Traders’ leader demands interest rate cut to single digit

LAHORE: As the State Bank of Pakistan prepares to announce its monetary policy decision, Patron-in-Chief of the United Business Group (UBG) SM Tanveer has called for a substantial reduction in the interest rate — down to single digits.

He termed the move could be a potential “game-changer” for the economy, saying it would stimulate growth and offer much-needed relief to borrowers.

In a statement, Tanveer stressed the need for aggressive policy measures to support economic recovery.

“A single-digit interest rate is essential for economic growth and development,” he said. “It’s time for the State Bank of Pakistan to take bold action.”

He said the interest rate must urgently be reduced to 6 per cent to revive business activity.

“Inflation has already dropped to 4 per cent, and the Consumer Price Index stands at 0.3 per cent — this makes the current 11 per cent policy rate excessively high. A meaningful cut would revive industries, enhance export competitiveness, and save the government Rs3.5 trillion,” he added.

Tanveer’s appeal comes ahead of the Monetary Policy Committee (MPC) meeting scheduled for Wednesday, July 30. While most analysts anticipate a 1 to 1.5 per cent cut, he has urged the central bank to go further and bring the rate down into single digits.

“The business community is eagerly awaiting the SBP’s decision, hoping it will provide a much-needed boost to the economy. With inflation expected to remain under control, now is the perfect time for action,” he said.

Meanwhile, UBG scored a landslide victory in the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) elections for 2024-25 — a historic milestone achieved through the collective efforts of UBG members and the trust placed in Tanveer’s leadership by the business community.

Web Desk