Karachi: President of the United Business Group (UBG) and former head of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Zubair Tufail, has voiced significant concern over the State Bank of Pakistan's decision to maintain the interest rate at 10.5 percent. The decision, announced by the bank's Monetary Policy Committee, has been met with disappointment from business leaders who fear adverse effects on the industrial sector.

According to United Business Group, Tufail criticized the decision, arguing that it could hinder national development and business activities in Pakistan. He noted that State Bank Governor Jameel Ahmad has admitted to a decline in exports and an increase in imports, attributing these economic challenges to the high interest rates. Tufail emphasized the necessity of bringing interest rates into single digits, a move long advocated by the business community.

Tufail also questioned the rationale behind maintaining the current interest rate when inflation figures have shown a significant decline. He warned that this decision might deter both domestic and foreign investment, despite ongoing efforts by Army Chief Field Marshal General Asim Munir to attract investors to the country.

Additionally, Tufail highlighted the potential benefits of a lower interest rate for small and medium enterprises (SMEs), suggesting that it would ease access to financing. He pointed to the current challenges faced by the industrial sector, including high energy costs and elevated interest rates, which have made industrial production costly and discouraged new investments. The failure to reduce the interest rate, he argued, leaves the business community disappointed and concerned about missed opportunities for employment creation and economic growth.