Karachi: Ahmed Azeem Alvi, the President of the SITE Association of Industry Karachi, expressed his disappointment over the State Bank of Pakistan's decision to maintain the policy rate at 11 percent. He criticized the move, indicating that the business community's repeated calls for reducing the interest rate to single digits have been overlooked. This, he noted, has caused concern among industrial stakeholders.

In his statement, Alvi highlighted a disconnect between the government's economic strategies and bureaucratic execution. Despite Prime Minister Shehbaz Sharif's emphasis on boosting industrial activity, including a recent power subsidy package for industries, Alvi suggested that bureaucratic resistance is undermining these initiatives. "It seems the Prime Minister's initiatives for economic revival are not being digested by the bureaucracy," he remarked, pointing out that this is the fourth consecutive instance where the policy rate remains unchanged.

Alvi elaborated on the potential benefits of a reduced policy rate, such as enabling industrialists to access bank financing for machinery purchases, which in turn could enhance production and employment. He lamented that the current interest rate is discouraging investment and stalling industrial progress.

The SAI President called on the government to intervene and direct the central bank to lower the interest rate without delay. "Only through a substantial rate cut can we accelerate economic recovery and ease the financial burden on the business community," Alvi concluded.