Muhammad Jawed Bilwani, President of the Karachi Chamber of Commerce and Industry (KCCI), has expressed disappointment over the State Bank of Pakistan’s decision to reduce the interest rate by 2.5 percent, bringing it to 15 percent. He argued that this adjustment is inadequate and fails to reflect the declining trend in inflation, which has now dropped to single digits.
Bilwani noted, “With a reduction of 250 basis points, the key policy rate now stands at 15 percent, which remains too high. It is essential for the rate to be reduced more aggressively, ideally to between 5 and 7 percent, in line with many other countries in the region and around the world.” He emphasized the necessity of lowering the interest rate to single digits, as this would encourage borrowing and facilitate business expansion by decreasing the overall cost of doing business. This, he argued, would ultimately benefit the economy. While acknowledging the State Bank’s efforts to ease its monetary policy, including the fourth consecutive cut from 22 percent to 15 percent, Bilwani urged for a more significant reduction to stimulate economic growth and relieve the financial burden on both businesses and consumers.
