LAHORE: S M Tanveer, Patron-in-Chief UBG, has demanded drop in the interest rate to 6 percent after a significant drop in Consumer Price Index (CPI) to a remarkable low of 3 percent in August 2025.
He said this development has sparked widespread calls for a reduction in interest rates, with business leaders and economists arguing that the current rates are no longer justified.
With inflation under control, he stressed, the State Bank of Pakistan’s decision to maintain an interest rate of 11 percent has come under scrutiny. He further argued that the wide real interest rate gap is choking industrial and economic growth. According to S M Tanveer maintaining interest rate of 11 percent is no longer economically justified. The real interest rate gap has become perilously wide, stifling industrial and economic growth.
He said a reduction in interest rates to at least 6 percent could have numerous benefits for the economy for reviving industrial growth, supporting job creation, boosting export competitiveness, reducing government debt burden, and encouraging investment and business confidence.
Tanveer has urged the State Bank of Pakistan to take immediate action to reduce the interest rate. “We demand that the State Bank of Pakistan takes immediate action to reduce the interest rate to at least 6 percent,” he said.
“This move will not only revive industrial growth and support job creation but also boost export competitiveness, reduce the government’s substantial debt burden of over Rs 3.5 trillion, and encourage investment and business confidence.”
Tanveer has also called on Chambers of Commerce, Trade Associations, and business leaders across Pakistan to stand united and demand a growth-oriented and rational economic policy. “Let us raise a strong, collective voice to demand a growth-oriented, rational economic policy — one that supports the people, strengthens our businesses, and leads Pakistan to a prosperous future,” he said.
As the country celebrates this economic milestone, he said, the question remains whether the government and the State Bank of Pakistan will heed the calls for a reduction in interest rates. He said the eyes of the business community and the nation are fixed on the policymakers, expecting them to make decisions that will drive economic growth and development.
Copyright Business Recorder, 2025
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