Karachi, Leaders of the United Business Group (UBG) have voiced their dissatisfaction with the State Bank of Pakistan's (SBP) decision to maintain the policy interest rate at 22%, contrary to industry expectations of a significant reduction. This decision marks the seventh consecutive time the rate has been held steady, sparking concerns among the business community regarding the impact on economic growth and inflation.

According to United Business Group, the Karachi Chamber of Commerce and Industry (KCCI) President Iftikhar Ahmed Sheikh highlighted that the decision came as a surprise, especially given the recent signs of economic recovery and a forecasted 2% GDP growth for FY24 by the IMF and other global financial institutions. UBG leaders, including Patron General SM Tanveer, President Zubair Tufail, and others, expressed their frustration, noting that the industry has long advocated for reducing the rate to 16% to support business operations and economic stability.

The group criticized the SBP's adherence to IMF recommendations, arguing that the sustained high rate is detrimental to the industry and does not align with the current economic realities of Pakistan. The business leaders emphasized that a more reasonable policy rate would better reflect the downward trends in inflation and encourage industrial growth.