KARACHI: Commercial importers have voiced strong opposition to the State Bank of Pakistan's recent decision to maintain the policy rate at 10.5 percent, expressing concerns that the move could exacerbate challenges faced by businesses and hinder economic recovery efforts.

According to Pakistan Chemicals and Dyes Merchants Association (PCDMA), Chairman Salim Valimuhammad described the decision as unacceptable given the current economic conditions. He argued that a single-digit interest rate is crucial to reviving economic activity, suggesting that the policy rate should ideally be reduced to between 8 and 9 percent. Valimuhammad highlighted that the economy is already experiencing a slowdown, characterized by weak business activity and increasing financing difficulties for traders and industrialists.

"The cost of doing business has increased sharply, and high interest rates are putting immense pressure on commercial enterprises," Valimuhammad stated. He warned that if the situation continues, many businesses may face significant survival challenges. Lower borrowing costs, he noted, are essential for restoring confidence and stimulating trade and investment, especially at a time when liquidity constraints and reduced demand are affecting multiple sectors.

The PCDMA chairman emphasized that the association has consistently urged the central bank to adopt a single-digit policy rate. He expressed deep disappointment within the trading community regarding the recent decision and called on the State Bank to reconsider its stance in light of the prevailing economic challenges. Valimuhammad cautioned that without substantial relief on interest rates, efforts to stabilize and revive the economy would remain inadequate.