Lasbela Chamber chief urges SBP to reduce interest rate

KARACHI: The President of the Lasbela Chamber of Commerce and Industry, Yakoob H Karim, along with the Executive Committee of the Chamber, has appealed to the State Bank of Pakistan to implement a significant reduction in interest rates to invigorate economic growth.

The business leaders of Balochistan emphasized that the business community is strongly advocating for a reduction of at least 200 basis points (2%), with discussions and previous monitoring committee meetings indicating a potential easing of up to 500 basis points (5%).

Yakoob H Karim stated, “We are demanding an immediate reduction of the interest rate from the current 11% to 9% ahead of the upcoming Monetary Policy Committee meeting. Further reductions to bring the rate down to 5% by December 2025 are essential for revitalizing our economy.”

He further explained, “Around the world, central banks adjust interest rates during low-inflation periods to support economic expansion. For Pakistan, the only way to control inflation and foster sustainable growth is to incentivize businesses and industries to expand trade and employment opportunities.”

The Chamber leader emphasized that reducing interest rates is crucial to creating a conducive environment for investment and industrial progress.

“This measure will stimulate business activity, ensure job creation, and ultimately support the government’s objective to curb inflation.”

Karim urged the Government and the State Bank of Pakistan’s Monetary Policy Committee to consider this call seriously, highlighting that a proactive reduction in interest rates will benefit the nation’s economic development in the long-term.

Copyright Business Recorder, 2025