Businesses demand further rate cut

Business leaders responded critically to the policy rate announced by the State Bank of Pakistan's (SBP) Monetary Policy Committee (MPC), appealing to the central bank to make more significant rate cuts in line with the declining inflation trend. They argued in favour of single digit interest rate saying that the current reduction is insufficient to meet the business community's need. A single digit interest rate, they said, would lower borrowing costs, boost economic expansion, and reduce the cost of doing business, ultimately benefiting the economy. They acknowledged that the SBP has consistently eased its monetary policy, this marking the fourth consecutive rate reduction, bringing the interest rate down from 22% to 15%. However, they believe a more substantial reduction is needed to stimulate economic growth and ease the financial strain on businesses and consumers.