Industry says single-digit rate will revive economy
Business leaders vehemently opposed the State Bank of Pakistan’s (SBP) decision to reduce the interest rate by 100 basis points to 12 per cent on Monday, arguing that this meagre cut did not align with the significant downward trend in inflation. Industry representatives had called for a single-digit SBP policy rate before the Monetary Policy Meeting to revive economic activities. They said the SBP move would not address the prevailing economic challenges and unlock the country’s growth potential. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said inflation had decelerated to 4.1pc in December 2024, and the SBP brought down its policy rate to 12pc, thus reflecting a premium of 790bps vis-à-vis core inflation.