Karachi: Salim Valimuhammad, Chairman of the Pakistan Chemicals and Dyes Merchants Association (PCDMA), has dismissed the State Bank of Pakistan's recent 1% reduction in the interest rate, labeling it as inadequate. He expressed concerns over the central bank's inability to lower the interest rate to single digits despite declining inflation rates.

According to a statement by Pakistan Chemicals and Dyes Merchants Association, Valimuhammad questioned the central bank's decision, stating, "When inflation is coming down, why isn't the central bank making a significant reduction in the interest rate? Only 1% reduction will not provide any significant benefit to the economy."

Valimuhammad emphasized that economic recovery would remain elusive unless the policy rate is brought down to single digits. He noted that Prime Minister Shahbaz Sharif has consistently advocated for a substantial decrease in the interest rate, yet the State Bank has resisted such measures, which he believes are necessary for economic growth.

The PCDMA president urged the State Bank of Pakistan's Monetary Policy Committee to consider the current economic conditions and reduce the interest rate to single digits in the next monetary policy review, arguing that such a move would benefit the country's economic landscape.