SM Tanveer, Patron-in-Chief of the United Business Group (UBG), has called on the State Bank of Pakistan (SBP) to reduce interest rates to single digits. He said this step is crucial to boost economic growth and provide relief to borrowers across the country.
Ahead of the SBP’s upcoming monetary policy meeting on July 30, SM Tanveer emphasized the need for bold action. He stated that lowering interest rates would help stimulate industries and improve the competitiveness of Pakistani exports.
Currently, the SBP’s policy rate stands at 11 percent. SM Tanveer argued this rate is too high, especially since inflation has dropped to around 4 percent and the Consumer Price Index (CPI) is only 0.3 percent. He suggested the SBP cut rates to 6 percent to support economic recovery.
According to SM Tanveer, reducing interest rates to single digits would save the government Rs3.5 trillion. He described such a cut as a “game-changer” that could accelerate growth and development in the country.
Many analysts expect a rate reduction of 1 to 1.5 percent at the upcoming meeting. However, SM Tanveer is urging the central bank to go further and make a more aggressive cut.
The business community welcomes this call, hoping that lower borrowing costs will ease financial pressure and encourage investment. SM Tanveer’s demand reflects growing calls for policies that support economic stability.
With inflation under control, SM Tanveer believes the timing is ideal for the SBP to take decisive steps. The upcoming decision by the Monetary Policy Committee is awaited closely by investors, businesses, and economists.
Overall, SM Tanveer’s recommendation highlights the importance of interest rate cuts to help Pakistan’s economy recover and grow steadily.
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