SAI Chief Terms 1.5% Interest Rate Cut as Insufficient

KARACHI: The Site Association of Industry (SAI) President, Muhammad Kamran Arbi, expressed disappointment at the State Bank of Pakistan’s (SBP) cutting interest by just 1.5%. He called the move “insufficient to address the challenges faced by the industrial sector”.

In a statement, Mr. Arabi highlighted that SITE Association of Industry had submitted budget proposals to the State Bank, advocating for a policy rate reduction to 13-14 percent. This, he argued, would alleviate capital shortages stemming from the escalating costs of operating industries.

SAI president further emphasized that the central bank should establish a roadmap for reducing interest rates, outlining measures aimed at alleviating the capital shortage faced by industries. If such a roadmap exists, he urged the industrialist community to be informed, as this would facilitate the implementation of mutually beneficial economic and business-friendly measures through collaborative consultation.

Kamran Arabi said that we are hopeful that measures like the recent reduction in interest rates will continue in the next monetary policy and the State Bank will seriously consider our proposal and bring the interest rate down to 13-14%. Because the rate of inflation is gradually decreasing in the country, which needs to be taken into account, so that the people and the business and industrial community can get relief.