Tanveer asks SBP to lower interest rates

As the State Bank of Pakistan (SBP) gets ready to announce its monetary policy decision, business leader S.M. Tanveer is urging a substantial cut in interest rates to bring them down to single digits.

Patron-in-Chief of United Business Group (UBG), Tanveer, has strongly urged the State Bank of Pakistan (SBP) to bring down the interest rate to 6%, calling it necessary to boost economic growth and support businesses. He said that reducing the interest rate to single digits would act as a game-changer for the economy, help industries grow, encourage exports, and provide major relief to borrowers. He stressed that with inflation falling to 4% and the Consumer Price Index (CPI) down to 0.3%, the current policy rate of 11% is too high and outdated for present conditions.

Tanveer also pointed out that a lower rate would not only help the private sector but also reduce the government’s debt burden, saving nearly Rs3.5 trillion. He urged SBP to adopt bold and aggressive economic policies to bring the economy back on track. His statement comes just days before the Monetary Policy Committee meeting, which is scheduled for July 30. While financial experts predict a possible 1% to 1.5% cut in the policy rate, Tanveer believes this is not enough and wants the central bank to cut interest rates to below 10% immediately.

The business community across the country is now waiting for SBP’s decision, hoping for a move that will revive industrial activity and attract investment.