High interest rate stokes private sector woes

The business community, except multinationals, has expressed intense disappointment over the State Bank of Pakistan’s (SBP) decision to maintain the policy rate at 11 per cent, warning that the move could stifle economic revival and increase pressure on an already struggling private sector. Presenting a contrasting view, M. Abdul Aleem, Chief Executive and Secretary General of the Overseas Investors Chamber of Commerce and Industry (OICCI), said his organisation supported the central bank’s decision. “Given rising imports, exchange rate pressures, and recent domestic and global challenges, a cautious approach is prudent. Overall, this is a bold decision,” he told Dawn.