LAHORE: S M Tanveer, Patron-in-Chief of United Business Group (UBG), has called for a single-digit markup rate in the upcoming monetary policy to revive economic activity in the country. According to Tanveer, the business community was expecting single-digit markup in the last monetary policy but all in vain, as the State Bank of Pakistan (SBP) failed to meet their expectations.
In a statement, Tanveer expressed concern that the SBP’s reluctance to lower markup rates is hindering economic recovery.
“The current monetary policy is tightening liquidity and increasing the cost of borrowing, which is detrimental to businesses and industries,” he said.
He further noted that the federal government’s efforts and the Special Investment Facilitation Council’s initiatives for economic revival are being undermined by the SBP’s inaction.
“The SBP’s policy of keeping double digit interest rates is contradictory to the government’s efforts to boost economic growth,” he added.
He also pointed out that Pakistan’s economic growth has been sluggish, and emphasised that a single-digit markup rate would help stimulate economic activity, increase investment, and boost economic growth.
Tanveer has urged the SBP to immediately bring markup rates down to single-digit to meet the business community’s expectations and support economic growth. “A single-digit markup rate would provide relief to businesses and industries, enabling them to access credit at affordable rates and invest in expansion and growth,” he said.
It may be noted that the business community is eagerly awaiting the upcoming monetary policy announcement, hoping that the SBP will take into account their concerns and take steps to stimulate economic growth.
Copyright Business Recorder, 2025
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