Karachi: The Chairman of the Pakistan Chemicals and Dyes Merchants Association (PCDMA), Salim Valimuhammad, has voiced his disapproval of the State Bank of Pakistan's (SBP) decision to maintain the policy interest rate at 11 percent. He described the move as detrimental to business sentiment and industrial growth.

In a statement, Valimuhammad called on Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and the Governor of the State Bank to reassess the policy and lower the rate to a single digit. He argued that reduced interest rates are essential for stimulating economic activity, improving access to affordable loans, and fostering job creation.

Valimuhammad pointed to the recent decline in inflation as justification for a rate cut. He stated that the high rates are a burden on the business community, which is already facing pressure. He criticized the SBP for ignoring calls from the business sector for a rate reduction, noting that such action would alleviate strain on entrepreneurs and industrialists.

He highlighted what he sees as a policy inconsistency within the government, stating that despite claims of decreasing inflation, the interest rate remains unchanged. This inconsistency, according to Valimuhammad, is hindering economic recovery.

The PCDMA Chairman warned that maintaining the 11 percent rate could stall business activity and impede economic revival. He advocated for a rate reduction in the next quarter to ease credit availability and enhance industrial output. He emphasized that without access to affordable loans, businesses cannot thrive, and government revenue growth will be stunted.

Valimuhammad's call for a policy review aligns with ongoing discussions about balancing inflation control with economic growth. This debate is particularly pertinent as Pakistan navigates IMF-mandated reforms and external pressures such as rising global commodity prices.