KARACHI: The Bin Qasim Association of Trade & Industry (BQATI) has called on the State Bank of Pakistan (SBP) to bring the policy interest rate into single digits immediately in the upcoming Monetary Policy Committee meeting to revive industrial growth and job creation.
President BQATI, Shakil Ashfaq, stated that the current high rates have pushed manufacturing activity to historically low levels. “With production already subdued, the sector urgently needs the support of affordable credit to recover, expand operations, and sustain jobs. Without this shift, industrial momentum cannot return,” he said.
BQATI highlighted that inflation has dropped from 38% last year to under 4% now, leaving Pakistan with one of the highest real interest rates globally. Large-scale manufacturing output remains weak and GDP growth is stuck below potential at around 2.5%. “The economy has stabilized; now we need immediate action to shift from stabilization to growth,” Ashfaq added.
The association also compared Pakistan’s rates to regional peers, noting that India, Vietnam, and Bangladesh maintain rates between 5–7%, while Sri Lanka revived its economy by cutting from nearly 30% to below 8%. “Our manufacturers cannot compete when the cost of capital here is double that of competitors,” the statement said.
BQATI stressed that a decisive move to single-digit rates would unlock industrial expansion, generate jobs, and strengthen exports. “Inflation is under control.
Copyright Business Recorder, 2025