UBG slams decision to maintain policy rate

President of the United Business Group (UBG), Zubair Tufail, has criticised the State Bank of Pakistan’s decision to maintain the policy interest rate at 11 percent, terming it a major obstacle to the growth of domestic industry. He said the business community has been consistently urging the central bank to bring the interest rate down to a single digit, but the demand has been ignored. “The rate has been maintained contrary to ground realities, which has created deep concern among business circles,” Tufail added. He noted that inflation has largely been brought under control, and in this context, a reduction of 2 to 3 percent in the interest rate was expected. “Ignoring these facts and maintaining the rate is an unbelievable decision given the current economic conditions,” he remarked.