ISLAMABAD, MAY 5 /DNA/ – Nasir Mansoor Qureshi, President of the Islamabad Chamber of Commerce and Industry (ICCI), has welcomed the State Bank of Pakistan’s (SBP) decision to cut the policy rate to 11 percent, but noted that the business community had hoped for a reduction into single digit to provide stronger support for economic revival.
In a statement issued on Monday, Qureshi acknowledged that the move is a step in the right direction, as high interest rates have long burdened the business sector, particularly small and medium enterprises. However, he emphasized that bringing the policy rate below 10 percent was a long-standing demand of the private sector to improve access to affordable financing and boost industrial activity.
“The cut to 11 percent will offer some relief to businesses, but a deeper reduction was expected, especially in light of easing inflation and declining input costs,” he stated.
The SBP’s Monetary Policy Committee (MPC) announced the revised rate following its meeting today, marking a cumulative 1,000 basis point reduction since June 2024, down from the peak of 22 percent.
Qureshi pointed out that inflation dropped significantly in March and April, largely due to falling electricity tariffs and continued food inflation decline, providing ample justification for a more aggressive rate cut.
He urged the central bank to closely monitor economic indicators and remain responsive to the needs of the business community in future policy decisions. “Lower interest rates are critical to spurring investment, job creation, and sustainable economic growth,” he concluded.
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