‘SBP’s decision to maintain 11pc interest rate harmful to growth’

KARACHI: Syed Aman Shah, Provincial Convener of the Awaam Pakistan Party Balochistan, has strongly criticized the State Bank of Pakistan’s decision to maintain the policy interest rate at 11.0 percent, calling it detrimental to the country’s economic growth.

He stated that regions like Balochistan, which are already facing significant socio-economic challenges, are being pushed further into crisis by this excessively high interest rate, which negatively affects industrial, agricultural and business activities.

Syed Aman Shah emphasized that with the Consumer Price Index (CPI) now reduced to 3.20 percent, there is no justification for keeping the policy rate at such a high level. He said this wide gap leads to increased business costs, restricts access to finance, and demoralizes the private sector across the country.

He reiterated the clear demand of the Awaam Pakistan Party: the policy rate must be cut by at least 600 basis points to improve the investment climate, reduce the cost of doing business, and promote exports.

Highlighting the local context, Syed Aman Shah said that small and medium enterprises (SMEs) in Balochistan are already struggling due to poor access to finance and lack of infrastructure. A persistently high interest rate only deepens their crisis and restricts opportunities for growth and job creation.

He urged both the federal government and the State Bank of Pakistan to urgently review the monetary policy and make decisions that reflect on-ground economic realities, so that a path toward inclusive development and national prosperity — particularly for underserved regions like Balochistan — can be ensured.

Copyright Business Recorder, 2025