KARACHI: The President of the SITE Association of Industry, Ahmed Azeem Alvi, has voiced serious concern over the State Bank of Pakistan's decision to maintain the policy rate at 11 percent. According to Mr. Alvi, this decision neglects the longstanding demand of the business community to reduce the interest rate to single digits, thereby hindering hopes for economic recovery and growth.

Mr. Alvi questioned why the policy rate remains unchanged despite a notable decrease in inflation. He called on the Finance Minister and the Governor of the State Bank to clarify the reasoning behind this decision and to engage with the business community.

"Pakistan is currently receiving positive signals from the international community following its recent success in the Marka-e-Haq. At this critical moment, the decision to keep the rate high seems poorly timed and could obstruct the country's economic progress," Mr. Alvi stated. He emphasized that Pakistan is on the verge of significant achievements, making it crucial to adopt bold economic policies.

The SAI President reiterated the business community's call for a phased reduction of the policy rate to between 5 to 6 percent. He argued that such a move would stimulate economic activity, boost investment, and create jobs. The decision to keep the rate at 11 percent, he said, has disappointed both investors and industrialists.

Ahmed Azeem Alvi expressed his hope that the government, alongside the Finance Minister and the Governor of the State Bank, will recognize the urgency of the situation. He urged them to engage with the business sector and take decisive steps to restore economic confidence and expedite recovery.