Karachi, July 25, 2025 – The business community has strongly urged the State Bank of Pakistan (SBP) to introduce a significant reduction in the policy rate during the upcoming Monetary Policy Committee (MPC) meeting scheduled for July 30, 2025.
The demand comes amid easing inflation and sluggish economic activity, with industrial leaders warning that high interest rates are choking growth.
The SBP has officially announced that the MPC will meet on July 30 to review the monetary policy, and Governor Jameel Ahmad will announce the decision at a press conference the same day.
Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), emphasized that with inflation falling to 3.2% in June and the policy rate still at 11%, there is no justification for keeping borrowing costs so high. “The business community is under pressure. Industries are operating below capacity, investment has slowed, and confidence is low,” he said.
Naqi stressed that outdated monetary policies are obstructing industrial revival. “Countries around the world are cutting rates to boost business activity. Pakistan must act fast or risk rising unemployment, reduced exports, and missed fiscal targets,” he warned. He added that the SBP must make policy decisions based on on-ground realities to help stabilize the economy.
Zubair Tufail, President of the United Business Group (UBG) and former FPCCI President, echoed the call. He urged the SBP to slash the policy rate by 4–5 percentage points, bringing it into single digits to align with regional peers and help businesses breathe. “Inflation has come down to record lows, yet the business community continues to suffer from high financing costs,” he said.
Citing regional benchmarks, Tufail noted that interest rates in India, Bangladesh, Vietnam, and Thailand are far lower, reflecting their pro-growth approaches. “Pakistan’s SMEs are the backbone of the economy, and their survival depends on affordable capital,” he added.
Both Naqi and Tufail stressed that a sharp policy rate cut is essential to revive industrial output, attract investment, and generate employment. The business community hopes that the SBP will respond with a bold and realistic move to support economic recovery.