High interest rate to hit economy in war times, warn businesses

KARACHI: While already under strain from high power and gas tariffs and the negative impact of the US-Iran conflict on trade, businessmen have expressed further disappointment over the State Bank’s decision to keep the interest rate at 10.5 per cent, claiming it will not assist in reviving industrial and export activities and will discourage investors.

However, Overseas Investors Chambers of Commerce and Industry (OICCI) Secretary General M. Abdul Aleem told Dawn that “actually it is a positive surprise as we were anticipating an increase due to ongoing war-type conditions in the region.”

But this decision reflects the SBP monetary policy committee’s confidence that Pakistan can sustain ongoing economic challenges without causing much hardship to economic stakeholders, he said, adding that “all in all, it is a good decision.”

Site Association of Industry President Abdul Rehman Fudda said that a 10.5pc interest rate would further strain industrial activities and exports.

Leaders say affordable financing is critical for industrial survival

Leaders say affordable financing is critical for industrial survival

The business community hoped for a reduction in the policy rate to ease financial pressure on manufacturers. However, maintaining a relatively high interest rate, he said, would make borrowing costly for businesses and discourage........

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