced strong disappointment over the State Bank’s decision to maintain the policy rate at 10.5 percent, terming it detrimental to economic growth and industrial activity.

SAI Chief rejected the move, saying it would further burden businesses and undermine exports. “Even the State Bank governor himself has acknowledged that exports have declined while imports have risen. This clearly shows that keeping interest rates high has stalled economic progress,” he remarked.

Alvi argued that this was the right time to take a chance and reduce the policy rate by at least one to 1.5 percent. “Such a step would have fulfilled the long-standing demand of the business community to bring interest rates into single digits. It would also have allowed us to assess the positive outcomes of a lower rate,” he said.

He added that timely decisions could benefit businesses, boost exports, and support overall economic growth. Expressing regret, he noted that Pakistan had failed to learn from regional countries and had not capitalized on opportunities presented by global exhibitions.

“The current 10.5 percent policy rate has further increased the cost of doing business. A modest cut of one to 1.5 percent would not have harmed the economy but rather helped exporters expand their operations by accessing cheaper financing,” Alvi stressed.