Karachi, July 30, 2025 – The SITE Association of Industry (SAI) on Wednesday strongly criticized the State Bank of Pakistan (SBP) for its decision to maintain the benchmark policy rate at 11%, despite a noticeable decline in inflation.
SAI President Ahmed Azeem Alvi expressed deep disappointment, stating that the central bank’s refusal to lower the rate has dashed the hopes of the business community striving for economic revival. He stressed that this decision contradicts the pressing demand for a single-digit interest rate, which is essential for encouraging investment, industrial growth, and employment generation.
Alvi questioned the SBP’s justification, pointing out that inflation has consistently fallen in recent months, creating ample room for a downward revision in the policy rate. “At a time when Pakistan is receiving positive signals globally, especially following its diplomatic success in Marka-e-Haq, such a rigid stance on interest rate policy seems not only untimely but counterproductive,” he said.
The SAI chief urged the Finance Minister and SBP Governor to engage with industrial stakeholders and clarify the reasoning behind this monetary stance. He emphasized that the country stands at a pivotal moment of economic potential, requiring bold and supportive financial policies to drive momentum.
Reiterating the association’s long-standing position, Alvi called for a gradual reduction of the policy rate to the 5–6% range, which he believes would significantly improve investor confidence and accelerate economic activity.
SAI urged the government to take swift, coordinated action by involving the business community in decision-making and aligning monetary policies with the realities of the market. Only then, he said, can Pakistan unlock its full economic potential and secure sustainable recovery.