According to him, with inflation under control and the Consumer Price Index (CPI) at a notable low, the persistence of high interest rates is stifling economic growth and exacerbating the challenges faced by businesses and consumers alike. The high policy rate is deterring investment, hindering job creation, and placing an undue burden on the industrial sector, which is crucial for our economic development, he stressed.
In my view, said Mr. Tanveer, no economic uplift is possible without a significant reduction in the policy rate to 6 percent. This move would not only stimulate economic activity but also make borrowing more accessible for businesses, thereby fostering growth and development. Furthermore, he said, it is imperative to bring electricity tariffs to a regionally competitive level of 9 cents per kWh. This adjustment is essential for reducing the cost of doing business, enhancing our export competitiveness, and ultimately driving economic prosperity.
It may be noted that the SBP policy rate is currently 11.00The SBP's Monetary Policy Committee (MPC) has held the rate unchanged at this level since May 2025, most recently on September 15, 2025. This decision was made despite expectations for a cut, reflecting caution due to rising floods potentially spiking food prices and renewing pressure on the currency.
Patron-in-Chief UBG has urged the government to revisit the policy rate without delay. He said the current economic environment demands a more accommodative monetary policy to revive the economy and support the business community. Delaying this crucial decision will only prolong the economic stagnation and hinder Pakistan's progress, he said, adding that it is imperative for the government to take immediate action to ensure a conducive environment for economic growth and development.