Karachi: Muhammad Kamran Arbi, President of the Site Association of Industry (SAI), has expressed dissatisfaction with the State Bank of Pakistan’s (SBP) recent 2% reduction in interest rates, advocating for a more significant cut to single digits to better support business stability and planning.

According to S.I.T.E Association of Industry, Arbi criticized the modest rate cut as inadequate under the prevailing economic conditions and called for a decisive shift to single-digit interest rates to foster a more predictable environment for businesses. He remarked that the move, while a step in the right direction, falls short of what is necessary to ensure sustainable economic growth and investment stability.

Arbi emphasized the need for a clear, long-term monetary policy roadmap from the government to alleviate uncertainty for investors. He noted that with inflation already in single digits, a real effective interest rate of about 10-11% is not conducive to stimulating business activities or economic growth. Arbi is urging the SBP to adopt a more aggressive approach, including a potential 5 percentage point gradual reduction in interest rates, and to consider implementing quantitative easing measures to revitalize the economy.