KARACHI: President of the United Business Group (UBG) and former President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Tufail has said the decision to keep policy rate unchanged would not only hurt investment but also discourage foreign investors from turning to Pakistan, despite the sustained efforts being made in this regard by Army Chief Field Marshal General Asim Munir.
Expressing deep disappointment over the decision of the State Bank of Pakistan’s Monetary Policy Committee to keep the interest rate unchanged at 10.5 percent, Zubair Tufail said that the decision not to reduce the interest rate would prove detrimental to national development and business activities.
He stated that the Governor of the State Bank, Jameel Ahmad, himself had acknowledged that exports have declined while imports have increased, which is clear evidence that high interest rates have pushed the economy into difficulties.
He added that at such a time it was critically important to bring the interest rate into single digit, a long-standing demand of the business community.
The UBG President questioned the justification for maintaining the interest rate at 10.5 percent when inflation has declined significantly.
Zubair Tufail further said that a lower interest rate could facilitate access to financing for small and medium enterprises (SMEs).
At present, industrial production is expensive, and new industrial investment is not taking place due to high energy costs and elevated interest rates. Had the interest rate been reduced to single digit, investors might have been encouraged to move toward industrial investment, leading to the creation of new employment opportunities in the country. However, due to the failure to do so, the business community remains disappointed, he said.
Copyright Business Recorder, 2026
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